Donegal Creameries has reported pre-tax profits of €3m for the six months ending June 2006, an increase of €1.9m - or 164% - over the same time last year.
The company says this was due to an improvement in operating profit from €0.55m to €1.14m and an improved return in the property development business from €0.6m to €1.9m.
Donegal's turnover increased by 5% to €57.4m, mainly on the back of improved sales of agribusiness and added value dairy products.
Earnings per share rose by 14.4 cent to 23.3 cent, an increase of 162%. An interim dividend of 6 cent is to be paid, up 9% over 2005's interim dividend.
Donegal said that turnover in the dairy business was in line with the previous year. It said this reflected sales growth in value added dairy products offset by a reduction in milk trading as a result of the general decline in commodity dairy prices.
Turnover at the company's agribusiness division was up by 8% year on year with good performances recorded in the seed potato, potato trading and animal feed businesses.
Donegal said that while farming in Ireland is seeing major changes, it will continue 'to stay relevant to its customers' and will allocate resources to develop niche areas including seed potatoes and animal feed.
While no major gains are forecast for the group's extensive property portfolio in the second half of the year, there are several projects planned for the future.
Chairman Geoffrey Vance said that the group remains committed to its dairy and agribusiness heritage and is confident of developing its model further to position it for the changes ahead.
Shares in the company closed up 15 cent to €4.45 in Dublin.
