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South African chemicals maker Omnia profit drops against tough economic backdrop
June 27, 2017 / 6:21 AM / 6 months ago

South African chemicals maker Omnia profit drops against tough economic backdrop

June 27 (Reuters) - South African diversified chemicals maker Omnia Holdings’ full-year profit dropped 7 percent as a tough economic environment hit its mining and chemicals divisions, the company said on Tuesday.

Headline earnings per share (EPS), the main profit measure in South Africa that strips out certain one-off items, fell to 881 cents for the year ended March 31 from 944 cents in the previous period.

The fertiliser, chemicals and mining explosives maker said its profit after tax was down 8 percent to 592 million rand ($46 million) following lower operating profit.

“The slowdown in global economic activity remains a key driver for the demand of the various commodities and therefore, the inability for a sustained increase in prices for Omnia’s products to materialise in the short to medium term,” said Omnia in a statement.

Group revenue dipped to 16.3 billion rand on a weaker performance from the Mining and Chemicals divisions.

The mining unit saw revenue fall 4 percent to 4.4 billion rand following a challenging year for the mining industry, with lower volumes due to mine closures in South Africa and business lost in Botswana and Namibia, the company said.

Revenue in the agriculture division remained relatively flat at 8.2 billion rand, with record sales volumes for speciality fertilisers both locally and internationally.

$1 = 12.8608 rand Reporting by Tanisha Heiberg; Editing by Mark Potter

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