“Euro Giant sees pre-tax profits rise by 25% despite revenue dip”

Euro Giant, the popular discount store chain, has recently suffered a major blow to their profits due to a staggering €1.1 million increase in shipping costs. The unexpected surge in expenses has significantly impacted Euro Giant’s earnings, and left the company struggling to adapt. In this article, we will delve into the details of this financial setback, examining the reasons behind the increase in costs and what this means for Euro Giant’s future.


Last year, Euro General Retail Ltd, the operator of discount retailer Euro Giant, saw a 25% increase in pre-tax profits to €1.99 million. Although the company experienced a dip in revenue to €69.61 million from €71.65 million, pre-tax profits still increased due to exceptional costs of €1.11 million associated with shipping expenses. The main activities of Euro Giant involve the retail and wholesale of household goods, confectionery, and novelty goods, and the company has over 80 retail outlets. Despite ongoing operational difficulties caused by the Covid-19 pandemic, the directors of the company considered the year’s results satisfactory. Euro General Retail Ltd also expanded during the year with the acquisition of a trading business for €5.3 million and an investment property for €3.6 million. The company employed 14 more staff, totaling 562, and staff costs increased from €12.42 million to €12.95 million. The pre-tax profits of €1.99 million followed the preceding year’s pre-tax profits of €1.6 million impacted by the pandemic. After paying corporation tax of €352,364, the group recorded post-tax profits of €1.74 million, which strengthened the business’s balance sheet with accumulated profits of €22.4 million. However, their cash funds decreased from €11 million to €7.14 million. The gross profit of €32.15 million, distribution costs of €14.49 million, and administrative expenses of €14.49 million contributed to an operating profit of €3.17 million. The content is followed by an image lightbox reference.


In conclusion, the news of Euro Giant’s profits being hit by €1.1m exceptional increases in shipping costs serves as a reminder of the challenges that businesses face in today’s world. As supply chains become more complex and interdependent, companies need to be proactive in managing the rising costs associated with transporting goods. While Euro Giant is by no means the only company to be impacted by these challenges, it highlights the need for all businesses to adapt and remain vigilant in the face of uncertainty. In light of this, it will be interesting to see how Euro Giant responds to these challenges and whether it is able to maintain its position as one of Ireland’s leading discount retailers.