Reox, the new business unit spun out from Dairygold last year, has reported profits before interest and tax of €9.5 million for the first nine months of 2006.

Turnover at the business was €268 million in the calendar year to September 30th. 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.

Dairygold chief executive Jerry Henchy said the results were in line with expectations.

"This is a significant achievement when placed in the context of the resources and energy which had to be devoted to the establishment of the business during its early months. The overall outturn reflected the fact that the report covers only nine months of trading activity as well the fact that the busy pre-Christmas trading period for Breeo Foods and 4Home Superstores is excluded, given the Reox Holdings September 30th year end," he said.

The results also exclude the sale of the non-farming business of the Cork-based SWS Group, in which Reox has a 44 per cent stake. Last December, SWS sold its non-farming businesses to Ion Equity for around €110 million. Reox was set up last year when Dairygold, Ireland's largest co-op, spun off its non-core businesses to realise value for existing Dairygold members and to allow outsiders to invest in the company.