Leadership

Origin’s pre-tax profits fall; consumers more cautious

11.03.2010
Food and agri business Origin Enterprises has reported pre-tax profits of €11.3m for the six-month period to the end of January 2010, down from the €17.1m reported during the same period a year previous.

Revenues at the company were down 16pc during the period to €596.8m.

Group EBITA meanwhile fell by 18pc to €23m from the €28m reported in the previous period.

Origin said its year-on-year performance was affected by seasonality as agricultural activity is more concentrated towards the second half of its financial year. Customers adopting a more cautious approach to their buying decisions also took its toll on results, the company said.

Consumers seeking value
Origin reported a 12pc fall in profits in its Food business to €8.1m, against the backdrop of what it said were “challenging economic conditions and an extremely competitive trading environment”.

The group also noted that consumption patterns in its food division, whose brands include Odlums, Roma and Shamrock, show shoppers are moving to value offerings.

Confident for full year
Origin’s CEO Tom O'Mahony said food markets continue to be “extremely competitive” and that the group’s business environment remains challenging. However, he added that Origin remains confident for the full year and expect to deliver consensus market expectations.

O’Mahony also said that following a slow start, performance in its financial year to date is in line with its expectations and results for the second quarter are currently ahead of the same period last year.