- HEPS is expected to increase to 402 cents
- EPS is expected to increase by between 503% and 523%
- Operational performance exceeded management’s expectations
- High inflation and a weaker ZW$ presenting the Group with associated challenges
JOHANNESBURG – South Africa-headquartered chemical manufacturing group, Omnia Holdings expects headline earnings per share (HEPS) – the main profit measure used in South Africa to increase by as much as 161% to between 371 cents and 402 cents for the year ended 31 March 2021.
This compares to 154 cents for the year ended 31 March 2020.
Omnia is a holding company for companies that produce and supply fertilizer to the agricultural industry, explosives to the mining industry, and industrial chemical products. The Group’s operations are located in South Africa, Ghana, Kenya, Mauritius, Tanzania, Zimbabwe (Omnia Zimbabwe), and Zambia.
In a trading statement, the Group said, “Following the successful stabilisation of the Group’s financial position last year, the emphasis during 2021 was on the “fix” phase of the Group’s turnaround strategy while also exploring new growth opportunities.”
It added that operational performance exceeded management’s expectations despite coronavirus lockdowns over the period and the resurgence in infections across many regions it operates in during the last quarter. It says this created additional disruptions, particularly from a supply chain perspective.
“Continued focus on the Group’s strategy translated into increased operating profits, margins and free cash flows with a reduction in net working capital and further reduction in debt,” the Group said.
The Group noted economic challenges in Zimbabwe characterised by higher inflation and a weaker Zimbabwe dollar, which resulted in several associated consequences for the Group.
Meanwhile, the Group said improved cash generations by the underlying businesses and the disposal of Oro Agri, a leading provider of environmentally friendly biocontrol solutions with international reach, has boosted its net cash position.
Omnia said will announce its dividend decisions with its results for the year ended 31 March 2021 which are expected to be released on or about 22 June 2021.
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