Revenue rises in third quarter at Origin Enterprises
Weakness in Continental Europe business offset by strong performance in Ireland and Britain
Tom O’Mahony, chief executive of Origin Enterprises. Photograph: Eric Luke
Agribusiness group Origin Enterprises said underlying revenue rose 11.4 per cent in the third quarter as a favourable trading market in Ireland and Britain offset weaker performance in continental Europe.
Revenue for the quarter was €595.4 million, a 13.1 per cent total increase, with year to date figures up 16.5 per cent overall and underlying revenue up 12.5 per cent at just under €1.3 billion.
Underlying revenues in its Irish and UK business increased 18 per cent, with the markets delivering €405.5 million during the three-month period. Underlying revenues from Continental Europe were down by 1.6 per cent in the third quarter.
The company also recorded 10.9 per cent growth in underlying volumes, with year to date figures slightly behind that at 9.5 per cent.
Origin described it as a “satisfactory performance”, noting the third quarter of the year was seasonally important. The rise in revenues was supported by increased demand for agronomy services and crop input volumes.,
Its Latin America market had performed in line with pre-acquisition expectations, Origin said.
During the third quarter of the year, the company’s digital agricultural services unit, now merged with precision farming under the Rhiza brand, showed strong operational performance. More than 900,000 hectares are now icnluded in the group’s digital agronomy platform.
The third quarter of the year also saw the acquisition of a 20 per cent interest in Brazilian-based agronomy service and crop input distribution business Ferrari Zagatto completed.
Origin issued full year earnings guidance in adjusted diluted earnings per share of between 51.5 and 52.5 cent.