The Chairman of the Odu’a Investment Company Limited, Otunba Bimbo Ashiru has announced the total sum of Four Hundred and Twenty Eight Million Naira(N428,000,000) to the board and stakeholders of the company as the dividend for the year 2022.
Otunba Ashiru made the announcement on Thursday at the Lagos Airport Hotel, Ikeja during the 41st Annual General Meeting of the company.
The AGM had in attendance representatives of the six South West states, comprises of Osun, Ogun, Ekiti, Oyo, Ogun and Lagos.
Otunba Ashiru who gave the financial performance of the company noted that Odu’a Investment Company Limited’s operating revenue decreased 8.5% from N4.01 billion in 2021 to N3.67 billion in 2022.
Ashiru said, “The company posted a profit before tax of N4.08 billion in 2022, 56.5% lower than the N9.37billion in 2021, this was driven largely by lower revaluation gains. Total assets grew 3.6% from N110.56billion in 2021, to N114.51billion in 2022.”
“Despite the socio-economic challenges we faced as a business, I’m happy to reports that the board has recommended a dividend of N428 million for your approval, this is higher than the dividend of N418 million paid in 2021, and indicative of our commitment to delivering sustainable returns. He said.
Otunba Ashiru further maintained that in December 2022, Odu’a Investment Company Limited reached an agreement with strategic partner to remodel, renovate and upgrade the existing Premier Hotel from an 87-room hotel to a 150-room 5-star hotel.
He said, “The redeployment hotel will be equipped with world-class conference facilities, restaurants, recreational facilities, and ample parking. The project is expected to be delivered in the first quarter of 2025. I’m happy to inform you that we have also registered and set up the office for the Odu’a Investment Foundation today.
“The outlook for 2023 remains positive, we expected some of the critical changes in the monetary and fiscal policy environment that will drive activities in real estate and construction, agriculture, and the power sector amongst others.”
“I believed that the year 2023 will be pivotal for the business, several transformational initiatives in our operations will be completed or nearing completion, and it will therefore be a year of consolidating on the significant shift that the board and management have worked so diligently to achieve over the last three years. The multiplier effects that we expect on our revenue and asset base have begun to appear and the trajectory of the business can only be upwards.” Ahsiru said.
In his report, the Group Managing Director/CEO of the Company, Mr. Adewale Raji also noted that the year 2022 started on a positive note globally, as the world appeared to be on the path of recovery in the aftermath of the COVID-19 pandemic.
Raji further said that, “The recovery from the Covid-19 was soon interrupted by the escalation in the conflict between Russia and Ukraine, whilst the effect of the war on Ukraine was particular devastating, the impact of the war on global energy and commodities markets were also significant. Sanctions imposed on Russia, which is a major oil and gas producer, contributing about 17% to global gas production only seemed to worsen the impact of the war on the global economy.’
“The impact of the war was felt in the commodities market as a significant portion of global supply of wheat, rye, corn, barley, sun oil, coal, aluminium and nickel is attributable to the two countries. Central Banks across the globe raised interest rates with the intention of curbing inflation even though economic growth was on a decline. Consumer prices in advanced economies grew by 7.3% in 2022 according to the International Monetary Fund, with prices rising by 8.4% in the Euro Area and 8% in the United States.”
Price increases in the United States hit a high of 9.1% in June, and 11.1% in the United Kingdom in October. Outside of the Euro Zone, the United States, and East Asia, on average price increases hit double digits in most regions. Banks such as Silicon Valley Bank, Credit Suisse, and Signature Bank failed in 2022, in what appeared to be the beginning of another global financial system crisis. Luckily, the fears of contagion were not realised as these bank failures were contained. Crude oil prices rose throughout the first half of 2022, with the OPEC Reference Basket (ORB) Price hitting $120 per barrel by June 2022 from about $78 per barrel at the beginning of the year.”
“Odu’a Investment Company recorded a revenue of N3.68 billion in 2022 which was an 8.5% decrease from the 2021 amount of N4.01 billion. Profit Before Tax was N4.08 billion compared to the 2021 figure of N9.37 billion. This was driven mainly by a reduction in revaluation gains on investment properties from N7.11 billion in 2021 to N2.98 billion in 2022.
“These gains do not occur on all our properties all at once and will typically vary from one year to another. If this Accounting gains are removed, the normalised Profit Before Tax for 2022 will be N1.1 billion compared to N2.26 billion for 2021Based on this modest profitability, the Board of Odu’a Investment Company limited is proposing for the approval of the Shareholders a gross dividend of N428 million.”
“This is a 2.2% increase over the N418 million paid for 2021 Financial Year. Should this recommendation be approved and paid out, it will bring the total dividend paid to Shareholders over the last 9 years to the sum of N2.56 billion.” Raji said.