JSE-listed chemicals manufacturing company Omnia has achieved a 3% year-on-year increase in revenue to R22.81-billion for the financial year ended March 31, while its operating profit was flat at about R1.7-billion.

It declared a full-year dividend of R4 a share, up from R3.75 in the prior financial year. It also issued a special dividend of R2.75 a share, returning a total of R1.1-billion to shareholders for the year.

Revenue for the agriculture segment of the business declined by 2% to R11.54-billion for the financial year, while revenue for the mining segment rose 10% to R9.12-billion and revenue from its chemicals segment increased by 2% to R2.15-billion.

“Omnia delivered a strong performance across our core businesses, with Mining, Agriculture South Africa and a significantly improved performance in Agriculture International driving solid earnings and cash flows.

“In line with our strategy, our team reinforced the competitiveness of our operations, expanded our global presence, and maintained strict capital discipline,” said Omnia CEO Seelan Gobalsamy.

Headline earnings a share increased by 1% to R7.04 a share. The group also demonstrated disciplined working capital management, achieving an excellent net working capital-to-revenue ratio of 15%, he said.

This, combined with continued strong underlying operational performance, supported healthy cash generation from operations of R2.6-billion, up from R2.5-billion in the 2024 financial year.

This disciplined approach also maintained a solid net cash balance of R1.8-billion, underpinning Omnia's strong financial position, he added.

Further, the agriculture segment reported a resilient performance against a challenging operating backdrop marked by adverse weather conditions, supply chain and infrastructure challenges, currency volatility and other economic headwinds.

Operating profit increased by 3% to R981-million and operating margin improved to 8.5%, benefiting from growth in volumes, greater margin extraction in South Africa, supported by relatively stable albeit lower commodity prices, higher manufacturing throughput and efficiency improvements in Omnia's manufacturing and supply chain capabilities.

Margins were further supported by the strong performance of the international agriculture business, which continued to deliver solid returns. The positive performance was partially offset by difficulties experienced in Africa owing to tough macroeconomic conditions, foreign exchange movements and heightened debtor risk.

Further, international agriculture is expected to deliver growth through the company’s expanding AgriBio offering, underpinned by the expansion of its wholesale distribution footprint and expansion in volumes for both existing and new customers, said Gobalsamy.

The mining segment continued its robust growth trajectory, delivering increased volumes, improved profitability with operating profit up 13% to R1.12-billion, and the operating margin having increased to 12.4%, with both Mining South Africa and Mining International contributing positively to the results.

“Solid operational execution, ongoing cost optimisation efforts and continued success of the global diversification strategy underpin the performance, which was achieved despite a challenging macroeconomic environment characterised by infrastructure constraints and periodic adverse weather conditions,” he said.

The mining segment is well-positioned for continued growth across its primary markets. In South Africa, although sector pressures persist, the business is focused on driving organic growth.

Increased demand for uranium, copper and green metals is expected to drive mining volumes in the Southern African Development Community region, while operational efficiencies and profitability will be prioritised in West Africa amid ongoing regional risks.

The dividend declared reflects the group’s strong operational performance and the decision is underpinned by confidence in the sustainability and quality of Omnia's earnings and cash flows.

“The group’s strategy to grow and diversify its business, both geographically and across core sectors, continues to yield tangible results. The robust performance of the Mining segment illustrates this success and reinforces Omnia’s competitive position in a structurally attractive global mining market.

“These developments further support the Group’s commitment to delivering sustainable shareholder returns through economic cycles,” Gobalsamy said.