Origin Enterprises Q3, 9-month Revenues Rise; Sees Earnings Growth In FY25

Origin Enterprises (OGN.L) reported a 12.8% increase in third-quarter revenue and a 4.1% increase in nine-month revenue to €1.59 billion, driven by favorable crop conditions and strong demand in Living Landscapes. CEO Sean Coyle anticipates operating profit growth in 2025 due to an increasingly diversified earnings base. The company projects adjusted diluted EPS for fiscal year 2025 to be between 50 and 52 euro cents, exceeding the previous year's 48.06 euro cents, and reaffirmed its commitment to achieving financial targets set at the 2022 Capital Markets Day.

Analysis

Origin Enterprises plc (OGN.L) reported a notable acceleration in its financial performance, with third-quarter Group revenue increasing by 12.8% on a reported basis and 11.4% at constant currency. For the nine-month period, Group revenue grew 4.1% to €1.59 billion, or 3.3% at constant currency, reflecting solid organic growth across both its Agriculture and Living Landscapes divisions. The company attributes this improved momentum to favorable application conditions for crop inputs, an increased winter cropping area in the Northern Hemisphere, and robust demand in its Living Landscapes segment, which has been further supported by recent acquisitions. Excluding Crop Marketing, total Group revenue for the nine months rose 6.7% to €1.47 billion. Crucially, Origin has issued positive guidance for fiscal 2025, projecting adjusted earnings per share between 50 and 52 euro cents, a clear improvement over the prior year's 48.06 euro cents. Management expects operating profit growth in 2025, driven by an increasingly diversified earnings base, and reaffirmed its commitment to achieving the financial and operational targets for FY2022-FY2026 set during its 2022 Capital Markets Day. The strongly positive sentiment (score 0.8) associated with this announcement indicates a favorable market interpretation of these developments. Preliminary results for FY25 are scheduled for release on September 23.

Key Decisions for Investors

• Investors should view the strong Q3 revenue growth and positive FY25 EPS guidance as supportive of a constructive outlook for Origin Enterprises, potentially justifying a re-evaluation of current holdings or consideration for accumulation.
• The company's ability to leverage favorable agricultural conditions and successfully integrate acquisitions in its Living Landscapes segment demonstrates operational strength; continued performance in these areas will be key to achieving guided growth.
• Monitor the upcoming preliminary FY25 results on September 23 for confirmation of sustained momentum and further details on the drivers of the diversified earnings base mentioned by the CEO.