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.

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

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin does consume a lot of energy – but here’s why it’s worth it
Bitcoin

Bitcoin does consume a lot of energy – but here’s why it’s worth it

Some people question bitcoin’s legitimacy because it uses huge amounts of electricity to maintain its network. But that’s not a failing, says Dominic …
27 Jan 2021
Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail
US stockmarkets

Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail

New US president Joe Biden is planning to throw trillions of dollars in stimulus at his country’s economy. Markets will love that. But it comes with a…
25 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021