Origin Enterprises, the international agronomy and crop inputs services group, has reported a decrease in revenue of 20.7% to €1.5 billion in the nine months to the end of April.
The group said this reflects a volume increase of 5.7% that was more than offset by significantly lower global feed and fertiliser raw materials pricing.
Origin’s has released its trading update for the three months and nine months to April 30. This comprises the first three quarters of its 2024 year.
The group said that adverse weather and challenging field conditions continued into the early part of quarter three (Q3, the three months to April 30), resulting in a reduced spring cropping area in the UK, as well as delayed applications across Ireland, the UK and Europe.
The group did note that the pace of revenue decline slowed in Q3 to 9.8%, reflecting improved feed and fertiliser volumes.
Crop protection volumes showed modest improvement in the third quarter, driven primarily by continental Europe, although pricing remained weak, while ongoing high disease pressure is encouraging late season application, according to Origin.
The company said that performance from acquisitions in its amenity, environment and ecology business has been in line with expectations, while the group saw the completion and commissioning of its FoliQ foliar fertiliser plant in Poland.
Meanwhile, a €20 million share buyback programme was approximately 77% complete as of April 30.
Origin Enterprises has said its full year adjusted guidance for diluted earnings per share (EPS) – which takes account of common shares and other securities – will be between 45c and 48c per share.
Looking at the group’s regional activities, Ireland and the UK reported a reduction in revenue of 23.1% to €955.4 million in the nine months to April, while the final three months of that period saw a 10.3% reduction in reported revenue to €439.2 million.
Total autumn and winter cropping in Ireland and the UK is estimated at 1.9 million hectares, 25.8% lower than last year, with combined spring and winter plantings expected to be 8.5% lower at 3.9 million hectares. Persistent rainfall throughout the early part of Q3 further reduced the winter cropping area and delayed spring planting activity, Origin said.
Meanwhile, in continental Europe, reported revenue reduced by 22% to €310.7 million in the nine-month period , while Q3 saw a 2.1% reduction in reported revenue to €171.8 million.
Despite cautious farm sentiment and raw material price uncertainty causing delayed on-farm purchasing decisions in the first half of the year, the group said there was notable catch-up activity in Q3.
On the other hand, revenue increases were recorded in Latin America, where the group recorded year-to-date revenues of €113 million, a 7.1% increase on a constant currency basis. Q3 revenue was €18.2 million, a 17.7% increase on a constant currency basis.