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Revenue increases at Donegal Investment Group, company expects 'material' impact from Covid-19

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The seed potato division experienced volume growth

The seed potato division experienced volume growth

The seed potato division experienced volume growth

Donegal Investment Group (DIG) saw its revenue increase by almost 10pc to €29.6m in the six months to 29 February, but it expects to be “materially impacted” from Covid-19.

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 businesses.

However, profit after tax from continuing operations was €1.4m, a fall of €1.2m on 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 into the wider market 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.

Online Editors