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Continued decline and
volatility in commodity prices
reduced revenue and profitability
UNAUDITED
CONSOLIDATED Security of supply maintained
to customers through our agile
integrated supply chain
INTERIM RESULTS and manufacturing
for the six months ended Strong ESG performance
including a strategic
30 September 2023 partnership with global
sustainable explosives
“We remain committed to our purpose to positively impact global food security and solutions provider
livelihoods in the communities in which we operate. Our results are characterised by a
continued declining commodity cycle with a recovery in the latter part of the reporting
period following two years of higher prices. As a consequence, revenue and profitability Mining segment well
declined. However, our Agriculture segment showed resilience in line with our
expectations, while our Mining segment contributed strong results supported by good positioned to drive growth and
execution and profitability from its operations in Indonesia and Canada. This segment is diversification of our business
well positioned to drive growth and the continued diversification of our business. These
results reflect the benefit of the shifts in our operating model and the diligent execution
of our strategy. Against complex market and macroeconomic dynamics, our operations
and capital were managed effectively, which resulted in a strong cash position and
balance sheet. Our commitment to sustainability saw us improve our safety record, our
environmental footprint and enter into a strategic green technology partnership with a Strong financial position
leading sustainable explosives solutions provider. Looking ahead, we are confident that
our strategic direction and decisive actions will ensure we remain well positioned to maintained through disciplined
leverage future trends in pursuit of value-enhancing growth for all our stakeholders.” working capital management and
– Seelan Gobalsamy (CEO) capital allocation
www.omnia.co.za
FINANCIAL INDICATORS (including Zimbabwe operations) ESG HIGHLIGHTS
Net working capital Net cash1 Net asset value Fatalities recorded Environmental incidents Renewable energy
Solar generation (output)
R4 057 million R1 636 million R10 259 million Zero Zero 5 348MWh
22% (HY2023: R5 207 million) >100% (HY2023: R140 million) 5% (HY2023: R9 809 million) (HY2023: Zero) (HY2023: Zero) (HY2023: 63MWh)
1
Excluding lease liabilities.
Revenue Headline earnings per share Earnings per share Global Credit Rating upgraded B-BBEE rating Used oil collected
R10 448 million 282 cents 285 cents long term: A+, short term: Level 2 13ML
A1 (stable outlook)
14% (HY2023: R12 164 million) 4% (HY2023: 295 cents) 6% (HY2023: 304 cents) (HY2023: long term: A, (HY2023: Level 2) (HY2023: 8ML)
short term: A1 (positive outlook)
FINANCIAL INDICATORS (excluding Zimbabwe operations)
EBITDA (excluding Operating profit Adjusted headline Adjusted earnings Recordable case rate Greenhouse gas (GHG) Energy-use efficiency (net) Water-use efficiency
impairments) earnings per share2 per share2 emissions
78 143
1 412 410 0.20 0.46
401 65 046
0.35
0.41
1 066
0.28
983 290 293
699 0.11
HY23 HY24 HY23 HY24 HY23 HY24 HY23 HY24 HY23 HY24 HY23 HY24 HY23 HY24 HY23 HY24
30% 34% 28%
(Rmillion) (Rmillion) (cents) (cents) (number of recordable (tonnes of CO2e) (gigajoules per tonnes (kilolitres per tonnes
29% cases or injuries
relative to 200 000
manufactured) manufactured)
working/exposure hours)
2
The impact of hyperinflation on operations in Zimbabwe necessitated the introduction of adjusted earnings measures, which exclude the Zimbabwean operations from
the current and prior year periods. Effective from 1 April 2023, the functional currency of Omnia Zimbabwe changed from ZWL to USD, therefore the measures will be
discontinued from our 2025 financial reporting period.
SEGMENTAL HIGHLIGHTS (excluding Zimbabwe operations)
Omnia operates in primary sectors and the results for HY2024 underscores our commitment to the diligent execution of our strategy. During the period, commodity prices continued to decline with a recovery in the latter part of HY2024
following two years of higher prices. As a consequence, revenue and profitability declined. Within this complex and challenging operating environment, which was also impacted by infrastructure disruptions, we have made consistent
progress in diversifying our business portfolio and effectively managing our operations. We continued to support our customer base by ensuring uninterrupted supply through our integrated manufacturing and supply chain capabilities.
A disciplined focus on costs and stringent working capital management has enabled us to maintain a strong financial position. This was supported by a strong performance in our Mining segment and resilience in the Agriculture
segment in line with expectation.
Agriculture Mining Chemicals
Revenue Revenue Revenue
13% 6% 24%
R5 031 million R4 069 million R1 088 million
Operating profit Operating profit Operating profit
47% 26% 95%
R348 million R453 million R5 million
The Agriculture segment experienced a challenging operating environment The Mining segment delivered a strong operating performance and is increasingly The Chemicals segment faced a notably challenging operating environment
characterised by a substantial decline and volatility in commodity prices relative to the well positioned to drive the Group’s future growth and international diversification. characterised by a declining manufacturing sector, ongoing load shedding and
comparative period. This was exacerbated by the effects of climate change impacts, This performance was driven by growth in southern and West Africa, expansion of the challenges with logistics infrastructure in South Africa. Weaker consumer spending,
supply chain disruptions and local utility infrastructure deterioration. international business and a robust performance in Mining Chemicals. subdued business investment and slow recovery in the global economy resulted in
During HY2024, the business faced ongoing challenges, including a decline in ammonia decreased demand for chemical products.
