Agri-Services group Origin Enterprises announced that it has delivered ‘resilient trading performances’ despite the challenging year.
Announced in its full-year results, ending 31 July 2018, the group saw its revenues increase by 6.5%, 9% constant currency, to €1.6 billion, due to an increase in fertiliser and feed volumes as well as fertiliser prices.
“Origin achieved a very satisfactory full-year result, ahead of guidance, recording a 4.7% increase in adjusted diluted earnings per share and generating €56.6 million in free cash flow. The business performed robustly while supporting our customers manage the operational demands of a highly challenging growing season in 2018,” said Tom O’Mahony, CEO of Origin Enterprises.
“We have seen steadily improving sentiment on-farm over recent months which may be challenged in the UK by the uncertain nature of Brexit and its timing. The Group is well positioned to capitalise on its scalable and diversified business platforms, development opportunities and strong cash generation.”
'Scalable & Diversified Business'
Origin’s 4.7% increase in adjusted diluted earnings per share (7.6% constant currency) was driven by an increase in like-for-like underlying profits of 5.7%, along with the positive impact of acquisitions of 1.9%, partly offset by a 2.9% reduction as a result of foreign currency translation.
Operating profit amounted to €71.2 million compared to €70.0 million in the previous year, an increase of 1.7%, 4.6% constant currency.
The UK’s exit from the European Union continues to be an area of focus for Origin, but it said that with its ‘well-diversified’ businesses across Ireland, the UK, Continental Europe and Latin America, it is able to maintain ‘a flexible approach to dealing with the potential challenges that will arise following Brexit’.
In August, the Agri-service company announced that it acquired a 65% controlling interest in the Brazilian-based speciality nutrition and crop inputs business, Fortgreen Commercial Agricola Ltda.
Origin said that is has seen steadily improving sentiment on-farm over recent months, though this may be challenged in the UK by Brexit. However, looking forward, it said that it is well positioned to capitalise on its ‘scalable and diversified’ business model and momentum.
© 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.