Donegal Creameries has reported a 51 per cent jump in net profits to €2.8 million in 2006, driven by strong performances across all business units.

Turnover grew by 6.2 per cent to €118.6 million last year, while operating profit rose from €120,000 to €2.6 million.

Within its land and property development business the group netted more than €2 million from a major property sale last year, while €4.9 million was spent building up its already significant land bank.

"Opportunities to invest in land and property are continually being evaluated and we remain confident that our growing property assets will provide long-term value for shareholders," said managing director Ian Ireland.

Meanwhile, the group's agribusiness division saw sales increase by 11 per cent to €64 million.

This was boosted by a very strong performance by its potato business.

Turnover in the dairy division remained broadly in line with 2005 levels.

However, the group's shareholding in Monaghan Middlebrook Mushrooms struggled in the second half of the year due to an oversupply of mushrooms in Europe.

Mr Ireland said that the group had had a "satisfactory start" so far this year and that the trading outlook for 2007 was good.

He added that the group's dairy and agribusiness would continue to provide cash for "expansion in selective operational growth areas or further development in our property assets".