Origin Enterprises eyes 4% earnings growth

Agri-services group Origin Enterprises has reiterated its expectation of earnings growth of over 4% in its current financial year, on the back of good performance in its seasonally important third quarter.

The Dublin-based business — up until recently majority owned by Irish-Swiss baked goods group Aryzta — yesterday reported a 0.8% year-on-year increase in underlying revenues for the three months to the end of April.

That prompted management to maintain its full-year guidance, for adjusted diluted earnings per share, of 60c for the 12 months to the end of July. That total would be around 4.3% up on the 57.51c generated in its last financial year, which, in turn, represented an annual jump of over 10%.

Revenues in the core agri-services division grew by 9.4%, on a year-on-year basis, to €560.9m. For the first nine months of Origin’s financial year, the division’s revenues amounted to €1.09bn, up from €1.03bn for the corresponding period last year. More than 40% of the full-year operating profit, generated from agri-services, arises in the final quarter.

Origin said: “The result is set against both a strong third-quarter comparative, reflecting the benefit of greater seasonal intensity in 2014 and the present backdrop of increased volatility across primary output and input markets, which is exerting considerable pressure on the incomes of primary producers currently.”

Jack Gorman of Davy Stockbrokers called it a “resilient” performance against the backdrop of a “tough prior-year comparative and a challenging environment for primary producers”.


Food news with Joe McNameeThe Menu: Upcoming food highlights

THE health properties of tea have long been advertised. “It maketh the body active and lusty” a 1660 promotion suggested. However, before you dunk your teabag into a mug of steaming water, spare a thought for the environment. Some have polypropylene to help to seal them and it doesn’t decompose.Storm in a teacup: Top 8 loose-leaf teas

Bestselling author Isabel Allende talks to Rowena Walsh about life, grief, and why it’s never too late to fall in loveIsabel Allende: It's never too late to fall in love

Cliffs of Moher Retreat owner Michelle Moroney has written a book on finding self-worth and stepping back from our 24/7 lives. She talks to Marjorie Brennan about the need to unwindMichelle Moroney highlights the need to take stock of our lives

More From The Irish Examiner