20th Nov 2019 10:13
(Alliance News) - Origin Enterprises PLC on Wednesday reported double-digit revenue fall in the first quarter of its current financial year due to lower sales volumes.
The stock was untraded in London at EUR4.67 a share.
The agri-services provider reported a slower start to trading in the "seasonally quiet" first quarter of its current financial year.
For the three months to the end of October, Origin recorded revenue of EUR371.2 million, down 14% from EUR430.0 million a year ago. On an underlying basis at constant currency, revenue declined by 15%, the company said, reflecting an underlying volume reduction of 22% in sales of seed, crop protection and fertiliser.
Origin explained that "prolonged unseasonal" weather conditions have resulted in a lower planted area for autumn and winter crops, meaning that the Dublin-based company's operating profit for financial 2020 is expected to be hurt.
Geographically, Origin said Ireland and the UK recorded a reduction in underlying agronomy services and crop input volumes of 24% in the first quarter. Thurs, the total autumn/winter cereal and oil seed rape planted area, is now forecast to be 25% lower than last year, at 2.1 million hectares.
Continental Europe recorded an underlying volume reduction in agronomy services and crop inputs of 18% in the period, Origin said, with a "good" start to the year in Poland and Ukraine, while early momentum in Romania was slower as dry ground conditions hurt plantings.
Turning to Latin America, Origin said sustained dry conditions experienced across the region have delayed the soya planting season. However, the company said recovery of the shortfall is expected in the second quarter, with the total cropping area dedicated to soya is expected to be broadly in line with the prior year, at 36.8 million hectares.
By Evelina Grecenko; [email protected]
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