Origin Enterprises plc today announced a reduced outlook for the full year ending 31 July 2020 following the 'impact of prolonged and challenging weather conditions' in Ireland & the UK.
"As outlined in our Q1 trading update on 20 November 2019, significant rainfall in the UK in the September to November period meant that the total area for winter crops was expected, at that time, to be 25% down on the previous year," the Agri-Services group said in a statement.
Headquartered in Dublin, the company explained that following further heavy and sustained rainfall from December 2019 to February 2020 to-date it is now expected that the total winter planted area in the UK will be at least 40% lower year on year due to the fact that last autumn and winter's rainfall has been at it's highest level in 30 years.
Overall, the company said that the extent of the shortfall in winter cropping in addition to the poor establishment of already sown crops, the total planted area for the 2020 financial year is expected to be circa 10% lower year on year, compared to the anticipated 2% reduction at the time of its first quarter trading update.
Looking ahead, Origin highlighted that the impact on Ireland and UK performance of the adverse conditions experienced to-date together with the challenges associated with an anticipated large increase in spring cropping, means that it is expected that group operating profit and adjusted diluted earnings per share for the full year will now be significantly below the current range of analysts’ estimates.
On a more positive note, the group said that in Continental Europe, the season has 'progressed well' and that it 'anticipates good sales growth' for the full year.
The company outlined its plans to publish its Interim Results on 5 March 2020.
However, it said that will be in a 'better position to provide a meaningful update' on full year guidance at the time of the third quarter trading update on 17 June 2020.
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.