VFD Group Plc which describes itself as the ‘Berkshire Hathaway of Nigeria’ has bounced back to profitability after posting over N2.6bn in the first quarter of 2024 despite Nigeria’s economic headwinds.
The investment group admitted to the Nigerian Exchange Limited in October last year through the listing by introduction also saw its gross earnings grow more than double to N15.3bn from N6.6bn posted in the first quarter of 2023.
VFD realised a gross profit of N3bn in the first quarter of the year compared to the N220.3m it posted in the corresponding period of last year.
From a N202.2m profit after tax in the first quarter of last year, VFD Group achieved N2.62bn profit after tax, a rise by more than ten fold.
The company also expanded its assets base by N42.6bn between January and March 2024 to N261bn from N219.3bn held in December 2023.
Shareholders fund rose from N32.5bn in December 2023 to N40.5bn in March 2024, the group’s books reveal.
But the achievements came amidst economic headwinds that dragged the company to N750.4m loss after tax in 2023 from N6.8bn profit in 2022.
The group’s operations in Ghana were affected by hyperinflation while in Nigeria, the removal of fuel subsidy and floating of the naira led to a 98 per cent depreciation in the value of the currency.
“In 2023, the economy of Ghana was deemed a hyperinflationary economy in accordance with the requirements of IAS 29 Financial Reporting in Hyperinflationary Economies,” the group said while explaining the reasons for its 2023 loss.
The group’s recovery explains its resilience since it was established 15 years ago. As of 2023, VFD which started with N2.5m start-up capital has expanded its portfolio to 40 different companies.
The Group Managing Director, Nonso Okpala said last year during the facts behind the listing of its 190,027,365 ordinary shares of 50k that the company is striving to be the continent’s biggest investment company.
Okpala said, “We have unwavering determination to become the largest investment company in Africa.
“VFD was started with a seed capital of N2.5m it sounds a lot like a fairy tale. That is the truth and it was contributed by 35 shareholders. These are people that beyond their money committed their time.
“One thing we wanted to do regardless of our balance sheet was to develop a track record of success so that we can show people what we can do. 14 years down, we have investments in 40 companies and we have deployed about N150bn in total investments. We think that we are uniquely positioned to become Africa’s largest proprietary investment company.”