Donegal Investment Group plc, which includes Donegal Creameries, has reported an increase in profits for the first eight months of the year.
In a preliminary announcement of results, the group said first eight months in 2016 saw a significant improvement in the performance of its seed potato business as well as continuing progress with the speciality dairy business.
The Group has changed its year end from 31 December to 31 August and says this will allow it to have greater visibility on the seasonal performance of its produce and animal feeds business in advance of each new year ending in August.
Group revenue increased by 3.3% to €47.5m, driven mainly by growth in the produce division.
Adjusted operating profits increased by €1.3m for the period to €1.3m as a result of improved performance in all businesses
Speciality dairy, which trades under the NOMADIC brand, continued to grow to plan in both UK and Irish markets
Smyths, the animal feeds business, again had a satisfactory 2016 with a small reduction in volumes sold being offset by operational efficiencies
The Food-Agri and Property division delivered a segmental result of €2.0m, which is €0.7m ahead of like for like performance in 2015 before exceptional costs and property devaluations.
Chairman Geoffrey Vance said:
“The continued development and scaling of our speciality dairy business based in Killygordon, Co. Donegal has contributed to a significant improvement in performance,” he said.
“Following on from the appointment of an international real estate firm to consider the future ownership of the Grianan Estate farm, the Board has marketed the Grianan Estate farm, with the process ongoing.
“The group has and will continue to focus on its key strategic assets of produce seed potato and speciality dairy and its interest in Monaghan Middlebrook Mushrooms.”