- Earnings per share expected to grow by between 111% and 121%
- Headline earnings per share to increase by between 258% and 275%
- The company received a non-binding indicative offer for its Oro Agri business
Harare – Omnia Holdings, a chemical manufacturing company said it expects a wide surge in profitability for the year ended 31 March 2020.
In a trading statement, the company said earnings per share (EPS) is expected to increase by between 111% and 121%, from a loss per share of 609 cents for the year ended 31 March 2019, to earnings per share of between 65 cents and 130 cents for the year ended 31 March 2020.
Likewise, headline earnings per share (HPS) is expected to increase by between 258% and 275%, from a headline loss per share of 112 cents for the year ended 31 March 2019, to headline earnings per share of between 177 cents and 196 cents for the year ended 31 March 2020.
The company attributes the strong earnings growth to its turnaround plan and restructuring processes which, during the 2020 financial year, focused on creating a sustainable platform for growth whilst addressing cost reduction, effectively managing working capital and ensuring a return on capital previously invested.
However, the company’s results for the year ended 31 March 2020 may be impacted further by adjustments resulting from the year-end closure process, including new COVID-19 related implications, which may result in a change in the estimated EPS and HEPS noted above.
“Further adjustments may have to be made as a result of the year end closures and COVID-19. The contraction in the Zimbabwean economy continues, resulting in a rapid increase of the inflation rate and a weakening Zimbabwean dollar, despite the establishment of an inter-bank foreign exchange market in February 2019. Hyperinflation accounting according to IAS29 has been applied and as a result, a monetary gain of R22 million was recognized.” said the company.
Omnia intends to publish its financial results for the year ended 31 March 2020 on or about 7 July 2020.
Meanwhile, Omnia highlighted that it received a non-binding indicative offer for Oro Agri that deserves the Board’s consideration and an engagement process under an agreed exclusivity with the offeror is currently underway.
Omnia acquired Oro Agri, an international AgriBio business in 2018 and Omnia had never considered selling the business
Shareholders will therefore be advised if the engagement process progresses to the point of a potential transaction that may have a material effect on the price of Omnia’s shares.
Commenting on COVID-19, the company said it has revised economic and industry forecasts accounting for the impact on current operations, as well as the uncertainty relating to the trading conditions going forward.
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