- As Profit Before Tax Soars by 102%
The shareholders of Odu’a Investment Company have approved the payment of N418.4 million dividend, a 15 per cent increase compared to N364 million paid in the 2020 financial year as the company recorded a 102 per cent increase in its profit before tax for the 2021 financial year.
Rising from the annual general meeting of the investment company jointly owned by Lagos, Oyo, Ogun, Osun, Ondo and Ekiti states, the shareholders applauded the improvement made in the profitability of the company.
They however urged the management to improve the performance through diversification.
Governor of Ondo state, Rotimi Akeredolu, at the AGM in Lagos, urged the board and management of Odu’a Investment under the incoming chairman, Bimbo Ashiru to work with investors towards improving the hospitality investments.
He also called for more investment in ranching, as well as agriculture. The investment company had last year recorded a four per cent increase in revenue which grew to N4.01 billion compared to N3.84 billion which it made in the 2020 financial year.
Outgoing group chairman, Dr. Segun Aina, in his statement to shareholders, stated that, profit before tax which included revaluation gains grew significantly by 149.8 per cent from N3.75 billion achieved in 2020 to N9.37 billion, driven by the increased focus on the different areas of the business and gains in investment properties.
“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. This marks the eight consecutive year that the company is declaring and paying dividends to shareholders,” he said.
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.
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.
Commenting on the result, the group managing director and chief executive, Mr. Adewale Raji explained that PBT for 2021 included revaluation gains of N7.11 billion from the company’s investment properties portfolio which was N2.63 billion in 2020. If this Accounting gains are stripped off, the normalised PBT for 2021 will be N2.26 billion and N1.12 billion 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 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.