Agri-services group Origin Enterprises has reported revenues of €334m for the first quarter of its 2017 financial year, an 11% increase compared to the same period last year. The group said sales growth from recent acquisitions more than offset significant currency weakness in the UK and Ukraine. Underlying revenue growth was just 1.3% as higher sales volumes of seed, crop protection and fertiliser largely offset lower prices of fertiliser and feed and lower crop marketing volumes. Origin described the quarter as an “encouraging start” to 2017, with better weather conditions in the group’s key geographies increasing on-farm activity levels and resulting in improved demand for Origin services and inputs. Origins say this positive first-quarter performance provides a solid foundation for the more important second half of its financial year, when the group typically earns over 90% of annual profits.
Agri-services group Origin Enterprises has reported revenues of €334m for the first quarter of its 2017 financial year, an 11% increase compared to the same period last year. The group said sales growth from recent acquisitions more than offset significant currency weakness in the UK and Ukraine. Underlying revenue growth was just 1.3% as higher sales volumes of seed, crop protection and fertiliser largely offset lower prices of fertiliser and feed and lower crop marketing volumes.
Origin described the quarter as an “encouraging start” to 2017, with better weather conditions in the group’s key geographies increasing on-farm activity levels and resulting in improved demand for Origin services and inputs. Origins say this positive first-quarter performance provides a solid foundation for the more important second half of its financial year, when the group typically earns over 90% of annual profits.
Plantings
Origin said the total sown area of winter crops is broadly in line with last year. In the UK, which typically accounts for about 70% of Origin’s business, winter plantings are in line with last year at 2.95m hectares, with more wheat sown this season and less oil seed rape.
In Poland, plantings are slightly ahead of last year at 6m hectares despite a poorer harvest last year with bad weather affecting yields and quality. While there is continued weakness in the Ukrainian currency, Origin said its business in Ukraine saw an improved performance largely due to the group’s recent acquisitions in the region. Winter plantings in Ukraine are on par with the 2016 season at 21m hectares.
In Romania, winter planted area was back slightly to 3.15m hectares, although Origin expects this shortfall to be offset with higher spring cropping.
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