Revenue at agriservices group Origin Enterprises fell almost 28 per cent in the first half of its 2024 financial year amid an anticipated correction in global feed and fertiliser raw materials pricing.
Poor weather conditions also hit underlying business volumes, the company said, with volumes excluding rop marketing falling 2.6 per cent.
In an interim statement for the six months ended January 31st 2024, Origin said revenues declined to €854.9 million from more than €1.1 billion a year earlier, with operating profit down from €20.3 million to €12.7 million. Pretax profit was €5.3 million, down €8 million on the prior year.
Adjusted diluted earnings per share were 3.75 cent, down from 8.7 cent in the first half of 2023, with an interim dividend of 3.15 cent per share. The previously announced €20 million share buyback programme is more than a quarter complete.
Chief executive Sean Coyle said the first half showed a solid operating profit, compared to a strong performance in the first half of 2024, and despite challenging planting and weaker infield conditions.
“A challenging planting profile and a downward-moving price environment resulted in reduced early season volumes across our portfolio, with Ireland and the UK, and Continental Europe experiencing more challenging conditions. Latin America and our Amenity, Environmental and Ecology businesses delivered solid results despite also being impacted by fertiliser price dynamics,” he said.
“The integration of recent complementary acquisitions in the Amenity, Environmental, and Ecology division continues to progress, including our most recent acquisition, Groundtrax Systems Limited, which extends our product range and offering in the sustainable urban drainage systems sector.”
The company is seeking to make that division account for 30 per cent of group operating profit by the end of its 2026 financial year, with chief financial officer TJ Kelly moving to the role of managing director of amenity, environment and ecology from August 1st to help achieve that goal.
The company has spent €54.2 million in last 12 months on acquisitions.
Looking ahead, the company said on-farm sentiment remained cautious. “Whilst progress in spring planting and the main application period in the months through to the end of May will be key to full year results, we now anticipate full year earnings in the range of 44c to 49c, reflecting the effects of adverse weather conditions,” Mr Coyle said. “We continue to invest in broadening our product portfolio and diversifying our earnings.”
Origin is due to deliver its third quarter trading update on June 13th.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
