Om­nia Hold­ings re­veals sub­dued re­sults for the last fi­nan­cial year

The Star Early Edition - - COMPANIES - Sandile Mchunu

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.

Un­cer­tainty

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.

PHOTO: SUPPLIED

Om­nia Hold­ings yes­ter­day blamed the sub­dued re­sults of its earn­ings on a tough eco­nomic en­vi­ron­ment.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.