First-half pre-tax profits at food group Donegal Creameries have fallen by nearly 11% compared with the same period last year to €3.6m.
Operating profits plunged by 32% to €1.9m, with the company blaming difficult trading conditions in the dairy sector.
Turnover fell 5% to €65.2m, mainly because of lower sales in the agricultural and other trading divisions, which includes its mushroom operations. Earnings per share were 13% lower at 33.1 cent, while a 5% higher interim dividend of 5.5 cent is to be paid.
In the dairy division, sales were only marginally lower, but the cot of sourcing milk in Northern Ireland affected profitability.
Despite the drop in sales in the mushroom business, profits rose due to reduced costs following its merger with Monaghan Mushrooms.
Donegal said its board was confident of a positive outcome for the second half of the year despite difficult trading conditions in many of its businesses.
