Thursday 22 August 2019

Revenue up at Origin in 'traditionally quiet' first quarter

Tom O'Mahony, CEO of Origin Enterprises
Tom O'Mahony, CEO of Origin Enterprises
Ellie Donnelly

Ellie Donnelly

Revenue at Origin Enterprises has increased by almost 4pc year-on-year to €346.7m in the three months to 31 October.

The increase in revenue is impressive in what is traditionally the "seasonally quiet" first quarter for the agri-services group.

Growth was especially strong in the Irish and UK market, where revenue increased by 9.1pc year-on-year to €219.5m during the three months.

In a trading update issued by the company, Origin said that acquisitions resulted in increased revenue of 3.3pc in Ireland and the UK, which were offset by a 4pc reduction due to currency movements.

Demand levels for agronomy services and crop inputs were favourable during the three month period, which the group said reflected generally improved on-farm sentiment together with a positive planting profile to date for autumn and winter cropping across the majority of its markets.

In continental Europe, where the company operates in Poland, Romania, and the Ukraine, results were "satisfactory".

On a like-for-like basis there was an underlying increase in revenue of 13.5pc compared to the corresponding period last year, offset by a 2.5pc reduction due to currency movements.

Looking forwards Origin said that sector sentiment remained "cautious" against what it described as "an improved planning backdrop" for primary food producers.

"The autumn and winter cropping profile provides a strong foundation for the seasonally more important second half when in excess of 90pc of earnings typically arise," a statement from the company said.

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