Origin Enterprises, the Dublin-headquartered international agronomy services group, has reported a significant 34.5% jump in revenues for the half year to January 2023.
The group today (Tuesday, March 7) reported revenues of €1.18 billion for the six months to the end of January compared to corresponding results of €877.1 million for 2022.
The agronomy services group, which has five key business divisions, also reported a jump in interim pre-tax profits from €7.6 million in 2022 to €13.3 million of the half-year ended January 2023.
The latest set of results show that Origin Enterprises’ underlying business volumes – excluding crop marketing – fell by 4.6% in the period under review, primarily because of “reduced fertiliser demand and significantly lower activity in Ukraine”.
Sean Coyle, chief executive of the group, said although there was a reduction in operating profit in Ireland and the UK over the half year to January 2023, this was offset by improved performances in Latin American (LATM) and continental Europe.
“In Ireland and the UK, a favourable planting profile resulted in solid early season volumes across our seed portfolio, while overall fertiliser demand reduced due to higher global raw material prices.
“Continental Europe, Poland and Romania saw strong demand in the crop protection and seed portfolios, with an element of forward buying by growers, while LATAM delivered a strong underlying performance across its product portfolio,” Coyle added.
The latest set of results show that Origin Enterprises’ net debt increased to €130.9 million in the period under review compared to €53.7 million for the six-month period to January 31, 2022.
The group said this reflected “a commodity inflation-led increase in working capital, cumulative share buyback spend of €53.1 million and acquisition investment of €12.7 million in the 12-month period”.
Coyle also announced the acquisition of Agrigem Limited, an independent specialist supplier and advisor of ground care products throughout the UK and Ireland, today, which he said would extend the group’s product range and broaden its “offering in the amenity sector”.
According to the chief executive of Origin Enterprises the group delivered “a strong start to the year”.
Coyle said “good autumn/winter planting levels, generally favourable weather conditions experienced to date and a strong H1 contribution from LATAM” had established a ” solid foundation for the rest of the financial year”.