Odu’a Investments Limited on Wednesday announced a profit before tax of N789 million and paid N275 million dividends to its five owner states of Oyo, Osun, Ondo, Ekiti and Ogun.
The Group Managing Director/Chief Executive Officer (GMD/CEO) of the conglomerate Mr Adewale Raji, made the announcement during the 35th Annual General Meeting for the 2016 financial year.
He said the profit represents a 32 per cent increase over N597 million made in the 2015 financial year. It paid N192million as dividends.
Raji explained that the operating environment for the year under review was harsh as marked by weak crude oil prices and declined volume output due to production sabotage in the Niger Delta. He pointed out that the situation culminated in unprecedented foreign exchange shortages, rising inflation and depressed consumer purchasing power.
He said: “Rentals from the various commercial, retail and residential properties stagnated while in some cases, particularly the retail segment, had reduction to retain occupancy. The Group’s overall revenue increased five per cent from N3.73 billion to N3.92 billion while the holding company posted an 11 per cent revenue increase to N1.88 billion from N1.69 billion in 2015.”
To beat the pack, Raji said the Board and Management embarked on aggressive cost management and efficiencies to cap administrative expenses at almost previous year level. He added that the company reduced finance cost through efficient capital deployment to curtail the impacts of the “economic headwinds.”
According to the Board’s Chairman, Chief Segun Ojo, the company has paid a cumulative gross dividends of N 635.77 million to its owners from 2014 to 2016.
Raji also disclosed that the full admission of Lagos State as the sixth owner was at the final stage as the financial legal transaction advisers appointed by both parties have completed the valuation of Odu’a assets. “The reconciliation of the outcome is a ongoing now which will culminate in the formal execution of the share subscription agreement by the two parties in the following month.” He said.
The GMD said the company would widen its investments into agro-allied and its value chain businesses in the coming year to promote wealth creation and job opportunities in Western Nigeria.
“We thank our shareholders for the confidence reposed in us and we promise to deliver a stellar performance next year.” Raji said.
The Secretary to the Ogun State Government (SSG), Mr Taiwo Adeoluwa, who spoke on behalf of the shareholders, expressed satisfaction with the result, describing it as ‘heartwarming.’ He said the company made a tremendous progress over previous year’s performance that resulted in increase in both revenue and profit before tax.
He, however, challenged the Board and Management to put in more efforts to deliver a better result next year.
At the meeting were SSGs of four other states, members of the Board and Management as well as heads of some subsidiaries.