International agri-services group Origin Enterprises has reported a big jump in revenues and profits for the year to the end of July due to strong commodity price growth.
Origin Enterprises said its annual revenues jumped by 41.2% to €2.342 billion while its total group operating profits soared by 98.3% to €126.6m.
It reported adjusted diluted earnings per share of 71.53 cent, up from 35.50 cent the previous year.
The company said the war in Ukraine and ongoing global energy and supply disruptions have resulted in exceptional price volatility for feed and fertiliser raw materials.
But it added that strong on-farm sentiment, bolstered by high crop prices, supported the group in successfully navigating this price volatility across each segment.
It said that generally very good conditions during the key planting and application periods in all of its markets provided a favourable backdrop for the company.
Following an interim dividend of 3.15 cent, Origin said its board is proposing a final dividend of 12.85 cent per share, which will give a total dividend payment per share of 16 cent.
Origin's chief executive Sean Coyle said the year saw strong agricultural commodity price growth and volatile trading conditions across all of the group's three segments throughout the financial year.
"Despite these challenges, Origin delivered significantly improved financial returns and a strong operating performance supported by favourable conditions across all markets in the key planting and application periods of the year, in contrast to the previous two years, which were impacted by extreme weather and Covid-19," he added.
The company said that the last 12 months was characterised by several challenging macro-economic factors, including significant inflation, increasing energy costs and disrupted supply chains, which led to an exceptionally volatile trading environment.
"While these conditions are likely to persist, with the group's strong balance sheet, market positions, deep customer relationships, access to diverse sources of product supply, and established routes to market, Origin is well positioned to deliver the financial, strategic and ESG objectives as outlined in the recent Capital Markets Day," it added.
Shares in the company moved higher in Dublin trade today.
