Valeo Foods is on track to become “the undisputed European sweets and treats champion” despite losses topping €100m due to steepling financing costs, its boss has said.

Speaking exclusively to The Grocer after the publication of accounts for the year to 31 March 2024, Valeo CEO Ronald Kers said the results, which revealed soaring financing costs, as “positive progress” in a “challenging overall operating environment”.

The Kettle and Rowse Honey owner posted a 9.7% rise in sales to €1.53bn from €1.39bn in the 12-month period.

Pre-exceptional operating profits also improved to €68.6m from €36.7m, which Kers put down to its “significant business improvement programme” and structural optimisation.

However, Valeo incurred €18m of exceptional costs in the period – down from €26.4m in the previous year – largely due to €13.5m of restructuring costs.

Meanwhile, net finance costs more than doubled to €153.4m from €73.3m. That drove the overall group loss for the period to €100.8m, up from €56.2m the previous year.

The Irish ambient food group was acquired by global private equity firm Bain Capital for an sum thought to be around £1.5bn in 2021.

“The results reflect positive progress and momentum as we continue implementing our plan to grow and strengthen Valeo Foods Group and position the business as the undisputed European sweets and treats champion,” said Kers.

“We have undertaken a significant business improvement programme underpinned by further development of group structures, enhanced efficiencies, targeted investment and strategic acquisitions that are highly complementary with our existing brands, manufacturing capabilities and market reach.”

In its largest market of the UK, which accounted for €644.4m of sales up from €578.6m last year, the group has restructured its various businesses under one centralised operating model.

Kers said it has also made “substantial investments” in our factories and people in the country.

“These efforts are already yielding significant improvements in service quality and operational output,” he said.

Separate accounts show its Kettle brand increased sales by double-digits from £123.9m to £141m, while it cut its operating losses from £14.3m to £4m as it continued to be impacted by rising costs.

Similarly its confectionery arm, which owns Fox’s Glacier Minds and Poppets, sales increase by almost £40m to £204.1m, but it shifted to a small operating loss as cost of sales jumped amid inflationary pressures on energy, utilities and raw materials.

Rowse Honey saw sales edge up from £149.5m to £154.3m and operating profits improve to £29.9m from £14.5m.

Valeo, which has been heavily acquisitive to grow its revenues well past €1bn, made further international acquisitions during the period, including Slovakian confectionery and biscuits producer IDC and bolt-ons in Italy and Canada.

“We believe these acquisitions will be transformational in solidifying our leading position with international retail partners,” Kers said.

He added: “Through our strategy, the enhanced strength of our new Group structure and capabilities, and our major focus on people and sustainability, we expect to create significant new value in the coming years and realise our ambitions for the business.

“We remain confident in our ambition to become the European sweet treats champion.”

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