• Revenue increased to R21 437 million
  • Profit after tax was up 80%

  • HEPS improved to 672 cents

JSE-listed chemical manufacturing group, Omnia Holdings Limited recorded a 30% increase in revenue to R21 437 million for the year ended 31 March 2022 driven by a disciplined strategy execution which enhanced operating performance.

The increase in revenue is from a 2021 comparative of R16 436 million.

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.

“These results reflect the ongoing disciplined execution of our strategy in an increasingly complex and uncertain trading environment. Our teams performed well and focused on customer needs whilst leveraging the strength of our integrated supply chain and manufacturing capabilities,” Chief Executive Officer, Seelan Gobalsamy said in a statement accompanying the Group’s full-year results.

Gobalsamy added, “This allowed us to capture increased sales volumes while prudent cash management further supported our strong financial position at year-end.”

The Group’s operating profit excluding Zimbabwe surged by 123% to R1 726 million from  R774 million in 2021. Including Zimbabwe, the Group's profit grew by 40%.

In its earnings guidance for the period under review released earlier this month, Omnia highlighted that its Zimbabwe unit, Omnia Zimbabwe reported a loss after tax of approximately R96 million compared to a profit after tax of R334 million in 2021, hence the decline in the growth of operating profit with the inclusion of the Zimbabwean unit.

Headline earnings per share for the year were up 86% to 672 cents from 361 cents while earnings per share increased by 79% to 653 cents from 364 cents.

Group net working capital from continuing operations increased by 18% to R3 335 million from R2 820 million in 2021 supported by focused efforts to manage the working capital cycle and the introduction of supply chain finance.

The Group has three main operating segments which include agriculture, mining, and chemicals.

During the period under review, the agriculture segment increased net revenue by 44% compared to the prior year, which was supported by increased sales volumes and higher commodity prices.

“The segment delivered an improvement in operating margins to 10.9% (FY2021: 7.3%) and made progress to increase returns in both our South African and international businesses. Operating profit increased to R1 219 million (FY2021: R565 million),” the Group said.

The agriculture segment in Zimbabwe witnessed a 6.3% increase in net revenue to R621 million from R584 million while sales volumes declined after a conscious decision was made to limit Omnia’s exposure to currency and foreign exchange volatility given liquidity challenges.

The mining segment increased net revenue by 28.9% compared to the prior year due to increased sales volumes and higher ammonia prices with the successful transition of large customer contracts delivering value in the year.

Omnia’s chemicals segment's operating profit (from continuing operations) increased to R142 million from R101 million, benefitting from its focused efforts to lift operating margins to 4.8% from 3.5%in 2021, improve productivity and reduce controllable costs.

Going forward, the Group remains committed to allocating capital for growth, creating a greener future and generating value for its stakeholders, with a clear focus to ensure the reliability of supply for customers.

“We will continue to collaborate and innovate with our stakeholders to align with our noble purpose in select markets across the world,” the Group said.

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