Zeus Packaging sees its pre-tax profits drop by over 50 per cent

RATHCOOLE company Zeus Packaging saw pre-tax profits decrease by 54 per cent to €11.26m last year.

Revenues rose by 8 per cent from €402.3m to €433.63m on the back of the group’s continuing acquisition strategy.

The group, founded by Brian O’Sullivan in 1998, had pre-tax profits of €24.3m in 2022.

A large reason for the decrease in profits was an €11m charge in respect of a creditors’ arrangement in connection with an Italian firm, Cima Paper, purchased by Zeus in June 2023.

Zeus purchased 70 per cent of Cima Paper. A note attached to the accounts stated that after the purchase of Cima Paper “irregularities were discovered by the group which among other things impacted debtors and stock balances acquired”.

The note stated that the Italian firm was put under court administration by the group in October last year.

Staff employed by the group last year increased from 777 to 903.

Staff costs rose from €33.35m to €42.34m.

Zeus has over 50 locations worldwide, including Ireland, UK, Germany, Spain, Poland, Eastern Europe, New Zealand, Canada, China and Australia. Group employment is c.900 people total across 26 countries worldwide.

Pay to Mr O’Sullivan last year, the sole director, dipped from €2.19m to €2.17m.

The directors report stated that group’s earnings before interest depreciation and amortisation was €25.8m against €33.7m in 2022.

It said that this reflected “a solid underling performance for the year”.

Accounts show that Zeus in June last year paid out €10.4m for share capital of Armagh-based packaging firm James Hamilton & Co (Lurgan).

The accounts also show in March 2023, the group bought Polish firm Polpack for €2.5m.

Zeus’s pre-tax profit took account of non-cash depreciation costs of €3.4m and non-cash amortisation costs of €4.3m.