Omnia reports an exceptional performance for HY2023
Loading player...
Seelan Gobalsamy – Omnia CEO talks Omnia reports.
Omnia Holdings Limited (“Omnia” or “the Group”), a JSE-listed diversified chemicals Group, today published its interim results for the six months ended 30 September 2022. This exceptional financial performance was achieved despite ongoing international geopolitical conflict and supply chain challenges, which was exacerbated by deteriorating utility infrastructure, socio political instability, and disruptions to electricity supply in South Africa.
Omnia’s CEO, Seelan Gobalsamy, commented: “Against a complex and challenging macroeconomic backdrop, our teams have delivered an exceptional performance, leveraging the underlying strength of our business model to execute our strategy. Our supply chain optimisation programme and integrated manufacturing capabilities supported the Group’s competitive position, agility, and responsiveness in a dynamic market environment to deliver to our Agriculture, Mining and Manufacturing customers. This unlocked efficiencies which enhanced margins and profitability.”
The successful implementation of the Group’s operating model resulted in improved performance and ensured the security of supply of ammonium nitrate, despite ammonia supply constraints, to enable the Group to meet customer demand across all business segments. Additional key performance drivers include an improvement in the volume-margin mix, greater sales of specialty and value adding chemicals, in an elevated commodity price environment.
Group revenue from continuing operations (excluding Zimbabwe) increased 19% to R11.6 billion. Operating profit from continuing operations (excluding Zimbabwe) rose by 47% to R1.1 billion with the operating margin from continuing operations (excluding Zimbabwe) growing from 7.5% to 9.2%. EBITDA from continuing operations (excluding Zimbabwe and impairments) increased by 30% to R1.4 billion and adjusted headline earnings per share (HEPS) from continuing operations was 32% higher at 401 cents.
Working capital increased to R5.2 billion, driven by high commodity prices and increased investments in inventory, largely in the agriculture segment due to a more normalised sales cycle. Sales volumes have increased in the second quarter and working capital is expected to unwind for the full year. After investing R2.1 billion in working capital, the Group maintained a positive net cash balance of R140 million excluding lease liabilities. This resulted in Omnia being able to meet supply to its customers in a tough and challenging environment.
“Our continued focus on cost discipline, stringent working capital management, and prudent capital allocation saw us maintain a strong balance sheet, while investing for the future. In line with our commitment to lower the environmental impact of our operations, we invested in a reverse osmosis water treatment plant and a solar energy plant at our Sasolburg operations, both of which were recently commissioned,” added Gobalsamy.
Omnia Holdings Limited (“Omnia” or “the Group”), a JSE-listed diversified chemicals Group, today published its interim results for the six months ended 30 September 2022. This exceptional financial performance was achieved despite ongoing international geopolitical conflict and supply chain challenges, which was exacerbated by deteriorating utility infrastructure, socio political instability, and disruptions to electricity supply in South Africa.
Omnia’s CEO, Seelan Gobalsamy, commented: “Against a complex and challenging macroeconomic backdrop, our teams have delivered an exceptional performance, leveraging the underlying strength of our business model to execute our strategy. Our supply chain optimisation programme and integrated manufacturing capabilities supported the Group’s competitive position, agility, and responsiveness in a dynamic market environment to deliver to our Agriculture, Mining and Manufacturing customers. This unlocked efficiencies which enhanced margins and profitability.”
The successful implementation of the Group’s operating model resulted in improved performance and ensured the security of supply of ammonium nitrate, despite ammonia supply constraints, to enable the Group to meet customer demand across all business segments. Additional key performance drivers include an improvement in the volume-margin mix, greater sales of specialty and value adding chemicals, in an elevated commodity price environment.
Group revenue from continuing operations (excluding Zimbabwe) increased 19% to R11.6 billion. Operating profit from continuing operations (excluding Zimbabwe) rose by 47% to R1.1 billion with the operating margin from continuing operations (excluding Zimbabwe) growing from 7.5% to 9.2%. EBITDA from continuing operations (excluding Zimbabwe and impairments) increased by 30% to R1.4 billion and adjusted headline earnings per share (HEPS) from continuing operations was 32% higher at 401 cents.
Working capital increased to R5.2 billion, driven by high commodity prices and increased investments in inventory, largely in the agriculture segment due to a more normalised sales cycle. Sales volumes have increased in the second quarter and working capital is expected to unwind for the full year. After investing R2.1 billion in working capital, the Group maintained a positive net cash balance of R140 million excluding lease liabilities. This resulted in Omnia being able to meet supply to its customers in a tough and challenging environment.
“Our continued focus on cost discipline, stringent working capital management, and prudent capital allocation saw us maintain a strong balance sheet, while investing for the future. In line with our commitment to lower the environmental impact of our operations, we invested in a reverse osmosis water treatment plant and a solar energy plant at our Sasolburg operations, both of which were recently commissioned,” added Gobalsamy.
