The wettest Autumn winter planting season “in 30 years” has lead to a fall in revenue at agri-services firm Origin Enterprises.
In the nine months to April 30 turnover fell by 6.7pc to €1.2bn, according to a trading update from the group.
The performance was impacted by a reduced demand for agronomy services and crop inputs, mainly in Ireland and the UK, due to a lower level of intensive autumn and winter crop plantings as a consequence of the bad weather in Autumn.
In addition, extremely dry conditions, which persisted into June, led to “significant soil moisture deficits” that negatively impacted overall crop potential for farmers and growers, resulting in a lower intensity of crop input investment spend.
Nonetheless, in the three months to April 30, revenue at Origin increased by 1.6pc to €605m.
Meanwhile, the Covid-19 outbreak has seen the board of the company take a voluntary 20pc reduction in fees and base salaries, for the period 1 April to 31 July 2020.
Origin says it continues to operate within its banking covenants, with in excess of €125m in undrawn lines of credit available.
The company has decided to suspend its final dividend for financial year 2020.
Looking forward, the group expects to report earnings per share of between 23 to 26 cent for the full year.
Earlier this month Origin announced that CEO Tom O’Mahony is leaving the group after 35 years.
For the last 13 years, he has been at the helm as chief executive. He will be succeeded by Sean Coyle, Origin's chief financial officer, effective from the start of next month.