**Cypriot Firm Warns of Lower Nine-Month Profit Amid CSE Investment Losses**
Demetra Holdings Plc, a prominent investment firm based in Cyprus, issued a warning on Friday regarding its anticipated financial performance for the nine-month period ending in 2026. The company expects its profits to decline compared to the same period in 2025, primarily due to losses incurred from investments on the Cyprus Stock Exchange (CSE).
In a statement released to shareholders and the broader investment community, Demetra Holdings indicated that the warning was based on current indications available to the firm. "Based on the indications available to date, the group is expected to record a profit for the nine-month period of 2026 reduced when compared with the corresponding period of 2025," the company stated.
The decline in profitability is attributed largely to the underperformance of investments on the CSE, contrasting starkly with the gains the firm experienced during the same timeframe last year. This shift highlights the volatility and risks associated with stock market investments, particularly in the context of the Cypriot market.
Despite the anticipated drop in profits, Demetra Holdings noted that its results for the nine-month period will also reflect a significant financial gain. The company expects to recognize over €6 million in negative goodwill stemming from the acquisition of a subsidiary. This gain has already been factored into the firm's financial results for the first half of 2026, which were disclosed to the CSE on September 16.
In addition to the profit warning, the company also announced a share buyback initiative. On the same day as the profit warning, Demetra Holdings revealed that it had purchased 4,400 of its own shares at a price of €1.38 per share, amounting to a total expenditure of €6,072. This buyback was executed through the Cyprus Investment & Securities Corp Ltd (CISCO) and was authorized during the company's annual general meeting held on June 30, 2026.
The dual announcements of a profit warning and a share buyback reflect the firm's efforts to manage its financial positioning amid challenging market conditions. While the expected decline in profits may raise concerns among investors, the share buyback could be viewed as a strategy to enhance shareholder value and demonstrate confidence in the company's long-term prospects.
As Demetra Holdings navigates these financial challenges, it remains committed to keeping its shareholders informed about its performance and strategic decisions. The company's proactive communication is aimed at maintaining transparency and fostering trust within the investment community.
The upcoming financial results for the nine-month period of 2026 will be closely monitored by investors and analysts, as they will provide further insights into the firm's performance and the overall health of its investment portfolio on the CSE.