Omnia Reports 16% Revenue Increase and 10% Profit Growth Amid Market Volatility

  • Omnia Holdings reported a 16% increase in revenue and a 10% rise in operating profit for FY24.
  • The Mining segment achieved a 26% increase in operating profit, driven by international growth.
  • Despite challenges, Omnia improved its net cash position by 27% and reduced net working capital by 15%.

Omnia Holdings has showcased its resilience and strategic agility in the financial year ended March 31, 2024. Despite facing volatile market conditions and a substantial decline in commodity prices, the company reported strong cash flows, improved margins, and sustained profitability.

Financial Indicators

The group’s revenue increased by 16%, operating profit rose by 10%, and dividends declared surged by 87%. Omnia’s financial position remains robust, with a 27% increase in the net cash position, which now stands at R2,301 million compared to R1,818 million in FY23.

Financial MetricFY24FY23Change
Revenue (R million)26,57222,219+16%
Operating Profit (R million)1,8991,703+10%
Dividends Declared (cents)375200+87%
Net Cash Position (R million)2,3011,818+27%
Adjusted Headline EPS (cents)737739Stable
Adjusted EPS (cents)742744Stable
Net Working Capital (R million)3,6044,240-15%
Net Asset Value (R million)10,82010,255+6%

Segmental Highlights

Agriculture

The Agriculture segment, excluding Zimbabwe, showed resilience despite a substantial decline in commodity prices. Operating profit rose by 22% to R992 million, with an operating margin of 8.7%.

Agriculture SegmentFY24FY23Change
Operating Profit (R million)992811+22%
Operating Margin (%)8.78.5+2%

Strong sales volumes in South Africa and disciplined working capital management limited price risk. Despite macro-economic challenges across Africa, market diversification efforts helped offset adverse impacts. Internationally, strong margins were maintained despite operational issues at two large customers.

Mining

The Mining segment delivered exceptional performance, with revenue up by 3% and operating profit increasing by 26% to R999 million. The operating margin improved significantly to 12.1%.

Mining SegmentFY24FY23Change
Revenue (R million)8,2898,058+3%
Operating Profit (R million)999791+26%
Operating Margin (%)12.19.8+23%

The international business substantially increased profitability, driven by higher volumes from Canada, Indonesia, and West Africa. The improved product mix in Mining Chemicals and cost efficiencies contributed to higher margins.

Chemicals

The Chemicals segment faced significant challenges, with a 23% drop in revenue to R2,112 million. Operating profit plummeted by 92% to R11 million, with a meager operating margin of 0.5%.

Chemicals SegmentFY24FY23Change
Revenue (R million)2,1122,742-23%
Operating Profit (R million)11137-92%
Operating Margin (%)0.55.0-89%

The segment was hit hard by adverse macro-economic conditions in South Africa, reduced consumer spending, and infrastructure failures. Management actions are being taken to enhance operational efficiencies and ensure security of supply.

ESG Highlights

Omnia reported notable improvements in its ESG metrics. The company’s greenhouse gas emissions decreased significantly, and renewable energy use from solar generation saw substantial growth.

ESG MetricFY24FY23Change
Recordable Case Rate0.160.05+220%
Greenhouse Gas Emissions (tonnes)187,602156,759+20%
Renewable Energy Use (MWh)4,91112,976-62%
Water Recycled/Reused (ML)140174-20%

Strategic Initiatives

Since raising R2 billion in FY20, Omnia has settled over R4 billion in debt, invested R2.8 billion in capex, and returned R4.3 billion to shareholders. The company continues to invest in its business to deliver consistent returns.

Outlook

Omnia’s CEO, Seelan Gobalsamy, emphasized the company’s dedication to innovation and sustainability. The focus remains on improving resilience and sustainability through economic cycles and enhancing security of supply. Omnia aims to leverage its supply chain and manufacturing capabilities across Africa and explore growth opportunities in the mining and agricultural sectors globally.

Conclusion

Omnia Holdings has demonstrated strong financial performance and strategic agility in FY24. Despite challenging market conditions, the company remains well-positioned for future growth and sustainability, underpinned by its solid financial foundation and commitment to innovation.