Origin Enterprises reports slower start to fiscal 2016

First quarter revenues decline 5.5 per cent to €300 million at agri-services group

Origin chief executive  Tom O’Mahony. The agri-services group  has reported a slower start to the 2016 financial year. Photo: Eric Luke/The Irish Times

Origin chief executive Tom O’Mahony. The agri-services group has reported a slower start to the 2016 financial year. Photo: Eric Luke/The Irish Times

 

Agri-services group Origin Enterprises has reported a slower start to the 2016 financial year, with a “seasonally quiet” first quarter.

The company said revenue for the three months to October 31 was €300 million compared with €318 million during the same period last year, a decrease of 5.5 per cent.

In a trading update, it said the slower performance is due to delayed new season activity on farm during August and September and bad weather.

Origin said the weaker market backdrop for primary producers and the associated pressures on farm incomes makes for a particularly challenging backdrop for service and input demand in 2016.

Origin also said it expects to achieve full year adjusted diluted earnings per share of between 51 cent and 53 cent.

Earlier this year, Origin acquired Poland-based Kazgod Group for €22.4 million.

Kazgod is a manufacturer of micro-nutrition applications, which track users’ intake of basic vitamin and minerals, and a provider of agronomy services and crop marketing solutions.