Omni profits in slow economy
Published:Sunday | November 10, 2024 | 12:07 AM
Omni Industries Limited, a trader in plastic products for household and industrial use as well as supplier of pipes and fittings, reported higher profit despite an economic slowdown and the impact of Hurricane Beryl.
Pretax profit totalled $38 million for the September 2024 quarter, which was 18 per cent higher year-on-year.
“The overall economy is experiencing a slowdown,” Omni said in its newly released financial report. Adverse weather conditions, including Hurricane Beryl in early July and ongoing heavy rains, were negative factors, it said.
“Additionally, a cement shortage has affected the construction industry, which directly impacted our revenue streams,” the company reported to shareholders.
Omni’s quarterly revenue dropped to $427.5 million, down from $488 million in the comparative 2023 period. The hurricane significantly disrupted Omni’s operations, particularly in its logistics and distribution segments, leading to the dip in revenue. However, the company’s cost management, coupled with favourable operational adjustments, allowed Omni to mitigate these shortfalls to post improved profit.
“This year-to-date increase was primarily driven by reductions in cost of sales and finance costs, particularly offset by expenses associated with the initial public offering,” Omni said in reference to its float of shares and subsequent listing on the junior market of the Jamaica Stock Exchange in June.
For the nine-month reporting period, Omni’s revenue totalled $1.5 billion, slightly lower than the $1.57 billion recorded in the same period last year, reflecting the impact of the hurricane and other market challenges. Nonetheless, pretax profit grew to $184 million, bettering the $172 million reported in the previous year.
Looking forward, Omni remains optimistic about its core business and growth opportunities.
The company is now capitalised at $946.3 million, up from $574 million as of December 2023.
“This growth is primarily attributed to a year-to-date increase in retained profits of $122 million, along with additional paid-in capital of $250 million from the IPO,” Omni said.