At its 36th Annual General Meeting on Wednesday, Odu’a Investment Company Limited announced N 698 million as Profit Before Tax (PBT) for the financial year ended 31st December, 2017.
The announcement was contained in Engineer Olusola Akinwumi, the Chairman’s statement at the AGM held at the Odu’a Group’s Cocoa House Headquarters in Ibadan. The company’s shareholders also approved the payment of N277.78 million as dividends.
The Chairman pointed out that “the Group’s assets in real estate adversely affected the business. A sizeable number of clients and tenants in rented commercial, retail and residential properties defaulted in rent payments. Overall cost increases due to inflation and the devaluation of the currency the previous year pushed operating cost upwards. The Group Revenue of N 4.068 billion in 2017 amounted to a 3.8% increase over 2016 figure of N 3.918 billion”. Engr. Akinwumi however assured stakeholders and directors of the company’s commitment to strict adherence to highest standards of corporate governance and ethical leadership.
While speaking about Lagos State joining the membership of the Odu’a Group, he said “the coming of Lagos State into Odu’a as one of the investing states is best for our regional integration agenda. We shall continue to work out the synergy to drive the socio economic development of the Western Region.” The Chairman also noted that in aligning with the priority sectors of the Federal Government’s Economic Recovery and Growth Plan (ERGP), the company is pursuing sustainable development projects in the areas of agriculture, services and infrastructure.”
Engr. Akinwumi also spoke on the disciplined investments for growth opportunities made by the company. “We recently embarked on full buy back of minority holding leading to 100% ownership of one of the moribund manufacturing outfits in the Group, Cocoa Industries Limited, Ikeja (the estrwhile producer of VITALO cocoa beverage) for better utilization of its facilities in joint ventures”, he said.
He also gave a sneak preview into plans to further strengthen the company for more investment frontiers as he disclosed that the board had approved the drawing up of a new strategic plan which would be implemented in phases over a five-year period. ‘’This,‘’ he added, “Will focus the Group to continue exploring the potential of expanding its operations by seeking and introducing new and innovative products and services in order to broaden its revenue base and also improve service delivery to shareholders”.
In his report, the Group Managing Director/CEO, Mr. Adewale Raji pointed out that “over the last few years, the Board and Management have dug into the Group’s rich history, listened to shareholders and stakeholders alike and consulted widely to come to the realization that achieving sustainable growth requires diversification of its income sources from preponderance of real estate assets is fundamental to securing its future”.
Mr. Raji reassured shareholders and stakeholders that despite the challenging economic climate locally and globally, the company is geared to overcome the various business environment challenges. He asserted that focus on the company’s vision and investments in new businesses will be the drivers of the company’s growth and at the long run create value for shareholders.
It was noted at the AGM that Odua Group has so far declared and paid about N 920 million as dividend to shareholders over the last four financial years (2014-2017) which is unprecedented in her history.
Packaged by Wole Adejumo
