Press Statement On the 36th AGM For Year Ended 31st December 2017

Press Statement On the 36th AGM For Year Ended 31st December 2017
Odu’a Investment Company Limited posts N1.384 billion Profit before Tax..pays dividend of N277.78million to Shareholders
Odu’a Investment Company Limited held its 36th Annual General Meeting (AGM) on Wednesday, 10th October, 2018 at the Company’s Group Headquarters, Cocoa House, Ibadan.
The Group Chairman, Engineer Olusola Akinwumi in his statement at the AGM announced N1.384billion as Profit before Tax (PBT) for the financial year ended 31st December, 2017. This is just as the company’s shareholders approved the payment of N277.778million as dividend.

The company noted the faithful implementation of the EGPR (Economic Growth Recovery Programmes) of the Federal Government since 2017 has continued to wean the country off its dependence on oil with stronger agricultural performance.

Nigeria inched 24 places upwards on the World Bank Ease of Doing Business Ranking moving from 169th to 145th. A number of important infrastructure projects in power, rail and road were embarked upon and the de-escalation of hostilities in the Niger Delta Region also enhanced crude oil domestic output and higher global prices in 2017. The country also recorded unprecedented 126% increase in foreign capital investment to USD12.2billion compared with the USD 5.4billion in 2016.
However, inflation rate for the year was 16.5% and cost increases across board were the order of the day that businesses had to contend with. There were also security concerns in the North West part of the country arising from insurgency and political uncertainties.

The Group’s skewed assets in real estate adversely affected the business. A sizeable number of clients and tenants in rented commercial, retail and residential properties defaulted in rents payments. Overall cost increases due to inflation and the devaluation of the currency the previous year pushed operating costs upwards. The Group Revenue of N4.068billion in 2017 amounted to a 3.8% increase over 2016 figure of N3.918billion.

Engr Akinwumi however assured shareholders 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 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 said in aligning with the priority sectors of federal government’s Economic Recovery and Growth Plan (ERGP), the company is pursuing sustainable development projects in the areas of agriculture, services and infrastructure.”

He added that the company had made disciplined investments for growth opportunities. “We recently embarked on the recovery of one of the moribund manufacturing outfits in the Group, Cocoa Industries Limited, for better utilization of its facilities in joint ventures.
The company is currently undertaking commercial growing of tomatoes on a portion of its 3,500 hectares arable farmland in Imeko, Ogun State. The ultimate is to establish a processing plant for value addition and social development of the community and overtime achieve of technical expertise to competent Nigerians.”
On plans to further strengthen the company for more investment frontiers, Engr. Akinwumi said 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.”
The Group Managing Director, Mr Adewale Raji, in his report, focused on the company’s growth strategy, which he predicated on unlocking value from asset base for sustainable development projects and business process improvement

He said, “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 diversification of its income sources from preponderance of real estate assets is fundamental to securing its future.
His words, “The directors recommend for payment to shareholders, a dividend of N277.778million on current paid up capital. The dividend for 2017 brings to about N920million the dividend paid to shareholders over the last four financial years of 2014-2017 which is unprecedented in her history”.
Mr Raji, in his 2018 outlook, reassured Shareholders and Stakeholders alike that despite the challenging economic climate locally and globally, the company would still remain strong.
The GMD said, “We are deeply convinced that our fiscal discipline, the deepening of expertise and competencies and focus on our vision and investments in new businesses will be our drivers of growth. These we believe will yield new revenue streams that will create value for our shareholders.”

DATED 10TH OCTOBER, 2018


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