(Alliance News) - Origin Enterprises PLC said Wednesday the "highly challenging" operating conditions have reduced demand for agronomy services and crop inputs.
Revenue for the nine months to the end of April decreased 6.7% year-on-year to EUR1.21 billion. In the third quarter, however, revenue was up 1.6% at EUR604.8 million.
Origin blamed the lower level of intensive autumn and winter crop plantings as a consequence of the wettest autumn winter planting season in 30 years.
"Our markets experienced extremely dry conditions in the third quarter which persisted into June, leading to significant soil moisture deficits which negatively impacted overall crop potential for farmers and growers, thereby resulting in a lower intensity of crop input investment spend," Origin added.
As a result, Origin has decided to suspend its final dividend.
Looking ahead, Origin expects "persistent and prolonged dry conditions" in the UK and Ireland throughout the Spring, so expects yields to be lower. As a result, crop input will be reduced.
Origin continued: "We expect demand will be lower than had been expected at the time of our half year trading update in early March. In what has been a challenging year due to extreme weather conditions and the operational challenges presented by Covid-19, the group expects to deliver a resilient financial performance for financial 2020, with full year adjusted fully diluted earnings per share of between 23 cents to 26 cents."
Shares in Origin Enterprises were untraded in London on Wednesday at EUR2.62 each.
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Origin (OGN)