Irish agribusiness and food firm Origin Enterprises today reported a 37 per cent increase in annual profit as acquisitions boosted sales.
Origin, which is controlled by Aryzta AG, said net income climbed to €44.7 million ($63 million), or 32.47 cents a share, in the year through July, from €32.7 million, or 23.86 cents, a year earlier.
Revenue increased 69 per cent to €1.5 billion.
Origin this year bought Masstock Group, a provider of specialist services to British and Polish farmers.
In August 2007, it bought Greencore Group's 50 per cent stake in flour miller Odlum Group. Origin was created when IAWS Group sold shares in the company. IAWS last month completed the purchase of Switzerland's Hiestand Holding AG, creating Aryzta.
The company is "well positioned for another year of growth" in the current fiscal year, Chief Executive Officer Tom O'Mahoney said in the statement, without giving further details.
Origin rose 15 cents, or 4.8 per cent, to €3.30 as of 8.04am in Dublin trading. The stock has risen 10 per cent since its €3-a-share initial public offering in May 2007, giving the company a market value of €459 million.
Revenue gained 80 per cent to €1.17 billion at Origin's agri-nutrition unit and climbed 40 per cent to €339 million at the food division. Surging prices for edible commodities such as wheat are eroding cash flows across the food industry.
Raw material costs at Odlum and Shamrock Foods rose by about 15 to 20 per cent during the year, Mr O'Mahony said in a phone interview today. The company passed those costs on to customers through price increases, he said.
Origin has at least €100 million to spend on acquisitions, the CEO said.
Bloomberg