Origin Enterprises increases full year targets

Thursday 06 March 2014 18.01
Origin Enterprises' revenue for the six month period fell by 8.8%
Origin Enterprises' revenue for the six month period fell by 8.8%

Origin Enterprises has reported lower revenues for the six months to the end of January in its agri services division, but said it was increasing its full year guidance.

The company said revenue for the six month period fell by 8.8% to €517.6m from €567.7m due to both lower global fertiliser and feed prices.

These were partially offset by increased fertiliser, crop protection and crop marketing volumes.

Operating profits from the agri services sector rose to €4m from €2.4m the same time the previous year after a return to more normal winter cropping patterns after the extreme weather conditions in the previous period. 

This also provides a strong foundation for the second half of the year, the company added.

Shares in the company were 2.5% higher in Dublin trade following the results, closing at €7.38.

Origin's chief executive Tom O'Mahony said that the company delivered a "solid operating and financial performance" during the seasonally quiet first half of the year.

"Agri-Services has performed ahead of last year and is well positioned for the seasonally more significant second half of the year as near perfect autumn growing conditions, principally in the UK, supported a strong recovery in winter arable plantings," Mr O'Mahony added.

He said the company was increasing its full year guidance in adjusted diluted earnings per share by 3% to 53.5 cent.