Final Results

Dublin, London, 24 September 2024: Origin Enterprises plc ('Origin' or 'the Group'), the international group championing sustainable land use solutions, announces results for the financial year ended 31 July 2024 ('FY24').

Financial Summary

• Operating profit1 of €83.5 million and adjusted EPS3 of 48.06 cent at upper end of guidance range, back 8.0% and 9.6% respectively on prior year
• Decrease in Group revenue of 16.7% to €2.0 billion, reflecting lower global feed and fertiliser raw materials pricing, partly offset by a 7.1% volume increase driven by a recovery in fertiliser volumes and strong feed volumes
• Volume growth improved to 12.7% in H2 as demand for feed and fertiliser improved and crop protection volumes benefited from strong late season applications
• Strong balance sheet at year end with net debt4 of €71.7 million and key EBITDA:Net Debt covenant at 0.66x
• Agriculture

o Operating profit1 from Agriculture of €71.6 million, a reduction of 10.1% year on year, as a result of adverse weather during key application periods, primarily in the UK and Ireland

o Continental Europe and Latin America delivered a good performance with volume growth across both regions resulting in operating profits of €17.5 million and €15.1 million respectively

Living Landscapes

o Operating profit1 of €11.9 million, representing a 7.1% increase on FY23 supported by the performance from recent acquisitions

o Living Landscapes now represents 14.2% of Group operating profit1

Capital Allocation Summary

• Cumulative acquisition spend of €44.3 million in FY24, primarily driven by the completion of the put/call option for the residual 35% interest in Fortgreen in Latin America of €30.9 million
• Strategic capital expenditure of €34.1m, primarily in Agriculture, including:

o New FoliQ fertiliser plant in Poland

o Investment programme to expand micropack production facility in Agrii Romania

o Build of a new blending plant and warehouse at the Port of Tyne in our Origin Fertiliser UK business

o Continued expansion of production facilities in Brazil

o Continued rollout of our new ERP D365 platform across the Ireland and UK businesses

• Further expansion of Living Landscapes with acquisition of Avian Ecology and Bowland Ecology, two UK based specialist ecological consultancy businesses, post year end
• €20 million share buyback completed on 13 September 2024; average price of €3.17 per share
• Proposed final dividend of 13.65 cent per share; total FY24 dividend of 16.80 cent, in line with prior year

Origin's Chief Executive Officer, Sean Coyle, commented:

"Following a solid Q4 performance, supported by strong late applications, Origin delivered an FY24 operating profit of €83.5 million and an adjusted earnings per share of 48.06 cent, which is at the upper end of our Q3 guidance range. This result is a significant improvement on the last challenging weather year experienced in FY20 and that is testament to the growth in Fertiliser and Feed operations, Central Europe and LATAM performance and the Group's ongoing diversification and expansion into Living Landscapes.

Our Agriculture businesses delivered an operating profit of €71.6 million, a 10.1% reduction on the prior year primarily driven by the UK market which experienced a reduced planted area and delayed on-farm activity as a result of challenging early season drilling and application window. To ensure the business is better aligned to the future margin opportunity, we had to take the difficult decision to reduce staff numbers in our UK agronomy business.

Our animal feed joint ventures in Ireland delivered strong results, largely as a result of the increased demand for feed due to the poor weather. The Group's performance was supported by the growth of our newly branded 'Living Landscapes' operations, which includes our amenity, ecology, and environmental businesses. We made progress on our strategic objective of expanding our footprint in this space, with the completion of two complementary acquisitions during the year and a further two subsequent to year end. Living Landscapes now accounts for 14.2% of the Group's operating profit, up from 12.2% last year and we remain ambitious for further acquisition and organic growth in the coming years. We were delighted to appoint TJ Kelly, former Group CFO, as Managing Director of Living Landscapes and overseeing its development and expansion, with Colm Purcell joining as Group CFO on 15 July 2024.

