SHARES IN Origin Enterprises climbed almost 4 per cent yesterday after the company posted an increase in underlying revenue for the first quarter.
Robust farm activity helped lift group revenue to €315.8 million for the three months to October 29th, the company said. That compares with €340.6 million total revenue in the same period a year earlier. However, the previous year’s figures included €34.6 million from consumer foods unit Valeo Foods, which has since changed from a wholly owned business to an associate.
Revenue at Origin’s core agri-services business rose 3.2 per cent to €315.8 million in the first quarter, compared to €306 million for the same period last year, reflecting an underlying increase of 10.6 per cent after acquisitions and disposals are taken into account. The increase reflected price rises, with volume slightly down.
Origin, which is majority owned by Aryzta, has refocused itself as an agri-services company following the offloading of its consumer foods business, which merged with Batchelors to form Valeo Foods in 2010.
Origin’s strong performance reflected relatively high farm incomes and good autumn growing conditions. Similarly, business-to-business agri-inputs performed well, though the company noted lower volumes as customers delayed buying until closer to the main usage period in the second half of the financial year.
Origin said the integration of UK companies United Agri Products, Carrs Fertilisers and Rigby Taylor, which were acquired last year, was progressing to plan and the company remained comfortable with consensus market estimates for the full year.
