Agri-services group Origin Enterprises has reported lower revenues for the first half of its financial year after what it called a challenging six month period. 

Origin Enterprises said its revenues for the six months to the end of February fell by 13.8% to €604.9m as it reported an operating loss of €2.8m.

It also posted a decrease in underlying operating profit of €11.4m, which it said mainly reflected a 25.6% reduction in business volumes in Ireland and the UK, due to lower autumn and winter crop plantings.

Origin Enterprises' chief executive Tom O'Mahony said operating conditions faced by its farmers and growers, mainly in the UK, due to intense and prolonged rainfall has led to a 40% year-on-year reduction in the level of autumn and winter crop plantings. 

"This significantly exceeds the 25% reduction estimated at the time of our first quarter trading update in November and has resulted in lower than expected underlying profitability and cash generation in our largest division, Ireland and the UK," the CEO added. 

However, the company's operations in Continental Europe and Latin America recorded good performances in the first half of the year, delivering an underlying increase in operating profits. 

"Especially pleasing was the reduction in working capital delivered by our teams in Continental Europe," Tom O'Mahony said.

The CEO said the adverse weather conditions experienced in Ireland and the UK, along with the challenges associated with an anticipated large increase in spring cropping, means it is likely that group operating profit and adjusted diluted earnings per share for the full year will now be significantly lower than expected.

"Against these particularly challenging conditions, we will focus on optimising operational performance while pausing M&A activity," Mr O'Mahony said.

But he said that despite the weather challenges currently being experienced in Ireland and the UK, Origin we remains confident in the delivery of its 2023 growth ambition.

Shares in the company were lower in Dublin trade this morning.