Origin Enterprises, the agri-services group, has seen a positive start to the its financial year ahead of its AGM today.

There has been a positive start to trading for the 2019 financial year in the seasonally quiet first quarter to the end of October at Origin Enterprises.

The group said that an early season and improved on-farm sentiment drove demand levels for agronomy services and crop inputs in the period.

Seasonality

The seasonality of Origin’s revenue and earnings profile generally follows the growing season in North Europe, resulting in over 95% of earnings being generated in the second half of the Origin financial year.

However, following the acquisition of the Fortgreen business in Brazil during the summer, the balance of this seasonality profile is expected to change.

The group will now have an exposure to southern hemisphere growing seasons. Over 65% of Fortgreen’s earnings typically arise in the first half of the Origin financial year, which will result in additional revenues and higher margin earnings being recognised in the first half.

Revenues

Revenues increased 24% to €430m for the first three months. Once currency is stripped out, revenues increased by 18%. This was driven by higher seed, crop protection and fertiliser volumes along with prices in the period.

The group said that autumn and winter crop planting activity was broadly in line with last year, with dry conditions in August and September resulting in a slow start to the season followed by significant catch-up activity in October.

Fertiliser

The group, which owns the Goulding’s fertiliser brand in Ireland, said that fertiliser had a good start to the year, recording higher underlying volumes in the first quarter compared to last year.

It said that volume momentum was supported by the extended season for grassland application along with farmers buying earlier due to strengthening prices.

The group is holding its annual general meeting today in Dublin.