Origin Enterprises reports 11% rise in operating profit
For the 12 months to the end of July, Origin yesterday reported operating profits of just under €86m, up from €77.4m the previous year. Group revenue was up 16.8% at €1.26 billion. Adjusted diluted earnings per share of 11c marked a 22.2% annual rise, double initial market expectations of around 11%.
Pre-tax profits for the year amounted to €66.25m, well up on the €44.53m figure reported for the preceding 12-month period.
The group’s net debt was down by nearly 18% at €92.1m and a full-year dividend of 11c (up by 22.2%) has been declared.
The year also saw Origin re-position its non-core consumer foods division into joint venture associate companies and, through a series of acquisitions, strengthen its core agri-services focus.
Group chief executive, Tom O’Mahony, called the performance “excellent”, adding that it positions the business for future growth.
“The improved backdrop for primary food production, together with the sustained recovery in farm incomes, has supported good volume growth and margin progression within our agri-services business,” he said.
“Having established market-leading positions, through organic growth and acquisition, the group is now well advanced in building an integrated platform with a unique capability to support primary producers in the management of the complex and evolving requirements of modern farming,” Mr O’Mahony added, saying this will “transform the scope and scale of the business”.
He also said that the moving of Origin’s consumer foods business into associated businesses had freed up €74.6m in cash for the core group. Predictably, management remained silent on recent speculation that an unnamed private equity firm had made a €464m takeover approach for the group.
