Origin Enterprises - the international agri-services group - reported results for the first six months of its financial year to January 2024 which showed pre-tax profit of €5.3m, down from €13.3m a year earlier.

Turnover tumbled from €1,180m to €854.9 m in the period, with the drop mostly driven by the change in fertiliser and feed prices during the year.

The company said that underlying business volumes were 2.6% lower due to adverse weather conditions affecting autumn and winter planting activity in the northern hemisphere.

Looking at the different geographic regions the company operates in, Latin America was once again the strongest performer with an operating profit of €13m compared with losses in both the Ireland and UK and continental Europe divisions.

Interest costs

Origin also cited higher interest costs during the year as a drag on profitability.

Looking ahead, the company said its diversified profit drivers, both by geography and sector, helped reduce the impact of adverse weather conditions in the core Ireland and UK markets to its bottom line.

Origin chief executive officer Sean Coyle said that “on-farm sentiment remains cautious, as growers shift towards spring planting and seek to optimise yields from a reduced autumn/winter planted area”.

He added that the company will continue to invest in broadening its product portfolio and diversifying its earnings.

The company said it will pay an interim dividend of 3.15c per share. On the stock exchange, the company’s shares dropped as much as 7% in the wake of the trading update.