We continue to pursue a disciplined approach to capital allocation. During the year we returned €36.7 million to shareholders though the share buyback programme and dividends. Total shareholder returns for the last 3 years amounts to €128.1 million, or 36% of our current market capitalisation. We have invested €44.3 million in acquisition growth including the completion of the acquisition of the residual 35% interest in Fortgreen in Latin America for €30.9 million, while maintaining a year end EBITDA:Net Debt ratio of less than 1x.

While trading conditions have been particularly challenging throughout FY24, the resilience of our business model and increased diversity of our earnings profile is evident in our solid full year performance. The Group remains well on track to deliver the strategic, operational and financial goals outlined in our 2022 Capital Markets Day. Consistent with previous years, the Group will issue a Q1 Trading Update for FY25 on the date of the AGM, 21 November 2024."

Group revenue

Group revenue decreased by 16.7% to €2,045.7 million on a reported basis and 18.0% on a constant currency basis. Excluding crop marketing, revenue reduced by 17.1%, with price reductions of 26.1%, reflecting expected global commodity price movements, partially offset by volume increases of 7.8% and acquisitions of 1.2%.

Operating profit1

Operating profit1 amounted to €83.5 million compared to €90.8 million in FY23, a reduction of 8.0%. Overall, our Agriculture businesses saw a 10.1% reduction in operating profit to €71.6 million, while Living Landscapes saw a 7.1% increase to €11.9 million. Group operating margin increased from 3.7% to 4.1% in FY24, principally driven by margin improvements in our Agriculture business.

Associates and joint venture2

Origin's share of the profit after taxation from associates and joint venture amounted to €6.4 million in the period (FY23: €4.0 million). The FY24 performance reflects a stronger feed commodity market largely driven by the increased demand for feed due to the poor weather during the year.

Finance costs and net bank debt4

Net debt4 at 31 July 2024 was €71.7 million (FY23: Net cash4 of €53.2 million), a movement of €124.9 million on the prior year. The movement reflects an acquisition spend of €44.3 million, including the settlement of the Fortgreen put/call option of €30.9 million, a net working capital outflow during the year of €62.9 million (including sanction payments amounting to €37.5 million), growth related capital expenditure of €34.1 million and returns to shareholders through share buy backs and dividends of €36.7 million.

Net finance costs amounted to €18.6 million, which represents an increase of €5.6 million on the prior year, reflecting increased interest rates and average debt, year-on-year, across the Group.

At 31 July 2024, the Group had unsecured committed banking facilities of €400.0 million (2023: €400.0 million), with pricing linked to ESG performance, which will expire in 2026.

At year end the Group's key banking covenants were as follows:

Working capital

For the year ended 31 July 2024, there was a working capital outflow of €62.9 million. The increase in working capital investment was primarily driven by higher debtors as a result of delayed applications due to weather and a reduction in creditors following the payment of c.50% of outstanding suspended supplier amounts in compliance with sanctions regimes amounting to €37.5 million.

The period end working capital position includes the residual net impact of trade payables which have been suspended in accordance with international sanctions imposed by authorities in response to the Russian invasion of Ukraine in 2022. We continue to closely monitor the situation with regard to sanctions and act accordingly.

Adjusted diluted earnings per share ('EPS')3

Adjusted diluted EPS3 amounted to 48.06 cent per share (FY23: 53.16 cent), a decrease of 9.6% on a reported basis and 10.3% on a constant currency basis.

Free cash flow

The Group generated free cash flow in the year of €6.2 million (FY23: €104.4 million). The movement in the free cash flow is primarily due to the timing of suspended sanction payments year on year and the timing of receipts with higher sales later in the year as a result of delayed applications.

Free cash flow means the total of earnings before interest, tax, depreciation (excluding depreciation of IFRS 16 Right of Use leased assets), amortisation of non-ERP related intangible assets and exceptional items of wholly owned businesses ('EBITDA') adjusted to take account of interest, tax, routine capital expenditure, working capital cash flows and dividends received.

Free cash flow conversion ratio means free cash flow as a percentage of profit after tax of wholly owned businesses, excluding exceptional items and amortisation of non-ERP related intangible assets.

