International agri-services group Origin Enterprises said it is supporting the safety and wellbeing of its team and their families in Ukraine following the invasion of the country by Russia, as it announced higher profits and revenues for the six months to the end of January.
Orign Enterprises said that group revenue for the six month period increased by 53.2% to €877.1m, while its operating profit rose to €11.1m, up fron €1.2m the same time the previous year.
Origin said that after an initial temporary suspension of activities, its team in Ukraine has restarted limited localised operations in areas away from conflict and only when deemed safe to do so.
The company said that in the last two years the group has undertaken a significant de-risking of the balance sheet in Ukraine through a sustained focus on working capital reduction.
"Ukraine does not represent a material contribution to overall group profit," it added.
It said with its colleagues in Agrii Polska and Agrii Romania, it has established internal support teams in Poland and Romania to meet colleagues and their families as they cross the border.
"These teams are in close contact with our Ukrainian colleagues, organising transport, accommodation, food, clothing, medication, and any other support required by the families that are crossing the border," it added.
On its results, Origin said that rising fertiliser pricing resulted in a 5% reduction in fertiliser demand in the period, while security of product supply is the key focus ahead of peak seasonal demand.
The company said its UK and Ireland operations saw a notable recovery through improved plantings and good early season volumes across its seed and crop protection portfolios.
It also said that an improved contribution from Continental Europe was driven by early season demand and positive on-farm sentiment.
Meanwhile, its Latin American segment delivered a strong underlying performance in both its core portfolio and new controlled-release fertiliser volumes as its CRF plant in Minas Gerais in Brazil successfully managed its first seasonal peak.
Origin's chief executive Sean Coyle said the announcement of its results today was completely overshadowed by the terrible events in Ukraine following the Russian invasion.
"Right across the wider Origin Group we are hugely concerned for our colleagues and have been supporting the safety and wellbeing of our team and their families in the region. We are deeply saddened by the loss of innocent lives and support the strong international response," he added.
"Although in the seasonally quieter trading period, the group' first half performance represents a positive foundation for the full year, with an encouraging cropping profile across each of our geographies," Mr Coyle said.
"We are conscious of the challenges of price volatility and risk in the supply chain and are taking appropriate actions to mitigate these risks where possible," he added.
Shares in the company moved higher in Dublin trade today.
