JSE-listed Omnia achieved a strong performance for the financial year ended March 31, with its diversified business model and execution in its Agriculture and Mining segments enabling it to weather a complex operating environment.

Speaking to Engineering News & Mining Weekly, Omnia CFO Stephan Serfontein explained that challenges in the period included maintenance shutdowns, external supply constraints, railway derailments across South Africa, infrastructure decline in the country impacting on the ports and considerable challenges with regard to water supply.

However, owing to the group’s integrated manufacturing and supply chain capability, Omnia was well positioned to navigate all these challenges, maintaining security of supply to its core customers in agriculture and mining, he said.

“Moreover, the flexibility in our supply chain to produce locally and the ability to import, put us in a strong position to ensure we can support our farming and mining community,” Serfontein acclaimed.  

As a result, revenue increased by 6% to R24.2-billion, supported by good volume growth in Agriculture and Mining.

Operating profit increased by 28% to R2.2-billion, delivering an increased operating margin of 9%.

Headline earnings increased by 21% to 849c.

The ordinary dividend increased by 18% to 470c, with the total distribution at R1.2-billion, inclusive of a special dividend of 280c.

Serfontein emphasised the group’s commitment to capital discipline, with this and sustained cash generation supporting a strong cash position of R1.7-billion.

Serfontein pointed out that the Middle East conflict that was unfolding happened at the tail end of the group’s financial year and, therefore, was only expected to impact on its performance in the next period.

However, the strength of Omnia’s manufacturing supply chain and its management team, positioned it strongly to navigate these global challenges, he averred.

The group expects to maintain growth across its core markets, supported by favourable structural demand in both the agriculture and mining sectors.

It remains focused on growing the international business, leveraging its customer propositions to diversify into select global markets, deploying capital with discipline and driving superior returns.

Serfontein pointed out that Omnia anticipated delivering growth from its international growth prospects over the next few years, as well as additional growth from its core businesses in the Southern African Development Community (SADC) region, linked to the group’s integrated manufacturing supply chain capability.

SEGMENTS

For the period, the mining segment delivered a resilient underlying performance, supported by volume growth across SADC and West Africa, new contracts and increased contribution from BME Metallurgy.

This resilience came in a complex operating environment marked by trade and foreign exchange volatility, cost inflation, weather-related disruptions and weaker coal and diamond markets.

The segment’s revenue increased by 8% to R9.8-billion, while operating profit increased by 1% to R1.1-billion.

Mining RSA volumes increased on the back of strong demand in the iron-ore and platinum markets, contract extensions and organic growth.

This was partly offset by the downturn in the diamond market, coal sector volatility and periods of higher rainfall.

Agriculture performed strongly, driven by sales growth in South Africa and a strong recovery in Rest of Africa following the implementation of operating model changes.

In South Africa, Omnia’s Nutriology model remained central to customer engagement, combining scientific crop nutrition with specialised on-farm advisory support.

Agriculture RSA delivered higher volumes at higher average prices, although operating profit and margin were impacted on by extended supplier shutdowns, lower manufacturing recoveries and the non-recurrence of a one-off asset sale in the 2025 financial year.

The Chemicals segment continued to execute its strategy to streamline the business, release capital and sustainably improve financial performance. The rationalisation of unprofitable product lines was completed and associated sites closed.

The Bulk Trade business benefited from Omnia’s continued reliable supply of ammonia derivatives and a stronger demand for bulk liquids.

The Water Care business delivered a substantial improvement in profitability, supported by new contracts and improved margins.

Notwithstanding final restructuring costs, the segment returned to profitability.

The continued scaling of the Bulk Trade business through leveraging Omnia’s supply chain capability is expected to deliver sustainable returns.