Origin Enterprises raises its full year earnings outlookWednesday 28 May 2014 08.36
Agri-services company Origin Enterprises has reported a 13.2% increase in underlying revenue for the third quarter.
In a trading update, the company said that it delivered a "satisfactory" performance in the seasonally important third quarter of its financial year.
Origin Enterprises said that after the strong third quarter performance it was increasing its full year earnings guidance in adjusted diluted earnings per share by three cent to about 55 cent.
It said its business to business agri-inputs division in Ireland and the UK delivered a strong performance in the three month period on the back of increased volumes and margins.
Origin said that higher demand for fertiliser was due to increased winter cropping and greater visibility on raw material pricing.
In the UK, its Agronomy Services business saw "excellent momentum" in the third quarter as near perfect growing conditions supported the accelerated development of winter and spring crop plantings. Origin said this contrasts sharply with the same time last year as unseasonally cold spring weather slowed crop development.
Its Polish operations reported a solid performance with higher revenues and margins partially offset by lower crop marketing sales due to sluggish export markets.
Origin said its Agroscope business in Ukraine performed well with favourable sales and margins reflecting the benefit of an early spring season with a higher level of crop plantings to date.
"Agroscope is maintaining a cautious planning approach in the current season in light of the recent challenges facing Ukraine," the company stated.
Looking ahead, Origin said that on-farm activity in the final quarter of the year will be lower compared to last year when unseasonal weather patterns concentrated activity in the final quarter.
"However, as a direct result of the strong third quarter performance, we are increasing full year earnings guidance in adjusted earnings per share by about three cent to approximately 55 cent," the company concluded.