The Group delivered a ROCE of 11.2%. The Group's operating performance decline resulted in a ROCE of 11.2%, below our target range of 12-15%. Return on capital employed is a key performance indicator for the Group and represents Group earnings before interest, tax and amortisation of non-ERP related intangible assets from continuing operations ('EBITA') taken as a percentage of the Group Net Assets. For the purposes of this calculation:

Exceptional items

Exceptional items net of tax amounted to a charge of €4.3 million in the year (FY23: €0.6 million), and are summarised in the table below:

Acquisition-related items include adjustments to the fair value of contingent consideration during the year. Operations in Ukraine were closed down in Q3 FY24 with associated costs and costs relating sanction payments included above. Redundancy and restructuring costs are largely driven by restructuring within the Agrii UK business to position the Group for future growth. Associates and joint venture costs include the gain on disposal of property and settlement of an insurance claim.

Dividends

The Directors are proposing a final dividend of 13.65 cent per ordinary share for approval at the AGM in November 2024, bringing the total dividend payment for FY24 to 16.80 cent. Subject to shareholder approval at the AGM, this final dividend will be paid on 14 February 2025 to shareholders on the register on 24 January 2025.

Board changes

Mr Dick Hordijk (Netherlands), Chief Executive Officer and Chairman of the Executive board of Royal Agrifirm Group, a global agricultural cooperative, will be appointed to the Board as an independent Non-Executive Director, with effect from 16 October 2024.

Colm Purcell joined the Group as Chief Financial Officer on 15 July 2024. Colm will be co-opted to the Board on 25 September 2024 following the publication of the Group's full year results for 2024.

Share buyback programme

On 21 November 2023 the Group commenced a share buyback programme to repurchase up to €20 million of ordinary shares. At 31 July 2024, the Group had spent €18.2 million on the programme and it was successfully completed on 13 September 2024.

ESG Update

In FY24, Origin advanced its ESG agenda through ongoing portfolio diversification and a commitment to the Science Based Targets initiative (SBTi), which was validated in November 2023. Our approach aims to address climate challenges and geopolitical shifts, promote biodiversity, sustainable land practices, and innovation. By reducing emissions, protecting and conserving resources, Origin seeks to enhance food security, optimise sustainable land use, and promote inclusive growth.

Corporate development

During the year, the Group continued to strengthen its offering in the Living Landscapes space. The Group acquired Groundtrax Systems Limited ('Groundtrax') and the business and operating assets of Suregreen Limited ('Suregreen') from its administrators. Groundtrax is a leading supplier of ground protection and sustainable urban drainage systems and Suregreen is a UK based landscape and gardening products supplier for trade professionals and DIY customers. The Group also completed the Fortgreen put/call option which is the final payment for the Latin America business within the Agriculture segment.

Subsequent to year end, the Group completed the acquisition of Avian Ecology Limited ('Avian') and Bowland Ecology Limited ('Bowland'). Both Avian and Bowland are specialist ecological consultancy businesses in the UK.

Our strategy aims to create long-term shareholder value and we support this strategy through regular and open communication with all capital market participants. Contact with institutional shareholders is the responsibility of the executive management team including the Chief Executive Officer, the Chief Financial Officer and the Head of Investor Relations.

We engage with institutional investors in numerous one-on-one meetings, as well as at roadshows and equity conferences. During FY24, meetings were held with 145 institutional investors. Engagement was facilitated through a combination of in-person meetings and remotely using virtual conferences and video calls.

Annual General Meeting (AGM)

The AGM is scheduled to be held on 21 November 2024 at 11.00am (UK/Ireland time) in the Merrion Hotel, Upper Merrion Street, Dublin 2.

