Origin Enterprises has confirmed that its team in Ukraine has restarted “limited localized operations” in areas away from the conflict.
The agri-food group made this announcement when publishing its half-year results for the half-year ended January 31, 2022 (H1 2022).
“The announcement of these results today is completely overshadowed by the terrible events in Ukraine following the Russian invasion,” said Sean Coyle, CEO of Origin.
“Across the Origin Group, we are extremely concerned about our colleagues and support the safety and well-being of our team and their families in the region.
“We are deeply saddened by the loss of innocent lives and support the strong international response.”
The company’s operations in Ukraine had been temporarily suspended but have now resumed where safe. Staff and their families are also supported to cross borders into Poland and Romania.
Group revenue at Origin in the first half of 2022 increased by more than 53% to €877.1 million.
The agricultural service provider explained that global feed and fertilizer price inflation accounted for more than 80% of revenue growth.
Operating profit amounted to 11.1 million euros, compared to 1.2 million euros in the first half of 2021.
Origin highlighted “increased overall demand driven by a combination of forward buying by farmers and an encouraging fall/winter planting season.”
Origin noted that higher fertilizer prices have led to a 5% reduction in demand, security of product supply will be a key focus for the company ahead of the peak in seasonal demand.
The results also show that the company’s performance in Ireland and the UK has seen a “significant recovery” in its seed and crop protection businesses.
€19.5 million of cash flow was generated from the sale of the Origin property in County Cork.
“Although in the seasonally quieter business period, the group’s performance in the first half represents a positive basis for the full year, with an encouraging crop profile in each of our geographies.
“We are aware of the challenges of price volatility and risks in the supply chain and are taking appropriate steps to mitigate these risks where possible,” concluded Sean Coyle.