Donegal group’s revenues hit €87m

Donegal Investment Group has reported a 57% rise in operating profit for 2013 to €2.6m, with revenues up 8.1% to €86.8m.

The company’s adjusted operating profit came in at €2.9m for the financial year versus €1.8m for the same period in 2012. The group’s share stayed at a fairly constant €6.80 on yesterday’s Irish Stock Exchange.

“We were particularly pleased to see our earnings per share rise 13.5% to 50.4c,” said managing director Ian Ireland.

“We are delighted with how we have repositioned the business in the last two years.”

Since exiting the creamery business in 2011, the group has focused on seed potato, speciality dairy, and associated investments. It became Donegal Investment Group in 2013.

The strong profits were driven by the group’s core portfolio of up to 40 seed potato varieties, including the rooster, named by Bord Bia as the number one potato choice of Irish consumers.

Financial services firm Investec called the results solid and in line with expectations. “The company’s earnings per share was ahead of [2012] and the dividend was retained at 16c per share. On a divisional basis, within the produce division the seed potato business experienced an early and excellent harvest in 2013 with strong yields.”

Divisional revenue of €33.9m was in line with 2012, but operating profit of €1.8m was double that of the previous year.

The agri-food division, comprising speciality dairy and animal feed operations, grew revenue by 10.8% to €53.3m, with operating profits up 9.4% to €1.1m.

The contribution for the year from its associates slipped to €2.6m in 2013 from €4.5m in 2012.

The company plans to continue with the disposal of non-core assets, with a number of property holdings sold during the year. It still holds around €20m in properties, including a 2,000-acre farm producing organic potatoes, oats, and a small dairy herd.