Origin Enterprises reports rise in revenue of 22pc
AGRI-SERVICES firm Origin Enterprises yesterday posted a strong start to its most important trading period of the year as revenues increased by almost a quarter.
The company, which is majority-owned by the Swiss bakery Aryzta, said third-quarter turnover jumped by 22pc to €451.6m, from €370.3m a year earlier.
Much of the growth came as a result of a series of acquisitions during the year.
Underlying revenue increa- sed 8pc.
The second half of the year is by far the more important period for the company, accounting for about 85pc of its business.
For the nine months of the year so far, revenues were up 2pc at €959m. In a statement, the company said its business-to-business division, "performed well in the quarter", on the back of increased fertiliser deliveries here and in the UK.
Despite the strong overall performance, which was in line with market forecasts, Welcon -- Origin's joint venture in marine proteins and oils -- posted a year-on-year drop in profits and margins, lower largely due to reduced quotas in the sector.
Origin has dramatically changed its business in the last 18 months.
It moved sharply into agronomy with the acquisition of UK firm Rigby Taylor last July and continued that with the decision to combine its Masstock farming agronomy business with United Agri Products to form Agrii five months ago. In November 2010 the company spun out its consumer foods business into a joint venture, Valeo Foods.
Markets were largely positive on the results. Davy Stockbrokers' Aiden O'Donnell reflected the view of the wider investing economy.
"[This] is a good performance given lower fertiliser demand. Crop conditions in the UK will likely require more protective applications than usual this year, so trading until year-end should be strong in agri-services and this will offset weakness in associates and the joint venture.
"The restructuring of Origin around agri-services is more and more vindicated by its continuing performance," he said.
Origin ended the day at €3.45, down 1.46pc on the day.