Agriculture

Agriculture delivered a robust performance during the year despite the significant challenges of adverse weather and commodity price movements. This challenging operating environment resulted in a decrease in revenues and operating profit of 18.5% and 10.1% respectively. Geographical analysis is set out below:

Ireland and the UK

Change on the prior year

Ireland and the UK delivered a reduced operating profit contribution in FY24, primarily driven by the UK market where sales of crop protection and other farm inputs were impacted by adverse weather conditions. While revenues declined by 20.1%, the impact on operating profit was somewhat mitigated by operational efficiencies and cost control initiatives. Overall operating margins increased from 3.1% to 3.2%.

Sustainable Agronomy

Our Sustainable Agronomy business delivers agronomy services and sales of inputs direct to farmers, predominantly in the UK. During the year, performance was impacted by difficult weather and in-field conditions that saw an 8.5% reduction in the overall planted area to 3.9 million hectares. This resulted in curtailed investment by growers that directly impacted our revenue and operating profit.

Soil Nutrition

Our Soil Nutrition business largely encompasses the Ireland and UK business-to-business fertiliser operations. Overall Soil Nutrition performance was in line with expectations. The operating profit reduction, driven by falling commodity markets, more than offset volume increases, with volumes making some recovery from recent historical lows and pricing now returning to more normalised levels.

Animal Nutrition

Origin's Feed Ingredients business delivered a strong performance in FY24, benefitting from increased demand given the challenging in-field conditions experienced on the island of Ireland.

The Group's animal feed manufacturing associate, John Thompson & Sons Limited, in which the Group has a 50% shareholding, delivered a good performance in the period.

Continental Europe

Change on prior year

Continental Europe ('CE') delivered a good performance in FY24, with operating profit of €16.5 million, an increase of 4.6% on FY23. The Group completed the closure of the Ukraine business in Q3 with no material impact to Group operating profit.

Overall revenue, excluding crop marketing, declined by 18.6% in the year which represents commodity pricing reductions. Overall sales volumes increased by 7.9%, with both geographies showing growth, and a favourable product mix contributing to margin enhancement. Operating margin increased from 3.4% to 4.4% in the year.

Poland

Poland delivered a good performance in FY24, supported by a cropping area in line with FY23 and higher disease pressure during the key application windows.

The completion and commissioning of the new FoliQ foliar fertiliser plant occurred during the year, with a ramp-up of production now underway.

The harvest is now complete, with average yields lower than FY23 due to dry conditions during the season and reduced on-farm spend in some regions. Current farm sentiment remains cautious due to commodity price volatility and dry conditions in some areas.

Romania

Romania reported a solid performance in FY24, with a planted area broadly in line with FY23, however drought conditions did impact product demand in certain regions and mix of product.

During the year we enhanced our micro-pack facility with new bottling capabilities to meet growing demand.

The harvest is largely complete, with average yields below last year due to soil moisture deficits in some areas. The reduced yields have impacted farm sentiment negatively, with planting decisions for the FY25 season being delayed in some areas while soil moisture deficits remain.

Latin America

Change on prior period

Latin America delivered a solid performance in FY24, ahead of expectations in a challenging macro environment, with operating profit of €15.1 million.

There was an underlying increase in volumes of 37.4% in the year. The sustained volume growth across all product portfolios is driven by continued investment in the sales organisation and operations infrastructure. The reduction in operating margin reflects the impact of the deflationary environment within Brazilian fertiliser markets versus a strong comparative prior year, together with the mix effect of a greater increase in CRF sales compared to speciality products.

The overall result was supported by the total cropping area dedicated to soya, Brazil's principal crop, increasing by 4.0% on the prior year to 45.4 million hectares. However, the expected soya harvest is currently estimated to be 148.5 million tonnes, down from the 154.6 million tonnes in the prior year due to a hot and dry growing season. The total production for Brazil's second corn crop, known as 'safrinha', is forecasted to decrease by 9.4% to 119.5 million tonnes due to a reduction in planted area, coupled with lower projected yields.

Living Landscapes

Change on prior year

Living Landscapes delivered a good performance during the year, supported by the positive impact of acquisitions over the current and prior year. This segment now accounts for 14.2% of the Group's operating profit, up from 12.2% last year, demonstrating the effectiveness of our strategy and its contribution to a more diversified and resilient earnings base.

