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.
- 1 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 Eddie Redmayne in The Danish Girl: First look at Oscar winner as transgender artist
- 4 PornHub turns masturbation into energy in bid to save the planet
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
Leonard Nimoy dead: Star Trek Spock actor dies after suffering lung disease
PornHub turns masturbation into energy in bid to save the planet
Ukraine crisis: Top Chinese diplomat backs Putin, says West should 'abandon zero-sum mentality'
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
This is what it's like to be dead, according to a guy who died for a bit
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...