Omnia Holdings’ share price fell as much as 6.5% to R68.67 yesterday, even though it said it expects another robust set of financial results for the six months to September 30.
The results would reflect “the underlying strength of its business model, the successful execution of its strategy in a complex and challenging macro environment, as well as a commitment to disciplined capital allocation to maintain balance sheet strength,” the group said in a voluntary update yesterday.
“The group has demonstrated agility to perform in a volatile macro environment, marked by fluctuations in commodity prices and exchange rates as well as disruptions from utility and logistics providers,” it said.
The group’s interim earnings would also be presented on an adjusted basis by excluding its hyper-inflation impacted Zimbabwean operations from the current and prior year periods.
Zimbabwe is a key ammonium nitrate and fertiliser market for the group and “Omnia Zimbabwe’s operating model and risk management strategy continues to yield positive results with the business unit continuing to generate cash,” the group said.
Omnia Zimbabwe was anticipated to report a loss after tax of about R172 million, compared to a R29m taxed loss the previous year.
Omnia’s adjusted headline earnings per share from continuing operations was expected to increase between 26% and 36%, from 304 cents at last year’s interim stage to between 382 cents and 412 cents. The interim results are expected to be published on November 22.