During the year, the Group completed two acquisitions, Groundtrax and Suregreen, for initial consideration of €5.3 million. These acquisitions complement Origin's growth strategy and extends our product range and service offering in the Living Landscapes sector.

Sports

Our Sports businesses provide agronomic advice, supporting technically-led retail sales of the inputs required to help each playing or recreational space achieve its true potential. Performance during the year was impacted by prolonged wet conditions across the UK, which impacted application windows for sports turf products.

Landscapes

Our Landscapes businesses provide professional-grade landscaping, tree planting and forestry services and products to developers, construction contractors, architects, and custodians of land across all types of land development. The division continues to benefit from ongoing investment within urban greening and infrastructure projects.

Environmental

Our environmental businesses offer ecological and environmental services to organisations involved in land management, development, restoration, and conservation. We continue to grow our footprint through ongoing investment.

Subsequent to year end, the Group completed two further bolt-on acquisitions in the environmental space - Avian Ecology and Bowland Ecology. These specialist consultancies further strengthen the Group's environmental services and complement our Neo Environmental and Keystone Environmental businesses.

Origin Enterprises plc

Consolidated Income Statement

For the financial year ended 31 July 2024

Other comprehensive (expense) / income

Items that will not be reclassified subsequently to the Consolidated Income Statement:

Group/Associate defined benefit pension obligations

Items that may be reclassified subsequently to the Consolidated Income Statement:

Group foreign exchange translation details

Origin Enterprises plc

Notes to the preliminary results statement

For the financial year ended 31 July 2024

1 Basis of preparation

The financial information included on pages 12 to 32 of this preliminary results statement has been extracted from the Group financial statements for the year ended 31 July 2024 on which the auditor has issued an unqualified audit opinion.

The financial information has been prepared in accordance with the accounting policies set out in the Group's consolidated financial statements for the year ended 31 July 2024, which were prepared in accordance with International Financial Reporting Standards as adopted by the EU.

The consolidated financial information is presented in Euro, rounded to the nearest thousand, which is the functional currency of the parent.

2 Segment information

The Group performed a review of operating segments during the year. Given the recent acquisitions in the Ecology and Environmental sector and the Group's strategic objective to expand further into this sector, the Group has determined there are two operating segments as follows:

Agriculture

Living Landscapes

This segment includes the Group's wholly owned Amenity, Environmental and Ecology operations, providing a range of consultancy, inputs and technical solutions in sports turf management, landscaping, and environmental conservation.

Prior year comparative information has been presented on a consistent basis to reflect the changes in our reporting segments.

Segment results, assets and liabilities include all items directly attributable to a segment.

Segment capital expenditure is the total amount incurred during the period to acquire segment assets that are expected to be used for more than one accounting period.

Origin Enterprises plc

Notes to the preliminary results statement (continued)

For the financial year ended 31 July 2024

2 Segment information (continued)

Segment revenue and results

Origin Enterprises plc

Notes to the preliminary results statement (continued)

For the financial year ended 31 July 2024

3 Exceptional items (continued)

Ukraine related costs

Ukraine related costs comprise of rationalisation costs attributable to termination payments from restructuring programmes in Ukraine along with costs associated with international sanctions imposed by authorities in response to the Russian invasion of Ukraine. The tax impact of this exceptional item in the year was a tax credit of €0.4 million.

Acquisition, disposal and other related costs / (credit)

Acquisition, disposal and other related costs principally comprised of transaction costs incurred in relation to the acquisitions completed during the current year, offset by a credit for excess deferred consideration. The tax impact of this exceptional item in the current year was a charge of €nil.

Redundancy & restructuring costs

Redundancy & restructuring costs relate to termination payments from restructuring programmes across the Group. The tax impact of this exceptional item in the current year was a tax credit of €1.0 million.

