Omnia Holdings reveals subdued results for the last financial year
DIVERSIFIED agricultural services company Omnia Holdings yesterday bled more than 10 percent on the JSE after its results for the year to March showed a profit decline.
The share price dropped to R130.40 a share in the morning trade, down from Tuesday’s closing price of R144.99 a share before settling at R132.50 yesterday.
The chemicals group blamed the subdued results on a tough economic environment that has hit its mining and chemicals divisions during the period. The company also said that the recent drought in South Africa had also affected its operations.
Omnia reported a decline of 6 percent in operating profit to R1.04 billion, down from R1.11bn while headline earnings per share fell 7 percent to 881 cents a share, down from 944c as compared to 2016.
Revenue marginally decreased to R16.27bn, down by 3 percent as compared to last year’s figure of R16.77bn, which the group attributed to a weaker performance from the mining and chemicals divisions.
The agriculture division’s revenue decreased by 1 percent to R8.16bn, down from R8.22bn on the back of a 10 percent increase in total volumes sold. South Africa’s volumes increased by 2.5 percent, while record sales volumes were noted for speciality fertilisers both locally and internationally.
However, Omnia said that there were hopes for the future, following widespread rains which brought relief to farmers in the last quarter of 2016.
Omnia is a diversified provider of specialised chemical products and services used in the agriculture, mining and chemical sectors.
The group has a presence in 24 countries and its operations extend into 18 countries on the continent, including South Africa, with additional focused operations in Australasia, Brazil and China.
In South Africa the group was negatively affected by political and economic uncertainty, which resulted in rating downgrades.
The company said revenue in its mining division also decreased by 4 percent to R4.38bn despite a 3 percent increase in volumes, while the chemicals unit also came down 7 percent to R3.73bn due to the subdued manufacturing sector and drought affecting the animal feeds sector.
Omnia said political and economic uncertainties in South Africa also impacted negatively on its fortunes. “The impact on the currency, investor confidence and the cost of doing business in South Africa is problematic for businesses and consumers alike. This is evident in the ongoing slowdown in the mining and manufacturing sectors,” the group said.
The board declared a final gross cash dividend of 180c.
Omnia Holdings yesterday blamed the subdued results of its earnings on a tough economic environment.