**Demetra Holdings Reports Decline in First Half Profits for 2026**
Demetra Holdings has announced a decline in its net profit for the first half of 2026, reporting €6.87 million, or 3.45 cents per share, compared to €10.22 million, or 5.11 cents per share, during the same period in 2025. The company's board approved the interim condensed consolidated financial statements for the six months ending June 30, 2026, at a meeting held earlier this week.
The decrease in profit was primarily attributed to losses on equity investments, which amounted to €2.18 million in the first half of 2026, a stark contrast to the profit of €7.96 million reported in the previous year. Despite this setback, Demetra Holdings experienced a notable increase in rental income and a significant reduction in finance costs.
The company reported a 31.2% increase in net rental income, which rose to €1.59 million from €1.21 million in the first half of 2025. This growth is largely credited to the acquisition of a nine-storey office building in March 2025, valued at approximately €30.50 million. The real estate segment has thus proven to be a strong contributor to the company’s overall performance.
In addition to the increase in rental income, Demetra Holdings saw a substantial rise in dividend income, which surged to €15,677 from just €940 in the corresponding period of the previous year. However, interest income experienced a decline of 4.6%, dropping to €3.16 million from €3.31 million, primarily due to lower interest rates prevailing in 2026.
Operating expenses for the company increased modestly by 2.3%, rising to €1.17 million from €1.15 million in the first half of 2025. In a significant development, finance costs plummeted by 86.6% to €80,616, down from €602,901, following the full repayment of all loan facilities in February 2026.
A key factor influencing the financial results was the recognition of €6.05 million in negative goodwill from the acquisition of a subsidiary during the reporting period. Negative goodwill arises when the value of net assets acquired exceeds the purchase consideration paid for a business. This accounting treatment had a substantial impact on the company's profit figures.
As of June 30, 2026, Demetra Holdings reported a net asset value per share of 259.30 cents, an increase from 255.43 cents at the end of 2025, reflecting a growth of 1.5%. The company’s total assets stood at €522.66 million, slightly up from €521.14 million at the end of the previous year.
In terms of property valuation, the group recorded a loss of €54,364 from the revaluation of land and properties, compared to a loss of €10,680 in the first half of 2025. The company had also recognized a provision of €26,010 for expected credit losses on bank balances in the first half of 2025 under IFRS 9, the international accounting standard governing financial instruments.
Overall, while Demetra Holdings faced challenges in equity investments, the increase in rental income and the reduction in finance costs provided a buffer against the decline in profits. The company continues to focus on its real estate activities and strategic acquisitions to enhance its financial performance moving forward.