Origin Enterprises : 2021 Preliminary Results

Origin Enterprises plc

PRELIMINARY RESULTS STATEMENT

FY21 delivers adjusted earnings per share growth of 38.2% to 35.50c

Strong cash generation reduces net bank debt4 to €14.4 million

Dublin, London, 29 September 2021: Origin Enterprises plc ('Origin' or 'the Group'), the international Agri-Services group, providing specialist agronomy advice, crop inputs and digital agricultural solutions to farmers, growers, landscapers and amenity professionals, today announces its full year results for the year ended 31 July 2021.

Performance Highlights

• Group revenue increase of 4.4% to €1,658.4 million, 6.6% on an underlying basis
• Operating profit1 of €61.0 million, an increase of 38.3%, 42.1% on an underlying basis
• Group operating margin of 3.7% (2020: 2.8%)
• Adjusted diluted earnings per share3 of 35.50 cent
• Strong cash generation with free cash flow of €49.2 million (2020: €64.3 million)
• Net bank debt4 reduced to €14.4 million (2020: €53.2 million)
• Working capital outflow of €4.0 million (2020: Inflow of €30.3 million)
• Proposed final dividend of 7.85 cent per share giving total dividend of 11.00 cent
• Substantial recovery in Ireland/UK operating segment together with continued underlying growth in CE and LATAM operations
• Divestment of Pillaert, the Group's Belgian fertiliser business for €15.5 million
• Acquisition of Green-tech, the UK's leading landscape, forestry and grounds maintenance equipment provider
• Extension post year end of Group's banking facilities to 2025 with pricing linked to ESG performance

Results Summary				Constant
	2021	2020	Change	Currency
	€'000	€'000	%	%
Group revenue	1,658,367	1,589,142	4.4%	7.2%
Operating profit1	61,007	44,099	38.3%	44.2%
Associates and joint venture2	2,841	6,154	(53.8%)	(53.6%)
Total group operating profit1	63,848	50,253	27.1%	32.2%
Finance expense, net	(8,552)	(11,250)	(24.0%)	(23.2%)
Profit before tax1	55,296	39,003	41.8%	48.0%
Basic EPS (cent)	30.44	15.81	92.5%	93.4%
Adjusted diluted EPS (cent)3	35.50c	25.69c	38.2%	44.6%
Return on capital employed	9.3%	7.3%	200bps
Group net bank debt4	(14,406)	(53,213)	38,807
Operating margin1	3.7%	2.8%	90bps
Free cash flow	49,168	64,288	(15,120)
Dividend per ordinary share (cent)	11.00c	3.15c	7.85c

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Before amortisation of non-ERP intangible assets and exceptional items

Profit after interest and tax before exceptional items

Before amortisation of non-ERP intangible assets, net of related deferred tax (2021: €8.6m, 2020: €7.7m) and

exceptional items, net of tax (2021: credit of €1.2m, 2020: expense of €5.2m)

Group net bank debt before impact of IFRS 16 Leases

Commenting on the results, Origin's Chief Executive Officer, Sean Coyle said:

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"FY21 saw a much-improved performance for the Group, compared to a challenging FY20 impacted by extreme weather and the onset of the COVID-19 pandemic. Although we experienced a delayed season in FY21 following prolonged cold weather in spring, more favourable conditions in the fourth quarter resulted in increased demand for agronomy services, crop inputs and amenity products.

The Group delivered a solid earnings recovery with adjusted diluted EPS growth of 44.6% over the prior year on a constant currency basis. This recovery in earnings was primarily driven by increased volumes and improved margins in Ireland and the UK. Group operating profit increased by 38.3% to €61.0 million. Return on capital employed in FY21 was 9.3%, an improvement of 200bps on FY20, driven by the improved earnings performance. Group revenue, including crop marketing revenue, increased by 4.4% to €1,658.4 million on a reported basis and was ahead on a constant currency basis by 7.2%.

The Group continues to focus on improving cash performance and delivered strong free cash flow of €49.2 million despite a modest working capital outflow of €4.0 million. Net bank debt at year end fell to €14.4 million, representing a Debt: EBITDA ratio of 0.13X. The recovery in performance during FY21 allowed us to resume dividend payments. Following an interim dividend of 3.15 cent paid to shareholders in April 2021, the Directors are proposing a final dividend of 7.85 cent for approval at the Annual General Meeting in November 2021, bringing the total dividend payment per share to 11.00 cent.

The Group continues to focus on strategic opportunities that complement our existing market positions and enhance our product capabilities through a combination of organic and acquisition growth. During the year the Group acquired Greentech Limited, the UK's leading manufacturer and distributor of landscaping, forestry and ground maintenance equipment. We are delighted to welcome the Green-tech team to the Origin Group. The business is integrating well and performing in line with expectations. Green-tech is an excellent strategic fit for Origin and enhances the offering of our amenity businesses while offering potential in the area of environmental land management and biodiversity enhancement for the Group's agri-focused businesses. The Group also disposed of its Belgian fertiliser business during the year as it became clear that opportunities for consolidation did not exist in that market.

