Donegal Investment Group, formerly Donegal Creameries has reported a decrease in operating profits in its half yearly report due mainly to weak markets for surplus seed potatoes.
Operating profits fell by 59% to €347,000 for the first six months of the year at the Donegal Investment Group.
The company said it is pleased overall with the segmental performance across its businesses. It blamed the poorer performance on a surplus seed potato stock from the 2013/2014 growing season that had to be sold into a very weak commodity table potato market. Financing expenses fell by €914,000 year-on-year due to positive exchange rate movements and reduction in interest payments. When this is taken into account, the profit after tax increased 16% to €1.075m compared to the same period last year.
Group turnover decreased 13% to €39.2m due to a reduction in animal feed prices combined with a return to more normal animal feed volumes. The company said the speciality dairy business was performing well and is to be re-branded Nomadic. Net debt at 30 June fell €5.3m to stand at €12.98m, partially due to the sale of 245 acres in the Grianan Estate.
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Adjusted EPS increased by 23% to 10.3c, and an interim dividend of 7c is being maintained. With most of the margin in the produce division made in the last quarter each year, the company is guiding full year EPS at 53c.
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Operating profits fell by 59% to €347,000 for the first six months of the year at the Donegal Investment Group.
The company said it is pleased overall with the segmental performance across its businesses. It blamed the poorer performance on a surplus seed potato stock from the 2013/2014 growing season that had to be sold into a very weak commodity table potato market. Financing expenses fell by €914,000 year-on-year due to positive exchange rate movements and reduction in interest payments. When this is taken into account, the profit after tax increased 16% to €1.075m compared to the same period last year.
Group turnover decreased 13% to €39.2m due to a reduction in animal feed prices combined with a return to more normal animal feed volumes. The company said the speciality dairy business was performing well and is to be re-branded Nomadic. Net debt at 30 June fell €5.3m to stand at €12.98m, partially due to the sale of 245 acres in the Grianan Estate.
Adjusted EPS increased by 23% to 10.3c, and an interim dividend of 7c is being maintained. With most of the margin in the produce division made in the last quarter each year, the company is guiding full year EPS at 53c.
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