AGRI-NUTRITION company Origin Enterprises said revenue and profit at the firm dipped in the six months to January 31st, 2010, against the background of a difficult trading environment.
Revenue at the firm fell 16 per cent to €596 million from €710 million a year earlier, while profit for the period fell 28 per cent to €10.2 million.
Group earnings before interest, tax and amortisation (Ebidta) was 18 per cent lower at €23 million, compared with €28 million the year before.
The company said its performance was in line with expectations, and said it was on track to deliver earnings per share of 33 cent per share for the full year.
“Origin has performed well during the first half of 2010 in a difficult trading environment. Year- on-year comparisons are impacted by increased seasonality as agricultural activity becomes more concentrated towards the second half of the financial year, with customers adopting a cautious approach and deferring buying decisions until closer to the main application periods,” Origin chief executive Tom O’Mahony said.
The food market continued to be very competitive, the company said, with group Ebidta for the food sector falling 12 per cent to €8.1 million.
“The recent uplift in primary output markets, while welcome, has yet to noticeably impact farm incomes,” said Mr O’Mahony. “The business environment remains challenging. However, we remain confident for the full year and expect to deliver consensus market expectations. We will continue to focus on cash generation and operational efficiencies to ensure the business is well positioned to respond to new opportunities as they arise.”
The company, which is controlled by Aryzta AG, said its agri-nutrition division performed “satisfactorily”, helped by a “strong performance” from Masstock Group Ltd, a provider of specialist services to British and Polish farmers.
Origin expects full-year-adjusted, diluted earnings to fall to 33 cents per share from 36 cents the previous year, in line with analysts’ estimates. Mr O’Mahony said the forecasted fall in earnings reflects “pressure” on Irish farm incomes.
Origin Enterprises shares rose 1 cent, or 0.5 per cent, to €2.25 in Dublin after the results were released.