Sustainability and responsible practices are core to our strategy and we will soon publish our inaugural stand-alone Sustainability Report - 'Nurturing Growth'. This report will detail our ESG performance and outline our vision to be the trusted partner of choice across our value chain. In addition, consistent with our focus on ESG, our banking facilities, recently extended to 2025, now have pricing linked to our ESG performance.

While the business recovered from a very challenging trading environment in FY20, COVID-19 continued to present operational challenges for the business in FY21. However, as a result of the collective efforts of all our people and the resilience of our business model, we continued to serve our customers, delivering revenue and operating profit growth together with strong operating cash flow. Although we have encountered minimal supply chain challenges to date, we continue to monitor the COVID-led global supply challenges being experienced. Through continued disciplined capital deployment and the strength and experience of the leadership team in place, combined with our scalable and diversified market positions, I am confident we will progress our growth ambitions successfully in FY22 and beyond."

ENDS

The preliminary results statement is available on the company website www.originenterprises.com. There will be a live conference call at 8.30am (UK/Ireland time) today. To listen to this conference

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call, please dial the number below. Participants are requested to dial in 5 to 10 minutes prior to the scheduled start time.

Conference Call:
Confirmation Code:	8438869
Participant access number:
Dublin:	Tel:	[phone]
UK/International:	Tel:	+44	(0)844 481 9752
Replay:
A replay of this call will be available for seven
days.
Replay Access Code:	8438869
Replay Access Numbers:
Dublin:	Tel:	[phone]
UK/International:	Tel:	+44	(0)844 571 8951

Enquiries:
Origin Enterprises plc
TJ Kelly
Chief Financial Officer	Tel:	[phone]
Brendan Corcoran
Head of Investor Relations	Tel:	[phone]
Goodbody (Euronext Growth (Dublin) Adviser)
Joe Gill	Tel:	[phone]
Davy (Nominated Adviser)
Anthony Farrell	Tel:	[phone]
Numis Securities (Stockbroker)
Stuart Skinner	Tel:	[phone]
FTI Consulting (Financial Communications
Advisers)
Jonathan Neilan/ Patrick Berkery	Tel:	[phone]

About Origin Enterprises plc

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Origin Enterprises plc is an international Agri-Services group, providing specialist agronomy advice, crop inputs and digital agricultural solutions to farmers, growers, landscapers and amenity professionals. The Group has leading market positions in Ireland, the United Kingdom, Brazil, Poland, Romania and Ukraine. Origin is listed on the Euronext Growth (Dublin) and AIM markets of the Irish and London Stock Exchanges.

Euronext Growth (Dublin) ticker symbol:	OIZ
AIM ticker symbol:	OGN
Website:	www.originenterprises.com

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Financial Review - Summary
	2021	2020
	€'000	€'000
Group revenue	1,658,367	1,589,142
Operating profit1	61,007	44,099
Associates and joint venture, net2	2,841	6,154
Group operating profit1	63,848	50,253
Finance costs, net	(8,552)	(11,250)
Profit before tax1	55,296	39,003
Income tax	(9,657)	(6,157)
Adjusted net profit	45,639	32,846
Adjusted diluted EPS (cent)3	35.50c	25.69c
Adjusted net profit reconciliation
Reported net profit	38,232	19,859
Amortisation of non-ERP intangible assets	8,577	9,381
Tax on amortisation of non-ERP related intangible assets	55	(1,638)
Exceptional items (net of tax)	(1,225)	5,244
Adjusted net profit	45,639	32,846
Adjusted diluted EPS (cent)3	35.50c	25.69c
Operating margin1	3.7%	2.8%
Return on capital employed	9.3%	7.3%
Free cash flow	€49.2m	€64.3m

Adjusted diluted earnings per share3 increased by 38.2% to 35.50 cent. On a constant currency basis, adjusted diluted earnings per share increased by 44.6% when compared to the prior year.

Group revenue

Group revenue increased by 4.4% from €1,589.1 million in the prior year to €1,658.4 million. On an underlying basis revenue increased by 6.6% driven by increased demand for fertiliser, crop protection and seed, and global price movements in fertiliser.

The underlying increase in agronomy services and crop input volumes, excluding crop marketing volumes, was 4.9% for FY21.

Operating profit1

Operating profit1 increased by 38.3% to €61.0 million compared to €44.1 million in the previous year. On an underlying basis, operating profit1 increased by €18.6 million (42.1%), primarily driven by recovering volumes and margins in Ireland and the UK.

Group operating margin increased from 2.8% to 3.7% in FY21. This was principally driven by the Ireland and UK segment, which saw its operating margin increase from 2.4% in FY20 to 3.7% in FY21.

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