November 6, 2024

OMNI INDUSTRIES LIMITED (OMNI)

Unaudited financials for the nine months ended September 30, 2024:

OMNI INDUSTRIES LIMITED (OMNI) for the nine months ended September 30, 2024 reported a 4% decrease in Revenue totaling $1.51 billion compared to $1.57 billion in the corresponding period last year. Revenue for the third quarter had a 12% decrease to close at $427.54 million compared to $488.02 million for the comparable quarter of 2023.

Cost of Sales amounted to $795.01 million (2023: $982.05 million), this represents a decrease of 19% year over year. Consequently, gross profit increased by 21% to $717.04 million compared to $590.19 million for the nine months ended September 30, 2023. The company booked gross profit of $217.41 million for the third quarter versus $179.61 million reported for the similar quarter of 2023.

Omni highlighted, in reference to the revenue, “This decline is largely attributed to adverse weather conditions, including Hurricane Beryl in early July and ongoing heavy rains impacting the island. Additionally, a cement shortage has affected the construction industry, which directly impacted our revenue streams.”

Other Income decreased by 78% to close at $1.23 million (2023: $5.50 million), while Administrative Expenses increased by 43% from $161.55 million in 2023 to $230.26 million in the period under review. As a result, factory expenses for the nine months ended September 30, 2024 amounted to $163.38 million, a 9% increase relative to $149.51 million reported in 2023.

Operating Profit for the nine months ended September 30, 2024, amounted to $213.16 million, a 1% decrease relative to $214.48 million reported in 2023. Operating Profit for the third quarter amounted to $47.75 million (2023: $44.32 million). Finance Costs totaled $29.01 million, a 32% decrease from the corresponding period last year. (2023: $42.45 million).

Profit before Taxation for the nine months ended September 30, 2024, amounted to $184.15 million, a 7% increase relative to $172.03 million reported in 2023. Profit before Taxation for the third quarter amounted to $37.99 million (2023: $32.16 million).

Taxation for the nine months ended September 30, 2024 had an 11% decrease to reach $38.24 million (2023: $43.01 million) . Net Profit for the nine months amounted to $145.92 million, a 13% increase from the $129.02 million reported in 2023. For the third quarter, Net Profit was $37.99 million (2023: $24.12 million).

Consequently, Earnings Per Share for the nine months amounted to $0.06 (2023: EPS: $0.05), while Earnings Per Share for the quarter totaled $0.02 (2023: EPS: $0.01). The twelve-month trailing EPS was $0.07 and the number of shares used in these calculations was 2,500,000,000.

Notably, OMNI’s stock price closed the trading period on November 06, 2024 at a price of $1.04 with a corresponding P/E ratio of 15.49x.

Balance Sheet Highlights

The company’s assets totaled $1.69 billion (2023: $1.90 billion). The movement in total assets was mainly influenced by a $348.79 million decline in ‘Due from related companies’, while ‘Plant, Property and Equipment’ increased by $66.77 million to partly offset the movement.

Shareholder’s equity was $946.34 million (2023: $598.11 million), representing a book value per share of $0.38 (2023: $0.24).

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