Creamery hit with 11% fall in profits

FIRST-half pre-tax profits at Donegal Creameries fell by nearly 11% to €3.6 million compared with the same period last year, the company reported yesterday.

Operating profits plunged by 32% to €1.9m, with the company blaming difficult trading conditions in the dairy sector.

Turnover decreased by 5.2% to €65.2m in the six month period ended June 30, 2004 when compared to the same period last year, primarily due to lower sales in the agricultural and other trading sectors.

Earnings per share decreased by 13.3% from €33.1 cents in the six months ended June 30, 2003 to €28.7 cents in the six months ended June 30, 2004.

An interim dividend of €5.5 cents is to be paid, an increase of 4.8% on last year’s interim dividend of €5.25 cents, reflecting the board’s continuing confidence in the company.

The interim dividend will be paid on 6 December 2004 to shareholders on the register on November 5, 2004.