VFD Group Forecasts N3.26bn as Profit in Q2-2024
VFD Group Plc has forecast N3.26 billion as profit expectation for the second quarter of 2024, according to a regulatory filing. The expectation was anchored on a hope of better earnings performance in 2024.
In its latest financial statement, VFD Group posted underwhelming performance in 2023 as profit dropped by about 85% year on year to settle at N1.08 billion following a large decline in its other income line.
Its unmet earnings performance reduces buying interest, making VFD cheaper to access or buy on the local bourse at N202.90, according to data from the Nigerian Exchange. Its market valuation has remained steady at N38.556 billion in the last seven days.
In Oct, VFD Group listed 190.027 million shares at N244.88 per share on the Nigerian Exchange. The group said gross earnings would print at N24.929 billion in the period but noted that a cash flow forecast is not practically possible until the end of the first quarter of 2024 operations.
It projected cash flow at the end of the quarter to be more than N25 billion. The group that seeks to build a truly diverse business ecosystem told the regulator it expects more than N22.40 billion from investment and similar income.
The financial obligation to achieve this was estimated at N16.718 billion. VFD would be left with N5.683 as net investment income accrued to the group in the second quarter of the year.
The company’s other income line would come at N2.527 billion at the end of the second quarter of the year. In total, operating income is expected to settle at N8.211 billion in the period.
With estimated personnel expenses of more than N985 million, more than N540 million non-cash flow charges and n1.723 billion in other operating expenses, VFD group expects total operating expenses to settle at N3.249 billion.
This is expected to reduce the company’s bottom line, as pre-tax profit is expected at N4.664 billion at the end of the second quarter of 2024. The group estimated tax provision came at about N1.4 billion, thus reducing profit expectation to N3.265 billion at the end of Q2-2024.
VFD Group seeks out viable opportunities that cater to the investment needs of Retail & Institutional Investors across all tiers for direct market gain. The group recorded N1 billion profit after tax in 2023, about 85% below the N7.092 billion posted in 2022. #VFD Group Forecasts N3.26bn as Profit in Q2-2024
