Odu’a Investment’s growth strategy reaps rewards with N3.95bn in operating revenue
Onome Amuge
The Odu’a Investment Company Limited (OICL), a strategic investment and asset management firm, has announced a 7 per cent growth in its operating revenue from N3.67 billion in 2022 to N3.95 billion in 2023. The impressive financial performance was revealed at the company’s recent Annual General Meeting (AGM) held at the Oranmiyan Hall at Lagos Airport Hotel Limited, where shareholders approved all resolutions presented before them, heralding the company’s stellar performance and commitment to delivering shareholder value in the ever-evolving Nigerian business landscape.
The company also approved a series of resolutions that further cemented its financial stability and commitment to shareholder value. Chief among these was the adoption of the financial statements for the financial year 2023, which offered a comprehensive and transparent overview of the company’s exceptional performance.
According to the financials, the company’s profit after tax stood at N1.96 billion in 2023, 52 per cent lower than the N4.08 billion recorded in 2022, driven largely by lower revaluation gains in 2023. On the other hand, operating profits grew 73 per cent from N913 million in 2022 to N1.58 billion in 2023. Furthermore, shareholders endorsed a cash dividend payment of N428 million, a clear indication of the company’s commitment to rewarding its investors while also positioning itself for continued growth and success.
Despite the economic volatility of 2023, Bimbo Ashiru, in his role as group chairman of Odu’a Investment Company Limited, guided the firm to a steady seven per cent growth in operating revenue from N3.68 billion in 2022 to N3.95 billion in 2023. This positive performance was no small feat, as Ashiru acknowledged while addressing the shareholders, highlighting the impressive Profit Before Tax of N1.96 billion amidst the year’s economic challenges.
In a demonstration of his gratification with Odu’a Investment’s advancement, Ashiru highlighted the firm’s strides in collaboration, synergy, and leveraging shared services. These efforts, he noted, coupled with astute business innovations and cross-selling, have successfully actualised the founding fathers’ vision for the company.He noted further that the realisation of this vision has been made possible by the successful implementation of Odu’a Investment’s five-year Strategic Plan, which aims to revitalise and expand existing businesses, as well as foster new ones.
Ashiru highlighted some remarkable milestones from the previous year. The first being the official commissioning of the Phase 1 of Westlink iconic Villa, in Alakia, Ibadan, by former Vice President Yemi Osibajo, comprising 67 residential units, reflecting the company’s commitment to enhancing the region’s real estate landscape.
In addition, Ashiru highlighted the launch of the Odu’a Investment Foundation’s educational intervention project, DEFINED (Digital Education for Innovation and Economic Development). Under the leadership of Olatokunbo Awolowo-Dosunmu, the chairperson of the Odu’a Investment Foundation’s Advisory Council, the initiative aims to revolutionise the education landscape across the southwest region by empowering children with digital learning skills that are critical for economic development.
In another testament to the company’s concerted efforts to strengthen its financial standing and attract funding, Ashiru noted that Odu’a Investment Company Limited and its subsidiary, Wemabod Limited, secured Agusto ratings in 2023. The Odu’a Investment Company Limited obtained an A-rating, while its subsidiary achieved an A-rating, highlighting the company’s commitment to business repositioning, financial stability, and growth-oriented initiatives.
The group chairman stated further: “Once again, I will like to congratulate the company for another year of delivering a strong performance. I believe that the focus in 2024 will be on ensuring a smooth transition for the new Group Managing Director, developing both BITA Exploration and Production and SWAgCo into cash generating entities, and identifying new business opportunities for our pipeline.
In the course of the year, we will have the groundbreaking ceremony for Westlink Aurora, a joint venture real estate redevelopment project involving Aerofield Homes Limited and Odu’a Investment Company Limited. The project, which is located at the heart of Ikeja GRA, consists of 40 units of 3 bedroom and 4 bedroom luxury terraces, maisonettes and penthouses.”
Also speaking at the AGM,Adewale Raji, the group managing director/CEO of Odu’a Investment Company Limited, extended his heartfelt gratitude to the shareholders, acknowledging their support and faith in him during his ten-year tenure. Raji, who is set to retire on 31st May 2024, reflected on his successful journey with the company and highlighted the corporate governance framework that was established under his leadership, which prioritised merit-based appointments and operations, fostering a more dynamic and efficient work culture.
The outgoing GMD expressed pride in the successful repositioning of the company during his ten-year tenure. According to him, this restructuring was led by the company’s SRC-2025 Strategy, with the central aim of transforming Odu’a Investment into a streamlined, non-operating investment holding company focused on eight key sectors: Real Estate, Hospitality, Financial Services, Agriculture, Energy/Power, ICT/Digital, Healthcare/Pharmaceuticals, and Logistics/e-Commerce.
As the company’s repositioning continued to be the topic of discussion, Raji expounded on how the emphasis on “Sweating” of assets paved the way for the consolidation of Odu’a Investment’s entire real estate portfolio under its subsidiary, Wemabod Limited. This strategic move, he explained, allowed for the comprehensive redevelopment of the company’s real estate assets, either through internal funding or joint venture partnerships, with the ultimate goal of maximizing yield and return on investment.
Raji’s address further touched on the “Revive” and “Create” aspects of the company’s SRC-2025 Strategy. He detailed the company’s comprehensive renovation and redevelopment of Premier Hotel in Ibadan, explaining that significant progress had been made on the existing building and new developments, with a phased reopening planned for the first half of 2025. The CEO also talked about the “Create” aspect, citing significant progress made by BITA Exploration and Production Ltd, a subsidiary of Odu’a Investment, in funding the Field Development Plan of its marginal field (PPL 249).
“The company expects that once these funding and regulatory requirements are met; it will be able to achieve ‘’First Oil’’ within Q1 of 2025. All these translated to remarkable success in its financial performance, corporate governance, risk management, and asset optimization across its chosen sectors,” he stated.
The outgoing CEO presented a more comprehensive picture of the company’s financial performance by highlighting the growth in profit before tax , which, when adjusted for revaluation gains arising from investment properties, showcased a 62 per cent increase in 2023 compared to 2022. Raji further noted that the 2023 financial year would mark the 10th consecutive year of dividend payments to shareholders, a remarkable accomplishment that has resulted in cumulative dividend payments of N3.11 billion over the last decade.
Raji’s confidence in the future of Odu’a Investment Company Limited was reflected in his strong support for the incoming CEO, Abdulrahman Yinusa. Raji expressed his belief that under Yinusa’s leadership, the company would achieve significant milestones, including the successful redevelopment of its hotel portfolio, new premium residential and commercial redevelopment projects, strategic joint ventures in the agriculture sector, the implementation of the field development plan for the BITA marginal field, and a major role in Nigeria’s electricity sector.