This is a subscriber-only article
Origin Enterprises has reported a revenue growth of 41.2% to €2.3bn in its financial year to 31 July 2022.
The improved performance comes despite “exceptional price volatility” for feed and fertiliser raw materials, the agronomy-services company said. Origin provides specialist advice, inputs and services to tillage farmers including fertilisers.
In its performance report, the company said: “Generally very good conditions during the key planting and application periods in all markets provided a favourable backdrop for the business and allowed the group to successfully navigate exceptional price volatility across its markets.”
Origin Enterprises operates in Ireland, the UK, Poland, Ukraine, Romania and Brazil. Its Irish footprint is headquartered in Dublin.
Operating profit
The agronomy-services company also reported an operating profit of €119.7m, up some 96.3%, delivering an operating margin of 5.1%.
In doing so, it almost doubled its share value with “adjusted diluted earnings” per share now at 71.53c, up from 35.5c for the year previous.
The company also reported “strong cash generation and conversion” with its free cash flow at €108.5m, up from €49.2m at the end of July 2021.
Origin Enterprises also completed a €40m share buyback programme over its last financial year at an average price of €3.97 per share.
Seed and crop protection portfolios
The company said that its strong volume performance across its seed and crop protection portfolios was offset by reduced fertiliser demand due to “significantly higher raw materials pricing”. It also completed the first phase of disposing of a number of its Cork properties, generating cashflow of €19.5m.
Commenting on Origin Enterprises’ performance, its chief executive officer Sean Coyle said: “The financial year 2022 saw strong agricultural commodity price growth and volatile trading conditions across all of the group’s three segments throughout the financial year.
“Despite these challenges, Origin delivered significantly improved financial returns and a strong operating performance, supported by favourable conditions across all markets in the key planting and application periods of the year, in contrast to the previous two years, which were impacted by extreme weather and COVID-19.”
He said that the war in Ukraine and ongoing global energy and supply disruptions have resulted in “exceptional price volatility” for feed and fertiliser raw materials. However, he noted that “strong on-farm sentiment, bolstered by high crop prices, supported the group in successfully navigating this price volatility across each segment.”
SHARING OPTIONS: