International agri-services group Origin Enterprises has reported higher revenues and operating profits for the year to the end of July after what it called a 'very strong performance'.
Origin Enterprises said its revenues for the year rose by 3.1% to €2.109 billion from €2.045 billion the previous year, while its operating profits increased by 10.1% to €98.99m from €89.93m.
The company's adjusted diluted earnings per share were up 12.8% to 54.21 cent - ahead of guidance and it said it had proposed a final dividend of 14.15 cent per share, an increase of 3% on the previous year.
Origin said that operating profits at its Agriculture division increased by 2.5% to €73.4m. It said that while weather conditions in the key autumn planting timeframe were much improved on the prior year, there were challenges later in the year, including the driest spring in over 50 years in the UK.
The company noted that with grain and oilseed prices weakening throughout the year, farmers were more selective in their spending on inputs.
It said that strong growth in Ireland and the UK was supported by improved winter planting areas and increased input demand for animal and soil nutrition.
But Continental Europe was mixed, with good growth in Poland offset by a reduced contribution from Romania, which was impacted by constrained farmer credit following two years of drought conditions in the region.
Meanwhile, the company's underlying performance in its Latin America business was in line with prior year, against a challenging market environment, with reported performance impacted by lower valuation of Brazil's real.
Origin said its Living Landscapes division now represents 18.4% of group earnings and had another "impressive" year, with operating profit up 39.1% to €16.6m.
It said that growth was delivered both through organic expansion, and further acquisitions which broaden its product and service offering across its Sports, Landscapes and Environmental businesses.
"The division continues to expand its presence in higher-margin, faster growing markets, strengthening its role as a key pillar of the company's future growth," Origin added.
Origin's chief executive Sean Coyle said the company's cash generation was also strong in the 12 month period, funding investment, acquisitions and shareholder returns.
"Origin maintains leading positions in the majority of our key markets, and, with a robust balance sheet and outstanding teams, we are well-positioned to execute our medium-term strategy and deliver sustained value for shareholders," the CEO added.
Shares in the company moved higher in Dubln trade today.
