Origin Enterprises plc, the international agri-services group, has seen group revenue grow by 41% in a year to €2.3 billion, primarily driven by commodity price growth.
The company, which provides specialist agronomy advice, crop inputs and digital agricultural solutions, has today (Tuesday, September 27) announced its financial results for the year up to July 31, 2022.
The data shows that total group operating profit grew by over 98% to €126.5 million, while profit before tax stood at €115.5 million, up 109%.
Adjusted diluted earnings per share increased from 35.5 cent last year to 71.53 cent; the total dividend paid per share this year is 16 cent.
The company noted the completion of a €40 million share buyback programme at average price of €3.97 per share.
A new €20 million share buyback programme will be launched tomorrow and is due to continue until March 31, 2023.
Despite “exceptional price volatility”, Origin said that “generally very good conditions” in all markets during planting and application periods “provided a favourable backdrop for the business”.
Strong volume performance across the Group’s seed and crop protection portfolios were offset by reduced fertiliser demand due to significantly higher raw materials pricing.
The completion of the first phase of property disposals in Cork generated cash flow of €19.5 million.
Commenting on the financial performance for the 2022 fiscal year (FY22), Origin’s chief executive, Sean Coyle said:
“FY22 saw strong agricultural commodity price growth and volatile trading conditions across all of the group’s three segments throughout the financial year.
“Despite these challenges, Origin delivered significantly improved financial returns and a strong operating performance supported by favourable conditions across all markets in the key planting and application periods of the year, in contrast to the
previous two years, which were impacted by extreme weather and Covid-19.
“The war in Ukraine and ongoing global energy and supply disruptions have resulted in exceptional price volatility for feed and fertiliser raw materials.
“Strong on-farm sentiment, bolstered by high crop prices, supported the group in successfully navigating this price volatility across each segment,” Coyle stated.
Origin is forecasting that trading challenges such as significant inflation, increasing energy costs and disrupted supply chains “are likely to persist”.
However, the company believes that it is well positioned to deliver on the financial and strategic objectives previously outlined at a recent capital markets day.
Origin Enterprises will hold its Annual General Meeting (AGM) on November 22 in the Merrion Hotel, Dublin.
