JSE-listed Omnia expects to report lower headline earnings per share (HEPS), earnings per share (EPS), adjusted HEPS and adjusted EPS from continuing operations for the six months ended September 30.

HEPS from continuing operations are expected to have decreased by between 2% and 12% year-on-year to between 260c and 289c, while EPS from continuing operations are expected to have decreased by between 4% and 14% year-on-year to between 261c and 292c.

Adjusted HEPS from continuing operations are expected to have decreased by 25% to 35% to between 261c and 301c, while adjusted EPS from continuing operations are expected to have decreased by 25% to 35% to between 267c and 308c.

Despite this, Omnia says it expects to deliver a resilient set of financial results reflecting the underlying strength of its diversified business model and the ongoing successful execution of its strategy in a complex and challenging macroeconomic environment.

The group says it remains well positioned to deliver growth and value over the long term.

The group explains that the global economic landscape has been characterised by ongoing weak economic growth, high inflation, disruptions in supply chains, volatility in commodity prices and currency exchange rates.

The South African economy has seen subdued consumer and business confidence, particularly within the manufacturing sector, Omnia says.

In addition, the underperformance of local utilities and deteriorating infrastructure resulted in disruptions in the transportation of raw materials and production inputs. These issues have had an impact on the group’s operations, most notably the Chemicals segment.

Despite the abovementioned macroeconomic challenges, Omnia highlights that it has leveraged its agile integrated manufacturing and supply chain capabilities to support its customer base by ensuring uninterrupted supply.

The Agriculture segment was impacted on by lower revenue owing to the change in the commodity cycle, while the Mining segment continued to grow locally and internationally.

The group says it delivered a resilient operational performance with strong sales volumes, market share growth and robust margins.

Solid progress was noted in the group’s international expansion efforts, in particular the Mining segment which contributed to profit ahead of expectations.

A focus on costs, prudent capital expenditure and stringent working capital management enabled the group to maintain a robust financial position with a positive net cash balance of about R1.6-billion.

Omnia says it continues to maintain a strong balance sheet, which allows it to retain optionality in line with its disciplined capital allocation framework.

During the period, the group continued to improve its safety and sustainability performance.

CHANGES

Effective April 1, the functional currency of Omnia Zimbabwe was changed from the Zimbabwe dollar to the US dollar, which is the currency that most faithfully represents the economic effects of the underlying transactions, events and conditions of the entity, Omnia posits.

This change removes the requirement to apply IAS 29 Financial Reporting in Hyperinflationary Economies, therefore obviating the necessity of presenting adjusted earnings measures, as the Zimbabwe operations will no longer have a disproportionate and volatile accounting impact, the group avers. 

The use of the adjusted earnings measures will therefore be discontinued from its 2025 financial reporting period.

Omnia expects to release its results for the six-month period to September 30 on November 20.