Pre-tax profits at Donegal Creameries have fallen by more than 10 per cent due to difficult trading conditions, writes Emmet Oliver.
Pre-tax profits for the six months to June 30th fell from €4 million to €3.6 million. Turnover dropped to €65 million from €68.7 million, a fall of 5.2 per cent.
The company said the main reason for this was lower sales in the agricultural sector and other trading sectors. Operating profit fell by 32 per cent from €2.8 million to €1.9 million.
An interim dividend of 5.5 cents is to be paid, an increase of 4.8 per cent on last year, reflecting the board's "continuing confidence in the company", said a statement.
In the dairy sector, profitability was down due to difficult trading conditions, principally the cost of sourcing milk in Northern Ireland.
Company chairman Mr Lexie Tinney said that, while trading conditions in some areas remained difficult, the directors were confident of a positive outcome for the second half of the year.
"The group continues to seek development opportunities both in its existing businesses and through acquisition and to keep a tight control of all costs."
He said the group's Section 50 student accommodation project was now complete and would be rented out. "The group continues to pursue development opportunities on the rest of its Letterkenny land bank," he said.
