26th Sep 2018 09:20
LONDON (Alliance News) - Origin Enterprises PLC on Wednesday reported a rise in profit in its recently ended financial year and said it appointed a chief executive officer for its Latin American division following an acquisition in Brazil.
The agri-services company said pretax profit in the year to July 31 increased by 4.3% to EUR70.3 million from EUR67.5 million reported for the same period in 2017, as revenue rose to EUR1.63 billion from EUR1.53 billion. On a constant currency basis, revenue improved by 9.0% year-on-year.
The results were boosted by an increase in fertiliser and feed volumes and fertiliser prices, Origin noted.
The company declared a final dividend of 17.85 cents per share which, when combined with the interim dividend of 3.15 cents, brings the total dividend for the year to 21.0 cent, flat year-on-year.
Looking ahead, the Irish company said it continues to closely monitor Brexit, particularly in the relation to the UK domestic agricultural policy, regulation and the future trading relationship between the UK and the EU.
In addition, the company said it entered the Latin American market, though the acquisition of 65% interest in the Brazilian business, Fortgreen Commercial Agricola Ltda. As part of this transaction, Origin has also agreed to acquire a 20% shareholding in Ferrari Zagatto E Cia Ltda.
Fortgreen develops crop nutrition and speciality inputs while Ferrari Zagatto provides agronomy services. Both purchases were completed in August, the company said.
In a separate statement, Origin said it appointed Declan Giblin to the new role of divisional chief executive officer in Latin America from Monday next week.
Giblin currently serves as executive director & head of Corporate Development for Origin. He joined the company in February 2008 and was appointed as an executive director in October 2008.
Origin said it expects Declan to assume overall responsibility for the performance of Latin America. Meanwhile, the company said it has began the search for a head of Corporate Development, with responsibility for Europe.
"Origin achieved a very satisfactory full year result, ahead of guidance," said Chief Executive Tom O'Mahony.
"It has been a significant year in terms of strategic developments including our entry into the Latin American market," cvontinued O'Mahony.
"The agreement to acquire Fortgreen and Ferrari Zagatto in Brazil provides tangible growth opportunity in markets that address the group's requirements for further geographical diversification and seasonality balance," added O'Mahony.
The stock was untraded in London on Wednesday, last quoted at EUR5.82 per share.
Related Shares:
Origin