Roebuck Food Group sells dairy business for US$1.5M

IRELAND – Roebuck Food Group has announced the sale of its dairy business to an unrelated partnership engaged in the Irish dairy milking industry for US$1.5 million.

After settling indebtedness and making adjustments as per the Share Purchase Agreement, the company will receive approximately US$1.4 million.

The sale comes as the company’s 2023 annual report revealed a 15% decline in the group revenue from US$34.23 million in 2022 to US$29.16 million.

Operating profit from continuing operations also fell, resulting in a loss of US$1.81 million compared to a profit of US$0.36 million the previous year.

The total loss for the financial year from continuing operations amounted to US$2.02 million, against a profit of US$0.17 million in 2022.

Earnings per share from continuing operations dropped to 5.8p from 0.5p. However, net debt decreased significantly by 71%, from US$3.76 million in 2022 to US$1.09 million in 2023.

Excluding IFRS 16 lease obligations, the net debt in 2023 was zero. The sale of the dairy business marks a strategic shift for Roebuck, which will now focus exclusively on the milling and importing food and ingredients and product sourcing.

Under Cantwellscourt Farm Limited, the dairy division operated a 183-hectare dairy farm with approximately 470 milking cows in Kilkenny, Ireland.

Notably, the group has recently acquired Moorhead and McGavin Limited, a specialty supplier of pulses, cereals, pasta, and rice, reflecting its commitment to diversify and strengthen its core operations.

Post-Brexit adjustments have seen Townview Foods, part of Roebuck’s sourcing division, expand its international trade to 41 countries.

However, sales decreased by 17% in 2023 due to strategic reductions in trade to South Africa over receivable recovery risks, resulting in an operating loss of US$0.22 million compared to a profit of US$0.44 million in 2022.

The disposal will provide Roebuck with cash for future acquisitions, investments, and general corporate purposes.

The company has provided various warranties and indemnities concerning the share capital, business, and assets of Cantwellscourt Farm Limited to the purchasers.

The directors of Roebuck Food Group remain confident in the group’s prospects for the current financial year.

They consider the terms of the disposal to be fair, reasonable, and in the best interests of the company and its shareholders.

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