Omnia Holdings half-year revenue down 14%

Omnia Holdings, a diversified chemicals group, has reported a 14% decrease in half-year revenue, reflecting ongoing challenges in the commodity market. In an exclusive interview with CNBC Africa, Seelan Gobalsamy, the CEO of Omnia Holdings, discussed the company's performance and strategic initiatives amidst the current economic backdrop. Gobalsamy highlighted the impact of declining commodity prices on the company's top line but noted that the business has maintained resilience in the face of these challenges. Despite the decrease in revenue leading to lower gross profits, Omnia Holdings has successfully preserved its operating profits across all divisions, with a focus on cash preservation. The company boasts a strong cash position of $1.6 billion and access to debt facilities amounting to $4.5 billion, underscoring its robust financial standing. Gobalsamy emphasized the importance of cost containment and prudent cost management practices in navigating the current volatile market conditions. He emphasized that the company has prioritized maintaining and growing volumes across its agriculture and mining segments to safeguard market share and sustain margins. Omnia Holdings has implemented various cost-cutting initiatives while remaining focused on strategic investments to mitigate business risks and capitalize on growth opportunities. One such investment highlighted by Gobalsamy was the acquisition of a 10% stake in a Swedish business, Hypex Bio, which specializes in green technologies. The partnership aims to offer environmentally friendly solutions in the explosives segment, aligning with the company's commitment to sustainability and ESG compliance. Additionally, Omnia Holdings is capitalizing on new projects in Southern Africa, particularly in infrastructure development and renewable energy. The company has invested in a renewable energy plant producing over 10 megawatts of energy, water facilities, rail wagons, and storage infrastructure to enhance operational efficiency and support food security in the region. Gobalsamy expressed optimism regarding the prospects for the explosives business and underscored the company's commitment to driving innovation and value creation for customers through sustainable practices. As Omnia Holdings continues to navigate market uncertainties, the company remains steadfast in its commitment to operational excellence, sustainable growth, and resilience in the face of evolving challenges.