Acquisition costs eat into Valeo Foods profits

Acquisition costs eat into Valeo Foods profits

Exceptional costs of €12.24m ate into profits at consumer foods group Valeo Foods last year.

Newly-filed accounts for the group - which owns popular brands such as Odlums, Batchelors, Jacob's, Kelkin and Erin - show pre-tax profits fell 16% to €24.2m in the 12 months to the end of last March.

Revenue rose by 8% to €634.4m.

The exceptional costs included €4.49m in severance costs; business acquisition costs of €2.1m; other special consulting costs of €2.1m and other restructuring-related costs of €3.7m.

During the period, Valeo purchased the confectionary division of Finnish business Raisio for €96.2m and Italian biscuit and cake maker, Dolciaria Val d’Enza for €16m and also acquired other confectionary businesses in the UK and the Czech Republic.

The exceptional operating expenses were off-set by the group recording a €15m gain on the sale of property, plant and equipment.

Since Valeo was established in 2010 - through the merger of Batchelors and the consumer foods arm of agribusiness Origin Enterprises - it has acquired 12 businesses and it continued on its acquisition spree last August with the purchase of UK confectioner, Tangerine.

Last year's purchases boosted Valeo's employee numbers to 1,321 and increased staff costs by over €6m to €66.4m. Directors’ pay dipped marginally to €1.37m.

Valeo's pre-tax profits, before exceptional costs, rose from €31.5m to €36.5m.

Ireland accounted for 45% of its revenues, with the UK accounting for 30% of sales.

Operating profits, last year, rose by 9% to €63.69m

More on this topic

Michael Loftus takes on a new role in CIT executiveMichael Loftus takes on a new role in CIT executive

GRAPEVINE: NRF urges dithering employers not to miss out on top talent; plus other business newsGRAPEVINE: NRF urges dithering employers not to miss out on top talent; plus other business news

Business MoversBusiness Movers

Shares in Irish agri firm Origin fall 8% on profit warningShares in Irish agri firm Origin fall 8% on profit warning

More in this Section

Aer Lingus sees drop in business travel over coronavirusAer Lingus sees drop in business travel over coronavirus

Irish staff seek legal advice on coronavirusIrish staff seek legal advice on coronavirus

Irish tourist chiefs on high alert as European events cancelledIrish tourist chiefs on high alert as European events cancelled

DHL scraps Ford electric delivery vanDHL scraps Ford electric delivery van


Lifestyle

Spring has sprung and a new Munster festival promises to celebrate its arrival with gusto, says Eve Kelliher.Spring has sprung: Munster festival promises to celebrate with gusto

The spotlight will fall on two Munster architects in a new showcase this year.Munster architects poised to build on their strengths

Prepare to fall for leather, whatever the weather, says Annmarie O'Connor.Trend of the week: It's always leather weather

The starting point for Michael West’s new play, in this joint production by Corn Exchange and the Abbey, is an alternative, though highly familiar, 1970s Ireland. You know, elections every few weeks, bad suits, wide ties, and a seedy nexus of politics and property development.Theatre Review: The Fall of the Second Republic at Abbey Theatre, Dublin

More From The Irish Examiner