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OMNIA HOLDINGS LIMITED - Audited results for the year ended 31 March 2022

Release Date: 20/06/2022 09:29
Code(s): OMN     PDF:  
Wrap Text
Audited results for the year ended 31 March 2022

Omnia Holdings Limited
(Incorporated in the Republic of South Africa) 
Registration number 1967/003680/06 
JSE code: OMN
LEI NUMBER: 529900T6L5CEOP1PNP91 
ISIN: ZAE000005153 
(Omnia or the Group) 
SHORT FORM ANNOUNCEMENT
Audited results for the year ended 31 March 2022


STRATEGIC DELIVERY
- Disciplined strategy execution enhanced operating performance
- Optimised supply chain and integrated manufacturing facilities improved reliability and throughput
- Disciplined cash management in a rising commodity price cycle underpinned strong financial position
- Prudent capital management resulted in value creation for stakeholders

"These results reflect the ongoing disciplined execution of our strategy in an increasingly complex and uncertain
trading environment. Our teams performed well and focused on customer needs whilst leveraging the strength of our
integrated supply chain and manufacturing capabilities. This allowed us to capture increased sales volumes while 
prudent cash management further supported our strong financial position at year end. Our people remain focused on 
the purposeful impact we make in the markets in which we operate. We will continue to grow our business organically 
and inorganically in green technologies and expand in selected geographies aligned to Omnia's purpose and enhance 
the impact on a greener world, underpinned by a culture of safety." Seelan Gobalsamy (CEO)


FINANCIAL HIGHLIGHTS (from continuing operations)
Revenue increased by 30% 
R21 437 million 
(FY2021: R16 436 million)
 
Operating profit excluding Zimbabwe increased by 123% 
R1 726 million 
(FY2021: R774 million)

Headline earnings per share increased by 86% 
672 cents 
(FY2021: 361 cents)

Earnings per share increased by 79% 
653 cents 
(FY2021: 364 cents)

Ordinary dividend declared
275 cents per ordinary share
(FY2021: 200 cents per ordinary share)

Special dividend declared
525 cents per ordinary share
(FY2021: 400 cents per ordinary share)

Operating profit increased by 40% 
R1 597 million
(FY2021: R1 138 million)

Operating margin excl Zimbabwe increased by 67%
8.2%
(FY2021: 4.9%)

Cash position increased by 31%
R2 404 million
(FY2021: R1 833 million)

Net asset value* increased by 3%
R10 018 million
(FY2021: R9 739 million)
* Substantial reduction in intangible assets following disposal of discontinued operations.


ESG HIGHLIGHTS
We are saddened by the tragic events of two work-related fatalities. We express our deepest condolences to the 
families and loved ones. Safety remains a key priority. Our intent is to move towards a green and sustainable 
portfolio of products, technologies and services, with progress made across key ESG metrics. Omnia was awarded 
Best Sustainable Diversified Chemicals Group in Africa by Capital Finance International.

Energy efficiency 
despite a 5% increase in production volumes, we achieved a 6% improvement in energy efficiency 
0.29 gigajoules per tonne manufactured 
(FY2021: 0.31 gigajoules)

Water usage efficiency 
despite a 5% increase in production volumes, we achieved a 9% improvement in water-use
efficiency 
0.48 kilolitres per tonne manufactured 
(FY2021: 0.53 kilolitres)

Recordable case rate (RCR)
number of recordable cases or injuries relative to 200 000 working/exposure hours 
0.21 
(FY2021: 0.35)

B-BBEE rating 
Level 2 
(FY2021: Level 2)

Fatalities
employees and contractors
2
(FY2021: Zero)

GHG emissions
increased due to inefficient conversion in the EnviNOxTM emissions abatement system, 
which was subsequently repaired
336 908 tonnes CO2e
(FY2021: 261 500 tonnes)

Water recycled or reused 
66 megalitres
(FY2021: 51 megalitres)

Discharged effluent volumes
175 megalitres
(FY2021: 311 megalitres)


SEGMENTAL HIGHLIGHTS (from continuing operations)
Omnia operates in primary sectors and is well positioned to remain resilient in a volatile macro-economic environment.
The key driver of this performance has been our unrelenting focus on the successful execution of our strategy. This was
also aided by disciplined working capital management during a rising commodity price cycle. The Group generated a net
profit after tax of R1 093 million for the year ended 31 March 2022 (FY2021: R607 million).

AGRICULTURE
Revenue up 41%          Operating profit up 17%
R11 799 million         R1 090 million

The Agriculture segment's net revenue increased as a result of favourable planting conditions, a good crop harvest, an
increase in sales volumes and an increase in commodity prices. Operating profit increased due to an agile supply chain
and efficiencies in our integrated manufacturing facilities which supported the performance during the year.

The Omnia Nutriology value proposition, which drives high engagement and resonates with our customers, as we
support them with information and technologies that are critical in data-based decision making to reduce on-farm
risk and enhance optimisation of scarce natural resources.

The overall SADC region benefited from a focused market approach with a broader offering. The increase in operating 
costs as well as the impact of losses on a fixed-price contract in Zambia impacted margins negatively. The Zimbabwean 
results are subject to hyperinflationary earnings volatility.

In Australia, local demand has been stable. Brazil had a successful year and generated strong revenue and margin growth 
through sales into new territories. Despite reduced availability of transport and shipping, we met customer needs globally

We realised growth through our technological, biological and agricultural solutions, including expanding our humates
and biostimulant footprint, as well as developing new distribution channels and international strategic partnerships.


