Omnia share price jumps more than 10 percent following announcement of R129 million profit.
Omnia Holdings share price has jumped more than 10 percent on the JSE after the group reported a profit after tax of R129 million compared to a loss of R407 million reported last year.
Its share price climbed to R31 a share on Tuesday 7 July, compared to R28.05 on Monday 6 July.
Omnia CEO Seelan Gobalsamy said the robust execution of their turnaround plan has put the group in a strong position.
“The excellent results achieved thus far provide the foundation to continue driving long-term sustainable value, enhancing efficiencies and optimising returns. This approach remains especially critical given the significant structural changes in our sectors and the uncertainty created by the Covid-19 pandemic,” he said.
The turnaround plan focused on reducing costs, increasing margins, managing working capital more effectively and ensuring a return on capital previously invested.
According to their results, these measures have produced improved cash flows and supported strong earnings growth during the year.
The highlights include:
- Revenue was flat at R18.6 billion
- Earnings before interest, tax, depreciation and Ebitda, excluding impairments, increased to R1.8 billion
- Headline earnings per share increased to 189 cents a share
The group also reduced its net debt to R1.88 billion compared to last year’s R4.4 billion.