In what is the seasonally quiet first half for the agri-services group with operations across Ireland, the UK, Poland, Ukraine, Romania and Belgium, six-month operating profit to the end of January was up 12.6% to €2.3m.
Group revenue rose 4% to €586.9m for the six-month period. This reflected the increased agronomy service revenue and crop input volumes in addition to increased fertiliser prices.
The autumn and winter cropping profile established to date provides Origin with a solid foundation for the seasonally more important second half when over 90% of profits are typically generated.
Origin chief executive officer Tom O'Mahony said: “Origin has achieved a good first-half result with favourable activity levels on farm.”
Planting activity
In the UK, the company said that despite the later harvest and a wet and cold September, overall autumn and winter planting activity was not adversely affected.
It also noted that good sowing and growing conditions in October and November enabled significant catch-up in drilling activity and crops are generally well established ahead of the spring growing season.
Total autumn and winter plantings are estimated to be marginally above last year at 2.8m hectares. Total autumn, winter and spring plantings for the 2018 growing season are forecasted to be in line with last year at 4.5 million hectares.
The CEO noted that the acquisition of Belgium-based Pillaert-Mekoson in the period scales the group’s market position in continental Europe and provides a further “buy and build consolidation and growth opportunity”.
Lower sales volumes
Excluding the Bunn acquisition, the group recorded lower sales volumes in the first six months of the financial year. However, it noted that fertiliser demand so far this year is reflecting a more normal sales pattern.
It said its feed ingredients business, R&H Hall, saw higher volumes in the year.
Read more
Origin Enterprises expands European footprint
In what is the seasonally quiet first half for the agri-services group with operations across Ireland, the UK, Poland, Ukraine, Romania and Belgium, six-month operating profit to the end of January was up 12.6% to €2.3m.
Group revenue rose 4% to €586.9m for the six-month period. This reflected the increased agronomy service revenue and crop input volumes in addition to increased fertiliser prices.
The autumn and winter cropping profile established to date provides Origin with a solid foundation for the seasonally more important second half when over 90% of profits are typically generated.
Origin chief executive officer Tom O'Mahony said: “Origin has achieved a good first-half result with favourable activity levels on farm.”
Planting activity
In the UK, the company said that despite the later harvest and a wet and cold September, overall autumn and winter planting activity was not adversely affected.
It also noted that good sowing and growing conditions in October and November enabled significant catch-up in drilling activity and crops are generally well established ahead of the spring growing season.
Total autumn and winter plantings are estimated to be marginally above last year at 2.8m hectares. Total autumn, winter and spring plantings for the 2018 growing season are forecasted to be in line with last year at 4.5 million hectares.
The CEO noted that the acquisition of Belgium-based Pillaert-Mekoson in the period scales the group’s market position in continental Europe and provides a further “buy and build consolidation and growth opportunity”.
Lower sales volumes
Excluding the Bunn acquisition, the group recorded lower sales volumes in the first six months of the financial year. However, it noted that fertiliser demand so far this year is reflecting a more normal sales pattern.
It said its feed ingredients business, R&H Hall, saw higher volumes in the year.
Read more
Origin Enterprises expands European footprint
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