International agri-services group Origin Enterprises plc has today, Wednesday, September 25, announced its full year results for the year ended July 31, 2019.

The business has reported “a strong performance” in fiscal year 2019 (FY19), with 15.6% growth in operating profit and adjusted diluted earnings per share (EPS) up 7.9% to 52.65c.

Set out below is the key financial, operational and strategic highlights results summary:
  • Group revenue increase of 10.5% to €1,798.2 million, and 7.2% on an underlying basis;
  • Operating profit of €82.3 million, an increase of 15.6% and up 3.5% on an underlying basis;
  • Group operating margin of 4.6%, an increase of 20 basis points;
  • Adjusted diluted earnings per share up 7.9% to 52.65c;
  • Acquisitions contributed 3.2% to sales growth and 12% to operating profit growth in the year;
  • Strong cash generation with free cash-flow of €54 million (2018: €56.6 million);
  • Increase in net debt to €75.6 million (2018: €38.4 million);
  • Proposed 1.5% increase in total dividend to 21.32c (2018: 21c);
  • Good first-time contribution from Fortgreen acquisition in Latin America;
  • Exceptional charge of €7 million, principally due to a non-cash impairment relating to its Ukrainian business;
  • Conditional agreement to dispose of Cork Docklands property for cash consideration of up to €47.5 million.

Commenting on the results, origin’s chief executive officer, Tom O’Mahony, said: “Our business has performed well with the group benefiting from favourable organic and acquisition growth.

“Demand for agronomy services and crop inputs for Ireland and the UK is expected to normalise in FY20 and to be lower than the above average market demand levels experienced in FY19.

Fertiliser and feed demand are not expected to match the demand created by the fodder crisis in the first half of FY19.

“Our continental European and Latin American segments are expected to grow in FY20 in line with our long-term guidance.

“Against the backdrop of the uncertain nature of Brexit, and its timing, we continue to prioritise a prudent approach to risk management and capital allocation.”

Concluding, O’Mahony expressed confidence saying: “The group is well positioned to capitalise on the group’s scalable and diversified market positions, integrated crop services business model and strong balance sheet to deliver on our 2023 financial and strategic objectives.”

Origin Enterprises provides agronomy advice, crop inputs and digital agricultural solutions to farmers, growers and amenity professionals.