Donegal Creameries has reported a sharp fall in profits for last year, hit by a decline in world dairy markets and a big loss from a revaluation development land at one of its subsidiaries.
Turnover rose by 3.4% to just under €130m, but pre-tax profits slumped from €15m in 2007 to €740,000.
Its underlying profits fell from €6.1m to €4.7m, due to lower dairy commodity prices and less activity in the property market. But the revaluation of development land in North Western Livestock Holdings led to a loss of €4.7m, though the company pointed out that the previous year's revaluation had added to profits.
Turnover in the dairy division fell 5% to €56.3m, but the company said its liquid milk business had a 'solid' performance. Turnover in the agri-business division rose 11% to €73.6m, helped by good growth in its seed potato division.
A final dividend of nine cent will be paid, giving a 3% higher total of 16 cent for the year.
