Golden Vale reports 62% surge
GOLDEN VALE, the Irish foods group, reported a healthy interim pre-tax profit yesterday, but warned the second half of trading would be tougher because of poor summer weather and uncertainties in the commodity markets.
Golden Vales interim pre-tax profits increased 62% to I£10.5 million (£9.5m). Turnover rose 6% to I£295m, from I£278m last time.
Underlying profits rose 29% to I£10.7m, excluding the sale of its stake in a Donegal creamery.
The group cut its net borrowings with the intention of placing itself in a better position to expand into processed foods.
Volumes increased in the higher value cheese and spreads division, which account for half of turnover. The agri-trading operation saw a 4% fall in sales.
Golden Vale expects a larger contribution from its consumer foods division following the integration of Rye Valley Foods, the County Monaghan-based prepared foods company acquired in July.
- Financial Times 07/08/98 page 21