Annual profits

Origin Enterprises reports strong increase in annual profits

International agribusiness services group Origin Enterprises reported a sharp increase in revenue and profit for the year to the end of July due to strong growth in commodity prices.

Origin Enterprises said its annual revenue jumped 41.2% to 2.342 billion euros, while the group’s total operating profit jumped 98.3% to 126.6 million euros. .

It reported adjusted diluted earnings per share of 71.53 cents, down from 35.50 cents a year earlier.

The company said the war in Ukraine and global energy and supply disruptions have led to exceptional volatility in feedstock and fertilizer commodity prices.

But he added that strong on-farm sentiment, bolstered by high crop prices, has helped the group successfully manage this price volatility in every segment.

It said generally very good conditions during key planting and application times in all its markets provided a favorable backdrop for the business.

After an interim dividend of 3.15 cents, Origin said its board of directors is proposing a final dividend of 12.85 cents per share, which would give a total dividend payout per share of 16 cents.

Origin chief executive Sean Coyle said the year was marked by strong agricultural commodity price growth and volatile trading conditions across all three segments of the group throughout the year.

“Despite these challenges, Origin generated significantly improved financial returns and strong operational performance supported by favorable conditions in all markets during key planting and application times of the year, unlike the previous two years, which have been affected by extreme weather conditions and Covid -19,” he added.

The company said the past 12 months have been characterized by several challenging macroeconomic factors, including significant inflation, rising energy costs and disrupted supply chains, which have led to an exceptionally volatile business environment.

“While these conditions are likely to persist, with the group’s strong balance sheet, market positions, deep customer relationships, access to diverse product supply sources and established market access routes, Origin is well positioned to achieve financial, strategic and ESG objectives as outlined on the recent Capital Markets Day,” he added.

Shares of the company rose in Dublin trading today.