Origin Enterprises, the Dublin headquartered international agri-services group, has reported a drop in revenues in its first fiscal quarter due to delayed planting in the northern hemisphere and Brazil.
In the three months up to October 31, 2024, revenues at the company stood at €469.4 million, which is down by 11.8% compared to the same period last year (€532.5 million).
In a trading update, Origin Enterprises said that a 14.2% decrease in revenue in its agriculture division was partially offset by an increase of 24.8% in its Living Landscapes businesses.
Origin Enterprises
The company said that Q1 volumes were 8.1% lower overall in its agriculture business due to planting delays caused by persistent rainfall in the UK and Ireland and dry conditions delaying planting progress in Romania and Brazil.
A recovery of volumes in Q2 is expected following a recent acceleration of drilling across all geographies, it added.
Origin Enterprises said that the total planted area for winter cropping is “forecast to normalise”, including a UK winter wheat area of circa 1.75 million hectares, compared to 1.3 million hectares planted last year.
“While on-farm sentiment is reasonably good across our geographies, following the recent improvement in weather conditions and stability in input prices, output prices remain a concern for growers.
“On-farm inventory levels remain low, creating potential for increased demand as the season progresses,” the trading update said.
The company said that the jump in revenues in its Living Landscapes business was driven by “strong organic growth and the benefit of recent acquisitions”.
The company has also completed a €20 million share buyback programme.
Commenting on the trading Update, Sean Coyle, chief executive of Origin Enterprises, said:
“The Group achieved a solid first quarter performance, despite delayed plantings in the northern hemisphere and Brazil.
“Encouragingly, following recent improvements in conditions, we expect to see recovery in volumes in Q2 and overall planting levels across our geographies to return to a more normative cropping area relative to last year.
In line with our strategic ambitions, we are pleased to see strong organic growth in Living Landscapes and welcome four new businesses which strengthen our environmental expertise and further complement our services.”
Origin Enterprises will hold its Annual General Meeting (AGM) at 11:00a.m today (Thursday, November 21) at the Merrion Hotel in Dublin.