Revenue at the Dublin-headquartered consumer food producer Valeo, owner of such well-known brands as Jacob’s, Batchelors, Kelkin and Odlums, increased by €142.6 million or 11 per cent to €1.39 billion in 2023.
However, accounts for Valeo Foods UC show that higher costs along with an exceptional cost of €21.86 million resulted in operating profit reducing by 57 per cent to €31.13 million in the 12 months to the end of March this year.
Net finance expenses of €72.4 million resulted in a pretax loss of €41.28 million, which followed a pretax loss of €2.07 million in the prior year.
Valeo Foods operates 85 consumer food brands and is market leaders in 13 categories including snacking and sweet treats, health and wellness, baking and meal ingredients, beverages and food service.
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The group’s Ireland revenue increased by 4 per cent to €321.4 million, while the UK remained the group’s largest market despite revenue declining marginally to €578.6 million.
The year under review was a breakthrough year for the group’s North America expansion plans where revenues increased from zero to €102.5 million, while Europe revenue rose from €315.05 million to €356.6 million.
Numbers employed at the expanding Valeo Foods this year reduced from 4,489 to 4,253 and staff costs declined by €14.7 million to €178.02 million. Directors’ pay reduced sharply from €4.05 million to €1.37 million.
The accounts disclose that Valeo paid out €62.06 million in cash – net of cash acquired – for maple syrup producer Les Industries Bernard et Fils Ltée and a subsidiary in May 2022.
The new business contributed €95.2 million in revenue and a post-tax loss of €7.3 million to the group’s results during the year.
In their report, the directors state that “excluding acquisitions and on a constant currency basis, revenue increased by 3 per cent and operating profit before exceptional items decreased by 41 per cent year on year”.
They state that ongoing challenges in the retail sector and the broader economic environment including the economic impact of the Russian/Ukrainian conflict, particularly the significant increase in the cost of energy, utilities and consumables, along with increased pressure on the supply chain and availability of certain raw material inputs present a challenging environment for the group, particularly in respect of recovering such increases.
They state that Valeo’s “food-service and impulse categories remain challenging”.
Shareholder funds totalled €90.3 million, while the group’s cash funds reduced from €94.2 million to €72.23 million.
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