Have you already fallen in love with the most popular Slovak wafers, Horalky? In their 61 years of existence, they survived socialism and became a true symbol of Slovakia, but now they are experiencing an unexpected turn. The manufacturing company changed owners and showed significant losses for the first time in many years.
From Million-Euro Profits to Losses
The Slovak brands Horalky, Mila, and Kávenky are produced by the company I.D.C. Holding at the Sedita factory in the town of Sereď. For over 30 years, the enterprise belonged to local businessman Pavol Jakubec. But in August 2023, he sold 100% of the shares to the Irish company Valeo Foods Group, which is owned by the American investment giant Bain Capital.
The consequences of the deal turned out to be unexpected. Before the sale, the holding company consistently generated huge profits – 26 million euros in 2022 and 17.5 million euros shortly before the change of ownership. However, the first year under foreign management ended with a loss of half a million euros for the company. This happened even though total sales continued to grow and reached a record 170 million euros. The reason for the financial downturn was increased operating costs, higher prices for materials, and high interest rates on loans.
The Scale of Production is Impressive
For those just getting to know the Slovak market: Horalky are not just sweets, but a true cultural phenomenon that appeared in 1965 as an improvisation and has hardly changed its recipe since then.
The numbers speak for themselves:
About 250 million pieces of these wafers are produced every year.
The factory in Sereď has an annual production capacity of 35,000 tons of products.
The brand is the absolute leader not only in Slovakia but also in the Czech Republic, Hungary, and Poland.
What Will Change for Regular Customers
Despite the financial difficulties after the transition to new owners, they do not plan to stop production. On the contrary, Valeo Foods Group states that it views the Slovak factory as a main site for its expansion in Central and Eastern Europe.
However, the new management has already begun steps to optimize costs. For ordinary consumers, this means that their favorite treat will not disappear from the shelves of Slovak supermarkets. The main question now is whether the new owners will try to save money on ingredients to return the company to profitability. For now, the traditional recipe remains unchanged, and the company continues to roast nuts and coffee for its fillings itself.
