• Hyperinflation in Zimbabwe leading to earnings volatility
  • Group total HEPS expected to increase between 70% and 90%
  • Supply chain disruptions due to the war in Ukraine mitigated through optimized supply chain

JSE-Listed chemical holdings group, Omnia Holdings Limited, said its Zimbabwe unit, Omnia Zimbabwe reported a loss after tax of approximately R96 million for the year ended 31 March 2022 compared to a profit after tax of R334 million for the year ended 31 March 2021.

Omnia Zimbabwe is subject to the application of IAS 29 – Financial Reporting in Hyperinflationary Economies, which the Group reckons result in “earnings volatility”.

The Group which specializes in the production and distribution of fertilizer to the agricultural industry, explosives to the mining industry, and industrial chemical products, said it expects total headline earnings per share (HEPS) to increase by between 70% and 90%, from headline earnings per share of 376 cents for the year ended 31 March 2021, to headline earnings per share of between 639 cents and 714 cents for the year ended 31 March 2022.

Total earnings per share is expected to change by between -12% and 8%, from earnings per share of 829 cents for the year ended 31 March 2021 to earnings per share of between 727 cents and 893 cents for the year ended 31 March 2022.

The Group commented;

“The ongoing successful execution of the Group's strategy and refreshed operating model resulted in resilient operating performances across the businesses.

“The challenging trading conditions brought about by Covid-19, ongoing supply chain disruptions, volatile input costs, extreme weather conditions, and the consequences from the war in Ukraine were effectively mitigated by Omnia's strong customer focus, optimised supply chain, and integrated manufacturing facilities.

“This resulted in pleasing improvements in revenue, operating margin, and cash generation.”

The Group's operations are located in South Africa, Ghana, Kenya, Mauritius, Tanzania, Zimbabwe, and Zambia.

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