Omnia Holdings, the South African fertiliser, mining and chemicals group, grew operating profit by 26% to R1.1 billion in the six months to 30 September 2026, according to unaudited results released on 9 November. Headline earnings per share rose 25% and revenue 2% to R11.4 billion. The group warned that softer crop prices, high input costs and the prospect of drier weather will affect the rest of its year.
In agriculture, revenue fell 4% to about R5.4 billion, but operating profit rose 13% to R517 million and the operating margin increased to 9.5%. Omnia said higher selling prices, reflecting the effect of the Middle East conflict on input prices, and better manufacturing contributions supported the result despite lower volumes.
Stephan Serfontein, the group's financial director, told Farmer's Weekly that high commodity prices in April changed how farmers buy: many postponed input purchases in the hope of lower prices, and with the onset of El Niño they also delayed planting. Omnia managed the risk of supply bottlenecks, he said, by balancing imports with local production and moving stock to areas of high demand in the off-season.
The rest-of-Africa business, particularly Zambia, lifted earnings. After two dry seasons in which the Kariba Dam could not generate hydropower, better electricity supply has strengthened the Zambian economy and allowed farmers to run their irrigation pivots and plant all their wheat hectares, Serfontein said. Abroad, the Australian biostimulant business was held back by a shortage of sulphuric acid, the US distributor model grew volumes, and in Brazil, where farmers faced a credit crunch, Omnia chose not to take on more credit risk.
Shareholders have approved the acquisition of the group by Solar Industries, an Indian industrial explosives company, at R134.50 a share, worth R21.8 billion in total. Serfontein said the deal still needs Competition Commission approval and would probably close in June 2027. He said Solar sees agriculture as a new growth business and expects it to bring research capability and capital investment in production capacity.
The report was written by Jeanne Van der Merwe.
Photo: Lotus Head / Wikimedia Commons (CC BY-SA 3.0)
Source: Farmers Weekly South Africa
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