Demetra Holdings announces €20m dividend, warns of lower profits

Demetra Holdings Plc held its twenty-sixth annual general meeting in Nicosia on June 30, where the company announced a significant return of capital to shareholders alongside a cautionary outlook for the coming months. The board of directors secured approval for a final dividend of €0.10 per share, marking the first such distribution in two decades. This dividend, totalling €20 million, will be paid within 90 days of the approval, with the company confirming a record date of July 9, 2026. Trading of the company’s shares will occur without the dividend entitlement starting on July 8, 2026. During the proceedings, first executive director Kleanthes Chandriotes presented the company’s financial performance for the year ending December 31, 2025. The group reported a net profit after tax of €10.66 million, a decrease from the figures recorded in the previous year, which had benefited from substantial one-off gains. The 2025 results were underpinned by interest income of €6.88 million and rental income of €2.78 million, while operating expenses were successfully reduced by 9 per cent. Despite these developments, the company issued a profit warning regarding the first half of 2026. Demetra Holdings anticipates that its profits for this period will be lower than those recorded in the corresponding period of 2025. This expected decline is primarily attributed to anticipated losses from investments on the Cyprus Stock Exchange (CSE), contrasted against the positive gains recorded during the same period in the previous year. However, the results for the first half of 2026 will be bolstered by a gain of over €6 million from the recognition of negative goodwill following the acquisition of a subsidiary. Nearchos Ioannou, who serves as Vice-Chairman and Acting Chairman of the board, addressed shareholders with a comprehensive vision for the firm’s strategic trajectory. He underscored that the company’s resilience is rooted in its ability to navigate complex market cycles while maintaining a long-term investment horizon. “We live in a world that is changing at a pace to which we are unaccustomed,” said Ioannou. “Geopolitical shifts, movements in the markets, changes in global trade regulations, and new technologies – all these require attention, composure, and preparedness,” he added. Moreover, he stated that the company “is in a constant process of evaluating all data, closely monitoring the changing environment”. “We invest our available capital with prudence, methodically, and with strict discipline in risk management, always with the primary goal of creating value for you, our shareholders, while simultaneously safeguarding your capital,” Ioannou explained. He also stressed that “in the investment sphere, patience is a vital virtue“. Ioannou also mentioned that the board of directors has “a long-term horizon regarding the investments it selects, avoiding rash moves and seeking to capitalise on opportunities that arise even during periods of volatility”. “Our philosophy remains stable and non-negotiable: a strong balance sheet, disciplined selection of investments, active risk management, and consistency in our strategy, so that the value of the company is enhanced over time,” Ioannou said. “We do not measure success in weeks or quarters – we measure it in years, relying on prudent management and the trust we have built with you over time,” he added. The company also received authorisation to continue its share buyback programme for a further 12-month period. This initiative is viewed as a clear vote of confidence in the group’s future prospects. Looking ahead, the board remains cautiously optimistic but noted that 2026 performance remains subject to various external factors, including interest rate fluctuations, geopolitical instability, and conditions within the real estate market. The company intends to maintain high levels of liquidity to remain agile in a volatile economic environment. The annual general meeting also confirmed the re-election of the board members and the re-appointment of Grant Thornton (Cyprus) Limited as the company’s statutory auditors.