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DIG shares climb 4pc on interim results

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REUTERS

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SHARES in Donegal Investment Group (DIG) climbed 4pc yesterday after its interim turnover jumped.

Revenue at the company, which has operations across Ireland, the UK, Holland, France and Brazil, increased by almost 10pc to €29.6m in the six months to February 29.

The performance was driven by continued double-digit volume and revenue growth in its speciality dairy business, as well as increased sales volumes in its seed potato business.

Nonetheless, DIG saw its profit after tax fall to €1.4m from €2.5m the prior year.

In the first half of its financial year, DIG's seed potato business experienced good volume growth, but margins reduced as a result of an increase in the level of supply following better harvesting conditions.

This, the company said, was the key reason for the reduction of €500,000 in segmental trading profit, offsetting the growth in speciality dairy.

Meanwhile, the company expects its performance in the second half of the year, primarily in its speciality dairy business Nomadic, to be "materially impacted" by falling sales from the impact of Covid-19 restrictions on the food-to-go category.

Irish Independent