MINING
Revenue up 29%          Operating profit up 79%
R6 667 million          R514 million

The Mining segment's net revenue increased due to an increase in sales volumes in South Africa, Zambia and the rest of
Africa and an increase in the ammonia price. Operating profit for the year increased following a renewed focus on
operational efficiencies, market expansion in the surface and underground sector (specifically in gold, copper and
platinum), and the realisation of large customer contracts.

In the rest of SADC, sustainable localised business partnership models were implemented. The overall performance was
offset by competition and lower mining production as a result of inclement weather conditions.

Although we have secured a three-year contract extension with our largest customer in West Africa, the socio-political
challenges remain volatile. We have successfully trialled our technology and explosives systems in the underground
market in Canada. In addition, transitioning for a major surface contract has commenced with operations starting in the
new financial year.

We continue to grow the business based on technologies that support our customers' sustainability and ESG targets,
including through our world-class, accurate and safe AXXISTM electronic detonator system.

Strong growth in the battery metals and PGM markets' reinforced the demand for specialist metallurgical chemicals and
services provided by Protea Mining Chemicals and underpinned the business' improved performance for the
year. Increased sales of high-performance products and solutions in export markets, despite a supply chain
environment, highlighted the business' strong supply chain capability.


CHEMICALS
Revenue up 2%          Operating profit up 41% 
R2 971 million         R142 million

The Chemical segment's net revenue and operating profit increased for the year. The repositioning of the Chemicals
business focused on key strategic sectors and on providing an outstanding level of service to our customers. An
improved specialty-functional chemical product mix across the business generated higher margins.

The Personal Care and Manufacturing sectors were the hardest hit by the impact of COVID-19, while in contrast, demand
was robust in the Hygiene and Health Care, Food and Pharma, Agri Science and the Building and Construction sectors. 
The Watercare sector also improved strongly by virtue of resilient demand from the municipal water sector and expansion
into export markets.

Cost containment improved operational efficiencies in the second half of the financial year, which contributed to a
stronger performance. Protea Chemicals continues to work with partners to develop the hydrogen fuel cell market in 
the region and to produce HydroPlus? for this purpose.

Disposal of Umongo Petroleum
The disposal of Umongo Petroleum has been treated as a discontinued operation in terms of IFRS 5 requiring certain
changes to be made to the comparative statement of comprehensive income. The profit for the year from discontinued
operations was R260 million, and Umongo Petroleum realised a profit after tax in FY2022 of R1 million (FY2021: R51
million).

Restatements for the years ended 31 March 2021 and 31 March 2020
On adoption of IFRS 16, certain leases were recognised that did not meet the recognition criteria of IFRS 16. In
addition, another lease was recognised over the incorrect lease term. Provisions have, in the past, been included in
trade and other payables in the consolidated statement of financial position and not set out on a separate line. The
comparative disclosures as at 31 March 2021 and 31 March 2020 have been restated for these matters. There was no
material impact on the consolidated profit before or after tax, total earnings per share (basic and diluted), total
headline earnings per share (basic and diluted), net asset value of the Group or net asset value per share.

SHORT FORM ANNOUNCEMENT - This announcement is a summarised version of the full announcement in respect of the audited
financial results for the year ended 31 March 2022 of Omnia Holdings Limited and its subsidiaries and, as such, it does
not contain full or complete details pertaining to the Group's financial statements. The results have been audited by
the company's external auditor, Deloitte & Touche who expressed an unmodified opinion on the summarised and
consolidated financial statements. Shareholders are advised that, in order to obtain a full understanding of the nature
of the auditor's engagement and more specifically the nature of the information that has been audited, they should
obtain a copy of the auditor's report (available through the following link:
https://www.omnia.co.za/downloads/send/90-2022/340-yearend-march2022-short-form 
The auditor's report sets out a key audit matter, being accounting for uncertain tax positions, and the basis for the 
unmodified opinion together with the accompanying audited Group consolidated annual financial statements
(https://www.omnia.co.za/downloads/send/90-2022/341-omnia-holdings-afs-31march2022). 

Both documents are available for inspection at the company's registered office, 2nd Floor, Omnia House, Epsom Downs 
Office Park, 13 Sloane Street, Epsom Downs, Bryanston, and the offices of Omnia's sponsor, Java Capital Trustees and 
Sponsors Proprietary Limited, 6th Floor, 1 Park Lane, Wierda Valley, Sandton, 2196, from 09:00 to 16:00 weekdays at 
no charge. Any investment decisions should be made based on the full announcement. This announcement is itself not 
audited, but is extracted from audited results. The full announcement is available through the following link:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/OMN/FY22.pdf 
and can also be found on the Group's website www.omnia.co.za or requested from Investor Relations at omniaIR@omnia.co.za. 
This condensed announcement is the responsibility of the board of directors of Omnia (the board) and has been approved. 

Executive directors: T Gobalsamy (chief executive officer), S Serfontein (finance director) 
Non-executive directors: R Havenstein (chair), Prof N Binedell, R Bowen (British), G Cavaleros, T Eboka, S Mncwango, 
T Mokgosi-Mwantembe, W Plaizier (Dutch), Z Swanepoel, R van Dijk (appointed 1 May 2022) 

Company secretary: M Nana 

JSE Sponsor: Java Capital

20 June 2022

www.omnia.co.za
Date: 20-06-2022 09:29:00
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