Latest news with #OmniaHoldings
Zawya
10-06-2025
- Business
- Zawya
South Africa: Omnia declares special dividend as mining business shores up profits
South African chemicals company Omnia Holdings on Monday declared a special dividend for the second year running after its growing explosives business helped offset the impact of bad weather and economic turbulence on its African agriculture business. Omnia reported headline earnings per share - a key profit measure - of 7.04 rand ($0.3964) in the year ended March 31, compared with 6.99 rand the previous year. The company, which supplies fertilisers and soil additives to countries in Africa and overseas, also manufactures explosives used in the mining industry. Omnia's mining division reported a 10% increase in revenue to 9 billion rand, helping offset a 2% revenue decline in the agriculture business, which was impacted by challenging operating conditions in Africa, excluding South Africa. Currency volatility in Zimbabwe, logistical disruptions in Mozambique due to political unrest and the impact of a severe drought in Zambia had impacted Omnia's income, CEO Seelan Gobalsamy said in an interview. However, increased demand for uranium, copper and other metals vital for the global shift to renewable energy are driving demand for mining consumables and boosting income for Omnia's explosives business. Omnia was seeing strong demand for mine explosives in Namibia, the Democratic Republic of Congo and Zambia, while its Indonesian joint venture also continues to grow, Gobalsamy said. "Our mining profits are now higher than our agriculture profit," Gobalsamy said. "We all know Omnia for fertilizer, but mining is now bigger than our agriculture business." Omnia declared an ordinary dividend of 4 rand per share and a special dividend of 2.75 rand per share, returning 1.1 billion rand to shareholders. Last year, the company paid out a special dividend of 3.25 rand per share.
TimesLIVE
10-06-2025
- Business
- TimesLIVE
Omnia declares special dividend as mining business shores up profits
Chemicals company Omnia Holdings on Monday declared a special dividend for the second year running after its growing explosives business helped offset the impact of bad weather and economic turbulence on its African agriculture business. Omnia reported headline earnings per share — a key profit measure — of R7.04 in the year ended March 31, compared with R6.99 the previous year. The company, which supplies fertilisers and soil additives to countries in Africa and abroad, also manufactures explosives used in the mining industry. Omnia's mining division reported a 10% increase in revenue to R9bn, helping to offset a 2% revenue decline in the agriculture business, which was affected by challenging operating conditions in Africa. Currency volatility in Zimbabwe, logistical disruptions in Mozambique due to political unrest and the impact of a severe drought in Zambia had affected Omnia's income, CEO Seelan Gobalsamy said in an interview. However, increased demand for uranium, copper and other metals vital for the global shift to renewable energy are driving demand for mining consumables and boosting income for Omnia's explosives business. Omnia was seeing strong demand for mine explosives in Namibia, the Democratic Republic of Congo and Zambia, while its Indonesian joint venture also continues to grow, Gobalsamy said. 'Our mining profits are now higher than our agriculture profit,' Gobalsamy said. 'We all know Omnia for fertiliser, but mining is now bigger than our agriculture business.' Omnia declared an ordinary dividend of R4 per share and a special dividend of R2.75 per share, returning R1.1bn to shareholders. Last year the company paid out a special dividend of R3.25 per share.
IOL News
10-06-2025
- Business
- IOL News
Omina Holdings increases dividend pay out despite setbacks in agriculture division
The diversified company, propelled by its mining sector which is seeing new orders for its regional markets on the back of a rebound in copper and battery metals, achieved robust results and delivered bumper dividends. Image: Supplied Tawanda Karombo Omnia Holdings delivered a resilient performance for the fiscal year ended March 31, 2025 despite set backs in the agriculture division, which was impacted by currency issues in Zimbabwe, drought in Zambia, and the civil unrest in Mozambique. The diversified company, propelled by its mining sector which is seeing new orders for its regional markets on the back of a rebound in copper and battery metals, achieved robust results and delivered bumper dividends. 'The agri business Zambia, Zimbabwe and Mozambique didn't perform well,' Seelan Gobalsamy, CEO of Omnia told Business Report in an interview. 'Zimbabwe had the usual currency issues and a lot of uncertainty (and) we had some regulatory challenges and in Zambia, we saw a massive drought that impacted revenue.' The unrest that rocked Mozambique in 2024 and early into this year also affected Omnia. The company had to send products via Namibia into Zambia as routes through Mozambique were disturbed by the unrest, impacting working capital and profits negatively. With strong performance from Agriculture RSA and mining segment, Omnia's revenues for the year to the end of March grew 2.7% to R22.82 billion. Mining has emerged as Omnia's strongest business from an outdoor projective. 'There is still a strong demand for metals, you know, the metals that drive that transition to cleanar energy, you know, the battery metals, uranium. So we are positively disposed to the mining market and we are winning new customers, renewing new customers,' explained Gobalsamy. Headline earnings per share increased by 1% to 704 cents, while operating profit remained unchanged at R1.7bn despite the inclusion of the Chemicals restructuring costs, along with the impact of severe drought conditions and currency depreciation in Agriculture Rest of Africa. The Mining segment delivered an improved operating margin of 12.4% from 12.1%, supported by strong performance from Mining RSA and Mining International, as well as higher throughput and efficiencies. In the mining sector, sustained demand for critical minerals supporting the global energy transition, underpinned exploration activity and supported positive fundamentals for the explosives market. However, geopolitical tensions and trade policy uncertainty presented ongoing risks. The group had a net cash balance of R1.77bn was down from R2.3bn. The board declared a total dividend of 675 cents per share for the year. This comprises an increased ordinary dividend of 400 cents, from 375 cents the prior year, and a special dividend of 275 cents per share, returning R1.1bn to shareholders. "Despite persistent macroeconomic headwinds, Omnia delivered sustained profitability and continued to create long-term value for shareholders. This performance reflects the strength, quality, and growing diversity of our portfolio, underpinned by a sharpened focus on manufacturing efficiency, supply chain resilience, and customer-driven innovation," Gobalsamy said "The increased ordinary dividend payout, and special dividend declared is a clear signal of our confidence in the sustainability of our earnings and the successful execution of our growth and diversification strategy."
