Rise in revenue for Origin Enterprises

ORIGIN ENTERPRISES, which is headquartered in Dublin, enjoyed a 5 per cent uplift in revenue in the three months to October 31st.

The food group, which is listed on the ESM market of the Irish stock exchange, said yesterday it was “comfortable” with consensus market expectations for its full 2011 financial year, after reporting group revenue of €340.6 million for the first quarter.

This strong performance was driven largely by the group’s agri-services division, which grew revenues by 21 per cent to €306 million. This division benefited from an early harvest, followed by excellent growing conditions and a positive price environment, the company said in a trading update.

“The current momentum across the majority of primary output markets is providing a welcome boost to farm incomes and reflects the overall fragile supply side dynamic of primary food production,” it said. “This background sets the positive backdrop for a stronger performance from agri-services in the 2011 financial year.”

Origin’s food division saw revenues fall to €34.6 million, from €70.6 million in the same period a year earlier. This was attributed to the winding down of its Masterfoods distribution contract.

“In line with the current economic situation, trading conditions continue to be extremely challenging as consumer sentiment remains firmly value focused,” it said. It reported that its marine proteins and oil joint venture had given an “excellent performance” in the first quarter.

In a note, Davy Stockbrokers said Origin had been active in reorganising its activities for optimal performance, and had large scope to invest for continuing growth in core or new agri-input activity. Origin’s share price fell five cent to €3.35 in Dublin yesterday.