Origin's Revenue In Ireland And UK Division Falls By 23% YOY
Origin Enterprises has posted a 23% revenue decrease in its Ireland and UK division, year-on-year, to just under €200 million, its first quarter financial figures showed.
"Ireland and the UK recorded a reduction in underlying agronomy services and crop input volumes of 24.1% in the period," the agri-services company said in a statement.
While the group generates circa 90% of its Operating Profit in the second half of the financial year, there has been a slower start to trading in the seasonally quiet first quarter of the financial year.
It highlighted that farmers and growers experienced highly challenging operating conditions in-field during the first quarter, leading to a lower level of crop plantings following abnormally high rainfall levels.
Origin’s crop technology service business stretches across Ireland, the UK, eastern Europe and South America.
Overall, Origin Enterprises shares have fallen by almost 10% during the period.
The the international group's revenues covering the three months to the end of October came in at €371.2 million, nearly 14% down on a year-on-year basis.
The group said that challenging weather conditions experienced by farmers and growers in the first quarter is expected to lead to a higher concentration of sales demand in the second half and an increased level of seasonality overall in the 2020 financial year.
"The reduced level of autumn plantings and higher level of spring plantings anticipated, particularly in the UK, means that Group Operating Profit for FY20 is expected to be lower than the current range of analysts’ estimates," it added.
This trading update coincides with Origin’s Annual General Meeting which took place on Wednesday, 20 November in the Merrion Hotel, Dublin 2.
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