This was according to the company’s financial results released recently. Profit for the period is up 16,8% to R424 million and dividends are up 23,3% to 185c/share.
Revenue in the agricultural division increased by 23,8% to R2,7 billion on the back of higher volumes and higher fertiliser sales prices. The increase in volume was entirely due to the new, lower margin wholesale business started at the beginning of 2013.
Operating profit dropped by 34,8% to R122 million due to lower gross margins caused by the unfavourable urea to ammonia ratio, a R38 million under-recovery of production plant overheads and the effect of the volumes of the lower margin new wholesale business.
Rod Humphris, Omnia’s managing director, said he expected the company’s agricultural division to do well in future, due to favourable planting conditions expected in most regions, as a result of agricultural produce prices remaining at high levels.