- Profit after tax stood at R129 million
- Revenue marginally grew by1%
- Total assets increased by 9%
Harare – Chemical manufacturing group, Omnia holdings posted a wide surge in profitability, in line with its continued robust execution of turnaround plan for the year ended 31 March 2020 compared to the prior year.
“The Group’s operating profit amounted to R789 million for FY2020 compared to R24 million for the comparative period and profit after tax of R129 million for FY2020 compared to a loss after tax of R407 million for the comparative period”, said the group.
This was attributed to the sharp weakening of the Rand/US Dollar exchange rate at year-end.
Revenue for the year remained stable at R18 737 from R18 628 in 2019, growing marginally by 1%.
The growth was largely driven by an increase in sales volumes in the Agriculture division which was partially offset by lower volumes in Protea Chemicals.
In a statement accompanying the group’s financial results, Omnia said the execution and delivery against the turnaround plan, the successful oversubscribed R2 billion rights issue and the subsequent restructure of the Group’s debt profile concluded in December 2019, contributed to the sustainable capital restructure.
As at 31 March 2020, total assets increased by 9% to R18 088 million (2019: R16 647 million) and net debt reduced to R1 880 million due to the increase in right-of-use assets of R572 million as a result of the first-time adoption of IFRS 16 Leases and an increase in cash balances of R716 million.
Administrative expenses for the year decreased by 13% to R1 309 million (2019: R1 500 million). Overhead expenses have been firmly managed with significant savings in consulting and contractor fees, staff costs and other general.
Total liabilities decreased by 11% to R8 353 million from R9 422 million while Net interest-bearing borrowings for the year decreased by 57% to R1 880 million (2019: R4 403 million).
Omnia said this was due to a repayment of approximately R2 billion in September 2019 following the successful conclusion of the rights issue as well as improved cash generation as a result of reduced operating expenses, capital expenditure and net working capital.
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