JACOB owner Valeo Foods wrote off nearly â¬ 100m of the value of one of its businesses in its most recent fiscal year – just ahead of a deal worth more than â¬ 1.7bn be concluded to sell the group to private equity giant Bain Capital.
Valeo’s new accounts also confirm that its turnover amounted to just over 1 billion euros over the year at the end of March. This compared to a turnover of 942.7 million euros the previous year.
The accounts show that its pre-exceptional operating profit amounted to â¬ 80.4 million against â¬ 64.1 million the previous year.
Valeo owns many brands such as Batchelors, Kettle, Rowse, Odlums and Kelkin.
The non-cash depreciation pushed the group to a loss of â¬ 98.3 million for the financial year ended at the end of March.
Valeo did not specify which of its cash-generating units (CGUs) were affected by the goodwill impairment. It has a total of 12 CGUs spread over its Irish, British and European divisions.
However, the accounts note that the â¬ 99m depreciation was linked to an activity of its Europe division.
Valeo was majority owned by CapVest Partners before being sold to Bain Capital this year.
CapVest, controlled by Seamus Fitzpatrick from Cavan, acquired Batchelors and Origin Foods in 2010 to create Valeo Foods. The CEO of Valeo is Seamus Kearney.
Of Valeo’s sales over the past financial year, â¬ 492.3 million were generated in the United Kingdom, â¬ 310 million in Ireland, â¬ 178.3 million in continental Europe and â¬ 40.3 million in the rest of the world.
Valeo’s room-temperature grocery business has performed well due to higher levels of household consumption and in-home catering during lockdowns in the group’s key markets, note the newly filed accounts for the group.
Valeo executives noted in the activity’s accounts that the restrictions linked to the pandemic, however, negatively affected demand in the group’s impulse buying segment, as well as in hotels, restaurants and catering activities in Ireland, in the United Kingdom and Czech Republic.
âValeo has responded to these reduced demand levels by working closely with customers to meet their changing needs and also by resizing the cost base of its affected activities, reducing the workweek of impacted teams and, if necessary , putting staff on leave. Â»Noted the administrators.
“The longer-term impact of the pandemic on Valeo’s business performance and outlook remains uncertain,” they warned.
âAs of the date of signature of these financial statements, the health authorities in Valeo’s key geographic areas continue to progressively vaccinate local populations and this is resulting in a relaxation of pandemic restrictions in certain countries,â added the administrators. “However, given the unpredictable nature of the Covid-19 crisis to date (for example, the potential for the emergence of new viral mutants of Covid-19), the overall picture will remain uncertain for some time.”
Directors said Valeo remains well positioned to grow going forward and its strategy remains broadly unchanged despite the pandemic.
“Valeo will continue to pursue its growth by focusing on organic sales growth and maintaining its existing sales base, maximizing commercial margin performance through effective pricing and promotion strategies, harnessing the power of buying the group and maintaining an efficient cost base, âthey said in the accounts. .