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The company says that it remains positive regarding the delivery of full year consensus market expectations
COMPANY OF THE WEEK: Excellent Performance from the Marine Proteins and Oils
(REPUBLIC OF IRELAND, 6/25/2010)
Origin Enterprises Plc (Public, ISE:OIZ) a leading Agri-Nutrition and food company has released a trading update for the nine month period ended 30 April 2010.
 Origin has reported a strong performance in line with the Group’s expectations for the 2010 financial year to date.
EBITA (Earnings before interest, tax and amortization) in the third quarter was 11.1 percent ahead of the corresponding period last year as activity has become increasingly concentrated to the second half of the financial year reflecting more pronounced seasonality as outlined in the interim results announcement.
Highlights
- Group revenue of Euros 1,017 million for the nine months to 30 April 2010, a decrease of 11.5 percent
- EBITA for the quarter to 30 April 2010 was 11.1 percent ahead of the third quarter last year
- EBITA for the nine months to 30 April 2010 of Euros 55.5 million was 3.1 percent lower than the corresponding period last year compared with a reduction of 18 percent at the Half Year
- Masstock performs well as weather conditions lead to a later season
- Agri input volumes ahead of the corresponding period last year
- Excellent performance from the Marine Proteins and Oils joint venture
- Food demonstrating resilience in challenging market environment
EBITA includes the company’s contribution from associates and joint venture (before tax) so as to compare year on year on a like for like basis as the results from Marine Proteins and Oils since February 2010 are included on the associate and joint venture line.
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| Origin Enterprises Plc Corporate Structure |
Joint Venture
Welcon AS, Europe’s leading manufacturer of marine proteins and oils, delivered an excellent performance during the period reflecting higher feed demand from increased North Atlantic aquaculture output due to supply difficulties in South America. Favourable raw material intake and finished product prices have also positively impacted the performance in the period.
Agri-Nutrition
The Agri-Nutrition division achieved revenues of Euros 816.5 million compared with Euros 922.7 million in the corresponding period last year, a reduction of 11.5 percent.
The performance of the Group’s integrated agronomy services business, operating under Masstock in the United Kingdom and Dalgety in Poland, continues to be supported by favorable full service agronomy activity reflecting positive cropping patterns. The unseasonably cold weather at the start of spring is resulting in a later and extended season.
Agri-input volumes are ahead of last year reflecting improved prospects for farm incomes and greater certainty regarding input pricing. The reduction in revenue is principally due to lower global feed and fertilizer ingredient pricing.
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| The Group’s integrated agronomy services business continues to be supported by favorable full service agronomy activity |
Food
The Food division generated revenues of Euros 200.5 million compared with Euros 226.7 million in the nine month period last year, a decrease of 11.5 per cent. Revenues for the quarter to 30 April 2010 were 6.8 percent lower than the corresponding period last year. Although trading conditions remain extremely competitive the Group’s consumer brands continue to maintain category leadership positions which combined with a continuous focus on value and service innovation ensure that the business remains aligned with consumers current spending patterns.
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| The food division activities comprise of sales, marketing, distribution and manufacturing activities in Ireland |
Outlook
While the environment for farming continues to remain challenging the recent tangible recovery in key output markets is providing a welcome boost to sentiment and cash flow for primary producers.
The company says that it remains positive regarding the delivery of full year consensus market expectations.
About Origin Enterprises Plc
Origin Enterprises Plc is an Ireland-based Agri-nutrition and food company. The Company operates in two divisions: Agri-nutrition and food division.
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| Welcon AS manufactures marine proteins and oils |
The Agri-nutrition, through its manufacturing and distribution operations in Ireland, United Kingdom, Poland and Norway, supplies feed ingredients, integrated agronomy services, crop nutrition and marine proteins, and oils.
The food division activities comprise of sales, marketing, distribution and manufacturing activities in Ireland, and services the Italian food ingredients, home baking and convenience categories across the retail, food service and manufacturing sectors.
The Company’s subsidiaries include Goulding Chemicals Limited, R. & H. Hall Limited, Shamrock Foods Limited, Odlum Group and Torrox Limited. In April 2009, the Company acquired CSC Crop Protection Limited and in June 2009, it acquired GB Seeds Limited.
Margaret E.L. Stacey
Editor Companies and Products
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