Donegal Investment Group has reported after tax profits of €1.998m for the six months to the end of June, up from €1.075m the same time last year.

The company said that operating profits increased across all its business segments, while it was also boosted by positive foreign exchange movements. 

Revenues for the six months decreased by €0.1m to €39.065m with an increase in revenue from its speciality dairy being offset by the ending of ware potato trading in its Donegal Potatoes business last year.

The company said it was maintaining its interim dividend of seven cent.

Donegal Investment Group said that revenue in its produce division fell  by 1.2% to €12.3m with the first six months of the year marked by a reduction in demand for certified seed potatoes across Europe. 

Revenue from its food-agri and property division increased by €1.1m to €26.8m. The animal feeds business saw a "satisfactory" first six months with both tonnage and margins in line with the same time last year.

Its speciality dairy business continued to perform to plan with the Nomadic brand well received by both trade and consumers. Most of the Nomadic products are sold into the UK market, with the current euro-sterling rates positively impacting results.

In today's results statements, Donegal Investment Group said that the key determinant of performance in the second half of the year - and for the year overall - will be the contribution from the produce division. 

"The board is currently optimistic that the performance of the produce division will return to levels of profits more consistent with the business historically, as a result of expected improvements in market dynamics," the company added.