Origins food unit is being spun off in a venture with CapVest

Origin's food unit is being spun off in a venture with CapVest

The Irish consumer food business set to be spun off by agri-business group Origin Enterprises saw its operating profit fall 6% during the first half of the company's fiscal year.

The division, which is set to become part of a new company, Valeo Foods, booked operating profit before intangible amortisation and exceptional items of EUR14.9m (US$19.9m) for the six months to the end of July - down 6% on the year.

Origin said the fall in profit was "driven by the impact of the current economic situation and the competitive trading environment as consumers' purchasing decisions remain firmly focused around value shopping".

Revenue from the unit, which includes the Odlums, Shamrock and Roma brands, dropped 11.9% to EUR260.1m. Origin said the fall in revenue was "principally due to price deflation and the removal of excess milling capacity during the year".

Origin's group-wide operating profit before intangible amortisation and exceptional items fell 2.5% to EUR77.4m. Revenue dropped 11.3% to EUR1.34bn.