Origin sows seeds of good year as weather boosts its Q1 results
Agri-services group Origin Enterprises said it had a good start to the financial year, with revenue increasing 11pc to €333.6m in the first quarter.
It said that benign weather conditions had helped boost activity on farms in key geographies. "Although sector sentiment remains subdued, reflecting the current pressures on farm incomes, there has been an encouraging start to trading in the seasonally-quiet first quarter," it noted as the company held its AGM in Dublin yesterday.
Origin added the autumn and winter cropping profile established so far this financial year provides a "solid foundation" for the group's more seasonally important second-half of the financial year, when it records over 90pc of its earnings.
It said that underlying revenue in the first quarter was up 1.3pc, reflecting higher seed, crop protection and fertiliser volume, largely offset by lower fertiliser and feed prices and lower crop marketing volumes.
It recorded higher year-on-year revenues and margins in the UK in the period, noting autumn and winter crop plantings are "well advanced", with estimates for the total sown area at 2.95m hectares, compared to 2.96m hectares in Q1 of the previous financial year.
Its Polish business performed satisfactorily against weak farm sentiment due to unseasonal weather early in the calendar year, which resulted in below average crop yield and quality. Origin said the Ukraine market continues to be impacted by currency weakness.