Reox, the new business unit spun out from Dairygold last year, announced a big acquisition today and said the sale of the non-farming business of the Cork-based SWS Group, in which Reox has a 44% stake, made a €36m profit.
Holding its first AGM today in Cork the company reported 'performance in line with expectations' for its first nine months, and said its consumer foods business, Breeo Foods has made a €10m acquisition of Dutch food company 'Prime Meats' in Amsterdam.
Chief executive Jerry Henchy told shareholders that the company was looking to build a presence in the premium continental fresh meats market and in the convenience foods market in mainland Europe.
Reox was set up last year when co-op Dairygold spun off its non-core businesses to realise value for existing Dairygold members and to allow outsiders to invest in the company.
Reox consists of Breeo Foods, formerly the consumer foods division of Dairygold, 4Home Superstores and Alchemy Properties, together with an investment in the SWS Group.
Mr Henchy also told shareholders today that the sale of SWS's non farming business in which Reox held a 44% stake will realise a 'once off' profit of €36m, which will be reflected in this year's accounts.
He said that the most important 'foundation steps' had been taken in the process of establishing the company for growth, and the company has the potential to deliver strong returns in the future.
Mr Henchy told shareholders: 'The financial performance of the newly established company with turnover of €268m and profits before interest and tax of €9.5m for the first nine months was in line with expectations.'
Shares in Reox Holdings trade in a grey market operated by Goodbody and Davy Stockbrokers and Dairygold retains a 25% stake holding in the company.
