Morning business news - April 16Wednesday 16 April 2014 11.36
Results this morning from the Irish Dairy Board, it has reported a massive jump in profit before tax for last year, up 87% at €25.8 million. Turnover last year was 5% higher at €2 billion.
In a statement the board says 2013 was a dramatic year for dairy markets.
Drought in New Zealand and a prolonged winter in Europe led to a reduction in milk output levels in the first half of the year creating milk scarcity and high prices.
Looking ahead the IDB says it's well-positioned for expansion when milk quotas end next year.
It has also announced details of a new €30 million investment that will create 50 new jobs in Mitchelstown, Cork.
It’s a butter production and packing facility which will also be an innovation centre for Kerrygold.
“When you get an increase of that level (of profit) it comes from a number of areas”, said Kevin Lane, the chief executive of the Irish Dairy Board.
“We’ve been working on a business plan for the last number of years in preparation for the removal of quotas, 2013 saw very significant growth in our brands – in particular Kerrygold – we had a record year in Germany, new markets have contributed for the first time and we’ve also seen positivity from the cost control and lean manufacturing initiatives that we’ve implemented across all of our facilities.”
Mr Lane said they would like to think there wasn’t a market in the world where it could not get the Kerrygold brand onto shelves, and said the company’s international marketing team would be working to achieve that.
He said the new Cork facility would mirror one built in Dusseldorf, with its products being used to expand into new markets in Europe, Africa and Asia.
Full year results from retailer Tesco - these show profit after tax of £3 billion for last year, down 7.7%.
In Ireland, consumers remain under pressure, reflected in our weaker second-half sales growth.
Its statement Tesco says that, in Ireland, consumers remain under pressure, and that's reflected in its weaker second-half sales growth. And it mentions "intense vouchering activity" in the Irish market.
Shares in the struggling internet search giant Yahoo jumped 9% overnight despite a 20% drop in first quarter earnings. But the company's profits of $312m still beat expectations.
Yahoo also reported that it had 430 million monthly mobile users who accessed Yahoo products - that's now a crucial measure as the firm seeks to catch up with Facebook and Google to attract mobile advertising.
It also increased its total workforce by 8% to 12,400 global employees.
And MiFID, or the revised Markets in Financial Instruments Directive we heard about on this programme yesterday, was approved yesterday by the European Parliament
The new rules on the trading of financial instruments will help to curb speculative trading and offer more protection to investors and better regulate capital markets in the wake of the financial crisis.