Omnia delivers strong earnings growth amid global supply chain disruptions

Omnia Holdings, a chemicals group, has reported improved operational performance for the year until March 31, driven by a favorable commodity price environment. The company's headline earnings per share (HEPS) saw an impressive increase of 86 percent, reaching 672 cents per share. Despite global supply chain disruptions, Omnia remains optimistic about further growth in earnings. During an exclusive interview with CNBC Africa, Omnia's CEO, Seelan Gobalsamy, highlighted the key factors contributing to the company's success and addressed concerns about food security and fertilizer prices amidst ongoing challenges. Gobalsamy emphasized the importance of strong demand for Omnia's agriculture and mining products, supported by favorable commodity pricing. The company's agile teams have worked diligently to navigate supply chain disruptions worldwide, ensuring supply security for farmers and mines. As a result of these efforts, Omnia has achieved significant earnings growth and maintained a strong cash position, leading to the distribution of both ordinary and special dividends to shareholders. Gobalsamy discussed the impact of the Russia-Ukraine conflict on fertilizer prices, noting the increased demand for food security in the absence of key players like Ukraine. He highlighted supply constraints, plant closures due to elevated gas prices, and logistical challenges contributing to global supply issues. Omnia has proactively invested in inventories, deploying 1.1 billion to enhance stock levels and support customers' needs. Despite ongoing global supply chain disruptions, Gobalsamy expressed the company's commitment to collaborating with governments and customers to secure the necessary supply for farmers and mines. He emphasized the importance of having feedstock closer to customers to mitigate the impact of disruptions. When discussing potential fertilizer shortages for the upcoming planting season, Gobalsamy reassured that Omnia has consistently supported its customers and will continue to work towards ensuring a stable supply. Despite the challenging environment, the company has not resorted to significant price increases, instead focusing on efficiency and responsible business practices. Gobalsamy underscored Omnia's dedication to food security, mineral extraction, and GDP growth, emphasizing the company's commitment to supporting farmers and mines. As the interview concluded, Gobalsamy's message of reassurance resonated with viewers, highlighting the critical role Omnia plays in food security and emphasizing the importance of continued support for agriculture and mining industries. Overall, Omnia Holdings' strong financial performance amidst global challenges underscores the company's resilience and commitment to sustainable growth.