Expansion costs hit profits at Batchelors-maker Valeo
Exceptional costs of €12.24m at food group Valeo Foods contributed to pre-tax profits falling by 16pc to €24.2m last year.
Valeo Foods, which counts Odlums, Batchelors, Jacob's, Erin and Kelkin among its brands, saw revenues increase by 8pc, from €589.2m to €634.4m, in the 12 months to the end of March last.
During the year under review, Valeo purchased the confectionery division of Rasio for €96.2m as well as Italian biscuit and cake maker Dolciaria Val d'enzo for €16m.
Valeo Foods also acquired other confectionery businesses in the UK and the Czech Republic.
A note attached to the accounts said that the newly acquired businesses contributed €25.4m to revenues and on a full year basis would have contributed revenues of €102.3m and trading profits of €4.6m.
Since the group was established in 2010 it has acquired 12 food businesses and it continued on its acquisition spree last August with the purchase of UK confectioner Tangerine.
The 2018 acquisitions contributed to numbers employed at the group increasing from 1,039 to 1,321.
Staff costs increased from €60.29m to €66.42m.
Six directors served during the year and directors' pay last year dipped marginally to €1.37m.
The group's exceptional costs include €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.
The spend on the exceptional operating expenses was offset by the group recording a €15m gain on the sale of property, plant and equipment.
The firm's exceptional costs also includes €12.9m in finance costs.
The group's pre-exceptional profit before tax was €36.5m compared to €31.5m in fiscal 2017. The business paid out a dividend of €5.5m last year. The profit last year takes account of non-cash depreciation costs of €13.17m.
Group sales in Ireland totalling €289m accounted for 45pc of business revenues with the UK accounting for 30pc of group sales.
Shareholder funds totalled €158.3m, including accumulated profits of €55m.