Wrap Text
Unaudited Financial Results for the Six-Month Period Ended 30 September 2019
OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1967/003680/06
JSE code OMN
ISIN ZAE000005153
("Omnia" or "the Group")
UNAUDITED FINANCIAL RESULTS FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2019
SALIENT FEATURES (in comparison to HY2019)
- Management delivery on the short-term stabilisation plan
- Oversubscribed rights offer of R2 billion successfully concluded
- Revenue up 1% from R8 654 million to R8 723 million
- Operating profit increased from R124 million to R294 million
- A profit after tax of R35 million (HY2019: R93 million loss)
- Earnings per share of 39 cents (HY2019: 120 cents loss)
- Headline earnings per share of 49 cents (HY2019: 122 cents loss)
- Sustainable debt package is being finalised:
- Core term facilities of R2 billion
- Five-year revolving credit facility of R1 billion
- Committed, structured working capital facilities of R1.8 billion
- Net debt decreased by R1.4 billion from R4.65 billion at HY2019 to R3.3 billion (FY2019: R4.4 billion)
- Net debt to twelve-month rolling EBITDA ratio down to 2.35* (FY2019: 4.50)
*excluding IFRS 16 impact
- Net working capital reduced by R714 million from R5 346 million to R4 632 million
- Level 3 B-BBEE rating
- Net asset value increased by 14% from R8 013 million to R9 116 million
- The Recordable Case Rate increased from 0.34 to 0.52
- No interim dividend declared (HY2019: 75 cents)
Omnia is a diversified chemicals Group that supplies chemicals and specialised services and
solutions for the agriculture, mining and chemical application industries. Differentiation is
ensured by combining innovation with intellectual capital, whereby Omnia adds value for customers
at every stage of the supply and service chain.
Against tough market conditions, Omnia remained focused on stabilising the business, initiating
a turnaround strategy and improving its capital structure following a successful rights issue.
Good progress was also made in terms of reducing costs as well as lowering capex and working capital
requirements.
The Group generated a net profit after tax of R35 million for the six months ended 30 September 2019
("six-month period") compared to a net loss after tax of R93 million for the comparative period.
Operating profit achieved for the six-month period amounted to R294 million (HY2019: R124 million).
The key factors driving operating profit in the three main divisions were as follows:
- Agriculture: Agriculture RSA experienced difficult trading conditions due to subdued commodity
prices. Agriculture International and Agriculture Biological ("AgriBio") performed better than the
comparative period due to earlier deliveries and a strong demand for AgriBio products. Operating profit
increased period-on-period to R98 million from R13 million. Agriculture is a seasonal business and sales
are weighted towards the second half of the financial year.
- Mining: The Mining division performed well, supported by higher bulk volumes in RSA, cost reductions
and improved profitability at Protea Mining Chemicals as well as new international business secured.
Operating profit increased to R234 million from R104 million in the comparative period.
- Chemicals: Protea Chemicals and Umongo Petroleum combined showed good margin growth on flat net revenue,
while Protea Chemicals' costs were lower following the prior year restructure. Operating profit increased
to R91 million from R19 million in the comparative period.
Net interest-bearing borrowings for the period decreased by 40% (excluding the impact of IFRS 16 - Leases)
to R2 781 million (HY2019: R4 654 million). This was due to a repayment of approximately R2 billion on
30 September 2019 following the successful conclusion of the rights offer.
Net working capital reduced to R4 632 million (HY2019: R5 346 million). This relates to a change in the
inventory purchasing profile in Fertilizer RSA, lower average inventory holding and improved debtor
collections.
OMNIA'S VISION
With a vision of leaving a "Better World", Omnia's solutions promote the responsible use of chemicals for
health, safety and a lower environmental impact, with an increasing shift towards cleaner technologies.
OMNIA IS AN ATTRACTIVE LONG-TERM INVESTMENT
- Omnia secures resources responsibly, increases agriculture yield that meets growing food demand while
positively impacting the environment
- High demand for AgriBio products and environmentally friendly practices in the supply and distribution
of chemicals
- Attractive long-term mining industry prospects globally
- Growth opportunities through international expansion, diversification of sector coverage as well as
continuous innovation and new product registrations, including:
- Leading mining technology: AXXISTM Titanium has the longest firing time of any electronic detonator
- Forerunner in AgriBio products with secure, highest quality Humate supply (Australia) and patented
high margin biocontrol products in Oro Agri
- Next generation technology in soil and plant tissue testing
- Leader in environmentally friendly production underpinned by state-of-the art assets and world-leading
intellectual property
- Execution of transformative programme underway to drive EBITDA and return on invested capital
26 November 2019
Sponsor: Merchantec Capital
SHORT FORM ANNOUNCEMENT - This announcement is a condensed version of the full announcement in respect of
the unaudited financial results announcement for the six-month period ended 30 September 2019 of Omnia Holdings
Limited and its subsidiaries and as such it does not contain full or complete details pertaining to the
Group's results. Any investment decisions should be made based on the full announcement. The full announcement
is available through the following link: https://senspdf.jse.co.za/documents/2019/jse/isse/omn/HY20.pdf and can
also be found on the Group's website (http://www.omnia.co.za) or requested from Investor Relations at omniaIR@omnia.co.za.
It is also available for inspection at the registered office, 2nd Floor, Omnia House, Epsom Downs Office Park,
13 Sloane Street, Epsom Downs, Bryanston, and the offices of Omnia's sponsor Merchantec Capital, 13th Floor,
Illovo Point, 68 Melville Road, Illovo, Sandton, 2196, from 9:00 to 16:00 weekdays at no charge. This short form
announcement is the responsibility of the board of directors of Omnia.
http://www.omnia.co.za
Date: 26-11-2019 07:05:00
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