August 14, 2024

OMNI INDUSTRIES LIMITED (OMNI)

Unaudited financials for the six months ended June 30, 2024:

OMNI INDUSTRIES LIMITED (OMNI) for the six months ended June 30, 2024, reported a marginal increase in Revenue totaling $1.08 billion compared to $1.08 billion in the corresponding period last year. Revenue for the second quarter had a 1% decrease to close at $478.50 million compared to $484.42 million for the comparable quarter of 2023.

Cost of Sales amounted to $584.88 million (2023: $673.65 million), this represents a decrease of 13% year over year. Consequently, gross profit increased by 22% to $499.63 million compared to $410.58 million for the six months ended June 30, 2023. The company booked gross profit of $217.42 million for the second quarter versus $170.89 million reported for the similar quarter of 2023.

Omni highlighted, “A reduction in some key components of our cost of sales, such as demurrage, drove the improved gross profit performance to date. The main revenue driver continues to be construction supplies at 53% of revenue.”

Other Income decreased by 82% to close at $680,522 (2023: $3.76 million), while Administrative Expenses increased by 48% from $101.52 million in 2023 to $149.84 million in the period under review. Also, factory expenses for the six months ended June 30, 2024, amounted to $107.07 million, a 9% increase relative to $98.33 million reported in 2023.

Operating Profit for the six months ended June 30, 2024, amounted to $165.41 million, a 3% decrease relative to $170.16 million reported in 2023. Operating Profit for the second quarter amounted to $52.14 million (2023: $56.28 million).

Finance Costs totalled $19.25 million a 36% decrease from the corresponding period last year. (2023: $30.29 million).

Profit before Taxation for the six months ended June 30, 2024, amounted to $146.16 million, a 4% increase relative to $139.87 million reported in 2023. Profit before Taxation for the second quarter amounted to $43.22 million (2023: $39.07 million).

Taxation for the six months ended June 30, 2024, had a 9% increase to reach $38.24 million (2023: $34.97 million). As such, Net Profit for the six months amounted to $107.93 million, a 3% increase from the $104.90 million reported in 2023. For the second quarter, Net Profit was $30.72 million (2023: $31.26 million).

Consequently, Earnings Per Share for the six months amounted to $0.043 (2023: EPS: $0.042), while Earnings Per Share for the quarter totaled $0.012 (2023: EPS: $0.013). The twelve-month trailing EPS was $0.06 and the number of shares used in these calculations was 2,500,000,000.

Notably, OMNI’s stock price closed the trading period on August 14, 2024, at a price of $0.94 with a corresponding P/E ratio of 15.27x.

Balance Sheet Highlights

The company’s assets totalled $1.76 billion (2023: $1.84 billion). The movement in total assets was mainly influenced by a $344.45 million decline in ‘Due from related companies’, while ‘Cash and cash equivalents’ increased by $208.07 million, to partly offset the movement.

Shareholder’s equity was $908.35 million (2023: $573.99 million), representing a book value per share of $0.36 (2023: $0.23).

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.