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Origin Enterprises reaps rewards of high crop prices and strong demand

Thu, 25th Nov 2021 10:17

(Alliance News) - Dublin-based Origin Enterprises PLC on Thursday hailed strong crop prices globally in creating positive sentiment across the group's markets.

The agriculture services group said it had started the seasonally quiet first quarter well compared to the previous year, where carry-over of stock on-farm reduced demand.

Revenue for the first quarter ended October 31 was EUR454.1 million, up 43% annually from EUR318.3 million. The rise was attributed to increased demand, some early season forward buying by farmers and an encouraging autumn and winter planting season.

On an underlying constant currency basis, revenue increased 44%, Origin said, reflecting an underlying volume increase of 21% in sales of seed, crop protection and fertiliser in the period.

The planted area for autumn and winter crops is expected to be broadly in line with the first quarter of financial year 2021, with an increase in cropping area expected in the UK offset by a modest reduction in Continental Europe, Origin explained.

In Latin America, the total cropping area dedicated to soya is expected to increase.

"First quarter financial year 2022 delivered a strong start to the year, with increased volumes and contributions in each segment across the group, albeit when compared to a weaker first quarter in financial year 2021. Favourable autumn and 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," Origin said.

The agronomy advice, crop inputs and digital agricultural solutions provider cautioned that "potential operating and commercial challenges" existed with regard to global supply chain risks and raw material price volatility.

Origin Enterprises shares were untraded on Thursday at EUR3.30 each.

Interim results will be published in March 2022.

By Will Paige; willpaige@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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