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TimesLIVE
3 days ago
- 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
3 days ago
- 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."
IOL News
16-05-2025
- Automotive
- IOL News
Standard Bank partners with Metair Investments to restructure R4bn debt
The restructured debt framework is designed to reduce Metair's liabilities and adjust repayment plans, ensuring they are in harmony with earnings growth and cash flow, thereby supporting the company's long-term financing turnaround strategy. Image: Supplied Standard Bank has partnered with Metair Investments to facilitate a comprehensive restructuring of the South African automotive components and energy storage group's approximately R4 billion debt. The biggest bank in Africa by assets acted as Mandated Lead Arranger and Global Coordinator for the balance sheet restructure including refinance of existing debts, enabling Metair to rebalance a shareholder at one of its subsidiaries (Hesto) and achieve their long-term financing turnaround strategy. The restructured debt framework is designed to reduce Metair's liabilities and adjust repayment plans, ensuring they are in harmony with earnings growth and cash flow, thereby supporting the company's long-term financing turnaround strategy. Metair operates through two segments: Automotive component manufacturer and Aftermarket Parts and Services. The company is valued at over R1.1bn on the Johannesburg Stock Exchange. 'We always work closely with partners, where possible, to find innovative solutions to financial challenges that affect key sectors of the economy,' said Brydone Graham, head of debt financing solutions at Standard Bank Corporate and Investment Banking. 'We are invested in co-creating with our clients on long-term solutions, and we are particularly proud to have found a practical way to help Metair return to a financially sustainable position.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The restructuring, greenlit by Metair's board and lenders in March, pivots the group's net debt of around R4bn into a more manageable structure. Although Metair in March reported in the six-month period ended June 30, 2024, that its net debt was R5.5bn, this was reduced by the December disposal of Mutlu Akü for $110 million (approximately R2bn), netting just $5 million after adjustments. This reportedly slashed 23% of net debt and 73% of interest costs. The debt restructure allows Metair reduce debt and rebalance its repayment profile to match earnings growth and cash flows. 'We are pleased to have a working relationship with a trusted lead financial partner that understands challenges across key sectors of the economy and is positioned to support with innovative financial solutions,' said Paul O'Flaherty, CEO of Metair Investments. 'We believe that with this new debt arrangement, Metair Group will be in a stronger position to deliver value in a way that benefits the wider automotive sector.' The automotive sector has been one of the shining lights in the South African economy. According to the Automotive Business Council, the automative industry association, new vehicle export sales saw a significant increase of 31.1%, reaching 39 477 vehicles in March 2025. This marks a 15.7% increase compared to March 2023. 'The industry is a key part of South Africa's economy, and we believe that deals like this will serve the sector and benefit the country in the long-term,' said Graham. Metair is expecting its newly acquired unit Autozone to contribute 5% to 6% in operating margin and help the firm with its expansion into Sub-Saharan Africa. The acquisition of Autozone was among the landmarks for Metair during the full-year to the end of December 2024. Other major highlights for the period included the disposal of Mutlu, with O'Flaherty also extending his tenure by two years. The integration of Autozone is seen as pivotal as Metair explores its growth potential in the after-sales auto market of Sub-Saharan Africa. BUSINESS REPORT Visit:
