Omnia optimistic about the future agriculture outlook

Listed specialist chemical service group Omnia’s revenue for the year ending March 2014, was up 21% to R16,3 billion and basic earnings per share rose 12,3% to 14,96c per share.

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This was according to the company’s financial results released in Johannesburg on Tuesday (24 June).

Revenue in the agricultural division increased by 23,7% to R2,7 billion, on the back of higher volumes and higher fertiliser sales prices.

“The overall gross profit percentage weakened due to even more unfavorable ammonia to urea ration, production problems on the granulation plants in the first half of the year, which necessitated the import of over 100 000t of fertilisers, which sold at low margins, and the effect of the new lower margins wholesale business that was started in the year,” said Omnia’s managing director, Rod Humphris.

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The basic earnings per share surged by 12,7% to 1 496c per share.

Humphris said he expected the company’s agricultural division to do well in the future, due to the weaker rand. He envisaged favourable planting conditions in most regions, and that would result in agricultural produce prices remaining at high levels.