Donegal Creameries said its profits before tax and exceptional items for the year ending December 2002 rose by 8% to €5.8m from €5.4m the previous year. But its revenues fell by 2.9% to €135.3m due to lower commodity prices in the dairy division.
The group's operating profit increased by 17% to €5.1m, while its adjusted earnings per share increased by 8.8% to 47.2 cent. Basic earnings per share increased by 16.8% to 47.2 cent.
Donegal said that turnover in the dairy division for 2002 was down 8.3% to €43.6m, mainly due to lower commodity dairy prices. Profitability in the liquid milk area was up on 2001 mainly due to increased margins achieved and increased volumes as the group continues to grow its business outside the northwest region. Sales volumes of the group's UHT and extended shelf life products also increased.
Turnover in the group's agri trading division decreased 0.2% to €91.7m, while turnover from the its 14 agri retail stores was in line with last year. Turnover and profitability at its potato operations at Irish Potato Marketing and Donegal Potatoes was also in line with last year.
Donegal said that income from rental of its land and facilites at An Grianan was up on last year, however profits at its Oatfield operations were down due to increased competitive pressures in export markets due to the stronger euro.
Profits from the group's mushroom operations were also down on 2001. Donegal said that major problems were encountered in yields from its compost manufacturing operation as price reduction pressures continued.
Donegal said its stevedoring operations in Donegal contributed to profitability for the first time due to significant increases in tonnage handled during the year.
In its results statement, Donegal Creameries said that based on information available to the directors, the group's performance for the current fiscal year will be 'satisfactory'.
Shares in Donegal Creameries slipped by three cent in Dublin before recovering to end unchanged at €2.25.
