Food and agri-business group Origin Enterprises has reported group operating profits of €75.7m for the year ending July 2009, a 6.7% increase from the €70.9m reported the previous year.
Revenues for the year increased marginally to €1.5 billion with the group's agri-nutrition business seeing a 4% rise in revenues to €1.2 billion. The food business, however, saw revenues slump almost 13% to €295.3m for the year.
Its food brands - Shamrock, Roma and Odlums - managed to maintain their leading market positions, however, with underlying volume growth of 3.5%.
The company announced that it will pay its first dividend since its flotation in June 2007 and said it was recommennding a dividend of eight cent per share.
The company said the weakness of sterling against the euro this year compared to last year reduced operating profits by €5.2m while a number of acquisitions completed contributed operating profits of €4m.
Origin said that Irish farming is facing 'significant challenges' with farm incomes and purchasing power under sustained pressure after a period of very low output prices and tightening farm credit.
'Based on existing market conditions the group anticipates that adjusted fully diluted earnings per share for the current business for 2010 will be lower than the record levels achieved in 2009,' the company added.
'The outlook for primary food production remains positive supported by favourable long term fundamentals. We will continue to balance new opportunity with a rigourous focus on cost control, cash flow and risk management to maintain a robust platform for the future growth and development of the group,' it added.
Shares in the company closed two cent higher at €2.70 in Dublin this evening.