Yahoo
10-06-2025
- Business
- Yahoo
Omnia Holdings Ltd (JSE:OMN) Full Year 2025 Earnings Call Highlights: Strong Cash Generation ...
Revenue: Increased by 3%. Cash Generation: ZAR2.5 billion. Net Cash Balance: ZAR1.8 billion at year-end. Working Capital: 15% to revenue. Ordinary Dividend: ZAR4 per share. Special Dividend: ZAR2.75 per share. Mining Segment Growth: 41% CAGR over five years, now 60% of total business. Operating Margin: 7.4%, would have been 7.9% excluding Protea restructure costs. Headline Earnings Per Share (HEPS): Up 2% to ZAR7.04. Gross Profit Margin: Increased to 22.5%. Protea Restructure Costs: ZAR100 million. Operating Profit: Stable at ZAR1.7 billion. Return on Equity: 10.9%. Warning! GuruFocus has detected 5 Warning Sign with JSE:OMN. Release Date: June 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Omnia Holdings Ltd (JSE:OMN) reported strong cash generation of ZAR2.5 billion and a net cash balance of ZAR1.8 billion, demonstrating robust financial health. The mining segment showed impressive growth with a 41% CAGR over the last five years, now accounting for 60% of the company's overall business. The company declared an ordinary dividend of ZAR4 per share and a special dividend of ZAR2.75, reflecting confidence in its earnings and cash generation. Omnia Holdings Ltd (JSE:OMN) has successfully streamlined its operations by focusing on its core businesses of mining and agriculture, leading to improved profitability. The agriculture business in South Africa and internationally, particularly in Australia, showed strong performance with increased volumes and margins. The agriculture segment in the rest of Africa faced significant headwinds, resulting in a loss of ZAR62 million due to drought and socio-political challenges. The restructuring of the Protea Chemicals business incurred one-off costs of approximately ZAR100 million, impacting overall profitability. Safety performance declined compared to the previous year, with management expressing disappointment and committing to improvements. The company faces ongoing challenges from geopolitical tensions and climate change, affecting operations in regions like Mozambique and Zambia. The effective tax rate remained high at 31.6%, similar to the previous year, impacting net profitability. Q: Can you provide insights into the future of the chemicals business, particularly regarding the unwinding of working capital and potential asset sales? A: Seelan Gobalsamy, CEO, explained that the chemicals business will see a cash unlock from working capital and potential asset sales in the future. This could positively impact cash flow, and while it might lead to a special dividend, that decision is yet to be finalized. Q: What are the expectations for the agriculture segment to reach its margin targets, and will internal or external factors play a bigger role? A: Seelan Gobalsamy, CEO, stated that reaching margin targets is largely within Omnia's control through internal improvements. While external factors like commodity prices can provide tailwinds, the focus remains on internal efficiencies to achieve guidance. Q: How has ammonia pricing impacted operating costs and margins within the agri and chemicals segments? A: Seelan Gobalsamy, CEO, noted that while ammonia pricing is significant, Omnia has diversified its business to reduce direct correlation. The company manages this through strategic supply chain and manufacturing efficiencies. Q: Why was the special dividend less than last year? A: Seelan Gobalsamy, CEO, explained that the special dividend aligns with Omnia's capital allocation strategy. The decision was based on cash generation and maintaining a disciplined approach to capital returns, balancing between dividends and potential share buybacks. Q: What are the longer-term steady-state targeted ROEs for the global business? A: Seelan Gobalsamy, CEO, indicated that while there isn't a specific ROE target per business, the company aims for a credible increase in ROE, driven by projected earnings growth and operational efficiencies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Reuters
09-06-2025
- Business
- Reuters
Omnia declares special dividend as mining business shores up profits
June 9 (Reuters) - South African chemicals company Omnia Holdings (OMNJ.J), opens new tab on Monday declared a special dividend for the second year running after its growing explosives business helped offset the impact of bad weather and economic turbulence on its African agriculture business. Omnia reported headline earnings per share - a key profit measure - of 7.04 rand ($0.3964) in the year ended March 31, compared with 6.99 rand the previous year. The company, which supplies fertilisers and soil additives to countries in Africa and overseas, also manufactures explosives used in the mining industry. Omnia's mining division reported a 10% increase in revenue to 9 billion rand, helping offset a 2% revenue decline in the agriculture business, which was impacted by challenging operating conditions in Africa, excluding South Africa. Currency volatility in Zimbabwe, logistical disruptions in Mozambique due to political unrest and the impact of a severe drought in Zambia had impacted Omnia's income, CEO Seelan Gobalsamy said in an interview. However, increased demand for uranium, copper and other metals vital for the global shift to renewable energy are driving demand for mining consumables and boosting income for Omnia's explosives business. Omnia was seeing strong demand for mine explosives in Namibia, the Democratic Republic of Congo and Zambia, while its Indonesian joint venture also continues to grow, Gobalsamy said. "Our mining profits are now higher than our agriculture profit," Gobalsamy said. "We all know Omnia for fertilizer, but mining is now bigger than our agriculture business." Omnia declared an ordinary dividend of 4 rand per share and a special dividend of 2.75 rand per share, returning 1.1 billion rand to shareholders. Last year, the company paid out a special dividend of 3.25 rand per share. ($1 = 17.7585 rand)
