Origin Enterprises has warned that full-year earnings will be lower than previously forecast after describing its third-quarter performance as “disappointing”. The agri-services and input provider said it is facing a number of adverse headwinds including abnormally cold and wet weather patterns in northern Europe and the continued weakness of grain prices affecting farmer incomes.

While it expects earnings to be lower, Origin said it was not in the position at present to issue an accurate guidance of how much lower earnings will be as the delayed planting season had pushed back service and inputs application by farmers. What level of input application will be undertaken by growers now that plantings are almost complete is not possible to assess just yet according to Origin.

Origin’s interim results, released in early March, had maintained its full year adjusted earnings guidance of between 51c and 53c per share.

Lower revenues

In a statement released to the stock market on Thursday, Origin said it had achieved lower third-quarter revenues this year compared with the same period last year in its Irish, UK and Polish markets.

Origin said its sluggish performance was a result of the very late spring conditions on activity levels on farms across northern Europe.

“Following a positive start in February, the months of March and April experienced a return to abnormally cold and sustained wet weather conditions. This has led to a combination of increased crop losses, slower crop development and re-saturated ground conditions which have limited infield crop maintenance and spring planting activity,” read a statement from Origin.

Following the trading update, Davy stockbrokers reduced its full-year earnings guidance for Origin by 15% from 50.6c per share to circa 43c per share.