Donegal Creameries profits rise 8% to €5.8m
Described as a solid set of results by analysts, the group’s profit before tax and exceptional items rose by 8% to €5.8 million. Operating profit increased by 17.1% to €5.1m. Turnover fell by 2.9% to €135.3m.
John Keon, managing director, said dairy division turnover of €43.6m was down 8.3%. Profitability in the liquid milk area was up, due mainly to increased margins and volumes, as the group continues to grow its business outside the northwest region.
Agri trading division turnover decreased by 0.2% to €91.7m. Turnover from 14 agri-retail stores was in line with last year. Profitability was up, mainly due to purchasing efficiencies.
Mr Keon said turnover in the group’s animal feed mill increased. However, the contribution to profitability fell as a result of higher commodity prices and short-term costs incurred due to delays in a capacity expansion project.
Mr Keon said profits from the group’s mushroom operations were down. Significant problems were encountered in yields from the group’s compost manufacturing operation and the multiples continued to apply pressure for price reductions. He said the group’s stevedoring operations in Derry had made a significant contribution to profitability.
Mr Keon said the directors believe the group’s performance for the current fiscal year will be satisfactory.
The group, which let its An Grianán site for satisfactory rentals, will continue to sell selected sites from the estate which will not impinge on the rentals achieved. It will continue to seek opportunities to develop the tourism potential of the estate, though initial submissions in this area to the relevant state agencies have not been successful.
Adjusted earnings per share (before exceptional items) increased by 8.8% to 47.2c. Basic earnings per share increased by 16.8% to 47.2c. Net asset value per share increased by 10.5% to €3.57 at the end of 2002.
