Wrap Text
Unaudited consolidated interim results for the six months ended 30 September 2024
OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1967/003680/06
JSE code: OMN
LEI NUMBER: 529900T6L5CEOP1PNP91
ISIN: ZAE000005153
(Omnia or the Company)
UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
"Omnia delivered strong results for the first half of FY25, underscoring the resilience of our
business amidst a challenging macroeconomic environment. The sustained robust growth of the Mining
segment and strong volumes in Agriculture South Africa contributed substantially to the overall
Group result. The Mining segment continues to demonstrate significant potential for growth, underpinned
by increasing demand for its solutions and expanding opportunities in global markets. Operating
profit grew by 17%, supported by enhanced operational efficiency and improved margins. This performance
highlights the success of our diversification strategy and the strength of both the Mining and Agriculture
businesses. The Group's financial position remains resilient, supported by disciplined capital allocation,
effective working capital management and solid cash generation, positioning us well for future growth
opportunities. Our focus on safety, sustainability, and innovative growth remains critical as we continue
to expand our footprint, invest in new technologies and capture opportunities that will deliver long-term
value for all stakeholders." - Seelan Gobalsamy (CEO)
ESG HIGHLIGHTS
- Recordable case rate (number of recordable cases or injuries relative to 200 000 working hours)
decreased to 0.09 (HY24: 0.11)
- CO2 intensity (tonnes CO2e per tonne manufactured) decreased to 0.035 (HY24: 0.042)
- Renewable energy use (solar generation output MWh) increased to 9 691 (HY24: 5 348)
- Water recycled or reused (megalitres) increased to 93 (HY24: 66)*
- Energy use efficiency (net) (gigajoules per tonne manufactured) improved to 0.27 (HY24: 0.29)*
- Water use efficiency (kilolitres per tonne manufactured) maintained at 0.41 (HY24: 0.41)
- B-BBEE rating remained stable at Level 2 (HY24: Level 2)
- Global Credit Rating maintained, affirmed long term: A+ short term: A1, both with stable outlook
(HY24: long term A+, short term: A1, both with a stable outlook)
* Restated.
FINANCIAL INDICATORS
- Revenue (R million) increased 5% to 10 933 (HY24: 10 448)
- Operating profit (R million) increased 17% to 802 (HY24: 684)
- Operating margin (%) increased 12% to 7.3 (HY24: 6.5)
- EBITDA (R million) increased 14% to 1 103 (HY24: 968)
- Earnings per share (Cents) increased 2% to 289 (HY24: 285)
- Headline earnings per share (Cents) increased 2% to 288 (HY24: 282)
- Strong net cash position* R812 million (HY24: R1 636 million)
- Net asset value decreased by 5% to R9 753 million (HY24: R10 259 million)
- Net working capital decreased by 2% to R3 964 million (HY24: R4 057 million)
* Excluding lease liabilities.
SEGMENTAL HIGHLIGHTS
Agriculture
- Revenue decreased 4% to R5 084 million
- Operating profit increased 27% to R422 million
- Operating margin increased 32% to 8.3%
The Agriculture segment delivered a resilient financial performance in a difficult operating environment
characterised by infrastructure and supply chain disruptions, as well as severe drought conditions in the
SADC region. Revenue decreased as lower selling prices offset higher volumes. Operating profit and
operating margins increased due to higher margin extraction in South Africa as a result of relatively
stable commodity prices and operational improvements over the reporting period.
Volume performance was underpinned by Omnia's integrated manufacturing and supply chain capabilities which
mitigated supply chain and domestic infrastructure challenges and ensured security of supply to customers.
Margin enhancement was also supported by effective balancing of demand and supply across market segments.
In South Africa, favourable weather and improved agronomic conditions supported strong volumes. However,
in our African markets, severe drought conditions constrained demand and led to declarations of national
state of disasters in Zambia and Zimbabwe. In addition, regulatory challenges and competitive pricing
pressures reduced profitability in the Rest of Africa. Internationally, the AgriBio business delivered
increased volumes with Australia delivering improved volumes at healthy margins, supported by both
domestic and export sales with expansion into Europe and South East Asia. Brazil was impacted by a severe
drought and currency fluctuations, which resulted in pressure on selling prices. The strategy to grow the
distribution footprint in the USA and Brazil is ongoing.
The segment expects a strong second half performance driven by seasonal demand. Overall demand is
anticipated to remain robust in South Africa and increased AgriBio volumes are expected to be realised.
