VFD Group Plc, a leading proprietary investment company, has released its financial statements for the first quarter of 2024.
The company reported a revenue of N12.4 billion up from N11.57 billion reported in the same period in 2023. his increase in revenue indicates a positive trend in the company’s ability to generate income.
Net investment income also showed growth, rising to N3.15 billion from N2.925 billion in Q1 2023. Additionally, other income increased to N1.45 billion from N1.2 billion, reflecting the company’s diversified income streams.
VFD Group Plc managed to achieve a profit before tax of N1.2 billion in Q1 2024, slightly up from N1.1 billion in Q1 2023. Net profit also saw a modest increase, reaching N850 million from N800 million in the previous year.
This growth in net profit, despite rising expenses, indicates effective cost management and operational efficiency despite a challenging operating environment
Key highlights of the result
Income Statement Analysis
- Gross Earnings: N12.475 billion (Q1 2024) vs N11.675 billion (Q1 2023) +6.8%
- Net Investment Income: N3.15 billion (Q1 2024) vs N2.925 billion (Q1 2023) +7.7%
- Other Income: N1.45 billion (Q1 2024) vs N1.2 billion (Q1 2023) +20.8%
- Operating Expenses: N5.25 billion (Q1 2024) vs N4.95 billion (Q1 2023) +6.1%
- Profit Before Tax: N1.2 billion (Q1 2024) vs N1.1 billion (Q1 2023) +9.1%
- Net Profit: N850 million (Q1 2024) vs N800 million (Q1 2023) +6.3%
Balance Sheet Analysis
- Total Assets: N220.5 billion (Q1 2024) vs N210 billion (Q1 2023) +5.0%
- Total Liabilities: N170 billion (Q1 2024) vs N160 billion (Q1 2023) +6.3%
- Shareholders’ Equity: N50.5 billion (Q1 2024) vs N50 billion (Q1 2023) +1.0%
Commentary
VFD Group Plc’s financial performance in Q1 2024 showcases a balanced growth in revenue and net profit amidst rising operating expenses and liabilities.
- The company’s ability to manage costs effectively and expand its asset base while maintaining a modest increase in profitability is commendable. However, the significant rise in liabilities highlights the need for vigilant financial management to ensure long-term stability.
- Investors and stakeholders will be keenly observing how VFD Group Plc navigates these challenges and leverages its revenue growth to enhance profitability and shareholder value in the coming quarters.