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June 19 (Reuters) - South African-based crop nutrient manufacturer Omnia Holdings (OMNJ.J) on Monday proposed a share buyback after strong cash generation in the year ended March 2023, driven by high fertilizer and mine explosive prices.
Omnia's headline earnings per share (HEPS) - the main profit measure in South Africa - came in at 7.42 rand ($0.4074) for the fiscal year, compared with 6.72 rand previously.
The company, which supplies fertilizers to several sub-Saharan African countries and also manufactures industrial chemicals and explosives used in mines, said it plans to buy back up to 10% of its issued shares after closing the year with a 1.86 billion rand ($102.2 million) cash balance.
"The board believes that returning funds to shareholders by way of a general repurchase of shares represents an optimal
use of surplus funds," Omnia said in a statement.
Its revenue rose 25% to 26 billion rand as higher prices offset the impact of lower volumes in the agriculture segment, blamed on adverse weather conditions.
Omnia declared a dividend of 3.75 rand, up 36% from last year's 2.75 rand, returning 634 million rand to shareholders.
Shareholders will vote on the proposed buyback at a general meeting to be held on July 18.
($1 = 18.2138 rand)
