Dublin-headquartered Origin Enterprises said today grew revenue by 5 per cent in the three months to October 31st.
The food group, which is listed on the ESM market of the Irish stock exchange, said today it is "comfortable" with consensus market expectations for its full 2011 financial year, after reporting group revenue of €340.6 million for the first quarter.
This strong performance was driven largely by the group's agri-services division, which increased revenue by 21 per cent to €306 million. This division benefited from an early harvest, followed by excellent growing conditions and a positive price environment, the company said.
"The current momentum across the majority of primary output markets is providing a welcome boost to farm incomes and reflects the overall fragile supply side dynamic of primary food production," it said in a trading update. "This background sets the positive backdrop for a stronger performance from agri-services in the 2011 financial year."
However Origin's food division experienced a decline in revenue to €34.6 million, from €70.6 million in the same period a year earlier. This was attributed to the winding down of its Masterfoods distribution contract.
"In line with the current economic situion, trading conditions continue to be extremely challenging as consumer sentiment remains firmly value focused," it said in relation to the food division.
The group also reported that its marine proteins and oil joint venture delivered an "excellent performance" in the first quarter.
In a morning note, Davy Stockbrokers said Origin Enterprises has been active in re-organising its activities for optimal performance, and has large scope to invest for continuing growth in core or new agri-input activity.