Donegal Creameries report rising turnover and falling profit in first six months

Donegal Creameries has reported a 12.5% rise in turnover for the first six months of the year, increasing by €4m to over €35.1. The company's interim financial report says revenues are increasing across all sections of the business.

After tax profits are down from 1.1 million euro last year to 250,000 between January and June, but a better performance is being forecast for the second half of the year.

Following the sale of the company's dairy business to Connaught Gold, the company says it is concentrating on areas such as seed potato produce and speciality dairy.

In its accounts summary the company says the drop in profits is largely due to a difficult European and South American season for seed potatoes due to the temporary market oversupply. There has also been continued investment in the speciality dairy business.

The financial statement ends currently on a piositive note, predicting full year adjusted earnings to be in the order of 51 cent per share, an increase of 5% on last year. It says around 75% of profits are typically earned in the final quarter, and predicts a continuation of the solid first half performance.