REG - Origin Enterprises - Q3 Trading Update

Origin EnterprisesAnnouncement

12/06/2025 07:00

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RNS Number : 4852M  Origin Enterprises Plc  12 June 2025

Origin Enterprises plc

 

Q3 Trading Update

 

Strong year-to-date performance driven by volume growth in Agriculture and
expansion in Living Landscapes

 

Full-year adjusted diluted EPS guidance of 50 to 52 cent

 

Dublin, London, 12 June 2025. Origin Enterprises plc ('Origin' or 'the
Group'), the international group shaping the future of sustainable land use
solutions, today announces its FY25 Trading Update for the three months ('Q3')
and nine months ended 30 April 2025 ('YTD'), and full-year guidance for FY25.

 

Highlights and Outlook

·    Group revenue YTD of €1.59 billion, up 4.1% year-on-year (3.3%
constant currency), reflecting solid organic growth across both Agriculture
and Living Landscapes. Q3 revenue up 12.8% (11.4% constant currency).

·    Excluding crop marketing, Group revenue YTD increased by 6.7%, driven
by a 7.4% increase in volumes as demand for agriculture-related products and
services recovered, a 0.7% contribution from acquisitions and 0.7% from
currency, partially offset by a 2.1% decline in pricing.

·    In Agriculture, we saw reported revenue of €1.45 billion YTD up
2.6%; Volume growth in Ireland and the UK of 8.3%, Continental Europe 4.3%
(excl crop marketing) and Latin America 9.6%. Reported revenue declined in
Latin America due to FX headwinds (-14.7%) and lower pricing (-2.6%).

·    Living Landscapes had reported revenue of €137.2 million YTD up
23.9%; Strong underlying growth of 12% and favourable trading conditions
driving increased demand across the portfolio.

·    Full-year adjusted diluted EPS guidance of 50 to 52 cent (FY24: 48.06
cent).

·    Preliminary Results for FY25 will be announced on 23 September 2025.

 

Origin's Chief Executive Officer, Sean Coyle, commented: "We delivered an
encouraging performance in the first nine months. Improved momentum in Q3 was
driven by favourable application conditions for crop inputs and an increased
winter cropping area in the Northern Hemisphere, together with strong demand
in Living Landscapes supported by recent acquisitions. Despite the impact of
the depreciation of the Brazilian Real versus the Euro, we expect our
increasingly diversified earnings base will result in operating profit growth
in 2025 and guide full year adjusted diluted EPS of 50 to 52 cent. We remain
on track to deliver the Group's stated financial and operational targets for
the period FY2022 to FY2026 as outlined at the 2022 Capital Markets Day."

 

                                                                                         Constant Currency(2)

 Group Revenue - YTD   YTD FY25                    YTD FY24   Variance   Underlying(1)   %

                       €'m                         €'m        %          %

 Ireland / UK                             901.3    844.7      6.7%       4.5%            4.5%
 Continental Europe                       443.8    455.6      (2.6%)     (4.2%)          (4.2%)
 Latin America                            104.3    113.0      (7.7%)     7.0%            7.0%
 Total Agriculture                        1,449.4  1,413.3    2.6%       1.9%            1.9%
 Living Landscapes                        137.2    110.7      23.9%      12.0%           21.0%
 Total Group                              1,586.6  1,524.0    4.1%       2.6%            3.3%

 Total Group (excl Crop Marketing)        1,471.2  1,379.1    6.7%       5.3%            6.0%

 (1) Excluding currency movements and the contribution of acquisitions
 (2) Excluding currency movements

 

Agriculture:

 

Ireland and the UK recorded a 6.7% increase in revenue to €901.3 million
YTD, with a strong Q3 performance delivering a 20.8% increase in reported
revenue to €470.9 million. Underlying volumes increased 8.3% YTD (Q3: 19.7%)
which was partially offset by a pricing headwind of 3.8%.

 

Sustainable Agronomy: Total autumn and winter wheat area in the UK is 1.67
million hectares, a 24% increase on the prior year. Combined spring and winter
cropping is expected to be largely in line with prior year at 4 million
hectares, as we see a return to more winter from spring planting. Increased
demand for key plant protection inputs reflects the recovery in winter
cropping, with dry spring conditions enabling early spring drilling and
favourable windows for in-field activity.

 

Dry conditions have resulted in lower disease pressure and yield expectations,
and combined with weaker output pricing, this may lead to more selective
in-season input use as growers adapt to conditions. In May, Origin was
recognised as the top performing agriculture company in Newsweek's 'Worlds
Greenest Companies'.

 

Soil Nutrition: Strong revenue growth YTD was driven by higher volumes across
Ireland and the UK. Performance was supported by an increased planted area,
favourable in-field conditions, and a well-positioned order book, as customers
moved to secure timely supply during a condensed and high-demand spring
application window. Overall pricing remained relatively stable with a 2.1% YTD
reduction versus the comparative period last year.

