Donegal Creameries has reported a pre-tax loss and rising revenue for 2011. Last year the group sold its liquid and trade milk businesses and Agri-stores business to Connacht Gold Co-Operative Society Limited.
The group reported a pre-tax loss of €3.2million for last year which compared to profits of €3.15m in 2010.There was an operating profit of €3.6m last year, down from €4.0m in 2010, which was primarily due to losses in its value added dairy business. There was a 13.6 per cent increase in revenues for the year - from €61.3m to €69.6m
To balance the sale of the milk and stores business the company made two important acquisitions - a controlling interest in Biogreen Limited, a niche yogurt business based in London and 100% of the AJ Allan seed potato business.
The group, which employs 120 people in Donegal, sees 2012 as a year of consolidating the strategic changes made last year and does not expect any major acquisitions or disposals, Chairman Geoffrey Vance said.
The Group’s share of associate investment results, mainly in Monaghan Middlebrook Mushrooms, fell by €2.1m to €1.66m during the year.
The board said the group has returned the majority of its development land to agricultural land valuations resulting in further downward revaluations of €6.7m in Group, and €0.9m in associate, property holdings. “Shareholders will be very aware of the current state of the Irish property market and also our requirement to have all investment properties independently valued bi-annually,” Mr. Vance said.
“Our key strategic 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,” Managing Director Ian Ireland said.