Donegal Creameries cautious on full-year performance

Donegal Creameries has said the group's performance is broadly on plan for the first five months of 2013 but said it remains cautious about its full-year outcome.

Speaking at its annual general meeting, chairman Geoffrey Vance said its reliance on revenues from its produce unit during the final quarter made it difficult to say with any authority how it would perform for the year as a whole.

Mr Vance described 2012 as a “transformational” year for the group, following the disposal of its liquid milk and agri-food business a year earlier.

In April, the company announced a pre-tax profit of €4.65 million for 2012 with revenues up 16.9 per cent to €80.5 million.

This was delivered in a challenging environment created by the extreme weather conditions experienced last year that had a negative impact on the group’s produce business which was partially offset by an increased demand in its Food-Agri business.

With operations in Ireland, the UK, Holland and Brazil, Donegal Creameries operates across agri-inputs, produce, property and other investments.

Mr Vance said the board remained excited about the mix of its businesses and was optimistic about the global potential of the company’s produce business, the high growth being delivered in its niche dairy business and the ability of the rest of its businesses and assets to provide cash for growth.