Origin Enterprises, the international agri-services group, reported results for its financial year ending 31 July showing a small increase in operating profit to €100.1m on group revenue of €2,118m.

Profit before tax at the group was down 9% to €60.4m, with the drop driven by restructuring and redundancy costs within the business and a fine of €3.5m from the Romanian Competition Council, which was imposed following an industry-wide review of pricing practices in the seed and crop protection sector.

Origin said it “fully intends to appeal the decision on the grounds they have always maintained commercial independence with regard to discounts and pricing policy for farmers and have raised legitimate concerns regarding procedural irregularities in the conduct of the investigation, the misapplication of EU and Romanian competition law and the principles of natural justice”.

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In the Ireland and UK business, Origin saw a 1.3% drop in revenue to €1,215m and a 5.1% drop on operating profit to €41.6m.

Reduced seed demand

The company said this reflected reduced demand for seed and crop protection in the UK and reduced fertiliser volumes in Ireland and the UK.

Origin noted that its animal nutrition joint venture, R&H Hall, increased its contribution to operating profit due to higher feed demand in Ireland.

Origin Enterprises CEO Sean Coyle said: “We delivered a strong FY26 performance despite a challenging operating backdrop,” adding that in agriculture: “Market conditions became more challenging during the second half of the year as drought conditions, selective input cost inflation and weaker grain and oilseed prices reduced farm profitability and discretionary spending.”

Speaking to investors on a webcast following the publication of the results, Coyle noted that sentiment among farmers was starting to improve, saying that wheat and soy prices are starting on the rise and that there has been some pickup in dairy prices recently.

“Broadly speaking, I would say, where fertiliser prices have landed and where raw material prices have landed, is driving to an extent a lift in grain, oilseed and dairy prices.”

The company noted that it had increased working capital costs during the year due to higher fertiliser inventory levels, which were held in order to mitigate the challenges arising from CBAM implementation and from the conflict in the Middle East.

Shares in the company were trading 1.25% higher at €4.08 in the wake of the results.