Origin Enterprises makes 'strong start' to trading in 'seasonally quiet' Q1
Agriservices group Origin Enterprises said on Thursday that it had made a "strong start" to trading in its "seasonally quiet first quarter" compared to last year when carry-over of stock on-farm reduced demand.
Origin Enterprises stated first-quarter group revenues were €454.1m, up from €318.3m in the previous year and representing an increase of 42.6% year-on-year, as a result of increased demand, some early season forward buying by farmers and an encouraging autumn/winter planting season, particularly in the UK.
Increased global fertiliser and feed prices represented approximately half of the revenue growth in the quarter.
The AIM-listed group added that the planted area for autumn and winter crops was expected to be broadly in line with the same period a year earlier, with an increase in cropping area expected in the UK offset by a modest reduction in Continental Europe. In Latin America, the total cropping area dedicated to soya was expected to increase.
Origin also pointed out that strong crop prices globally meant that on-farm sentiment across the group's markets was positive.
"Q1 FY22 delivered a strong start to the year, with increased volumes and contributions in each segment across the group, albeit when compared to a weaker Q1 in FY21. Favourable autumn/winter planting levels set a solid foundation for continued progress later in the financial year, subject to normal weather risks which may arise as the year progresses. As flagged at the time of our FY21 full year announcement, we are conscious of potential operating and commercial challenges with regard to global supply chain risks and raw material price volatility," said Origin.
As of 1245 GMT, Origin shares were up 0.59% at €3.32 each.