Origin Enterprises plc

Group revenue was EUR 852.6 million, up 2.5% reported and up 5.1% on a constant-currency basis; excluding crop marketing, revenue grew 4.3%. Group operating profit was EUR 15.1 million, up 1.3% year on year. Adjusted EPS was EUR 0.0455 versus EUR 0.0517 in the prior year. Finance costs were EUR 11.3 million, up EUR 1.3 million year on year. Net debt at the end of H1 was EUR 283.5 million, or 2.44x EBITDA. Management said Living Landscapes operating profit increased 8.3%, Agriculture was marginally behind prior year overall, and Latin American operating profit rose 5% to EUR 11.3 million. An exceptional after-tax charge of EUR 3.7 million was recorded, mainly relating to legacy trade payables impacted by sanctions. Guidance-wise, management said most earnings remain weighted to H2, expects fertilizer pricing to increase over the second half, sees a rebound in Continental Europe in H2, and reiterated that the group is on track to exceed cumulative FY22-FY26 targets by year-end.

Sean Coyle characterized the half as solid/robust and emphasized that Origin performed relatively well versus competitors, many of whom are under severe pressure in the U.K., Poland, Brazil and Romania. He highlighted Agriculture resilience, growth in Living Landscapes, and a strong balance sheet, while noting that working capital is being pulled back after inventory built ahead of CBAM and higher fertilizer prices. His tone was confident and strategic, with repeated emphasis on product mix improvement, digital investment, cross-selling in Living Landscapes, and openness to selective M&A in distressed situations.

Colm Purcell focused on the numbers: revenue of EUR 852.6 million, operating profit of EUR 15.1 million, adjusted EPS of EUR 0.0455, and finance costs of EUR 11.3 million. He said debt rose mainly because of working capital, including inventory buildup ahead of CBAM and slower collections in some markets, and that net debt was EUR 283.5 million at 2.44x EBITDA, comfortably within covenant levels. He also noted the EUR 3.7 million exceptional after-tax charge and said the EUR 440 million revolver was extended to 2031, with the balance sheet still positioned to support organic investment and M&A.

Analysts asked about the impact of Middle East gas-price volatility on soil nutrition demand, the phasing of Environmental revenues into H2, and the size and geography of the Living Landscapes M&A pipeline. Management said fertilizer demand is covered for the next 6 to 8 weeks with a reasonable order book, but beyond that the market is hard to call; Sean Coyle stressed they will avoid overcommitting inventory. TJ Kelly said Environmental softness was largely timing-related, especially renewable grid applications and large infrastructure planning delays, and that spend should pick up in H2. On M&A, management said there is little current deal flow in Brazil, the U.K., Poland or Romania, but they remain open to distressed assets if they fit the strategy.