Poor weather sees sharp drop in Origin revenues

Origin said the total autumn and winter cropping is estimated at 1.9 million hectares, 25.8% lower than last year. File Picture: Andy Gibson.

Agri services firm Origin Enterprises have seen a 20.7% drop in revenues as persistent rainfall throughout the early part of this year reduced the winter cropping area and delayed spring planting activity.

Across their key sector of Ireland and the UK, the firm reported a 10.3% drop in revenues to €439.2m in the three months to the end of April. They said revenues were also impacted by significantly lower global feed and fertiliser raw materials pricing.

They said the pace of revenue decline slowed in that period reflecting improved feed and fertiliser volumes. The volume of crop protection sales also improved, driven primarily by Continental Europe, but pricing remained weak. Ongoing high disease pressure is encouraging late season application, Origin said.

Across Ireland the UK, Origin said the total autumn and winter cropping is estimated at 1.9 million hectares, 25.8% lower than last year. Combined spring and winter plantings are expected to be 8.5% lower at 3.9 million hectares. 

Despite the impact of the weather in earnings, Origin said it remains well on track to deliver on their profit, cash generation and other operational targets.

Late drilling and poor ground conditions resulted in reduced expenditures on crops in the third quarter, however ongoing disease pressure is resulting in strong late season volumes. The reduced cropping area resulted in lower volumes for our Integrated On-Farm Agronomy Services.

In its trading update, the group said its share buyback programme to repurchase up to €20m of ordinary shares is progressing to plan and is currently approximately 77% complete.