International agri-services group Origin Enterprises has reported lower revenues for its fiscal first quarter due to delayed plantings in the northern hemisphere and Brazil.
Origin Enterprises said its group revenues for the three months to the end of October fell by 11.8% to €469.4m, from €532.5m the same time last year.
The company said a 14.2% decrease in revenue in the Agriculture segment was partially offset by an increase of 24.8% in its Living Landscapes businesses.
Origin Enterprises said that first quarter volumes were 8.1% lower overall in its Agriculture business due to planting delays caused by persistent rainfall in the UK and Ireland and dry conditions delaying planting progress in Romania and Brazil.
But it said that recovery in volumes in the second quarter is expected after a recent acceleration of drilling across all geographies.
The total planted area for winter cropping is forecast to normalise, including a UK winter wheat area of circa
1.75 million hectares, compared to 1.3 million hectares planted last year.
It noted that while on-farm sentiment is reasonably good across its markets after the recent improvement in weather conditions and stability in input prices, output prices remain a concern for growers.
Meanwhile, its Living Landscapes business saw a strong start to its fiscal year with overall revenue up 24.8% o the back of strong organic growth as well as the benefit of recent acquisitions.
Sean Coyle, Origin Enterprises CEO, said the company achieved a solid first quarter performance, despite delayed plantings in the Northern Hemisphere and Brazil.
"Encouragingly, following recent improvements in conditions, we expect to see recovery in volumes in Q2
and overall planting levels across our geographies to return to a more normative cropping area relative to last year," Sean Coyle said.
"In line with our strategic ambitions, we are pleased to see strong organic growth in Living Landscapes and welcome four new businesses which strengthen our environmental expertise and further complement our services," he added.
Shares in the company moved lower in Dublin trade today.
