Commodity price falls slow Origin

30th Nov 2009 15:41

Irish agricultural feed producer Origin Enterprises saw revenues dip in the three months to end-October, largely as a result of lower commodity prices. Group revenue fell 23.8% to €323.5m, with underlying revenues down 17.2%. The agri-nutrition business saw revenues slump to €252.9m from €340.8m a year earlier, with a propensity for customers to destock exacerbating the shortfall caused by lower commodity prices. The company said customers are 'adopting a wait and see approach in response to the current challenging environment for farming.'The food division's revenue fell to €70.6m from €83.9m a year earlier, which the company attributed to lower agency distribution activity.Earnings before interest, tax and amortisation in the company's first quarter fell to €12.7m from €21.2m in the corresponding period of last year.'The recent uplift in primary output markets, while welcome, has yet to positively impact farm incomes. Against this background we continue to maintain a cautious approach but remain comfortable with market expectations for the full year,' the company said.