The agri-services firm, Origin Enterprises, saw a reduction of nearly 28% in its revenue for the first half of its 2024 fiscal year. This was primarily due to expected adjustments in worldwide pricing of feed and fertiliser raw materials. Further, the company reported a decline in business volumes due to adverse weather conditions, with a drop in volumes, excluding rop marketing, by 2.6%.
A mid-term statement issued for the half-year ending 31st January 2024 revealed that Origin’s revenues decreased to €854.9 million from over €1.1 billion compared the previous year. Operating profit fell from €20.3 million to €12.7 million, whilst pretax revenue saw a €8 million decrease, reaching €5.3 million.
Earnings per share (adjusted diluted) stood at 3.75 cents, a reduction from 8.7 cents in H1 2023, while an interim dividend of 3.15 cents per share was declared. The earlier declared €20 million share repurchase scheme is already more than 25% complete.
Despite challenging conditions in planting and infield, Chief Executive Sean Coyle pointed out a respectable operating profit in H1 2024, compared to a robust performance in the same period a year earlier. Across their portfolio, they experienced decreased early season volumes due to adverse planting conditions and dropping prices. Greater difficulties were faced in the UK, Ireland, and Continental Europe whilst their Latin American unit and Amenity, Environmental, and Ecology businesses managed steady results despite being affected by fertiliser price trends.
Recent acquisitions in the Amenity, Environmental, and Ecology division are being smoothly integrated, extending their product range and capabilities in the sustainable urban drainage systems sector. The company is also transitioning CFO, TJ Kelly, to managing director of agri-services to help the company achieve its goal of having this division generate 30% of the group’s operating profit by the end of the 2026 fiscal year.
Over the past 12 months, Origin Enterprises has invested €54.2 million on acquisitions.
In an upcoming statement, the firm indicated that agricultural moods remained wary. “We anticipate our total annual gains to be somewhere between 44c and 49c, influenced by harsh weather conditions,” stated Mr Coyle, “and we are currently in the progress of spring planting and the main application stage which will prove crucial to our end of year figures.” The company highlighted its ongoing commitment to expanding its product range and diversifying its revenue.
Origin plans to publish its trading results for the third quarter on the 13th of June.
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