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Origin Enterprises' revenues hit by adverse weather

Agricultural services company Origin Enterprises reported a 5.2 per cent fall in revenue to 428m euros in the third quarter as adverse weather in the UK affected farms.

Agricultural services company Origin Enterprises reported a 5.2 per cent fall in revenue to 428m euros in the third quarter as adverse weather in the UK affected farms.

The company said sales in its UK agronomy services business, Agrii, were lower, reflecting cold weather which slowed crop growth and curtailed in-field operations.

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Total arable crop plantings this year are expected to decline this year due to an unseasonably wet autumn.

However, dry conditions towards the latter half of the quarter facilitated a strong catch-up in planting activity as growers sought to maximise margin opportunity and replace lost winter plantings.

A return to more normal weather conditions has seen an acceleration in crop development, which is anticipated to boost fourth quarter profits.

Origin said its financial position remains strong and it is comfortable with market forecasts for adjusted fully diluted earnings per share of $0.485 for the financial year.

"With the fourth quarter becoming a seasonally heightened period of activity for the business, agronomists are now fully engaged in field and focused on delivering high service agronomy and product specification strategies designed to maximise growers' economic returns," the firm said.

Shares rose 3.57% to €5.08 at 10:04 Tuesday.

RD

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