Origin Enterprises (OIZ) H1 2025 earnings summary

Executive summary

• H1 2025 delivered 17% operating profit growth and 38% EPS growth, driven by Living Landscapes expansion and Agriculture recovery, despite revenue decline from lower global prices and currency headwinds.

• Living Landscapes operating profit more than doubled, supported by organic growth and four acquisitions; Agriculture segment showed stable or improved underlying profit, with LATAM impacted by currency.

• Strategic focus on diversification, sustainability, and margin improvement, with ongoing investments in R&D, digital tools, and talent.

• Exceptional gains of €10.5m (net of tax) from property revaluation and JV asset disposals.

Financial highlights

• Group revenue at €831.7m, down 3.1% year-over-year on a constant currency basis, mainly due to deflation in seed and fertilizer prices, but underlying volumes rose 3%.

• Operating profit rose to €14.9m from €12.7m, with margin improvements in both agriculture (+10bps) and Living Landscapes (+260bps).

• Adjusted EPS up 38% to €0.0517; adjusted net profit increased to €5.8m from €4.4m.

• Net debt at €270.1m (2.42x EBITDA), reflecting working capital normalization, acquisition spend, and dividend payments.

• Interim dividend maintained at €0.0315 per share; €80m share buyback completed.

Outlook and guidance

• Strong order book for H2, especially in soil and animal nutrition; well positioned for spring application window.

• Living Landscapes expected to reach 20% of operating profit in FY25 and targeted to grow to 30% by FY26 exit rate.

• Capex expected to decrease as ERP and major projects conclude; continued focus on margin-accretive organic and M&A growth.

• No formal full-year guidance, but management is optimistic for continued growth; full-year outlook to be updated with Q3 results.