Omnia sees organic growth in SADC, expansion in Indonesia & Australia

Diversified chemicals group Omnia has recently released its results, showing a 2 per cent rise in headline earnings per share. The strong showing in its Agriculture and Mining units offset losses in its chemicals division. CNBC Africa had a conversation with Omnia CEO, Seelan Gobalsamy, to discuss major contract wins in the mining business and future prospects in its operating environment. Gobalsamy highlighted the significance of recent contract wins in Omnia's explosives business in South Africa, Namibia, and globally in Indonesia. These wins are expected to enhance the company's explosives and BME business in the coming periods. He emphasized that the explosives business has been a success story with strong growth prospects. In terms of agriculture, Gobalsamy discussed the growth outlook, emphasizing the resilience of Omnia's international biological business, distributed globally from Australia. While the agriculture business faced challenges such as pricing pressure and drought impacts in some regions, Omnia's diversified portfolio helped maintain profitability. The company's ability to navigate through changing commodity prices and supply chain disruptions showcased its resilience. Looking ahead, Gobalsamy addressed the impact of political changes, including President-elect Donald Trump's policies and potential implications for Omnia's expansion in the U.S. Despite global uncertainties, Omnia remains confident in its position and focus on food security and mineral extraction. The CEO also highlighted the company's commitment to reducing carbon emissions and operating sustainably. Investments in alternative technologies and ESG fundamentals underpin Omnia's value proposition in agriculture and mining. The company aims to adopt environmentally friendly practices and contribute to a more sustainable future. Lastly, Gobalsamy discussed regulatory challenges in Africa, citing political instability and regulatory inconsistencies in some countries. Despite these hurdles, Omnia's diversified and resilient business model helped offset the challenges faced on the African continent, with the group showing a 17 percent increase in earnings. Overall, Omnia's ability to adapt to market dynamics and prioritize sustainability underscores its strength in the face of uncertainties and challenges.