The other business news of the day in brief...

Donegal Creameries report 3m profit

Donegal Creameries reported adjusted operating profit of €3 million for 2009.

The Letterkenny-based company said profitability improved in both dairy and produce businesses, with operating profit in the dairy division rising 23 per cent to €2.2 million for the year while produce rose 64 per cent to €2.9 million. The results were “satisfactory” overall in a challenging year.

Turnover of €113.3 million was 12.8 per cent down from €129.9 million a year earlier.

The dip was blamed mainly on a “significant” reduction in dairy prices and a decline in milk volumes produced at farm level, which contributed to a € 10 million decline in turnover to € 46 million.

AIB ad account goes to Starcom

AIB has moved its lucrative media-buying account from McConnells MCM to Starcom. The contract will run for three years.

It is understood AIB spent €4.3 million last year on advertising but this figure is expected to decline in 2010 as the bank pares back its ad spend and secures better rates from media outlets.

McConnells lost the account following a competitive pitch. Control of McConnells, one of Ireland’s oldest and biggest ad agencies, changed hands last week, with rival DDFHB acquiring the brand after Ulster Bank took charge of the business, which had financial difficulties.

Grafton chairman's pay  down more than 300,000

Michael Chadwick, executive chairman of DIY retailing and builders merchant group Grafton, saw his remuneration package shrink to €661,000 in 2009, from €987,000 a year earlier. According to the group’s annual report, Mr Chadwick waived his entitlement to a pension allowance of € 307,000 for 2009.

The total remuneration paid to Grafton’s four executive directors declined from almost €3.3 million in 2008 to €2.6 million last year.

The group’s non-executive directors received fees totalling €350,000, which was unchanged from 2008.

No basic salary increases have been granted to Grafton directors since July 1st, 2007.