Origin Enterprises reports reduced net profits as trading volumes shift

Agri-food group Origin Enterprises has reported net profit of €6.4m for its accounting first-half year to Jan 31, a reduced profit level on this period last year, explained by the seasonality of new acquisitions UAP and Masstock.

Origin now does around 15% of its trade in H1 versus its prior 30% balance for the period. Stockbrokers Davy, Goodbody and Bloxham are all maintaining high-earnings forecasts, which they explain by Origin’s shift in trade volumes towards its H2 reporting period, which began on Feb 1. Davy is predicting 10.4% full year earnings per share for 2012.

Origin expects to build its feed and fertiliser sales with its new acquisitions, whose primary trade is in horticulture and agronomy (farm advice services).