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Audited results for the year ended 31 March 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)
Audited results for the year ended 31 March 2024
"Omnia's resilience and strategic agility was demonstrated in FY24, evidenced by strong cash flows,
improved margins, and sustained profitability despite volatile market conditions and a substantial
decline in commodity prices. These results were underpinned by the successful execution of our
strategy and ongoing disciplined capital allocation. Our focused approach has led to increased
geographic diversification, substantial global growth in the Mining segment, enhanced efficiencies
in our core operations and security of supply to our customers. Our financial position remains strong
as we continue to invest in our business and deliver consistent returns. Since raising capital of
R2.0 billion in FY20, we have settled debt in excess of R4.0 billion, invested R2.8 billion in capex
and returned R4.3 billion to shareholders. Our steadfast commitment to excellence, underpinned by our
core values have been instrumental in driving our success. The progress we have made is testament
to the dedication and teamwork of our colleagues worldwide, who have worked tirelessly towards
achieving our strategic objectives of improving the resilience and sustainability of our business
through economic cycles and ensuring we fulfil our purpose of innovating to enhance life, together
creating a greener future." - Seelan Gobalsamy (CEO)
ESG HIGHLIGHTS
- Recordable case rate (number of recordable cases or injuries relative to 200 000 working/exposure hours)
decreased to 0.05 (FY23: 0.16)
- Greenhouse gas emissions (tonnes CO2e) decreased to 156 759 (FY23: 187 602)
- Renewable energy use (solar generation (output in MWh)) increased to 12 976 (FY23: 4 911)
- Water recycled or reused (megalitres) increased to 174 (FY23: 140)
- Energy use efficiency (net) (gigajoules per tonne manufactured) improved to 0.26 (FY23: 0.30)
- Water use efficiency (kilolitres per tonne manufactured) improved to 0.41 (FY23: 0.44)
- B-BBEE rating Level 2 (FY23: Level 2)
- Global Credit Rating improved - long term: A+, short term: A1 both with stable outlook
(FY23: long term: A, short term: A1 with a positive outlook)
FINANCIAL INDICATORS
- Revenue decreased 16% to R22 219 million (FY23: R26 572 million)
- Operating profit decreased 10% to R1 703 million (FY23: R1 899 million)
- Operating margin increased 7% to 7.7% (FY23: 7.1%)
- Dividends declared* increased 87% to 700 cents (FY23: 375 cents)
- Net cash position^ increased by 27% to R2 301 million (FY23: R1 818 million)
- Adjusted headline earnings per share# stable at 737 cents (FY23: 739 cents)
Adjusted earnings per share# stable at 742 cents (FY23: 744 cents)
- Net working capital decreased by 15% to R3 604 million (FY23: R4 240 million)
- Net asset value increased by 6% to R10 820 million (FY23: R10 255 million)
- Earnings per share increased by 2% to 705 cents (FY23: 692 cents)
- Headline earnings per share decreased by 6% to 699 cents (FY23: 742 cents)
* The board has declared a final ordinary gross cash dividend of 375 cents per ordinary share
totalling R619 million and a special gross cash dividend of 325 cents per ordinary share totalling
R537 million, payable from income in respect of the year ended 31 March 2024. An announcement relating
to the salient dates and the tax treatment of the ordinary and special dividend will be released on SENS.
^ Excluding lease liabilities.
# Effective from 1 April 2023, the functional currency of Omnia Zimbabwe changed from ZWL to
USD, removing the requirement to apply IAS 29 Financial Reporting in Hyperinflationary Economies.
As the comparative results for FY23 include Omnia Zimbabwe (consisting of Omnia Zimbabwe and
including the Acol joint venture and the hyperinflation net monetary adjustments attributable to
IAS 29 Financial Reporting in Hyperinflationary Economies), the adjusted earnings measures, which
exclude the performance of Omnia Zimbabwe, remain the measures that provide stakeholders with better
clarity on the Group's underlying performance for FY24 when compared to the prior year. These earnings
measures will be discontinued from our 2025 financial reporting period.
SEGMENTAL HIGHLIGHTS
Agriculture (excluding Zimbabwe)
- Revenue decreased 22% to R11 439 million
- Operating profit decreased 21% to R992 million
- Operating margin increased 2% to 8.7%
The period under review was characterised by a substantial decline in commodity prices. Despite the
lower and volatile price environment, the Agriculture segment delivered a resilient performance.
Strong sales volumes in South Africa underpinned by disciplined working capital management limited
price risk and partially offset the impact of the commodity price volatility on overall revenue and
profitability. Across Africa, the business faced macro-economic challenges and changing market
dynamics that adversely impacted operations. This was partially mitigated by market diversification
efforts across the region into the commercial and retail sectors. Internationally, despite reduced
volumes, the business maintained strong margins. Export volumes were lower due to operational issues
experienced in the first half of the year at two large customers, these issues were resolved in the
latter part of the year.
