Revenues drop to €81m at Donegal Investment Group
Donegal Investment Group, formerly Donegal Creameries, has announced a near 7pc drop in revenue to just under €81m in 2014.
This compared to turnover of €86.7m in 2013 that contributed to a fall in operating profit from €2.9m in 2013 to €900,000 last year.
Shares were down by over 15pc at one point yesterday on the back of the results, although they have since rebounded to near their initial value of €5.65.
The company said that the decline was attributable "to the performance of our animal feeds business, Smyths, and our produce seed potato business."
Both price and volume in the animal feeds division declined due to a slowdown in demand, which was exceptionally strong in the first half of 2013 due to "exceptional adverse weather conditions", Donegal Investment said.
The firm added that its seed potato business was hit by several factors "which has resulted in a segmental loss of €0.8m in comparison with a segmental profit of €1.8m in 2013".
Chairman Geoffrey Vance said the company "has and will continue to focus on its three key strategic areas of produce seed potato, speciality dairy and key associate investments".