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 Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue (R million) | 26,572 | 22,219 | +16% |
| Operating Profit (R million) | 1,899 | 1,703 | +10% |
| Dividends Declared (cents) | 375 | 200 | +87% |
| Net Cash Position (R million) | 2,301 | 1,818 | +27% |
| Adjusted Headline EPS (cents) | 737 | 739 | Stable |
| Adjusted EPS (cents) | 742 | 744 | Stable |
| Net Working Capital (R million) | 3,604 | 4,240 | -15% |
| Net Asset Value (R million) | 10,820 | 10,255 | +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 Segment | FY24 | FY23 | Change |
|---|---|---|---|
| Operating Profit (R million) | 992 | 811 | +22% |
| Operating Margin (%) | 8.7 | 8.5 | +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 Segment | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue (R million) | 8,289 | 8,058 | +3% |
| Operating Profit (R million) | 999 | 791 | +26% |
| Operating Margin (%) | 12.1 | 9.8 | +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 Segment | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue (R million) | 2,112 | 2,742 | -23% |
| Operating Profit (R million) | 11 | 137 | -92% |
| Operating Margin (%) | 0.5 | 5.0 | -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 Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Recordable Case Rate | 0.16 | 0.05 | +220% |
| Greenhouse Gas Emissions (tonnes) | 187,602 | 156,759 | +20% |
| Renewable Energy Use (MWh) | 4,911 | 12,976 | -62% |
| Water Recycled/Reused (ML) | 140 | 174 | -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.