‘Solid’ performance for Origin as revenues rise in H1

Fiona Reddan

Agri-services group Origin Enterprises grew its revenues in the first half of its financial year to €531.6million, up by 2.7 per cent on the same period in 2014, as pre-tax profits dipped by 8.7 per cent to €7.6million.

Origin chief executive officer Tom O’Mahony said it was a “solid operating and financial performance during the seasonally quiet first half of the financial year”.

Adjusted diluted earnings per share of 5.80 cent represented an underlying increase of 7.1 per cent in the six months to January 31st 2015, as Origin said it would maintain its full year adjusted diluted EPS guidance at 60.0 cent per ordinary share.

Origin, which is majority owned by Swiss food group Aryzta, said it had net debt of €161.2m, compared with € 163.6 millionfor the same period in 2013.

In the agri-services division, group operating profit was “broadly in line” with last year Mr O’Mahony said, reflecting a favourable 2014 harvest.

On the farming front, “ sentiment is currently more challenged” Mr O’Mahony said, pointing to volatile output and input markets exerting significant pressure on the incomes of primary producers.

“Maintaining profitable and sustainable farming systems against this backdrop highlights the strategic value of customised agronomy services in promoting increasingly efficient production systems and a risk based approach to crop management,” he said.

Looking to the rest of the year, Mr O’Mahony said that Origin’s focus is concentrated on developing new consolidation opportunities that build upon the group’s existing service offer and technology sets.

“At this stage and with the seasonally more important second half of the financial year to come we are maintaining full year guidance in adjusted diluted earnings per share of 60 cent from the existing business.”