Donegal reports 16% increase in pre-tax profit

Donegal Creameries has reported pre-tax profits of €4.05m for the six months to June 2003 in its interim results published today.

This represents a 16.6% increase on the 2002 figure.

Turnover increased by 1.8% in the period primarily due to increased prices received from the group’s sale of manufacturing milk reflecting higher commodity dairy prices.

Operating profits rose 4.8% from €2.67m to €2.80m powered by an increased contribution to profitability from animal feeds.

Earnings per share were up by 17.4% from €0.28 to €0.33 cents.

An interim dividend of €5.25 cents is to be paid on December 5 to shareholders contained on the register by November 7 this year.

Looking ahead, Chairman Lexie Tinney said : “We are confident of a positive out turn for the second half of the year.

“The group continues to seek development opportunities, both in its existing businesses and through acquisition and sector consolidation, and to keep a tight control on all costs,” he said.

Tinney also said that Donegal Creameries has begun construction on its Section 50 student accommodation project. It has also submitted a planning application for a retail and office development on another part of its Letterkenny landbank.