Shares in Origin Enterprises slumped over 6% today after it said it was cutting its outlook for the full year to the end of July following the impact of "prolonged and challenging weather conditions" in Ireland and the UK.
Origin said that as outlined in a trading update in November, significant rainfall in the UK from September to November meant that the total area for winter crops was expected to be 25% down on the previous year.
The agri-services group said today that after further heavy and sustained rainfall from December to February, it now expects the total winter planted area in the UK will be at least 40% lower year on year.
"Autumn / winter rainfall has been at its highest level in 30 years, with more than double the number of continuous days rainfall compared to the prior year and the fifth wettest on record," the company stated.
It also said it expects a greater area will now transfer to spring cropping, with a consequential lower investment spend by farmers and growers on agronomy services and crop inputs.
"With the extent of the shortfall in winter cropping in addition to the poor establishment of already sown crops, the total planted area for the 2020 financial year is expected to be circa 10% lower year on year, compared to the anticipated 2% reduction at the time of the Q1 trading update," the company cautioned.
"The impact on Ireland and UK performance of the adverse conditions experienced to date together with the challenges associated with an anticipated large increase in spring cropping, means that it is expected that group operating profit and adjusted diluted earnings per share for the full year will now be significantly below the current range of analysts' estimates," it added.
Origin said the outlook for the spring planting season remains uncertain.
"Consistent with prior years, we will be in a better position to provide a meaningful update on full year guidance at the time of the third quarter trading update on 17 June," it added.
Shares in the company saw steep losses in Dublin trade today, closing 8.1% lower.