Arising in associates and joint venture

During 2021 the R&H Hall storage facility in Ringaskiddy suffered fire damage. A credit of €1.0 million represents the excess of the insurance claim proceeds over the net book value of the assets destroyed and other restructuring costs incurred. Also included is a credit of €0.7 million related to an exceptional gain on disposal of property. The tax impact of these exceptional items in the current year was a tax charge of €0.7 million.

Origin Enterprises plc

Notes to the preliminary results statement (continued)

For the financial year ended 31 July 2024

4 Earnings per share

Basic earnings per share

8 Provisions for liabilities

The estimate of provisions is a key judgement in the preparation of the financial statements.

Provisions primarily relate to contingent acquisition consideration arising on a number of acquisitions completed during the current and prior years.

Origin Enterprises plc

Notes to the preliminary results statement (continued)

For the financial year ended 31 July 2024

9 Post employment benefit obligations

The Group operates a number of defined benefit pension schemes and defined contribution schemes with assets held in separate trustee administered funds. All of the defined benefit schemes are closed to new members.

The valuations of the defined benefit schemes used for the purposes of the following disclosures are those of the most recent actuarial valuations carried out at 31 July 2024 by an independent, qualified actuary. The valuations have been performed using the projected unit method.

Movement in net asset recognised in the Consolidated Statement of Financial Position

10 Acquisition of subsidiary undertakings

On 25 August 2023, the Group acquired the business and operating assets of Suregreen Limited, a UK based landscape and gardening products supplier for trade professionals and DIY customers from its administrators.

On 1 February 2024, the Group acquired 100% of the share capital of Groundtrax Systems Limited in the UK, a leading specialist supplier of ground protection and reinforcement systems.

Origin Enterprises plc

Notes to the preliminary results statement (continued)

For the financial year ended 31 July 2024

10 Acquisition of subsidiary undertakings - continued

Fair

value

€'000

Assets

Non-current

Details of the net assets acquired and goodwill arising from the business combinations are as follows:

• Trade Receivables acquired were €0.6 million. All amounts deemed recoverable.

Origin Enterprises plc

Notes to the preliminary results statement (continued)

For the financial year ended 31 July 2024

11 Analysis of net cash / (debt)

• During the financial year, the Group commenced a share buyback programme. The total number of ordinary shares purchased by the Group was 5,759,134 for a total consideration before expenses of €18.2 million. The re-purchased shares are held as treasury shares.
• During the financial year, the Group re-issued 627,983 treasury shares to satisfy the exercise of share options granted under the Company's Long-Term Incentive Plan (2015) and the exercise of share options granted under the Group's UK ad ROI Savings Related Share Option Scheme.

Origin Enterprises plc

Notes to the preliminary results statement (continued)

For the financial year ended 31 July 2024

13 Return on capital employed

Return on capital employed is a key performance indicator for the Group and represents Group earnings before interest, tax and amortisation of non-ERP related intangible assets taken as a percentage of Group net assets and is consistent with the definition approved as part of the 2015 Long Term Incentive Plan.

In years where the Group makes significant acquisitions or disposals, the return on invested capital calculation is adjusted accordingly to ensure that the impact of the acquisition or disposal is time apportioned appropriately.

14 Related party transactions

Related party transactions occurring in the year were similar in nature to those described in the 2023 Annual Report.

15 Dividend

The Directors are proposing a final dividend of 13.65 cent per ordinary share for approval at the AGM in November 2024, bringing the total dividend payment to 16.80 cent. Subject to shareholder approval at the AGM, this final dividend will be paid on 14 February 2025 to shareholders on the register on 24 January 2025.

Origin Enterprises plc

Notes to the preliminary results statement (continued)

For the financial year ended 31 July 2024

16 Subsequent events

In September 2024, the Group announced the acquisition of Avian Ecology, a company providing a broad range of services, particularly specialising in the areas of ornithology and renewable energy issues.

In addition, the Group also announced the acquisition Bowland Ecology, specialising in terrestrial and freshwater ecology, delivering a full range of ecological technical solutions.

There have been no other material events subsequent to 31 July 2024 that would require adjustment to or disclosure in this report.