JSE-listed Omnia Holdings expects its adjust headline earnings per share (HEPS) from continuing operations for the six months ended September 30 to increase by between 26% and 36% year-on-year to between 382c and 412c.

Moreover, adjusted earnings per share (EPS) from continuing operations are expected to increase by between 31% and 41% to between 392c and 422c.

HEPS from continuing operations are expected to increase by between 1% and 11% to between 289c and 318c, while EPS from continuing operations are expected to increase by between 2% and 12% to between 287c and 315c.

Effective January 31, Omnia disposed of 81% of its 90% shareholding in Umongo Petroleum.

Omnia says it expects to deliver another robust set of financial results for the interim period, reflecting the underlying strength of its business model, the ongoing successful execution of its strategy in a complex and challenging macro environment, as well as a commitment to disciplined capital allocation to maintain balance sheet strength.

Overall, the group’s strong financial position allows Omnia to remain resilient and retain optionality for further growth, it posits.  

In addition to the customary disclosures, the group’s earnings will be presented on an adjusted basis by excluding the Zimbabwean operations from the current and prior year periods.

Zimbabwe is noted to remain a key ammonium nitrate and fertilizer market for the group, and Omnia Zimbabwe’s operating model and risk management strategy continues to yield positive results with the business unit continuing to generate cash.

The impact of operations in Zimbabwe has necessitated the introduction of an adjusted earnings metric to measure operational performance and provide stakeholders with better clarity on the group’s underlying performance, Omnia outlines.

It indicates that Omnia Zimbabwe is subject to the application of IAS 29 – Financial Reporting in Hyperinflationary Economies which results in earnings volatility.

Also the government has introduced a change in monetary policy, with the implementation of an interbank mechanism. This caused a further notable devaluation of the Zimbabwean dollar, resulting in disproportionate foreign exchange movements (most of which are unrealised) in this period’s results, Omnia indicates.

Omnia Zimbabwe is anticipated to report a loss after tax of about R172-million for the six months under review, compared with a loss after tax of R29-million reported for the first half of the prior financial year.

Omnia expects to release its results for the period on or about November 22.