Upturn at dairy company
Wednesday 30 August 1995
The upturn in fortune follows a setback last year which saw full-year profits fall by over a third to Irpounds 12.7m, which was well below original expectations
But Golden Vale's chairman, Dennis Wallis, said that he expected the Irpounds 1.5m restructuring programme which was undertaken last year to continue reaping dividends to the year- end.
The recovery has been helped by several factors. Some senior managers have bought back shares and there has been the launch of a new new-low fat spread, though a collaboration with rival dairy distributor Irish Pride, which is intended to capitalise on healthier eating habits.
The product was the first of of a new generation of "functional foods" containing products which are intended to improve health or prevent disease.
The launch, which was the first of its kind in Ireland, was claimed by Golden Vale to be a technological break-through.
Golden Vale profits have been hit hard by external factors such as the new milk marketing regime implemented in the UK in 1994 which analysts estimated added a total of pounds 14m to its milk-buying costs. The seriously weakened market for Irish dairy products, poor demand, rising stock levels and a strong Irish pound against a weak US dollar took their toll.
Internal problems included extra costs from the group's purchase of Netherlands cheese maker, Vonk, for Irpounds 33m. The deal proved expensive after the company discovered its new acquisition required severe pruning.
Despite the continuing squeeze in market conditions Mr Wallis remains confident that the restructuring is sufficient to rebuild the company's fortunes.
"Golden Vale continues to operate in highly competitive dairy markets," he said. "Its strategic focus as a low cost operator in its key product areas remains unchanged."
The turn-around produced a rise in earnings per share Ir4.3p compared with Ir2.3p for the comparative period and an interim dividend per share of Ir0.66p versus Ir0.6p.
International Women's Day 2014: The shocking statistics that show why it is still so important
Feminist quotes to inspire you on the International Women's Day
Oscar Pistorius trial: Never mind a media scrum – murder case becomes bizarre safari following the tracks of a wounded lion
Belle Knox: How the porn star student from Duke University became bigger than Justin Bieber
International Women's Day 2014: Mothers and daughters describe their hopes and dreams in touching photographs
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 International Women's Day 2014: The shocking statistics that show why it is still so important
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Orgasm machine to deliver climax at the push of a button
- 4 Too upsetting? Academy members voted for Oscar-winning 12 Years A Slave 'without watching it'
- 5 Liam Neeson turned down James Bond role because Natasha Richardson said she wouldn't marry him if he took it
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...