Operating profits at the Dublin headquartered food producer behind well-known brands such as Jacob’s, Batchelors, Kelkin and Odlums jumped by 24 per cent last year to €85.3 million.
Accounts recently filed by Valeo Foods show the improved profit performance came as sales rose by 6 per cent to €1.62 billion in the 12 months to March 31st, 2025.
“Valeo delivered another year of successful top line growth, significant growth in operating profit before exceptional items and cash generation,” the directors said in their report.
They attributed the improved performance mainly to “further recovery of our UK business, strong growth in Italy and Canada, management initiatives to improve procurement and productivity and the successful acquisition of three companies across Europe and North America in line with the group strategy”.
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While operating profit increased strongly year on year, the directors noted “the loss before tax has increased largely due to finance costs”.
The group recorded a pretax loss of €28.75 million after net finance costs of €114.1 million are taken into account. Exceptional costs totalled €17.7 million.
The pretax loss of €28.75 million was a slight improvement on the €29.6 million pretax loss for the previous year.
Valeo Foods operates 80 consumer food brands and is the market leader in wafers, cakes and biscuits, confectionery (sugar and chocolate), naturally sweet (maple and honey), savoury snacks and Ireland ambient foods.
Since it was formed in 2010, when Origin Enterprises merged its Odlums, Shamrock and Roma brands with Batchelors in a deal backed by UK private equity firm CapVest, Valeo has completed more than 20 acquisitions across the UK, Ireland, Europe and North America.
The business has been owned by Bain Capital since 2021.
The group’s Ireland revenues fell by 10 per cent last year from €340.68 million to €307.87 million while the UK remained the group’s largest market, with sales there increasing marginally from €644.4 million to €647.5 million.
The group’s European business showed the strongest growth, with turnover rising by 34 per cent from €378.04 million to €507.76 million.
Numbers employed at the group jumped by 664 people, or 14 per cent, to 5,210 as staff costs surged by over 40 per cent from €193.4 million to €272.76 million. That figure included severance payments of €2.97 million.
Directors’ pay increased from €1.1 million to €1.27 million.
The accounts disclose that on January 8th this year, Valeo paid €297.43 million for Slovakian based IDC Holding and three subsidiaries, which produce wafer biscuits primarily for markets throughout eastern Europe.
The deal comprised cash of €187 million with a deferred cash element of €110.4 million.
Shareholder funds increased to €287.3 million while cash funds increased from €62.03 million to €117.88 million.