The segment performed resiliently in line with our expectations. Notably, our enhanced
planning and diversified supply chain supported by the integrated manufacturing prices, currency fluctuations, unusually high rainfall in Zambia and an uncertain The decline experienced by the segment in the second half of FY2023 persisted
capability in our business enabled us to prioritise security of supply to customers across geopolitical landscape in West Africa. Despite these challenges, the segment delivered into the first half of FY2024. This was further exacerbated by several adverse
the markets we serve. profit growth, progressed our international growth ambitions and ensured cost factors, including inventory adjustments and supplier constraints for vital chemical
optimisation throughout the business. products, such as chlorine derivatives, which significantly impacted the segment’s
Our ongoing commitment to implementing our strategy, which prioritises value-added Improvement in operating profit was attributed to the performance of the international overall performance.
solutions for customers and expanding distribution channels in both existing and new business and cost benefits arising from a recovery in the utilisation of used oil in the
markets, contributed to the overall performance. In response to the challenging operating environment, the Chemicals segment
Mining RSA division. Mining Chemicals delivered another strong performance with remains focused to strategically position the business for sustained growth and
Volumes were supported by favourable agronomic conditions and the replenishment margins increasing due to a shift in product mix. profitability. The business is investing in distribution capabilities and will continue to
of soil nutrients in South Africa. The rest of Africa showed solid year-on-year growth Our international expansion in Indonesia and Canada delivered strong results. drive efficiencies and throughput across its facilities.
with a strong performance in Zambia. AgriBio experienced slower purchases from two In Indonesia, we continue to onboard ceded contracts into our joint venture with Multi
major customers, impacting performance in the first half of FY2024. We continued to
Increasing the contribution of specialty products to augment the commoditised
Nitrotama Kim. In Canada, our business is now operational, and production volumes
invest in distribution at ou flagship international AgriBio business. We have successfully are steadily increasing. In Australia, we are making progress in mobilising efforts bulk chemical business remains a priority. Therefore we continue to build
implemented strategic trial‑phase contracts with major distributors and, as part of our for organic growth. In October 2023, we entered into a strategic partnership through principal relationships to enhance our portfolio of high-performance specialty and
European market entry strategy, we have completed registrations of current products. the acquisition of a minority shareholding in Swedish-based Hypex Bio Explosives environmentally friendly products and solutions. This will enable the business to
Technology, which is a global leader in innovative and sustainable explosives solutions shift towards an improved value proposition for customers who are operating in the
To address the challenging macro-environment and move towards our medium-term having developed a groundbreaking emulsion with hydrogen peroxide for significant context of heightened ESG pressures.
guidance range, we are executing decisive measures to meet our operational and environmental benefits. The segment will focus on positioning itself for business growth by gaining market
strategic priorities, including the implementation of cost-saving initiatives, enhancing share, improving margins and managing working capital.
efficiency and improving cash utilisation. The manufacturing and supply chain function BME is strategically positioned for long-term growth, which includes capitalising on
will prioritise security of supply for our customers alongside the continued delivery of new projects in Southern African Development Community countries and reinforcing
value-added services. our primary markets in West Africa, Canada, Indonesia and Australia. Going forward we
anticipate volume growth as we reap the benefits of our international expansion efforts,
In line with seasonal demand, we anticipate a stronger performance in the Agriculture while delivering on our targeted medium-term margin guidance.
segment during the second half of the year.
OMNIA HOLDINGS LIMITED
SHORT FORM ANNOUNCEMENT (Incorporated in the Republic of South Africa)
This announcement is a summary version of the full announcement in respect of the unaudited financial results for the six-month period ended 30 September 2023 of Omnia Holdings Limited Registration number 1967/003680/06
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. JSE code: OMN • ISIN: ZAE000005153
The full announcement is available through the following link: https://senspdf.jse.co.za/documents/2023/JSE/isse/OMN/OMNHY24.pdf and can also be found on the Group’s website LEI NUMBER: 529900T6L5CEOP1PNP91
(www.omnia.co.za/reports‑and‑results/financial-results/FY2024) or requested from Investor Relations at omniaIR@omnia.co.za. This summary announcement is the responsibility of the board (Omnia or the Group)
of directors of Omnia (the board) and has been approved. Executive directors: T Gobalsamy (chief executive officer), S Serfontein
(finance director)
SARS INTERNATIONAL TAX AUDIT UPDATE Non-executive directors: T Eboka (chair), Prof N Binedell, R Bowen (British),
On 30 September 2022, the South African Revenue Services (SARS) partially allowed our objection to the additional tax assessments raised in respect of the Group’s 2014 – 2016 years of assessment, G Cavaleros, S Mncwango, T Mokgosi-Mwantembe, W Plaizier (Dutch),
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 following the partial R van Dijk
allowance of our objection. On 17 February 2023, SARS confirmed that the matter was appropriate for Alternative Dispute Resolution (ADR), suspending the appeal until the ADR process is concluded. Company secretary: M Nana
In the interim, the parties have been engaging in an attempt to resolve the matter, failing which the appeal process will resume. The Group remains committed to bringing this matter to a close. JSE sponsor: Java Capital
20 November 2023