Emphasis is being placed on optimising the operating models, in the SADC region, due to ongoing regulatory
and macroeconomic challenges, while growth in the international business will stem from ongoing investments
to support the expansion of AgriBio's wholesale distribution footprint. The segment remains firmly committed
to its ESG imperatives with an emphasis on renewable energy consumption, reduction of our carbon footprint
and water usage intensity.
Mining
- Revenue increased 15% to R4 695 million
- Operating profit increased 18% to R535 million
- Operating margin increased 3% to 11.4%
The Mining segment continued to demonstrate strong growth and robust performance, recording increased
sales volumes and margins in a challenging global macroeconomic environment with ongoing infrastructural
and supply chain constraints. The business continued to ensure reliable supply to customers throughout the
period. Revenue growth was driven by increased volumes in Mining International, with profitability further
enhanced by improved margins and optimised product mix.
In the SADC region, volumes increased due to new contract wins, and strong contributions from Zambia and
Namibia. The segment continues to benefit from positive contributions in the precious metals sector in
West Africa. Canada was negatively impacted by price challenges, however BME's presence in-country was
further enhanced with the successful commissioning of the non-electric detonator plant. In Indonesia,
volumes increased due to heightened demand and three new contracts were secured by the MNK joint venture.
BME's organic growth strategy and infrastructure build in Australia is progressing well with the
commissioning of the detonator plant underway. Mining Chemicals has been rebranded as BME Metallurgy, which
continues to deliver strong performance driven by new business growth, particularly in Namibia and increased
ammonia derivative sales.
Growth is anticipated to continue across key explosives and mining chemicals markets. Mining RSA will focus
on driving organic growth with new contract wins, while the international business will benefit from further
momentum in its expansion efforts. Indonesia is expected to continue to deliver a strong performance in
the second half of FY25. Underground trials are continuing to progress in Canada, while the hydrogen peroxide
emulsion plant with Hypex Bio is set to commence production in FY26. In Australia, our electronic detonator
plant has been established and full production of electronic detonators is planned in late FY25. The demand
experienced in the SADC region is expected to continue. BME Metallurgy will focus on expanding the chemicals
offering across key global markets, enhancing the segment's ability to deliver comprehensive solutions to
customers worldwide.
Chemicals
- Revenue increased 6% to R1 154 million
- Operating loss increased more than 100% to R23 million (operating profit HY24: R5 million)
- Operating margin decreased more than 100% to -2%
The Chemicals segment continued to face significant challenges in the South African market due to difficult
macroeconomic conditions and a subdued manufacturing sector. Increased competition led to margin pressures
across the product range, while persistent pricing pressure further strained profitability. Operating profit
was also negatively affected by restructuring costs, resulting in an operating loss for the period.
We expect tough conditions to persist in the second half of the year. Management remains focused on executing
the segment's turnaround plan to achieve sustainable profitability over the medium term.
South African Revenue Service (SARS)
Omnia is disputing additional tax assessments raised by SARS in respect of its 2014 to 2016 tax years
which has culminated in the parties engaging in Alternative Dispute Resolution (ADR) proceedings in an
effort to reach a resolution. While the ADR process is still ongoing and continues to be a focus to bring
the matter to conclusion, the Group is considering other avenues, including court adjudication, if an
equitable resolution cannot be reached.
SHORT FORM ANNOUNCEMENT
This announcement is the responsibility of the directors and is only a summary of information in the
unaudited financial results for the six-month period ended 30 September 2024 of Omnia Holdings Limited and
its subsidiaries and does not contain full or complete details. Any investment decisions by investors
and/or shareholders should be based on the full announcement, which is available on the following link:
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/OMN/HY25.pdf and published on the Company's website on
the following link: https://www.omnia.co.za/reports-and-results/financial-results/2025 or requested from
Investor Relations at omniaIR@omnia.co.za.
Executive directors: T Gobalsamy (chief executive officer), S Serfontein (finance director)
Non-executive directors: T Eboka (chair), Prof N Binedell, R Bowen (British), G Cavaleros, S Mncwango,
T Mokgosi-Mwantembe, W Plaizier (Dutch), R van Dijk
Company secretary: S Mdluli
JSE sponsor: Java Capital
Date of announcement: 11 November 2024
www.omnia.co.za
Date: 11-11-2024 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
