Adverse weather impact results at Donegal Investment Group
Dublin-listed Donegal Investment Group has reported revenue of €76.2m for the 12 months to the 31 August 2018, a decrease of €200,000 on the same period last year.
The performance was impacted by adverse weather across Europe, which resulted in the group’s produce division reporting a decrease of €700,000 in profit to €1.6m.
"Seed Potato, our key business within our produce division, performed well in key markets but was impacted by a reduction in the availability of seed following lower than expected yields across Europe during the 2017 seed crop harvest," the group said.
The group’s overall profits were marginally ahead of the prior year at €4.7m, with adjusted operating profit decreasing by €700,000 for the year to €4m.
Donegal’s food-agri and property division delivered a segmental result of €3.1m, an increase of €900,000 on the prior year's trading performance, while its speciality dairy segment, which trades under the Nomadic brand, continued to achieve "significant volume and sales growth" in its UK and Irish markets.
The group had a cash position of €100,000 at year end, having returned €51m to shareholders during the year through its €45m return of capital in May and ongoing share purchases.
Following on from the sale of its shareholding in Monaghan Middlebrook Mushroom, Donegal said it is due to receive an additional €4m in deferred consideration, with €2m receivable on or before 15 February next year, and a further €2m receivable on or before 15 February 2020.
Commenting on the results, chairman Geoffrey Vance said that the board was "satisfied" with the performance.