Donegal Investment Group plc (DIG), formally Donegal Creameries, has reported sales of €86.8m for 2013, an increase of 8.1% from the previous year. Adjusted operating profit increased by 59.2% from €1.8m to €2.9m.

Donegal, who sold their liquid milk business to Aurivo in 2011, said the results reflected the company’s new strategy with the group now focused on seed potatoes at its core.

The company’s produce division, which comprises the seed potato business Irish Potato Marketing (IPM), accounted for 39% of group revenue with sales of €33.9m in 2013. Operating profit for this division increased 91.7% to €1.8m.

Speaking to the Farmers Journal, Ian Ireland, managing director for DIG, said the seed potato business benefitted from an excellent harvest in 2013, which offset the negative impact of a poor harvest in 2012 due to poor weather.

“This excellent and early harvest resulted in strong yields being achieved with margins achieved in line with expectations. This in turn allowed for deliveries to customers in North Africa and the Mediterranean areas to be made ahead of schedule which positively impacted on working capital.”

Revenues in the groups food-agri division, which encompasses the groups speciality dairy business, grew 14.2% to €52.9m in 2013.

Donegal’s associate investments division recorded an operating profit of €2.7m, down from the €4.3m reported the previous year. The group’s main associate investment is Monaghan Middlebrook Mushrooms.