Origin Enterprises ups full-year outlook

Agri-services group Origin Enterprises has increased its full-year earnings outlook by 3% on the back of a strong third quarter performance.

The Dublin-based business yesterday reported revenues of just under €513 million for the three months to the end of April, representing underlying growth of 13.2% on the same period last year. When the effects of currency differentiations and acquisitions are added, annualised revenue growth amounted to 19.8%.

The strong third quarter showing compared very healthily with a 5% sales fall for the same time last year. Despite a likelihood that sales levels will be slightly weaker in the current/final quarter of Origin’s financial year (which runs to the end of July), the group has still given a strong outlook.

“Following the strong third quarter performance, we are increasing our full-year earnings guidance — in adjusted earnings per share — by around 3% to approximately 55c,” it said in a trading update yesterday.

Yesterday’s update also showed that Origin’s revenues — in its financial year-to-date — are up by 3.5% on a total basis to €1.03 billion.

“The result is set against the background of robust on-farm activity levels, supporting increased demand for agronomy services and inputs,” management said.

Origin’s new Ukrainian business, Agroscope (of which it owns 60%), was earnings enhancing during the period, while the group’s interests in Poland (Dalgety Agra Polska) recorded what management called “a solid performance” and one of good progress. The Britain-based agronomy services business, Agrii, “maintained excellent momentum” in the third quarter and the consumer foods business, Valeo Foods, in which Origin holds a 32% stake performed in line with expectations.