Revenue rose by 11.4% to €45.2m last year at Donegal Investment Group, formerly Donegal Creameries.
The group enjoyed soaring segmental profit, with a 47% increase to €4m in the year ending 31 August 2019.
The strong performance has been put down to continued double-digit growth in the speciality dairy business Nomadic, as well as strong demand for their produce businesses’ seed potato varieties.
Group profit from operating activities (before exceptionals) increased by 61.6% (€1.3m) for the year to €3.4m.
The latest financial results report from Donegal Investment Group, published today, says the sale of its animal feeds business Robert Smyths and Sons was a success.
DIG Chairman Geoffrey Vance commented: “The Board is very pleased by the performance of the Group’s trading businesses over the course of the year as well as the successful completion of the sale of our animal feeds business Smyths.
“Adverse weather conditions in European growing areas impacted the 2018/2019 potato crops which led to poor availability of seed in the wider market. Our seed potato business experienced growing demand for its proprietary varieties which combined with strong trading margins delivered an excellent performance for the year. We continue to invest in the development of innovative seed potato with six new varieties commencing commercialisation in the coming year.
“Speciality dairy continued to experience double digit (volume and sales) growth in both the UK and Ireland in 2019 with a significant capital project currently underway which will double capacity in our Killygordon based business.
“Overall, Group revenue was €45.2m for the year with operating profit of €3.4m. This resulted in adjusted earnings per share of 89.3c, an increase of 61.9c on the 12 months to 31 August 2018.
“Following the completion of the sale of Smyths and the underlying performance of our trading businesses the Group had a cash position, net of debt, of €21.3m at year-end with a net asset value per share of €8.03, an increase of €1.19 per share on the prior year.
“The Group will continue its strategic review to assess all options available to the Group to maximise shareholder value, and shareholders will be updated at the appropriate time.”
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