Chemicals, fertiliser and explosives group Omnia is upbeat about SA’s agricultural prospects, expecting sustained demand for inputs as favourable weather and prices underpin the sector. increased output during the first half of 2020.
The diversified group’s agricultural interests, which account for about half of its revenue, have seen double-digit revenue growth in its six-months to end-September, helping to offset contraction in mining and chemicals as Covid-19 disrupted supply chains and temporarily mothballed mines. Agricultural revenue in SA rose 14% to R2.1bn, while the group’s international agriculture segment saw revenue jump 55% to R1.28bn, with Australia exceeding expectations, partly due to increased exports, and early purchases as customers sought to avoid supply chain disruptions.
The group announced in October it was selling money-spinner Oro Agri for R2.5bn. This business develops non-chemical pesticides, with Omnia saying while it was a tough decision to sell, the move would extinguish its debt.
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