Origin shows €80m profit in spite oftough market

AGRI-food group Origin Enterprises has shrugged off a difficult trading environment to post an 8.5% increase in full-year profits and deliver a first dividend payment to shareholders.

The company – which was spun-off from IAWS (now half of Aryzta) in 2007 – yesterday reported profits, before financing costs, of €79.4 million for the 12 months to the end of July.

This compared to a profit of €73.2m for its first year as a standalone company, although Aryzta still holds a 71.4% stake in Origin.

Earnings per share for the year were 36.16c, representing a 6.2% year-on-year rise. Group revenue was virtually static at just over €1.5 billion and operating profits went up 6.7% to €75.7m. Origin’s net debt was down 12.2% to €153.7m.

Chief executive Tom O’Mahony said the initiation of a dividend payment to shareholders, a full-year dividend of 8c per share has been announced, “reflects confidence in our business model, underpinned by the ability of the group to consistently generate strong cashflow”.

Despite calling the annual results an excellent performance, Mr O’Mahony said market conditions mean earnings per share for the current financial year are likely to be lower than the record levels achieved in the year to the end of July.

“We’ll continue to balance new opportunity with a rigorous focus on cost control, cashflow and risk management to maintain a robust platform for growth and development of the group,” he added.

Meanwhile, Origin has put a 3.5% revenue rise in its higher margin consumer brands – such as Roma, Odlums and Shamrock – down to a shift in consumer trends from eating out to cooking at home, as well as general loyalty in Irish brands.

In July, it was announced that production at the Odlum Group’s Cork city mill would cease at the end of this month, with the loss of 27 jobs due to competition from British-based players importing flour into the Irish market.