Donegal Creameries today announced that turnover for the year ending December 31, 2000 rose to £99.2 million - an increase of 26% on turnover of £78.7 million in 1999. The company's operating profit increased to £2.6 million for 2000, up 16.9% on the 1999 figure of £2.2 million.
Basic earnings per share increased by 31.7% to 38.6 pence from 29.3 pence in 1999. A final dividend of 4.5 pence per share is being recommended.
In a statement, the company said its 2000 results were impacted by two significant non-recurring items. Last May, the company's animal feed production facility was extensively damaged by fire. Rather than rebuilding, Donegal purchased the assets and goodwill of Winston Patterson Ltd in Lifford and is in the process of upgrading the facility.
Significant production problems were encountered at one of Carbury Mushroom's UK sites during the second half of the year, leading to low yields. A decision was taken to close the site at a charge of £1.6 million.
In a statement today, Donegal Creameries said at this stage of the year, the outbreak of foot and mouth disease in the North is not expected to have a significant impact on the financial performance for 2001. It added that it had taken all possible measures to minimise the effects of the outbreak on the business.
