Origin Enterprises, a leading agricultural solutions provider, reported an operating profit of €90.8m for the year ended July 31. However, this figure represented a 24.2% decline compared to the previous year. The company’s annual results also showed a 4.9% increase in group revenue, reaching €2.5bn. Despite this growth, Origin’s operating margin dropped from 5.1% to 3.7% during the same period.
The company attributed the rise in prices in its agronomy and inputs business to the global increase in commodity prices. These market dynamics resulted in a 12.5% price hike across the year for the business.
Origin Enterprises made the decision to close its business in Ukraine by the end of the month due to reduced activity levels and unfavorable market dynamics in recent years. Sean Coyle, the company’s CEO, highlighted that the region had been loss-making and showed little potential for improvement in trading conditions.
Throughout the year, Origin Enterprises completed four strategic acquisitions in the amenity, environmental, and ecology division, amounting to €30.1m. These investments aimed to enhance the company’s participation in these markets.
The company’s board has proposed a final dividend of 13.65 cent per share. In addition, Origin Enterprises completed a €20m share buyback program during the period.
Despite declining commodity markets, Origin Enterprises delivered a strong overall performance, as emphasized by CEO Sean Coyle. The company ended the year with a net cash position of €53.2m, driven by a robust free cash flow of €104.4m. This was supported by a decrease in fertilizer raw materials and feed prices globally, along with favorable timing impacts of purchases and sales.
According to Davy analyst Cathal Kenny, the operating profit exceeded expectations. Kenny also noted that the company’s acquisitions in the amenity, environmental, and ecology markets had been accelerated during the year. Furthermore, Mark Webb was recently appointed as the Managing Director of the newly established environmental and ecology division, further enhancing the company’s product and service offerings.
Goodbody analyst Jason Molins highlighted that Origin Enterprises had acquired Suregreen, a UK landscaping supplier, following the end of its financial year. This acquisition strengthens the company’s presence in the amenity, environmental, and ecological sectors.
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