Irish agri-services company Origin Enterprises said trading was disappointing in the third quarter and reduced its earnings guidance for the full year.

Origin said revenue was lower year-on-year in Ireland, the UK and Poland. The weakness was driven by the continuation of unseasonal weather patterns in northern Europe. The company says this has resulted in increased crop losses and slower crop development, which has limited infield crop maintenance and spring planting activity.

These problems will mean Origin’s results for the year to the end of June will be lower than its previous guidance.

While revenues for the third quarter fell 1% to €555.5m, underlying revenues declined 12%. Acquisitions boosted revenues by 15%, with currency affecting revenues negatively by 3.8%.

Crop input volumes for the first nine months have fallen by 8%, mainly driven by lower crop protection and fertiliser volumes and partially offset by higher feed volumes.

Revenues down

Agrii, the group’s agronomy division in the UK, saw revenues fall 20%. Its Polish arm saw revenues fall 25%, where 20% of the total winter cropping area was lost. The Romanian business performed ahead of expectations.

The company anticipates strong fertiliser volumes in Ireland due to the higher livestock numbers and the requirement to replenish winter fodder supplies.

It expects UK fertiliser volumes will be lower in light of the current pressures on farm incomes.

It is anticipated that the crop protection volumes are unlikely to be recovered in full due to the later season and the backdrop of generally weaker sentiment on-farm. The group updated a full year EPS guidance range of 43-46c per share.