Origin Enterprises revenue, profit drops in first-half

Agri-services group reports a pretax loss of €4m, versus €7.6m a year earlier

Revenues at agri-services group Origin Enterprises fell by 4.6 per cent in the six months ending January 31st as the company reported a pretax loss of €4 million, as against a profit of €7.6 million a year earlier.

Origin, which derives approximately 95 per cent of revenue in its second half said adverse weather conditions combined with a difficult market backdrop for primary producers, had resulted in "a challenging trading environment." The group said its disposal of its 32 per cent stake in Valeo Foods to CapVest Partners for €86 million last July, also had an impact, as had a "seasonally quiet first half."

The company reported an operating loss of €1.79 million compared to a €4.11 million profit for the first half on revenues that declined from €531 million to €507 million.

Earnings before interest, taxes, and amortisation (ebita) were down 9.5 per cent or €50.4 million, primarily due to lower fertiliser volumes.

The contribution from associates and joint ventures declined from €4.8 million to €1.5 million principally due to the disposal of Valeo.

“With the seasonally more important second half of the financial year to come and assuming normal weather patterns and no material adverse change in current exchange rates, the group expects to achieve full year adjusted diluted earnings per share of between 51 and 53 cent,” said chief executive Tom O’Mahony.