Omni Industries reports profit boost following market listing

Omni Industries reported profits of $38 million for the quarter ending September 2024, or 18 per cent higher than the $32 million in the same period of 2023.

“This increase is driven by heightened customer demand and Omni’s commitment to promptly fulfilling new orders. Furthermore, ongoing uncertainties in the shipping and logistics sectors—such as shipping delays, elevated freight rates due to geopolitical tensions and port congestion—necessitate maintaining higher inventory levels to ensure a consistent supply,” said the company.

The company was recently listed on the junior arm of the Jamaica Stock Exchange. It resulted in offering the company tax-free status. 

Year-to-date profit after tax reached $146 million, up from $129 million in the previous reporting period, resulting in earnings per stock unit of $0.027 for the quarter and $0.104 year-to-date. This growth was primarily driven by reduced cost of sales and finance costs, though partially offset by IPO-related expenses.

In the meantime, Omni Industries said it continues to optimise inventory levels to align supply with demand. Inventories rose 18 per cent, reaching $661 million compared to $596 million at the close of December 2023.

Omni said it remains focused on managing trade receivables, prioritising the reduction of balances over 90 days while actively collecting amounts near their due dates. Receivables totalled $469 million, a 37 per cent increase from $342 million the previous year, largely due to anticipated export collections. Collections were also impacted by Hurricane Beryl.

Half of Omni's revenue comes from supplying the construction sector. Omni reported quarterly revenues of $427.5 million for the three months ending September 30, 2024, down 12 per cent from $488 million in the same period in 2023. Year-to-date revenue saw a slight decline to $1.51 billion, compared to $1.57 billion in 2023, primarily due to adverse weather conditions, including Hurricane Beryl and ongoing rains, as well as a cement shortage affecting the construction industry. 

Despite these challenges, gross profit for the quarter increased by 21 per cent to $217 million, with year-to-date gross profit rising to $717 million, driven by reductions in cost of sales.