Origin Enterprises’ latest trading update for the nine months to April 30, 2014 shows a 13.2% increase in underlying revenue for the third quarter.
Origin, a spin-off of the former IAWS group says robust activity levels on farm is supporting strong performance across all business units
The Group said it delivered a very satisfactory performance in the seasonally important third quarter of the financial year with year-to-date revenues well ahead of the prior period. The result is set against the background of robust on-farm activity levels supporting increased demand for agronomy services and inputs.
Following the strong third quarter performance we are increasing full year earnings guidance in adjusted diluted earnings per share by 3% to approximately 55.0 cent. The Group’s earnings profile is significantly weighted towards the second half of the financial year with 90% of earnings typically arising in the second half.
In FY14 Associates and joint ventures will account for 13% of the Group’s earnings compared to 24% last year reflecting the completion of the disposal of the Group’s marine proteins and oils business in August 2013 as well as strong underlying growth in the core Agri-Services business and the acquisition of a controlling interest in Agroscope.
Outlook
Origin says it has consolidated its position as a leading provider of intelligence led agronomy based solutions, input technologies and decision support capabilities for the sustainable development of primary crop enterprises.
On-farm activity in the final quarter will be lower compared to last year when unseasonal weather patterns concentrated activity into the final quarter. However, as a direct result of the strong third quarter performance we are increasing full year earnings guidance in adjusted diluted earnings per share by 3% to approximately 55.0 cent.