International agri-services group Origin Enterprises has reported a fall in revenue for its fiscal first quarter and announced a new share buyback programme of up to €20m.
In a trading update for the three months to the end of October and ahead of its AGM today, Origin said its group revenue dropped by 25.7% to €532.5m from €716.2m the same time last year on the back of continued correction in global feed and fertiliser raw material.
Origin said that while planting in parts of the UK has been delayed following a later harvest and adverse weather in recent weeks, it is reasonably well advanced with 1.4 million hectares of winter wheat drilled.
It said it expects that about 1.5 million will be drilled compared to last year's 1.8 million hectares.
Meanwhile, autumn and winter cropping is expected to decrease marginally in its Continental Europe operations with drought conditions delaying planting in Romania.
Origin Enterprises said that despite downward movement in global fertiliser prices, Latin America delivered year-on-year underlying revenue growth of 22.1% in the three months to the end of October.
It also reported a good start to the year in its Amenity, Environmental and Ecology division where a marginal decline in amenity volumes, as a result of the adverse weather in the UK, was offset by the integration of acquisitions.
The company today also announced a new share buyback programme of up to €20m. It said the programme is subject to shareholder approval of the resolution to be proposed at today's AGM to buy back up to 10% of the company's ordinary shares.
Sean Coyle, Origin Enterprise's chief executive said that the first quarter delivered a solid start, with growth in underlying volumes despite delayed plantings and a later harvest in the Northern Hemisphere.
"The continued strong performance of our Latin American business combined with the growing contribution from our Amenity, Environmental and Ecology division, is helping to offset the impact of more challenging planting conditions in Europe," Mr Coyle said.
"We are confident that the group is well positioned to deliver on our 2022 Capital Markets Day financial and strategic ambitions," he added.
Shares in the company moved higher in Dublin trade today.