Origin Sees Group Revenue Fall By 6.7% In Q3
Origin Enterprise's group revenues decreased by 6.7% to €1,209.7 million, its third quarter results show.
The International agri-services group said that revenue development in the period reflects the in-year impact of reduced market demand for agronomy services and crop inputs, principally in Ireland and the UK, due to a lower level of intensive autumn and winter crop plantings as a consequence of the wettest autumn winter planting season in 30 years.
Agronomy Services Reduction
Ireland and the UK recorded a reduction in underlying agronomy services and crop input volumes of 1.5% and 13.9% in the nine-months ended 30 April 2020, and year-to-date respectively.
Volume performance in the quarter was robust, with the business delivering a strong operating performance, with consideration for the challenges resulting from COVID-19.
Total autumn and winter plantings for the principal crops were 40.4%, or 1.1 million hectares, behind last year at 1.7 million hectares, the figures showed.
Approximately 55% of the 1.1 million autumn and winter cropping shortfall has transferred to spring planting, with the balance remaining as fallow or unplanted hectares, during the period.
'In light of market conditions and uncertainty relating to COVID-19, the board has determined that it is prudent to suspend the final dividend for FY20,' the company said.
'Acknowledging the decision to suspend the final dividend, the executive directors have voluntarily waived their entitlement to any unvested share options,' it added,
On 11 June 2020 the group announced the retirement of Tom O'Mahony after 35 years of service, including 13 years as CEO.
He will be succeeded by Sean Coyle and a search for Sean's successor as CFO has commenced.
Full Year Outlook for FY20
The group noted that 'with persistent and prolonged dry conditions across our Ireland & UK and Continental European markets through spring, expected yields are lower and, in turn, there is reduced intensity of crop input investment spend.'
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