Omnia final results March 2019
Revenue for the year increased by 7% to R18.628 billion (2018: R17.372 billion), gross profit rose 6% to R4.133 billion (2018: R3.910 billion), operating profit came in at R1.156 billion (2018: operating loss R98 million), loss attributable to owners of Omnia was R414 million (2018: profit of R666 million), while headline loss per share was recorded as 112 cents per share (2018: headline earnings of 991 cents per share).
- Interim dividend declared of 75 cents per share down 63% (2018: 200 cents)
- No final dividend (2018: 150 cents).
Company prospects - Strategy
The Group's strategy in the short-term will deliver an improvement in the quality of the business through a focus on improving marketing efforts and reach, backwards integration in production of phosphates and operating model efficiency and realise benefits from responsible global growth supported by the integration of the acquisitions. The Group will be lowering operating leverage by rationalising costs.
The Omnia purpose - to provide "Trusted performance and Innovative solutions [across the value chain] that leaves the World Better" - was designed to address the market changes that Omnia is facing. Omnia also designed this purpose as it takes the Group to a reality where it will leverage the knowledge and skills acquired from the existing customer base and through acquisitions into new international markets, thereby ensuring its continued sustainability (AxioteqTM, AXXISTM, and Oro Agri are critical to support this).
However, in implementing this purpose it is vital to dedicate sufficient focus and resources to align Omnia's sales teams and marketing mechanisms, as well as to formalise and commercialise the developed solutions. This forms part of Omnia's focus on being an outward-focussed business that understands the needs of its customers and creating an offensive strategy against key competitors especially in areas of higher net-back sales. Until markets in sub-Saharan Africa turn around, cost-efficient global growth, supported by sound business cases, will be prioritised over local investments.
Certain operations within the Group are loss-making and as such the Group's strategy in the future will focus firstly to improve the quality of the business by reviewing each business on a return on net controlled assets basis, reduce cost and implement an optimised corporate structure and operating model, before attention is turned to potential future growth strategies.