Agri-services group Origin Enterprises said it is seeing increased volumes and contributions in each of its divisions, adding that favourable autumn/winter planting levels set a solid foundation for continued progress later in the financial year.
In a trading update for its fiscal first quarter for the three months to the end of October, the company said it had seen a strong start to trading in the seasonally quiet first quarter compared to the same time last year.
Origin Enterprises is holding its AGM in Dublin today.
The company said its group revenue rose by 42.6% to €454.1m in the three months to the end of October from €318.3m the same time last year.
The improved revenues came on the back of increased demand, some early season forward buying by farmers and an encouraging autumn/winter planting season, particularly in the UK.
Origin noted that increased global fertiliser and feed prices represented approximately half of the revenue growth in the quarter.
Its Ireland and UK operations saw an increase in underlying agronomy services and crop input volumes of 16.4% in the three month period.
Origin said that favourable conditions helped the timely completion of the harvest, with some areas completing their harvest earlier than expected and with higher yields recorded than the previous year.
This facilitated the early sowing of oil seed rape followed by winter wheat and winter barley.
Origin said the total autumn/winter planted area is expected to be 5.1% higher than last year at 2.5 million hectares.
Combined autumn/winter and spring plantings for the 2022 crop production year are expected to be 1.1% higher at approximately 4.3 million hectares, it added.
Its Continental Europe operations also recorded an underlying volume increase in agronomy services and crop inputs of 22.4%.
It noted a solid start to the year across the segment, some of which is attributable to brought forward demand due to concerns about supply chain challenges.
Looking ahead, Origin Enterprises that favourable planting levels set a solid foundation for continued progress later in the financial year, subject to normal weather risks which may arise as the year progresses.
The company also said it was conscious of potential operating and commercial challenges with regard to global supply chain risks and raw material price volatility.
"Through continued disciplined capital deployment, and the strength and experience of the leadership team in place, we are confident in the group's ability to progress our growth ambitions successfully in FY22 and beyond, allowing us to further increase shareholder returns," the company stated.
Shares in the company were higher in Dublin trade today.