Through our integrated operating model we were able to balance procured and manufactured products
and the allocation thereof between the Agriculture and Mining segments, which
mitigated supply chain and local infrastructure challenges and ensured security of supply to our
customers. Overall cost savings in manufacturing, improved plant reliability and higher capacity
utilisation supported increased volumes and enabled third-party ammonia derivative sales. The
continued execution of our diverse sourcing strategy further contributed to margin enhancement.
We will continue to leverage our supply chain and manufacturing capabilities in SADC and explore
options to enhance security of supply to all our customers. Positioning the segment around a
comprehensive Agri-solutions offering is crucial to support farmers in addressing the challenges
of meeting increased crop demand, reducing environmental impact while adapting to climate change,
and lowering costs. Our Nutriology(R) model provides solutions to mitigate risk and maximise nutrient
and water use efficiency, which together with our 70-year-old brand and deep customer relationships,
presents us with a unique opportunity to grow. In Africa, we continue to review our business models
in light of a challenging operating environment. Furthermore, our high-quality AgriBio offering aims
to scale distribution internationally and strengthen its brand presence.
Mining
- Revenue decreased 3% to R8 289 million
- Operating profit increased 26% to R999 million
- Operating margin increased 30% to 12.1%
The Mining segment delivered exceptional performance against the backdrop of macro-economic and
infrastructure challenges experienced throughout the year, maintaining security of supply to our
customers. Our strategy of diversifying earnings through international growth is yielding results
with the international business substantially increasing profitability, underpinned by higher
volumes and profit contribution from Canada, Indonesia and West Africa. Higher margins were
achieved through the increased contribution from international operations, improved product mix in
Mining Chemicals, and management actions achieving cost efficiencies. In South Africa, our volumes
also grew in a declining market through new and contract extensions.
The segment will continue to target growth by leveraging innovative and sustainable solutions
globally, whilst also delivering value through focused management, stringent cost control and process
optimisation. In Africa, multiple growth opportunities will continue to be developed while volume
growth and significant expansion is anticipated in the mining chemicals sector. We anticipate further
volume growth in the Mining segment through our partnership in Canada and profitability improvements
via our joint venture in Indonesia, whilst opportunities in Australia and other global markets are
being pursued.
Chemicals
- Revenue decreased 23% to R2 112 million
- Operating profit decreased 92% to R11 million
- Operating margin decreased 89% to 0.5%
The Chemicals segment faced significant challenges in the South African market, exacerbated by a
confluence of adverse macro-economic conditions, reduced demand due to lower consumer spending and
failing infrastructure. The resultant pressure on trading volumes and margins led to a substantial
decline in revenue. Difficulties were compounded during the year by supply disruptions, including a
prolonged unplanned shutdown at a key supplier. The operating environment is expected to remain
challenging, however the segment remains focused on positioning itself for sustainable profitability by
enhancing operational efficiencies and ensuring security of supply to our customers through management
of principal relationships. Management actions are being taken to address this performance.
In the medium to long term, the focus remains on sourcing and supplying green and environmentally friendly
alternative chemistries and solutions across the sectors. This will enable the business to shift towards
an improved value proposition for customers who are operating in the context of heightened ESG pressures.
South African Revenue Service (SARS) international tax dispute update
On 30 September 2022, SARS partially allowed our objection to the additional tax assessments raised in
respect of the Group's 2014 to 2016 years of assessment, resulting in a nominal reduction in the original
tax assessments raised by SARS. The Group disagrees with SARS' findings and lodged an appeal against the
revised assessments indicating our willingness to participate in Alternative Dispute Resolution (ADR)
proceedings. On 17 February 2023, SARS confirmed that the matter was appropriate for ADR, suspending the
appeal until the ADR process is concluded. In the interim, the parties have been attempting to resolve the
matter, failing which the appeal process will resume. While the ADR process has been the primary focus for
achieving this objective it is possible that other avenues, including seeking adjudication by the courts
may be necessary.
SHORT FORM ANNOUNCEMENT - This announcement is the responsibility of the directors and is only a summary
of information in the audited consolidated annual financial statements for the year ended 31 March 2024
of Omnia Holdings Limited and its subsidiaries (FY24 AFS) and does not contain full or complete details.
Any investment decisions by investors and/or shareholders should be based on the FY24 AFS, which are
available at the following link https://senspdf.jse.co.za/documents/2024/JSE/ISSE/OMN/FY24.pdf and
published on the Company's website on the following link:
https://www.omnia.co.za/downloads/send/104-FY2024/469-AFS-F2024.
The FY24 AFS, including the audit opinion of the external auditor, Deloitte & Touche, which sets out the key
audit matter and basis of its unmodified opinion, are available on the Company's website on
https://www.omnia.co.za/downloads/send/104-FY2024/469-AFS-F2024. This announcement itself is not audited, but
is extracted from the FY24 AFS. Omnia also voluntarily publishes supplementary information to the FY24 AFS,
which includes, inter alia, directors' commentary and outlook and is available at the Company's website at the
following link: https://www.omnia.co.za/downloads/send/104-FY2024/471-long-form-FY2024
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: A Ellis
JSE sponsor: Java Capital
Date of announcement: 10 June 2024
www.omnia.co.za
Date: 10-06-2024 08:14:00
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