 

Animal Nutrition: Feed Ingredients delivered a strong YTD performance,
supported by favourable output prices in the dairy, beef, poultry, pork and
egg markets. The Group's animal feed manufacturing associate, John Thompson
& Sons Limited, in which the Group has a 50% shareholding, also delivered
a solid YTD performance.

 

Continental Europe reported revenue declined 2.6% to €443.8 million YTD,
primarily due to lower revenue in the crop marketing division reflecting
reduced grain prices. Excluding crop marketing, revenue grew 5.7% YTD, with
underlying volumes increasing by 4.3%, driven by strong demand for key inputs.

 

In Poland, spring crops have progressed well, supported by favourable in-field
conditions that enabled timely planting. Underlying input demand remains
strong, reflecting confidence in crop performance and overall market
stability. While dry conditions have accelerated crop development, they have
also reduced soil moisture levels, with rainfall important to sustain yield
potential over the coming weeks. The total cropping area is expected to be
broadly in line with the prior year at approximately 9.0 million hectares.

 

In Romania, crops are also well established, supported by recent rainfall that
has improved soil moisture. Farmers have adapted their cropping strategies,
favouring barley and rapeseed for their resilience, while reducing maize
cropping areas. This reflects a more cautious approach following previous
drought-impacted seasons. Underlying demand for crop inputs remains steady,
with higher volumes of plant protection and fertiliser YTD supported by the
move from spring to winter plantings. Purchasing continues to trend towards
more cost-efficient product choices. Combined winter and spring plantings are
expected to be in line with last year at approximately 8.9 million hectares.

 

Latin America delivered revenues of €104.3 million YTD, a 7.0% increase on a
constant currency basis (-7.7% reported decrease). Strong volume growth of
9.6% in underlying performance was offset by reduced pricing of 2.6%. Currency
continues to be a significant headwind with a 14.7% negative impact on
reported performance year-on-year.

 

Crop establishment across the region is progressing well, with favourable
weather enabling expanded plantings. The soybean area has increased by 2% to
48.5 million hectares, marking an 18th consecutive year of growth, albeit at a
slower pace due to margin pressures. A record soybean harvest of 168 million
tonnes is forecast, up 13.5% year-on-year. Maize also remains robust, with the
safrinha crop projected at 132 million tonnes, 3% above last year. The Group's
product portfolio continues to benefit from strong underlying demand,
supported by stable cropping conditions and a positive outlook for the 2025
season. Brazil's position as a reliable agricultural supplier is gaining
significance as global trade dynamics evolve, presenting potential upside for
demand amid ongoing shifts in international sourcing patterns.

 

Living Landscapes

 

Living Landscapes delivered strong YTD growth with revenues up 23.9% to
€137.2 million and Q3 revenues rising 25.7% to €62.1 million. Acquisitions
contributed 8.9% YTD and 6.3% in Q3. Underlying performance was driven by
improved trading conditions, leading to good growth in both Sports and
Landscapes, with continued momentum in the Environmental business.

 

During the period Clive Whinnett and Mark Andrews were appointed as Managing
Directors of the Sports and Landscapes businesses respectively, and together
with Mark Webb (Managing Director of Environmental), under the leadership of
TJ Kelly (Managing Director of Living Landscapes), establish a leadership team
focused on driving growth across Living Landscapes.

 

The Group further expanded its footprint with the acquisition of Scott Cawley,
Ireland's market-leading specialist ecological consultancy. Elixir Garden
Supplies, a UK-based industry leader in online gardening supplies, joined the
Origin family post period end. These additions, together with previous
acquisitions, align with our strategy to expand our capability and product
offerings to customers across Sports, Landscapes and Environmental within the
Living Landscapes platform and grow the business to exit 2026 at 30% of Group
Operating profit.

 

ENDS

 

 

Enquiries

 

 Origin Enterprises plc
 Colm Purcell
 Chief Financial Officer                             Tel:   +353 (0)1 563 4900

 Brendan Corcoran
 Head of Investor Relations and Group Planning       Tel:   +353 (0)1 563 4900

 Goodbody (Euronext Growth (Dublin) Adviser)
 Jason Molins                                        Tel:   +353 (0)1 641 9278

 Davy (Nominated Adviser)
 Anthony Farrell                                     Tel:   +353 (0)1 614 9993

 Berenberg (Corporate Broker)
 Clayton Bush                                        Tel:   +44 (0)20 3207 7800

 FTI Consulting (Communications Advisers)

 Jonathan Neilan / Patrick Berkery / Niamh O'Brien   Tel:   +353 (0)86 602 5988

 

 

 About Origin Enterprises plc
 Origin Enterprises plc champions sustainable land use through technically-led
 solutions, empowering our customers to enrich their land so it can achieve its
 true potential. The Group has leading market positions in Ireland, the United
 Kingdom, Brazil, Poland and Romania, and is listed on the Euronext Growth
 Dublin market and the AIM market of the London Stock Exchange.

 Euronext Growth (Dublin) ticker symbol:        OIZ
 AIM ticker symbol:
  OGN
 Website:
                                                          www.originenterprises.com
 (http://www.originenterprises.com)

 

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