Profits at Euro Giant hit by €1.1m exceptional increases in shipping costs

Gordon Deegan

Pre-tax profits at the firm that operates discount retailer, Euro Giant last year increased by 25 per cent to €1.99 million.

New accounts for Euro General Retail Ltd show that the business increased pre-tax profits despite revenues dipping by €2 million or 3 per cent from €71.65 million to €69.61 million in the 12 months to the end of May 10th last.

The firm’s profits were hit by exceptional costs of €1.11 million connected to substantial increases in shipping costs and the €1.1 million exceptional cost followed a cost of €573,001 under that heading in fiscal 2021.

The main activity of the business is the selling of retailing novelty goods, household goods and confectionery to the general public and wholesaling to associated businesses and related companies.

The Euro Giant retail network totals over 80 and company founder, Charlie O’Loughlin opened his first discount store on Dublin’s Moore Street in 1990.

Numbers employed by the business last year increased by 14 from 548 to 562 and staff costs increased from €12.42 million to €12.95 million.

The directors state that they consider the results for the year to be satisfactory, considering ongoing operational difficulties brought on by the Covid pandemic during the year.

The business continued to expand during the year as the directors confirmed the purchase of a trading business for €5.3 million and an investment property for €3.6 million.

The group’s operating profit last year increased by 43 per cent from €2.2 million to €3.17 million and the exceptional costs of €1.1 million reduced profits to €2.06 million.

After interest charges of €62,156 are taken into account, the firm recorded pre-tax profits of €1.99 million and this followed pre-tax profits of €1.6 million during the pandemic impacted prior year.

The group recorded post tax profits of €1.74 million after paying corporation tax of €352,364.

The firm last year did not pay a dividend and the profits further strengthened the business’s balance sheet with accumulated profits of €22.4 million. The firm's cash funds decreased from €11 million to €7.14 million.

The profit last year takes account of combined non-cash depreciation and amortisation charges of €795,134.

The business recorded a gross profit of €32.15 million and distribution costs of €14.49 million and administrative expenses of €14.49 million* reduced profits to an operating profit of €3.17 million.