Donegal Creameries' revenues grow by 17% in 2012

Updated: Thursday, 11 Apr 2013 15:03

Donegal Creameries has reported a near 17% rise in revenues for the year to the end of December after a ''satisfactory'' performance in 2012.

This is the company's first full reporting year after the disposal of its liquid milk and agri-stores businesses.

It said the year was one of consolidation around a more focused and streamlined group with its seed potato business at the core.

Revenues rose by 16.9% to €80.5m from restated figures of €68.9m in 2011. Pre-tax profits for the year came in at €4.65m compared to losses of €2.79m in 2011.

The company said its board was recommending a final dividend of nine cent per share. This will bring the total dividend per share to 16 cent, the same level as 2011.

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Donegal said that its produce division was impacted significantly by the ''exceptionally'' poor weather conditions seen in 2012, which had a major impact on yields and which reduced the planned volume of product required to meet customers orders.

However, this was offset somewhat by a stronger performance in the company's animal feed business, which actually benefited from the bad weather.

The company said the two acquisitions it made in 2011 - the AJ Allan and Biogreen Dairy businesses - have been integrated and will play an important role in the growth of its businesses in the future.

Donegal Creameries said its balance sheet remains strong with an improvement in shareholders' funds of €6.5m to €59m.