Donegal Creameries lifts half-year profits to €3m

PROFITS before tax of €3 million for the half year to June show a huge change in the fortunes of Donegal Creameries over the six months under review.

An increase in operating profit from €0.55m to €1.14m and a better return from the group’s property business, which saw profits rise from €0.6m to €1.9m, account for the better figures, the company said.

Donegal’s turnover rose 5% to €57.4m during the period, while earnings per share rose by 14.4 cent to 23.3c, an increase of 162%.

The group has declared an interim dividend of 6c, an increase of 9% over the 2005 interim dividend. Donegal Creameries chairman Geoffrey Vance said that the group remains committed to its dairy and agribusiness heritage and is confident of developing its model further to position it for the changes ahead.

Turnover in the dairy business was in line with the previous year, reflecting sales growth in value- added dairy products, offset by a reduction in milk trading due to a general decline in commodity dairy prices.

Turnover at the company’s agribusiness division was up by 8% year on year, with good performances recorded in seed potato, potato trading and animal feed.

No major gains are forecast for the group’s extensive property portfolio in the second half of the year.

Shares in the company were up 10c to €4.40 in Dublin.