Friday 20 July 2018

Origin Enterprises has slower start to its financial year

Origin CEO Tom O'Mahony
Origin CEO Tom O'Mahony
Gavin McLoughlin

Gavin McLoughlin

Agri-services group Origin Enterprises said it had a slower start to its financial year.

In a trading update issued ahead of the company's agm this afternoon, Origin said the slowdown in its first quarter was largely due to a weather-delayed harvest causing winter crop planting to be delayed. Revenue dipped 5.5pc to €300.4m. Excluding currency movements, revenue dropped 9pc.

The company - active in areas including crop nutrition and feed ingredients - said the pressure on farm output prices would likely mean crop investment spend would occur in the second half of Origin's financial year, with farmers seeking to spend money in a concentrated fashion.

"The weaker market backdrop for primary producers and the associated pressures on farm incomes makes for a particularly challenging backdrop for service and input demand in 2016," the company said.

Davy Stockbrokers analysts said: "The key area of interest is UK planting commentary, which points to winter plantings being broadly in line with the prior period – the winter wheat crop in the UK is up modestly year-on-year. Across the group’s key markets, principal winter crops are broadly equivalent to 2014. Overall, this is a good result."

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