• Wednesday, May 29, 2024
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BusinessDay

Odua investment declares N1.961bn profit, grows revenue by 7%

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…pays N3.11 bn dividends in 10 yrs

Despite the economic headwinds, Odu’a Investment Company Limited grew its operating revenue to N3.95 billion for the 2023 financial year.

The growth reflects a seven percent increase compared to N3.68 billion in 2022.

Bimbo Ashiru, group chairman, Odu’a Investment, disclosed the feat at the 42nd annual general meeting of the group, which was held in Lagos recently.

He noted further that the past year was another year of good performance by the company, as it posted a profit before tax of N1.96 billion.

The meeting, which had all the secretaries to the six state governments of South-West in attendance, approved among other resolutions, the company’s financial statements for the financial year 2023 as well as the payment of a cash dividend of N428 million to its shareholders.

This brings the total dividend paid to shareholders over the last ten years to the sum of N3.11 billion.

Ashiru also expressed satisfaction over improved collaboration and synergy within the group and leveraging shared services, cross selling, joint marketing and business innovation.

“Odu’a Investment is translating the timeless vision of its founding fathers into reality by the implementation of the group’s 5-year strategic plan, which aims to create and revive businesses and assets to deliver continuous growth and value to shareholders and stakeholders,” Ashiru said.

As a group, we will continue to strive for the transformation and repositioning of our businesses in an ever-changing business environment. We are committed to improving the productivity, and profitability of the businesses we operate, while delivering significant impact”.

Reviewing the year, he stated that the company commissioned Phase 1 of Westlink Iconic Villa, Alakia, Ibadan, comprising 67 residential units of 3-bedroom apartments, 4-bedroom and 5-bedroom duplexes and launched the Odua Investment Foundation and its flagship Educational Intervention Project tagged ’’Digital Education for Innovation & Economic Development (DEFINED).

“Odu’a Investment also secured its first ever Credit Rating in 2023 with Agusto & Co awarding it ‘’A’’ Rating with a Stable Outlook attributed to its debt management and good operating cash flows supported by its diversified income streams and portfolio of subsidiaries and associates’’.

Ashiru also said that the redevelopment of Premier Hotel commenced in 2023 with significant progress made in the existing building and the new developments on the site.

In 2024, the company, according to him, will focus on ensuring a smooth transition for the new group managing director to take over the affairs of the group, developing both BITA Exploration and Production, and SWAgCo into cash generating entities and identifying new business opportunities.

Adewale Raji, group managing director/CEO, Odu’a Investment Company Limited, who will be officially retiring on May 31, 2024, in his report, appreciated all the shareholders for the opportunity given to him to serve the company for two successive terms lasting 10 years during which the group with their support enthroned a new corporate governance framework that depoliticized its operations, appointments and management.

Raji said that the group in this past ten years witnessed repositioning that was driven by her SRC – 2025 Strategy to be a lean non-operating investment holding company focused on eight sectors of real estate, hospitality, financial services, agriculture, energy/power, ICT/digital, healthcare/pharmaceuticals and logistics/e-commerce.

“It is such focus on ‘’Sweating’’ that necessitated the consolidation of the entire group’s real estate portfolio under our Wemabod Limited subsidiary leading to the massive redevelopment either through own resources or joint venture partnerships of our real estate portfolio to optimize yield and return.

‘’Revive’’ is manifesting in our renovation and redevelopment of Premier Hotel at Ibadan with significant progress made in both the existing building and new developments on the site with phased re-opening starting in H1 of 2025. ‘’Create’’ reflects the significant step up in our BITA Exploration and Production Ltd marginal field (PPL 249) funding thrust to implement the Field Development Plan with our partner, Pioneer Global Energy Resources, ” the GMD said.

The company, according to him, expects that once these funding and regulatory requirements are met; it will be able to achieve ‘’First Oil’’ within quarter one of 2025. All these translated to remarkable success in its financial performance, corporate governance, risk management, and asset optimization across its chosen sectors.

He noted that in real terms, Odua investment’s Profit Before Tax for 2023 actually increased by 62 percent to N1.772 billion from N1.092 billion in 2022 if you strip off revaluation gains arising from the investment properties portfolio in both years.

The GMD also recounted that the financial year 2023 will be the 10th consecutive year that the company will be paying dividends to Shareholders with the cumulative amount paid in this past decade amounting to N3.11 billion.

In his review of the operating environment, Raji expressed optimism that President Bola Ahmed Tinubu administration’s pursuit of a market-driven approach to resolving underlying problems of the economy will attract long-term investments into the country to fund infrastructure and social services that includes roads, rail, power, healthcare, education, etc that will translate into sustainable economic and human capital development.

Raji expressed confidence that under the leadership of Abdulrahman Yinusa, the incoming GMD/CEO of OICL, the company will deliver on the ongoing redevelopment of the hotels in the group, new pipeline of premium residential and commercial redevelopment projects, securing viable joint venture partnerships for the agriculture portfolio, achieve ‘’First Oil‘’ in the implementation of the field development plan of BITA marginal field, and facilitate the company’s mainstream participation in the turnaround of the power/electricity sector.

The Odua company is owned by the six South-West states of Oyo, Ogun, Ondo, Ekiti,Osun and Lagos.