Omni diversifies away from construction, looks to Caribbean and Central American markets


Omni Industries indicates that in the medium term it will be looking to new markets and adding new products.

Planned capital expenditure of J$150M to J$180M in 2024 will support the completion of upgrades to the molding division and expand warehousing and logistics.

Management outlined in the company’s 2024 annual report, “Recognising the potential volatility in the local construction sector due to factors like weather and material shortages, OMNI strategic focus [is] on market expansion and product diversification. This includes targeting new geographic markets, particularly in Central America and the Caribbean, for exports.

Exports accounted for 14 per cent of total revenue in FY2024. During the year under review, partnerships were pursued with new distributors in Barbados and Guyana.

 To mitigate reliance on construction-related revenue, OMNI accelerated the development of high-demand SKUs, such as storage bins and bakery trays, and expanded into new packaging formats.

In its prospectus at its IPO in May 2024, Omni 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.

$250 million in capital secured is being used to  modernize operations, invest in next-generation technologies, and expand its reach across Jamaica and the region. $250 million from the IPO went to selling shareholders.

Omni  reported total revenues of $1.92B for the 12-month period ending December 2024 and a year-to-date gross profit of $637M, a 6 per cent increase year-over-year (YOY).

However,  events, including Hurricane Beryl and Tropical Storm Rafael, along with shipping delays and cement shortages, disrupted several major public and private sector projects.

Revenue-5.72 per cent ($637M) decline was primarily driven by challenges in the construction sector, OMNI’s largest market.

Management states that the company’s broader long-term investment strategy, includes scaling operations, enhancing market presence, and addressing the logistical challenges that come with growth.

Net profit after tax for the year amounted to $127M, a 16 per cent decrease from $151M in FY 2023, attributed to  one-off investments and provisions, and overall sluggish economic activity. Earnings per share amounted to $0.05.

 

Finance costs decreased by 31%, dropping to $38M as a result of proactive debt repayment. Long-term loans were successfully reduced,

OMNI decided to reinvest profits rather than distribute dividends in FY2024 with management indicating  key initiatives such as expanding production capacity, improving operational efficiencies, and developing innovative product lines, the financial position will be strengthened.

Oni in 2024 bought new injection molding machinery designed to deliver several key benefits, including higher output, faster cycle times, improved energy efficiency, and reduced scrap rates.

The introduction of this machinery has already supported the rollout of several new high-demand stock-keeping units (SKUs), including bakery trays, bottle crates, and an expanded range of utility buckets.

Management stated, “These additions were carefully selected in response to clear market signals and form part of the broader strategy to enter adjacent product categories with strong cross-market relevance. “

New molds  they noted give greater control over product weight and finish, while also allowing for faster tooling changeovers.

 

Caribbean Money Daily

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