Donegal Investment Group, formerly Donegal Creameries, has reported lower revenues and profits for last year on the back of significant challenges for its produce seed potato business.
The company said its profit after tax from continuing operations fell by €2.1m to €2.7m from €4.8m, while revenues for the year decreased by 6.9% to €80.8m from €86.7m.
Donegal Investment Group has recommended a final dividend of nine cent per share. This will bring the total dividend per share to 16 cent, the same level as the previous year.
It said the fall in revenue and profits were due to the performance of its animal feeds business - Smyths - and its produce seed potato business.
The animal feeds business saw a fall in both price and volume during the year due to the exceptional adverse weather conditions in the first half of 2013 which drove demand for its animal feed produce.
The produce seed potato business was hit by a number of factors, including a significant surplus of seed due to strong European harvest yields and a weak ware potato market.
However, the company reported "exceptional" progress in the development and scaling of its speciality dairy business with increased listings in the UK market and further product development.
While the performance of its key associate Monaghan Middlebrook Mushrooms in Ireland and the UK remained strong, Donegal said that conditions in a number of its other markets were challenging.
"The group has and will continue to focus on its three key strategic areas of produce seed potato, speciality dairy and key associate investments," its chairman Geoffrey Vance said.
