Donegal Creameries has reported a 13.6% increase in revenues for the year to the end of December. Revenues for the year rose to €69.6m from €61.3m.
The company reported pre-tax losses - before exceptionals - of €3.2m compared to profits of €3.15m in 2010.
Last year it sold its liquid and trade milk and agri-sales businesses to Connacht Gold Co-Operative Society in what it called a transformational change for the group.
It said this disposal was balanced by two important acquisitions - London-based Biogreen and AJ Allan seed potato business, based in Scotland.
The company is recommending a final dividend of nine cent per share. This will bring the total dividend per share to 16 cent, unchanged from 2010.
Donegal Creameries said that turnover at its produce division grew by 21.9% to €32.3m with all key markets for its seed potato business performing well.
After the sale of its liquid and trade milk businesses, the group still has it value added diary business, which includes The Different Dairy Company in Killygordon, Co Donegal, and its two UK businesses, Chef in a Box and Biogreen. The division reported a loss of €1.4m for 2011 compared to a profit of €0.13m in 2010 due to the challenging consumer environment, especially in Ireland.
Turnover at its agri-inputs business rose by over 10% to €27.7m with profits up 23% to €1.2m. Donegal Creameries said the division is well positioned for future growth.
The company said it had returned the majority fo its development land to agricultural land valuations, which resulted in further downward revaluations of €6.7m in group property holdings. But it added that it does not expect any further significant reductions in valuations in the future.
The company's managing director Ian Ireland said that 2012 will be a year to consolidate the strategic changes made to the group during 2011.
''Our key objectives of the past number of years have not changed and following the disposals of our milk and agri-stores businesses we will be in a position to increasingly focus our financial and management resources on the strategic areas of seed potato, value added dairy and associate investments, so as to deliver shareholder value,'' he added.
