Profits slump at dairy co-op
The company — rebranded in 2013 as Donegal Investment Group — blamed the disappointing performance on challenges in its seed potato and animal feed businesses. Group revenue declined by almost 7% to €80.7m from €86.7m in 2013, which in turn contributed to a reduction in adjusted operating profit of €2m.
The rapidly dwindling profits saw almost 70% wiped off 2013 levels with operating profits of €0.9m.
“The significant surplus of seed as a result of strong European harvest yields and a weak ware potato market resulted in downward pressure on tonnage prices in the last quarter of 2014,” chairman Geoffrey Vance said.
The animal feeds business experienced a reduction in both price and volume in comparison with 2013 due to the exceptional adverse weather conditions experienced in the first half of 2013 which drove demand for our animal feeds products, the company added.
There was better news on another front, however, as its specialty dairy business — now trading under the NOMADIC brand — continued to make progress throughout the year, helping its broader agri and property division to profits of €2m. That 74% profit increase was achieved despite revenues falling by 10.8% to €47m.
Overall profit growth was also hampered by exceptional costs arising from a restructuring of its dairy business and those tied into the group’s shareholder oppression claim in relation to its holding in Elst.
