FY21 delivers adjusted earnings per share growth of 38.2% to 35.50c
Strong cash generation reduces net bank debt4 to €14.4 million
Dublin, London, 29 September 2021: Origin Enterprises plc ('Origin' or 'the Group'), the international Agri-Services group, providing specialist agronomy advice, crop inputs and digital agricultural solutions to farmers, growers, landscapers and amenity professionals, today announces its full year results for the year ended 31 July 2021.
Group revenue increase of 4.4% to €1,658.4 million, 6.6% on an underlying basis
Operating profit1 of €61.0 million, an increase of 38.3%, 42.1% on an underlying basis
Group operating margin of 3.7% (2020: 2.8%)
Adjusted diluted earnings per share3 of 35.50 cent
Strong cash generation with free cash flow of €49.2 million (2020: €64.3 million)
Net bank debt4 reduced to €14.4 million (2020: €53.2 million)
Working capital outflow of €4.0 million (2020: Inflow of €30.3 million)
Proposed final dividend of 7.85 cent per share giving total dividend of 11.00 cent
Substantial recovery in Ireland/UK operating segment together with continued underlying growth in CE and LATAM operations
Divestment of Pillaert, the Group's Belgian fertiliser business for €15.5 million
Acquisition of Green-tech, the UK's leading landscape, forestry and grounds maintenance equipment provider
Extension post year end of Group's banking facilities to 2025 with pricing linked to ESG performance
Associates and joint venture2
Total group operating profit1
Finance expense, net
Profit before tax1
Basic EPS (cent)
Adjusted diluted EPS (cent)3
Return on capital employed
Group net bank debt4
Free cash flow
Dividend per ordinary share (cent)
Before amortisation of non-ERP intangible assets and exceptional items
Profit after interest and tax before exceptional items
Before amortisation of non-ERP intangible assets, net of related deferred tax (2021: €8.6m, 2020: €7.7m) and
exceptional items, net of tax (2021: credit of €1.2m, 2020: expense of €5.2m)
Group net bank debt before impact of IFRS 16 Leases
Commenting on the results, Origin's Chief Executive Officer, Sean Coyle said:
"FY21 saw a much-improved performance for the Group, compared to a challenging FY20 impacted by extreme weather and the onset of the COVID-19 pandemic. Although we experienced a delayed season in FY21 following prolonged cold weather in spring, more favourable conditions in the fourth quarter resulted in increased demand for agronomy services, crop inputs and amenity products.
The Group delivered a solid earnings recovery with adjusted diluted EPS growth of 44.6% over the prior year on a constant currency basis. This recovery in earnings was primarily driven by increased volumes and improved margins in Ireland and the UK. Group operating profit increased by 38.3% to €61.0 million. Return on capital employed in FY21 was 9.3%, an improvement of 200bps on FY20, driven by the improved earnings performance. Group revenue, including crop marketing revenue, increased by 4.4% to €1,658.4 million on a reported basis and was ahead on a constant currency basis by 7.2%.
The Group continues to focus on improving cash performance and delivered strong free cash flow of €49.2 million despite a modest working capital outflow of €4.0 million. Net bank debt at year end fell to €14.4 million, representing a Debt: EBITDA ratio of 0.13X. The recovery in performance during FY21 allowed us to resume dividend payments. Following an interim dividend of 3.15 cent paid to shareholders in April 2021, the Directors are proposing a final dividend of 7.85 cent for approval at the Annual General Meeting in November 2021, bringing the total dividend payment per share to 11.00 cent.
The Group continues to focus on strategic opportunities that complement our existing market positions and enhance our product capabilities through a combination of organic and acquisition growth. During the year the Group acquired Greentech Limited, the UK's leading manufacturer and distributor of landscaping, forestry and ground maintenance equipment. We are delighted to welcome the Green-tech team to the Origin Group. The business is integrating well and performing in line with expectations. Green-tech is an excellent strategic fit for Origin and enhances the offering of our amenity businesses while offering potential in the area of environmental land management and biodiversity enhancement for the Group's agri-focused businesses. The Group also disposed of its Belgian fertiliser business during the year as it became clear that opportunities for consolidation did not exist in that market.
Sustainability and responsible practices are core to our strategy and we will soon publish our inaugural stand-alone Sustainability Report - 'Nurturing Growth'. This report will detail our ESG performance and outline our vision to be the trusted partner of choice across our value chain. In addition, consistent with our focus on ESG, our banking facilities, recently extended to 2025, now have pricing linked to our ESG performance.
While the business recovered from a very challenging trading environment in FY20, COVID-19 continued to present operational challenges for the business in FY21. However, as a result of the collective efforts of all our people and the resilience of our business model, we continued to serve our customers, delivering revenue and operating profit growth together with strong operating cash flow. Although we have encountered minimal supply chain challenges to date, we continue to monitor the COVID-led global supply challenges being experienced. Through continued disciplined capital deployment and the strength and experience of the leadership team in place, combined with our scalable and diversified market positions, I am confident we will progress our growth ambitions successfully in FY22 and beyond."
The preliminary results statement is available on the company website www.originenterprises.com. There will be a live conference call at 8.30am (UK/Ireland time) today. To listen to this conference
call, please dial the number below. Participants are requested to dial in 5 to 10 minutes prior to the scheduled start time.
Participant access number:
+353 (0)1 5060650
(0)844 481 9752
A replay of this call will be available for seven
Replay Access Code:
Replay Access Numbers:
+353 (0)1 553 8777
(0)844 571 8951
Origin Enterprises plc
Chief Financial Officer
+353 (0)1 563 4959
Head of Investor Relations
+353 (0)1 563 4900
Goodbody (Euronext Growth (Dublin) Adviser)
+353 (0)1 641 9449
Davy (Nominated Adviser)
+353 (0)1 614 9993
Numis Securities (Stockbroker)
+44 (0)20 7260 1314
FTI Consulting (Financial Communications
Jonathan Neilan/ Patrick Berkery
+353 (0)1 765 0884
About Origin Enterprises plc
Origin Enterprises plc is an international Agri-Services group, providing specialist agronomy advice, crop inputs and digital agricultural solutions to farmers, growers, landscapers and amenity professionals. The Group has leading market positions in Ireland, the United Kingdom, Brazil, Poland, Romania and Ukraine. Origin is listed on the Euronext Growth (Dublin) and AIM markets of the Irish and London Stock Exchanges.
Tax on amortisation of non-ERP related intangible assets
Exceptional items (net of tax)
Adjusted net profit
Adjusted diluted EPS (cent)3
Return on capital employed
Free cash flow
Adjusted diluted earnings per share3 increased by 38.2% to 35.50 cent. On a constant currency basis, adjusted diluted earnings per share increased by 44.6% when compared to the prior year.
Group revenue increased by 4.4% from €1,589.1 million in the prior year to €1,658.4 million. On an underlying basis revenue increased by 6.6% driven by increased demand for fertiliser, crop protection and seed, and global price movements in fertiliser.
The underlying increase in agronomy services and crop input volumes, excluding crop marketing volumes, was 4.9% for FY21.
Operating profit1 increased by 38.3% to €61.0 million compared to €44.1 million in the previous year. On an underlying basis, operating profit1 increased by €18.6 million (42.1%), primarily driven by recovering volumes and margins in Ireland and the UK.
Group operating margin increased from 2.8% to 3.7% in FY21. This was principally driven by the Ireland and UK segment, which saw its operating margin increase from 2.4% in FY20 to 3.7% in FY21.
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Origin Enterprises plc published this content on 29 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 September 2021 06:11:06 UTC.