ORIGIN TO PAY FIRST DIVIDEND TO SHAREHOLDERS - Origin, the agribusiness, food and cereal firm which was spun off in the last few years from IAWS, has reported unchanged revenue for the latest financial year. Its operating profit was almost 7% higher at €75m and the company said it will pay its first dividend to shareholders. Among the company's most recognised brands are Shamrock, Roma and Odlums.
Tom O'Mahony, the company's chief executive, says the three leading brands are doing very well. Pointing out that Shamrock and Odlums have a long heritage in the Irish retail branded industry, he said that underlying sales rose by 3.5%. He says the consumer has remained substantially loyal to Irish brands. He also says that Irish consumers are under increased pressure and he says his firm is working proactively to ensure that its categories are aligned to the changed spending structures.
Mr O'Mahony says that Irish farming is facing significant challenges, especially in the dairy sector. Output prices are under major pressure on the back of weak global markets, he says. The issue of ever increasing tight credit is also a concern and he said the company is adopting a cautious approach to its Irish agri-inputs business.
However, the CEO says that Origin's agronomy services division Masstock had 'an absolutely fantastic performance' this year and led the group's performance. He said it has transformed the firm's agri-nutrition base.
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STERLING CONTINUES TO WEAKEN AGAINST THE EURO -The euro is trading at 92.3 pence sterling this morning. Ulster Bank economist Simon Barry says that one of the reasons sterling has weakened since early August is more indication that the Bank of England is ready to pursue an even more aggressive policy stance in its attempt to achieve economic recovery in the UK. In early August, the Bank of England decided to increase its QE programme to £175 billion sterling. A number of stories since then have indicated that the UK central bank is prepared to do more in order to try and promote recovery. He points out that lower interest rates and extra stimulus plans are negative news for the country's currency and sterling has weakened by about 9% against the euro since August.
The economist says that in previous bouts of weakness this year, the 95 pence level appeared to be the important marker with the markets struggling to push the euro-sterling rate higher than that. He predicts it will be no different in the latest sterling fall.
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MORNING BRIEFS - Aryzta, the company formed with Irish group IAWS and Swiss baker Hiestand joined forces last year, has reported earnings per share growth of 16% to 234.7 cent. Revenues was up 2.5% at €3.2 billion. Its CEO Owen Killian said that in the financial year to the end of July, the company's revenue swung from double digit growth to a decline, but that it remained focused on cash generation and efficiency.
*** The board of Independent News and Media will meet later today to review a number of restructuring proposals to secure its financial future. Talk will focus on a debt-for-equity swap with bondholders and how to deal with a separate rescue plan proposed by key shareholder Denis O'Brien.
*** On the currency markets, the euro is trading at $1.4594.
