Revenue at Irish agri-food group, Origin Enterprises, was up 24% in the first quarter of its 2019 fiscal year, the three months ending 31 October 2018, compared to the same period the year before.
Revenues reached €430 million, compared to €346.7 million this time last year. At constant currency, revenue increased by €62.4 million, up 18%.
The company said that performance was boosted by higher seed, crop protection, and fertiliser volumes and prices in the period.
Underlying volume growth in agronomy services and crop inputs (excluding crop marketing volumes) was 13.7% in the period.
Ireland and the UK delivered a good performance recording underlying volume growth in agronomy services and crop inputs of 14.4% in the period.
On an underlying basis at constant currency, there was an increase in revenue of 18.0%. The impact of currency movements on revenue during the period was an increase of €2.5 million, or 1.2%.
It said that its performance was ‘positively supported by seasonal timing and volume contribution from the Bunn fertiliser business which was acquired in the prior year’.
The group said its Continental European businesses delivered a ‘satisfactory performance’, recording underlying volume growth in agronomy services and crop inputs (excluding crop marketing volumes) of 11.9% in the period.
The group highlighted Brexit as an ‘area of focus, but said that due to its well-diversified businesses in Ireland, the UK, Continental Europe, and Latin America, it is able to maintain ‘a flexible approach to dealing with the potential challenges that might arise’.
Origin Enterprises said that this performance represents a positive start to the financial year, and is confident about the full-year, bearing in mind that over 95% of earnings are generated in the second half of its financial year.
The group admitted, however, that the balance of this seasonality profile is expected to change following the Group’s acquisition of the Fortgreen business in Brazil, which completed in August 2018.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.