Zeus Packaging profits fall by more than 50% to €11.26m
The owner of Zeus, Brian O’Sullivan, won the 2021 Irish EY Entrepreneur of the Year award. Picture: Darragh Kane
Pre-tax profits at the Brian O’Sullivan-led Zeus Packaging last year decreased by 54% to €11.26m.
The Rathcoole-based global packaging solutions group on the outskirts of Dublin recorded the decrease in profits, as revenues increased by 8% — from €402.3m to €433.63m — on the back of the group’s continuing acquisition strategy.
The pre-tax profits of €11.26m follow pre-tax profits of €24.3m in 2022.
A large factor in the drop in profits was a €11m charge in respect of a creditors' arrangement in connection with a firm, Cima Paper, only purchased by Zeus in June 2023.
Zeus purchased 70% of Cima Paper, and a note attached to the accounts states that after the purchase of Cima Paper “irregularities were discovered by the group which, amongst other things, impacted debtors and stock balances acquired”.
The note states that the Italian-based Cima Paper was put under court administration by the group in October 2023.
The owner of Zeus, Brian O’Sullivan, won the 2021 Irish EY Entrepreneur of the Year award.
Numbers employed by the group last year increased from 777 to 903, and staff costs rose sharply from €33.35m to €42.34m.
The Irish-based multi-national has employees at sites in Ireland, Britain, Germany, Spain, Poland, Ukraine, Canada, New Zealand, and Australia.
Pay to Fermoy native and sole director, Mr O’Sullivan last year decreased marginally from €2.19m to €2.17m.
The directors state that the group's earnings before interest depreciation and amortisation was €25.8m compared to €33.7m in 2022, and the directors state that this reflects "a solid underling performance for the year".
The accounts show that Zeus in June of last year paid out €10.4m for the share capital of Lurgan-based packaging firm, James Hamilton & Co (Lurgan) Ltd.
The accounts also show that, in March 2023, the group purchased Polish firm Polpack for €2.5m.
The report states that Mr O’Sullivan expects the level of business activity to increase as a result of the acquisition strategy. The firm provides services to firms in pharma firms, small businesses, and food processing industries.
A breakdown of the group’s revenues show that it generated €158.2m here in Ireland, €110m in Europe, €151.77m in Britain, and €13.5m in the "rest of world".
The pre-tax profit took account of non-cash depreciation costs of €3.4m and non-cash amortisation costs of €4.3m. The group also incurred interest payments of €6.5m.
The group recorded post-tax profits of €4.7m after paying corporation tax of €6.5m.
At the end of December last year, the group had shareholder funds of €80.77m that included accumulated profits of €66.5m. Cash funds increased from €24.3m to €31.3m.
