Origin Enterprises sees revenue rise in year to date, but poor third quarter weighs

Irish agri-services group Origin Enterprises said revenue rose more than 9 per cent in the year to date, with gains seen in its Irish, UK and European businesses.

Growth was slowed by a decline in the third quarter, however, when group revenue dipped almost 16 per cent, dented by cautious farm sentiment and poor in-field conditions in the northern hemisphere that delayed key crop input applications.

In a trading update for the third quarter and the first nine months of the financial year, Origin said its markets continued to show significant price and volume volatility, which would require close management.

The period, which ended on April 30th, saw revenue in Ireland and the UK fall by more than 21 per cent to €489.6 million, while reported group revenue was €741.5 million for the quarter.

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Revenue for the nine months was €1.92 billion, an increase of 9.3 per cent, with the agronomy and inputs businesses showing price growth of 20.6 per cent.

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Underlying volumes were lower, falling almost 12 per cent to date, when crop marketing volumes were excluded, as Ireland and the UK saw a decline of 13 per cent and continental Europe fell by more than 14 per cent. Latin America volumes rose 37.5 per cent in the same period, partially offsetting those declines.

The year has also seen the acquisition of Keystone Environmental, Neo Environmental, Agrigem and British Hardwood Tree Nursery, strengthening Origin’s offering in the amenity, environment and ecology businesses.

The company said it had completed a €20 million share buyback programme announced last September.

Looking ahead, Origin said weather conditions and demand have subsequently improved into the fourth quarter of the year. Guidance for fully adjusted diluted earnings per share for the financial year is in the range of 50.0 to 53.0 cent, in line with market forecasts.