Donegal Creameries has reported a 66 per cent rise in operating profits in 2007 to €9.28 million due to a strong performance by its dairy and seed potato businesses.
Turnover grew by 12 per cent to €125.6 million on the back of a strong global market for dairy products in the year to December 31st.
The results are the company's first under international reporting standards. The company also restated its 2006 results to comply with these standards.
It said "buoyant global dairy market, a solid performance in branded added value dairy products and continued good results from Irish potato marketing" were behind the strong results.
Profit after tax rose to €10.9 million, compared with €4 million a year earlier. This was boosted by a gain of €7.3 million as a result of property revaluations, including those held by associates.
Turnover in Donegal's dairy operations increased 22 per cent to €59.3 million and profits doubled to €2.15 million. The group's agribusiness division saw sales increase by 4.1 per cent to €66.3 million, leading to profits of €3.35 million.
The land and property development arm of the group contributed around €1 million as a result of land sales last year.
It also made a number of strategic investments in 2007 - totalling €2.3 million - in building up its landbank which saw its valuation rise by almost €8 million to €36.9 million. This division generates rental income from the Ballyraine Halls and Grianan Estate properties.
Donegal Creameries managing director Ian Ireland said it planned to convert a significant proportion of its land to organic status. Donegal will also continue to invest in its seed potato business, he said.
In addition, the company launched its estate agency business Donegal Estates last year.
Earnings per share increased from 37.6 cents to 109.8 cents. The company has recommended a final dividend of 9 cents per share.
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