Donegal Creameries, the smallest food firm listed on the Irish market, has reported strong results for the half-year to the end of June. Pre-tax profits rose 12.6 per cent to €3.2 million (£2.5 million) while turnover in the period was up almost 9 per cent to €70.7 million.

A most impressive feature of the results was the big jump in operating profits from €2 million to €2.8 million with a resulting increase in operating margins from 3.1 per cent to more than 4 per cent. Sales in Donegal's dairy increased to €24.4 million business from €20.2 million while in the agri-trading business growth was more modest with turnover up from €44.7 million to €46.3 million.

Donegal has a 40 per cent stake in Carbury Mushrooms, which had a mixed year with a strong performance in Ireland but lower profits and lower yields from UK operations.