Agri-business group Origin Enterprises expects to deliver increased growth in earnings year-on-year after strong first half trading continued into its third quarter.
The group on Friday issued a trading update and earnings guidance for the full year to July 31st, 2022, in advance of the publication of its third quarter trading update for the period to April 30th.
It said it saw a “strong first half operating performance” across all three segments in the period to January 31st, with an expectation to deliver “solid growth in earnings” for the full year. “Since then trading has continued to strengthen across the group,” it said.
“The first half recovery in Ireland and UK has continued into the third quarter, with favourable on-farm sentiment underpinning performance in Poland and Romania, while our Latin American business is currently performing ahead of expectations.
“Consequently, the group now believes that fully-adjusted diluted earnings per share for the full year will be higher than the current level of market consensus.
“Origin now expects to deliver increased growth in earnings year-on-year, with fully adjusted diluted earnings per share for the full year anticipated to be in the range of 45 to 49 cent, excluding any impact of the on-going share buyback programme.”
The group previously said it was mindful of the price volatility and supply chain risks that could pose a challenge in the second half.
Origin has operations in Ukraine, which were initially suspended following Russia’s invasion of the country. It has recommenced limited localised operations in areas away from the conflict, when safe to do so.
The group has established internal support teams in Poland and Romania to meet colleagues and their families as they cross the border.
It said it will host a capital markets day for analysts and institutional investors on May 10th in London.