Omnia Holdings FY23 revenue up 24%

Omnia Holdings, the chemicals, fertiliser, and explosives group, reported a 10 percent rise in earnings and increased dividend payouts after a strong performance in the fiscal year 2023, despite facing a challenging and volatile operating environment due to fluctuating commodity prices. In an exclusive interview with CNBC Africa, Seelan Gobalsamy, the CEO of Omnia Holdings, shared insights into the company's strategies to navigate through these challenges and capitalize on growth opportunities. Gobalsamy highlighted the impact of fluctuating commodity prices on Omnia Holdings' business performance. He mentioned that the first half of the year saw a rise in commodity prices, followed by a decrease in the second half. This trend affected production output, leading to adjustments in stock levels and impacting margins and profitability in the agriculture business. Despite these challenges, Omnia Holdings managed to generate significant cash flow and remains focused on ensuring a stable supply of fertiliser and explosives to meet customer demand in a volatile market environment. The CEO also discussed the company's expansion plans, both within Africa and globally, to counteract volatility and uncertainty. Omnia Holdings is targeting markets in Zambia, Kenya, East Africa, West Africa, Canada, Indonesia, and Australia for business growth in the mining and agriculture sectors. Gobalsamy emphasized the company's commitment to making a positive impact on the African continent through sustainable mining and agricultural practices. He acknowledged the growing concern over adverse weather conditions and climate change, stating that weather patterns are becoming more erratic and unpredictable. Omnia Holdings is proactively addressing these challenges by promoting sustainability, efficient water use, and adopting advanced technologies to mitigate the impact of climate change on farming and mining operations. Moreover, Gobalsamy underscored the company's dedication to water conservation, highlighting the importance of responsible water management in agriculture. Looking ahead, Omnia Holdings sees significant growth opportunities in expanding its international presence in mining and agriculture sectors. The company remains steadfast in its commitment to supporting local businesses and investing in the African continent amidst existing headwinds. On the issue of the SARS dispute and tax matters, Gobalsamy assured stakeholders that Omnia Holdings is engaged in ongoing discussions with the South African Revenue Service (SARS) to reach a resolution. He emphasized the company's compliance with tax regulations across all jurisdictions of operation and expressed optimism about a favorable resolution in the near future. In conclusion, Seelan Gobalsamy's insights shed light on Omnia Holdings' resilience in the face of challenges and its strategic vision to drive sustainable growth amid a volatile market landscape.