Origin Enterprises (OIZ) Q3 2024 TU earnings summary

Executive summary

• Group revenue for the nine months ended 30 April 2024 was €1.5 billion, down 20.7% year-over-year, mainly due to lower global feed and fertiliser prices despite a 5.7% increase in volumes.

• Challenging weather and in-field conditions reduced spring cropping in the UK and delayed applications across Ireland, the UK, and Europe.

• Full year adjusted diluted EPS guidance is set between 45 and 48 cent.

• Strategic diversification and acquisitions in Amenity, Environment, and Ecology are supporting earnings resilience.

Financial highlights

• Q3 revenue was €669.1 million, a 9.8% decrease compared to Q3 FY23; the pace of revenue decline slowed in Q3.

• Group revenue for the year-to-date fell 20.7% on a reported basis and 22.1% on a constant currency basis.

• Price reductions of 29.0% in feed and fertiliser were partially offset by a 5.7% increase in volumes and 1.2% from acquisitions.

• €20 million share buyback programme is approximately 77% complete.

Outlook and guidance

• Full year adjusted diluted EPS guidance reaffirmed at 45–48 cent.

• Group remains on track to meet profit, cash generation, and operational targets for FY2022–FY2026.

• Preliminary FY24 results to be announced on 24 September 2024.