25th Sep 2019 09:48
(Alliance News) - Agri-services firm Origin Enterprises PLC on Wednesday hiked its full-year dividend on a revenue rise but impairment costs contributed to a profit fall.
In the year ended July 31, Origin recorded year-on-year total revenue growth of 11% to EUR2.20 billion from EUR1.98 billion. Not including revenue from associates and joint ventures, it rose by 10% to EUR1.80 billion from EUR1.63 billion.
Pretax profit fell by 6.0% year-on-year to EUR61.4 from EUR65.3 million. It recorded EUR7.0 million in exceptional costs, compared with a EUR663 gain last year, primarily due to impairment expenses on investment in Ukraine.
Before exceptional items, pretax profit rose by 9.2% to EUR77.2 million from EUR70.3 million.
Origin generated EUR33.6 million in revenue in Latin America compared to none last year, helped by the first time contribution of Brazil-based crop nutrition business Fortgreen, which it acquired in August 2018.
Turning to its core UK & Ireland market, revenue rose by 12% to EUR1.60 billion compared to EUR1.40 billion last year and in Continental Europe, by 2.7% to EUR605.2 million from EUR589.5 million.
Origin upped its annual dividend by 1.5% to 21.32 euro cents from 21.00, in line with its "progressive" payout policy.
Demand for agronomy services and crop inputs in the UK & Ireland was "above average" during the financial but looking ahead, Origin expects this to normalise to lower levels.
Fertiliser and feed demand in Ireland are also expected to fall, after levels were higher this financial due to the fodder crisis, which led to an absence of grass, in the first half.
Origin added: "Our Continental European and Latin American segments are expected to grow in financial 2020, in line with our long-term guidance. Against the backdrop of the uncertain nature of Brexit, and its timing, we continue to prioritise a prudent approach to risk management and capital allocation."
Chief Executive Tom O'Mahony said: "Our business has performed well in the period with the Group benefiting from favourable organic and acquisition growth. Latin America together with the benefit of good demand levels in Ireland and the UK more than offset the impact of a more challenging operating environment in Continental Europe, where highly competitive trading conditions within the Ukrainian market impacted profitability."
Shares in the company were untraded in London on Wednesday morning, last quoted at EUR4.80.
By Eric Cunha; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Origin