28th May 2014 10:53
LONDON (Alliance News) - Origin Enterprises PLC Wednesday raised its full-year earnings guidance, after reporting a strong increase in revenue in the third quarter thanks to higher activity on farm and higher demand for its agronomy services and inputs.
The agri-services group said it is raising its guidance for full-year adjusted diluted earnings per share by around 3% to approximately 55.0 cents, after saying that revenue in the year-to-date is well ahead of the prior year.
However, it warned of lower on-farm activity in the fourth quarter compared with its last financial year when unseasonal weather patterns concentrated activity into the final quarter.
The group reported adjusted diluted earnings per share of 52.11 cents in fiscal 2013.
Origin Enterprises reported third quarter revenue of EUR512.8 million, up from EUR428.0 million a year earlier, supported by 25% volume growth. In the year-to-date, revenue is up 3.5% at EUR1.03 billion, compared with EUR995.7 million the prior year.
The group's agri-services business has manufacturing and distribution operations in Ireland, the UK, Poland and Ukraine.
It said its UK Agronomy Services business, Agrii, posted higher revenue and profit in the third quarter, supported by near perfect growing conditions which helped accelerate development of winter and spring crop plantings.
In Poland, it said Dalgety Agra Polska recorded a solid performance in the period with higher agronomy revenues and margins, although it said this was partially offset by lower crop marketing sales due to sluggish export markets in the quarter.
The group said its recently acquired Agroscope business in Ukraine performed well in the quarter with favourable sales and margins for agronomy services and inputs, although it said that Agroscope is maintaining a cautious planning approach in the current season in light of political unrest in the country.
Origin Enterprises said it strategic investment in consumer foods company Valeo Foods, in which it holds a 32% stake, performed in line with expectations during the quarter despite highly competitive market conditions in the grocery sector. It was supported by targeted investment in category renovation.
During the period, Valeo Food acquired honey brand Rowse Honey.
"The acquisition strongly complements Valeo's existing categories while also providing important geographic diversification to the business," the company said.
Origin Enterprises shares were down 1% at 7.70 pence Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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