Origin Enterprises quarterly revenues jump amid Brexit precautions

Origin Enterprises’ revenue jumped in the past quarter as the company positions itself to deal with the fallout of a potential ‘hard Brexit’, according to a trading update on Friday.

For the three-month period ended 30 September revenue was up by 24% compared to the same period last year, climbing to €430m, which the agriculture business said was a reflection of higher seed, crop protection and fertiliser volumes and prices.

For its business in the Republic of Ireland and the UK, revenue was up 19% to €261.5m as the Bunn fertiliser business which was acquired last year performed well.

On the continent meanwhile, revenue jumped by 26% to €101.8m despite “challenging” operating conditions arising from poor crop establishment with respect to winter oil seeds.

The London listed company also entered the Brazilian market in August through the acquisition of Fortgreen, a business which is focused on the development and marketing of value-added crop nutrition.

The acquisition’s maiden quarter yielded revenue of €11.7m, in line with pre-acquisition expectations.

A statement from Origin said: “The UK's exit from the European Union continues to be an area of focus. Given Origin's well-diversified businesses in Ireland, the UK, Continental Europe and Latin America, the group is able to maintain a flexible approach to dealing with the potential challenges that might arise following Brexit.”

The statement added that the Dublin headquartered company is now “well prepared” for short term logistical disruption arising from a ‘no-deal’ scenario, but the situation will be monitored continually.

“The autumn and winter cropping profile in our Ireland/UK and Continental European geographies provides a good foundation for the seasonally more important second half of the year. The Group's newly acquired operations in Latin America will result in additional contribution in the first half of the Origin year, with solid progress on plantings providing an encouraging start to the year,” said the company.

Origin's shares were up 0.61% at €5.77 at 0857 GMT