According to Omnia Holdings’ unaudited financial results for the year to end-September 2026, released on 9 November, the group’s operating profit grew by 26% to R1,1 billion, headline earnings per share were up 25%, and revenue rose 2% year-on-year (y/y) to R11,4 billion.
Revenue in the agriculture division decreased by 4% to around R5,4 billion, while operating profit rose by 13% to R517 million and operating margin increased by 17% to 9,5%.
Omnia said in a statement that its agriculture segment “delivered a resilient performance despite lower volumes and global supply disruptions”.
“Higher average selling prices, reflecting the impact of the Middle East conflict on commodity input prices, and improved manufacturing contributions supported the performance. The group’s integrated manufacturing and supply chain capabilities remained a key enabling differentiator.”
The group said its South African agriculture division achieved a higher operating profit and margin “through higher selling prices, improved manufacturing contributions, and cost discipline, despite deferred planting decisions amid softer grain prices, elevated input costs, and weather uncertainty”.
High prices delay purchasing
Speaking to Farmer’s Weekly, Stephan Serfontein, the group’s financial director, said the higher commodity prices experienced during April influenced local on-farm buying patterns, with farmers postponing input purchases in anticipation of lower prices. With the onset of El Niño, farmers had also delayed planting, further postponing input purchases.
Serfontein said this could lead to a situation where “we may have sold you a product, but that product is still on a ship”.
He said Omnia was able to manage the risk of supply bottlenecks by balancing imports with local production and moving stock to areas of high demand during off-peak seasons.
The group’s earnings in its agriculture division were boosted significantly by its rest-of-Africa operations, particularly in Zambia.
“The last two seasons were challenging, with drier conditions and the Kariba Dam not being able to generate hydropower. This season, there has been a better supply in electricity, and the Zambian economy has strengthened as a result. The Zambian kwacha is stronger and, thanks to the [improved] electricity supply, farmers can plant [their crops] and run their pivots. In April, they could plant and irrigate all their wheat hectares, and our business is also well positioned for the summer planting season,” Serfontein said.
The group’s international agriculture division had mixed results. Its Australian biostimulant business achieved good volumes and production, although sales were hampered by international shortages of sulphuric acid. Its distributor-led model in the US supported volume growth and delivered good margins.
“In Brazil, farmers faced liquidity challenges and a credit crunch, so we made a deliberate decision not to take additional credit risk in that market, but rather to focus on quick cash flows,” Serfontein explained.
Mining and chemicals
Omnia said its mining division “delivered a strong performance, supported by higher volumes in South Africa and Namibia, elevated commodity input costs, and operational efficiencies”.
“Operating profit and margin increased despite input price volatility linked to the Middle East conflict, softer commodity markets, operational disruptions, and continued investment in international infrastructure. Omnia’s integrated manufacturing and supply chain capabilities supported reliable supply to customers,” it said.
Although the chemicals division’s performance improved, the group said that “continued to progress its portfolio rationalisation programme”, looking to sell its remaining property as well as its Water Care business.
New ownership
The statement also said Omnia’s shareholders had approved the proposed acquisition of the group by Solar Industries, an Indian industrial explosives company, for R134,50/share, for a total value of R21,8 billion.
Serfontein said the transaction was subject to scrutiny by the Competition Commission and would probably close in June 2027.
He added that the new business is expected to bring considerable value to Omnia Holdings’ agriculture division.
“[Solar Industries] sees agriculture as a new growth business. They want to grow their base in the Southern African Development Community. They also bring their technology and a lot of [research and development] capability that they can add to the agriculture space. They will also bring significant capital investment into our production capacity and enhance that further,” Serfontein said.
He also envisages the new ownership offering comprehensive support to Omnia’s.
Omnia said the proposed transaction “also represents significant foreign direct investment, reflecting confidence in South Africa’s economy and the long-term prospects of its mining, agriculture, and manufacturing sectors”.
“South Africa remains a core manufacturing and operating base for Omnia, and the business remains committed to the customers, employees, and communities in the markets in which it operates,” the group said.
