16th Jun 2021 09:02
(Alliance News) - Origin Enterprises PLC on Wednesday said it expects to grow earnings in its current financial year despite its third quarter being hurt by cold spring weather.
The agronomy services provider noted that spring farm activity was held back by cold conditions in April, despite favourable autumn planting conditions. This cold spring weather and the absence of pest and disease prevalence in crops has resulted in lower input volumes in the three months to the end of April across the company's Ireland, UK and continental European markets.
Overall, Origin Enterprises said its business volumes are marginally positive year-to-date, but this is set against a weak comparative, hurt by cold weather and the early stages of Covid-19.
Revenue was EUR597.8 million for the three months to April 30, a decrease of 1.2% on the prior year, but an increase of 1.7% on a constant currency basis, primarily reflecting the impact of delayed in-field activities and on-farm crop input investment, following cold spring.
Revenue for the nine-months ended April 30 was EUR1.17 billion, a decline of 3.3% year-on-year on a reported basis, but an increase of 0.8% on a constant currency basis.
Since May, Origin Enterprises noted that there has been a return to more settled weather conditions generally, across Ireland, the UK and continental Europe, which is driving a level of catch-up activity on farm.
As a result, the AIM-listed company said it expects an increase in demand for agronomy services, crop inputs and amenity products for the fourth quarter.
For the year to the end of July, Origin Enterprises said it expects to deliver solid growth in earnings year-on-year, with full year adjusted fully diluted earnings per share in the range of 34.0 to 36.0 cent up from 25.69 cent the year ago.
Origin Enterprises shares were trading 1.4% higher in London on Wednesday at EUR3.40 each.
By Evelina Grecenko; [email protected]
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