Profit rises at Donegal Creameries

Turnover at Donegal Creameries rose 4.9 per cent to €60.6 million in the first half of the year, with profits also climbing as dairy prices rose and the agri-inputs business saw a "significant turnaround".

Profit from continuing operations was up by €2.5 million in the six-month period to June 30th 2010, to just over €4 million. Operating profit increased by €1 million to €1.4 million.

Donegal Creameries said it had achieved significant growth achieved on sales of new added value dairy products, and turnover in the dairy division was up 21.9 per cent to €28.2 million.

The agri-inputs business recorded a profit of €600,000, reversing its loss of €1.6 million in the same period a year earlier.

"We have had a satisfactory performance in our dairy division and the produce division is well positioned to deliver a solid performance for the year," said chairman Geoffrey Vance.

"The difficult trading circumstances encountered by the agri-inputs division in 2009 have been resolved and we are pleased to report the business is back on track. Our associates, particularly Monaghan Mushrooms, continue to perform strongly."

The company reduced its net debt by €2.1 million to just over €20.1 million in the period.

Basic earnings per share for the six months were 35.7 cent, up from 6.8 cent for the period ended June 30th 2009.

The company will pay an interim dividend of 7 cent per share on December 3rd, 2010.