Business

Odu’a Investment posts N9.37bn profit, declares N418.4m dividends to shareholders

Odu’a

By Motolani Oseni

Odu’a Investment Company Limited has reported an increase of 149.8 per cent in its Profit Before Tax (PBT), from N3.75billion achieved in 2020 to N9.37billion that it stood at the close of the financial year ended 31st December 2021.

The management of the company, also, approved the payment of cash dividend of N418.4million to its shareholders which is a 15 per cent increase over prior year.

Speaking to shareholders at its 40thAnnual General Meeting (AGM) on Wednesday, at the Lagos Airport Hotel Limited, Ikeja, Lagos, the company’s Group Chairman, Dr Segun Aina, explained that the growth recorded during the period under review was driven by the increased focus on the different areas of the business and gains in investment propertie..

On the strength of this performance, the company increased its dividend pay-out by 15 per cent to N418.4 million for 2021 Financial Year (2020: N364m),This marks the 8th consecutive year that the company is declaring and paying dividends to shareholders.

Dr Aina assured shareholders that the Board had put in various best practice governance policies in the year under review that will ensure the company’s investments create sustainable impact in the ensuing years, DailyTimes gathered.

He thanked the shareholders for the great privilege and rare honour to have been given the opportunity by shareholders to be the Group Chairman of Odu’a Investment between May 2020 and June 2022 and urged fellow Directors and Management to remain focused on the delivery of the Company’s 5 Years “SRC-2025” (Sweat, Revive and Create 2025) Strategic Thrust.

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Commenting on the result, the Group Managing Director/CEO, Mr. Adewale Raji buttressed that PBT for 2021 included revaluation gains of N7.11Billion from the company’s investment properties portfolio which was N2.63Billion in 2020. If this Accounting gains are stripped off, the normalized PBT for 2021 will be N2.26Billion and N1.12Billion for 2022; representing an appreciable 102 per cent growth.

He also reported that the company celebrated 45years since it commenced operations in November 2021 and that as part of the celebrations, the Odu’a Investment Foundation was established to positively influence the next generation of youths with a focus on Health, Education and Youth Empowerment

Our Agric Investment Subsidiary, SWAGCO Ltd (South West Agriculture Company), has begun to make significant effort in investing in agriculture opportunities that will drive capacity development for a new generation of commercial farmers and entrepreneurs. We have committed a large proportion of our land bank towards these efforts focusing on Cassava, Maize, Paddy Rice and Dairy.

The company’s investment in Oil & Gas through acquisition of part of BITA Marginal Field and set up of BITA Exploration & Production Ltd with our JV partner is gathering momentum.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) that replaced DPR is currently finalizing the model for Licensing and Contracting documents that will govern the operations of the 2020 Marginal Field Bid Winners.This is the critical hurdle to scale to make the coast clear for a Field Development Plan and approval that will lead to achieving ‘’First Oil’’

The business outlook of the company is to transit to a lean non-operating holding company that will focus on driving the growth and expansion of its Subsidiaries and Associate Companies, ensuring Investment Excellence across its portfolio of assets and seeking for new partnerships for growth in its 8 sectors as captured in’’SRC 2025 Strategic Plan” (i.e. Agriculture, Real Estate, Hospitality, Financial Services, Energy, Healthcare, ICT/Digital and Logistics/e-Commerce).

In attendance were shareholders represented by the Secretaries to the State Governments (SSGs) of Oyo, Ondo, Ogun, Osun, Ekiti and Lagos States. All resolutions presented for shareholder approval were adopted.

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Ihesiulo Grace

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