DAVY VIEW

Reflecting four consecutive profit upgrades, strong cash delivery, progressive shareholder returns and margin progression, Origin’s equity has been an outlier across our food coverage – the only stock in the black year-to-date. A less correlated and idiosyncratic economic model has benefitted from the inflationary circumstance, with operational execution and supply chain agility nonpareil. A strong balance sheet and focused growth strategy offer an opportunity to lift through-the-cycle profitability and reduce the historical weather influence on financial delivery. Trading on 7.7x FY 2023 EPS, the stock is too cheap.