Odu’a Investment Company Limited, a prominent investment firm owned by the six southwestern states of Nigeria, has announced a commendable financial performance for the 2024 financial year, culminating in a 21% increase in dividend payout to shareholders. The company declared a dividend of N518 million, up from N428 million in 2023, rewarding its investors despite a challenging macroeconomic environment characterized by high inflation, fluctuating exchange rates, and escalating energy costs. This significant increase in dividend payout reflects the company’s commitment to delivering value to its shareholders and underscores its resilience in navigating economic headwinds. The announcement was made at the company’s 43rd Annual General Meeting held in Lagos, marking another milestone in its journey of sustained growth and development.
A key highlight of Odu’a Investment Company’s performance is the impressive growth in operating revenue. The company achieved an 81% surge in operating revenue, reaching N7.15 billion in 2024 compared to N3.95 billion in the previous year. This substantial increase demonstrates the effectiveness of the company’s strategic initiatives and its ability to capitalize on emerging opportunities. Furthermore, the company reported a staggering 773% increase in total comprehensive income, which soared from N9.23 billion in 2023 to N82.26 billion in 2024. This remarkable growth was primarily driven by a substantial N80.58 billion gain from the fair value of financial assets, indicating the company’s astute investment decisions and its ability to generate significant returns for its stakeholders.
However, despite the overall impressive financial performance, the company experienced a decline in profit before tax, which decreased to N1.78 billion. This decline is attributed to the prevailing inflationary pressures impacting operational costs and strategic reinvestments across its subsidiaries. While profit before tax experienced a decrease, operating profits witnessed substantial growth, more than doubling to N3.46 billion from N1.58 billion in 2023, representing a 119% increase. This significant growth in operating profits highlights the company’s operational efficiency and its ability to manage costs effectively despite the challenging economic climate.
Further dissecting the financial results, profit before tax showed a marginal increase from N1.96 billion to N2.18 billion, while profit after tax declined to N1.78 billion from N2.38 billion. The decline in profit after tax is likely due to increased taxation and other deductions. The proposed dividend of N517.5 million for 2024 reinforces the company’s commitment to rewarding its shareholders. Over the past 11 years, Odu’a Investment Company has distributed a total of N3.63 billion in dividends, demonstrating its consistent commitment to returning value to its investors.
Beyond its core financial performance, Odu’a Investment Company is actively pursuing strategic initiatives to further its growth trajectory and contribute to the economic development of the Southwest region of Nigeria. A key focus area is the agro-industrialization of the Southwest, with SWAgCo, Odu’a’s agribusiness investment vehicle, spearheading this initiative. SWAgCo has forged strategic partnerships and joint ventures worth N10 billion with key players in the agricultural sector, including Starlink Global & Ideal Limited, Petaguls Cultivars & Seedling Technologies, Foodlocker Limited, and the British American Tobacco Nigeria Foundation. These collaborations aim to leverage the vast agricultural potential of the Southwest and create value across the agricultural value chain.
These strategic partnerships and joint ventures are poised to transform the agricultural landscape of the region by introducing modern farming techniques, enhancing productivity, and creating market access for farmers. The partnerships will also contribute to job creation and economic empowerment within the region, aligning with Odu’a Investment Company’s broader objective of contributing to sustainable economic development. The company’s proactive approach to leveraging opportunities in the agricultural sector underscores its commitment to diversifying its investment portfolio and driving economic growth in the Southwest. The successful execution of these initiatives will further solidify Odu’a Investment Company’s position as a leading driver of economic development in the region.
