Donegal Investment Group has reported revenues which were down €500,000 in the first six months of the year as a rise in turnover in its speciality dairy division offset by the cessation of ware potato trading.
The Dublin-listed group, which rebranded from Donegal Creameries in 2013, said revenues fell from €39,161 to €39,065 in the six months to the end of June.
Donegal Investment Group operates across agri-inputs, produce, property and other investments. It has operations in Ireland, the UK, Holland and Brazil.
The company announced a profit after tax before exceptional items of €2 million, an increase of €900,000 over the first half of 2014.
Operating profit rose by €300,000 to €700,000 due to growth in the speciality dairy division.
"The board is satisfied with the first half performance. The revenue of the group remained flat for the first six months of 2015 with operating profit increasing from €0.3 million to €0.7 million, reflecting in the main continued growth in our speciality dairy business. The board remains optimistic that our produce division should see continued recovery in bottom line performance and that our speciality dairy will, in the near term, continue to deliver double digit growth under its new Nomadic brand," said chairman Geoffrey Vance.
Revenues from the group’s produce division declined €1.2 million to €12.3 million with a segmental loss of €500,000 before the impact of foreign exchange gains. The group attributed the drop to a reduction in demand for certified seed potatoes. The group’s Donegal Potatoes subsidiary also ceased to trade ware potatoes during 2014 which resulted in a €900,000 reduction in comparative revenue year-on-year.
“The key determinant of performance in the second half, and for the year overall, will be the contribution from the produce division. The board is currently optimistic that the performance of the produce division will return to levels of profits more consistent with the business historically, as a result of expected improvements in market dynamics,” said Mr Vance.
The share of results from associates, which includes Monaghan Middlebrook Mushrooms, totalled €800,000, down €300,000 as against the same period a year earlier. The decline was largely attributed to a reduction in the level of EU funding received.
Group net debt decreased by €2.8 million to €16.7 million from December, partly due to proceeds received from the sale of accommodation.
Adjusted Earnings Per Share (EPS) increased 7.6 cents to 17.9 cents. An interim dividend of 7 cents per share is to be paid to shareholders in early December.
