Origin’s financial year has slow start

Agri-services group Origin Enterprises has reported a weak start to its latest financial year, with revenue growth impacted by the wet summer weather.

The Dublin-headquartered group — which is 71% owned by Irish-Swiss bakery group, Aryzta — yesterday reported first quarter revenue of €351.2m; up by 11.2% on the €315.8m reported for the same period last year.

On an underlying basis, revenue was up by 3.4%; principally driven by higher prices with seed and fertiliser volumes lower on a year-on-year basis.

Origin’s financial year runs to the end of July; meaning its first quarter covers the three months to the end of October.

The company’s annual performance is largely weighted towards the second half of the year.

Management said that it was reporting “a slower start” to its financial year, “as on-farm activity in Ireland and the UK was impacted by a sustained period of unseasonably wet weather, resulting in a delayed autumn harvest and challenging arable crop planting conditions”.

However, the company added: “The planning environment for primary food producers remains favourable, reflecting a positive output price environment which is expected to support a strong platform for the seasonally more important second half of the year.

“The challenging weather conditions experienced by primary producers to date will lead to an increased level of seasonality in the 2013 financial year for our agri-services business, as a greater weighting of crop planting activity is expected to take place in the spring period.”

Yesterday’s trading update also noted that Origin’s non-core interests — covering its marine proteins and oils business and its Valeo Foods consumer foods joint venture — are performing “in line with expectations”.

Management stressed that Valeo delivered “a solid performance in an intensely competitive trading environment”, while its marine proteins and oils joint venture, Welcon, delivered “a very strong performance”, on a year-on-year basis.