OMNI Industries reduces debt, adds new molding machinery

 








For the year ended December 31, 2024, OMNI Industries Limited (OMNI) reported a year-to-date gross profit of $637 million, a 6 per cent increase compared to $601 million recorded in the prior year ending December 31, 2023.

Management states that although pre-tax profits experienced a decline of 21 per cent, dropping from $180 million to $141 million, mainly attributable to “temporary factors including reduced revenue due to industry-wide economic impacts, increased costs of sales in the final quarter, and the proactive adoption of an Expected Credit Loss (ECL) provision on receivables.”

OMNI Industries was incorporated nearly 50 years ago, on September 25, 1974, as a private limited liability company opening its first production line was on Retirement Crescent in Kingston.

In its prospectus at its IPO in May 2024, it was asserted that the company was Jamaica’s largest manufacturer of industrial packaging products, such as plastic buckets and crates. It also manufactures an array of other items, such as garden hoses, plastic houseware products, and Aluzinc roofing. MNI is also a distributor of products for water distribution (including PVC pipes and fittings).

In 2001, OMNI acquired Thermo-Plastics Limited, which was then the English-speaking Caribbean’s largest manufacturer and distributor of plastic products. The acquisition increased production capacity, thereby allowing the Company to expand into an array of new product lines and open new market segment opportunities.

OMNI in 2024 operated from over 130,000 square feet of covered warehouse space on 7 acres in the industrial zone of Twickenham Park, Spanish Town, Saint Catherine serving local and overseas clients.

Following its $500 million fund raise and listing on the Junior Market of the Jamaica Stock Exchange (JSE), the company states that it has expanded market visibility and also Implemented a strategic debt reduction through accelerated repayments, substantially lowering interest expenses and strengthening our balance sheet.

OMNI states that it has also commissioned advanced molding machinery in September 2024, “with additional state-of-the-art equipment acquisitions ongoing, designed to enhance production efficiency, reduce operational costs, and minimize waste.”

It is also expanding product range with the addition of new products.

For the year ended December 31, 2024, OMNI reported annual revenue of $1.923 billion for the year ended December 31, 2024, reflecting a 6 per cent decrease from $2.039 billion in 2023.

Management stated, “This revenue decline is primarily attributed to challenging weather conditions and cement shortages, significantly impacting the construction sector. Despite these external challenges, the resilience of our core business remains evident, with construction supplies contributing 58 per cent of total revenues.”

Net profit after tax for the year was $127 million, representing a 16 per cent decrease compared to $151 million in the prior year.

Management opined, “This decline mirrors the broader economic climate, influenced by prolonged adverse weather conditions, such as hurricane impacts, and overall sluggish economic activity. Earnings per share amounted to $0.09.

Year over year, inventories increased by 45 per cent to $813 million, up from $559 million. This higher-than-normal inventory level is primarily, management said, due to slower-than-expected sales and lower demand. Additionally, ongoing uncertainties in the shipping and logistics industry, including delays in shipping times attributable to extreme weather and geo-political conflicts, have necessitated maintaining higher inventory levels to ensure the company can meet demand efficiently

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Caribbean Money Daily


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