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Odu’a Investment Company Limited recorded a gross revenue of N1.69 billion for the 2015 financial year as against N2.02 billion in 2014, a decline of 16 percent.
Also the conglomerate earned profit before tax of N597 million during the year under review compared to the previous year’s N615million.
Despite the slight decline,the company paid a sum of N175 million as dividends to the five owner states of Oyo, Ogun, Ondo, Osun and Ekiti,amounting to N35 million respectively.
The dividends represented an increase of 16 per cent above the N30 million the states received last year.
The group total assets presently stands at N80 billion
The cheques were presented to representatives of the owners at the Cocoa House headquarters during the 34th Annual General Meeting (AGM) of the conglomerate.
The board Chairman, Isaac Akintade said the board decidedto pay dividends to owner states in accordance with its promise to be consistent in dividend payments
The Group Managing Director (GMD), Adewale Raji, said the company paid higher dividends as a reward for the support of shareholders in the challenging operating environment in the year under review as well as an assurance of better days ahead.
He expressed gratitude to shareholders and the Board for their support for the feat achieved.
On how the company was able to maintain financial stability in the face of the harsh economic environment, Raji said Management and Board focused in the strategies laid out to achieve efficiency.
According to him, we remained focused to our strategies and were committed to our ideals and goals. Despite the very turbulent time that we are all facing, we ensured the highest level of efficiency and we kept our eyes close to the ball, not dropping it. I think we have been able to have this impressive result because our shareholders have made it possible for us.
“The time was challenging, I must confess. Income was very tough. We managed and ended up with a reduction in income. In actual fact, our profit is lower by three per cent compared with the previous year. We all know all the challenges in the economy today in terms of disposable income to people and patronage. These are areas which affected us seriously. All the same, we are managing business. Unless a business demonstrates profitability, there is nothing you can tell shareholders or stakeholders. We believe that with our focus and commitment, all our other plans will materialize and then we can start to demonstrate growth.”
Raji also disclosed that one of the areas the company was working on is agro-processing industry. With the country tackling recession through diversification and patronage of local products, the GMD said Odu’a was already working on the idea of an agro-processing factory that would be unveiled next year.
“We want to sustain what we did in the past and introduce new thing that could generate more revenues. We are working assiduously on this. We just laid the foundation of a housing estate in Ibadan. We are trying to add to our private portfolio and we are going into agro-processing.”
Speaking on behalf of the five shareholders, the Secretary to the State Government (SSG) of Osun, Moshood Adeoti, commended the company for paying higher dividends in spite of lower profit. He urged the management not to rest on its oars.
Lagos State, which was admitted into the group earlier this year, is expected to join the group of owners in the next AGM.
