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Adeniyi Adenubi an Executive Director at VFD Group Plc, has sold 1.9 million shares of the firm as the proprietary investment company reported an 81% slide in pre-tax profit in the third quarter (Q3), of 2023.
Adenubi sold his shares on Monday November 20th at an aggregate price of N202.9 per share, for a total consideration of N385.5 million. The transaction represents about 1% of VFD Group’s 190m shares outstanding.
VFD Group reported pre-tax profit of N933.56m in Q3, down from N5.05 billion in the previous period of 2022.
VFD Group’s profitability was affected by higher investment and operating expense which surged by 46.5% and 40 percent respectively in the period, due to Naira depreciation and inflation.
“Our profitability for the period was impacted by the following: Naira depreciation from N447 to N767 (71.85%), which increased the cost of the hedge instruments we used to address exchange volatility on our forward transactions and had a significant impact on interest expense. Unprecedented inflation and the rising cost of doing business in the country impacted our operating costs as well,” Nonso Okpala, GMD/ CEO of VFD Group said.
VFD Group shares are down 17% year-to-date, underperforming the NGX all share index which has risen 38.6% in the same period.
VFD Group is an investment firm with portfolio across 41 businesses, ranging from financial services to asset management, real estate, and Fintech.
The firm had total assets of N200.85 billion as at September 2023, and its shares are traded on the NGX.
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