Donegal Creameries enjoyed a 14 per cent jump in operating profit in 2010, despite a challenging year for its dairy business.

Adjusted operating profit at the company increased from €3 million to €3.4 million in the year ended December 31st 2010. Turnover increased by 11 per cent to €126 million. Adjusted earnings per share rose 38 per cent up to 67.7 cent, which was in line with market expectation.

The company said 2010 was a challenging year for its dairy division, specifically the liquid milk business, because of prices increases and competitive retail market.

However its agri-input business returned to profitability, driven by a strong performance in its speciality feeds and retail stores business.

Its produce business performed strongly despite adverse weather conditions in the final quarter.

The company continues to focus on the UK retail and food services market.