Donegal Investment Group's 2013 profits and revenues grow

Thursday 10 April 2014 17.56
Donegal Investment Group's revenues for last year grow by 8%
Donegal Investment Group's revenues for last year grow by 8%

Donegal Investment Group, formerly Donegal Creameries, has reported increased revenues and after tax profits for last year.

Revenues for the year to the end of December rose by 8.1% to €86.7m, while profit after tax from continuing operations grew by over 10% to €4.85m.

Donegal said the results reflected further progress on its new strategy when it decided to reposition itself around a more focused and streamlined group of businesses with seed potatoes at its core. Its other businesses include speciality dairy and associate investments.

The company said it was maintaining its dividend per share for the year at 16 cent,  while it managed to reduce its net debt from €21.7m to €15.7m during the year.

The company said the carryover of the poor 2012 harvest in the first half of 2013 was offset by the good  growing and harvesting conditions which were experienced in the second half of the year.

Its produce division reported a turnover of €33.9m last year, which resulted in a segmental result of €1.8m. The business comprises the seed potato business Irish Potato Marketing, AJ Allan in Scotland, Donegal Potatoes and an Grianan Grain, in Ireland. 

Overall revenues in Donegal Investment Group's food agri-division group grew by 10.8% to €53.3m, which delivered a segmental profit of €1.1m. Its speciality dairy business is and will continue to be mainly focused in the UK, the company stated.

The company's main associate investment is Monaghan Middlebrook Mushrooms and its performance last year was hit by the prolonged hot weather during the summer which resulted in reduced sales volumes. 

Looking ahead, the company said that the seed potato business is expected to be challenging for the first half of the year due to weak commodity markets caused by oversupply in Europe. 

The company's managing director Ian Ireland said it will continue to review options to release capital from its non-strategic businesses and assets this year so as to "further focus financial and management resources on the strategic areas of seed potato, speciality dairy and associate investments and to deliver value for our shareholders".