Agri-services firm Origin Enterprises gives cautious outlook amid adverse weather conditions

A challenging planting profile and a downward-moving price environment resulted in reduced early season volumes across our portfolio, with Ireland and the UK, and continental Europe experiencing more challenging conditions,' said Origin chief executive Sean Coyle.

Agri-services company Origin Enterprises shares tumbled 5% after it gave a cautious outlook as it forecast adverse weather conditions will hit full year earnings.

The consultancy firm for professionals in agriculture, landscaping and ecology markets posted plunging revenues of €1.1bn for the first half of its financial year compared to €855m during the same period in 2023, driven by the stabilisation of global feed and fertiliser raw materials prices.

The company’s operating profit declined to €12.7m from €20m during a period of strong performance in an environment of rising commodity markers and on-farm demand.

Business performance was also hindered by a drop in underlying business volumes.

Excluding crop marketing, business volumes reduced by 2.6% due to adverse weather conditions impacting the planting activity in the autumn and winter planting in the northern hemisphere.

"A challenging planting profile and a downward-moving price environment resulted in reduced early season volumes across our portfolio, with Ireland and the UK, and continental Europe experiencing more challenging conditions," said Origin chief executive Sean Coyle.

The company is anticipating possible further volume reductions as weather remains volatile as climate change continues to worsen.

Meanwhile, higher interest rates increased finance costs to €8.8m however the European Central Bank are expected to cut rates this year amid cooling inflation.