Keo board to consider another dividend after weaker first-half profit

Keo plc’s board will meet on October 20 to consider whether to pay another dividend, less than two months after the Cypriot beverage company completed a €1.69 million distribution to shareholders. The company announced that its board of directors will convene at 9.30am on October 20 to consider the possibility of paying a dividend. The announcement does not specify the amount of any potential payment or whether the board is considering an interim dividend, meaning the size and terms of any distribution will only become clear if the board approves one. The planned meeting comes shortly after Keo reported first-half net profit of €2.97 million, down from €3.23 million in the corresponding period of 2025. The 8 per cent decline in profit was accompanied by a 3.13 per cent fall in turnover to €32.35 million from €33.40 million, although the company managed to improve its gross profit margin. Gross profit was broadly unchanged at €11.28 million, compared with €11.31 million a year earlier, while the gross profit margin increased to 34.9 per cent from 33.9 per cent. Profit from operations nevertheless fell to €2.51 million from €2.93 million. The results showed that Keo’s weaker sales continued to weigh on its operating performance despite the improvement in margins. The board’s October meeting also follows the company’s completion in August of a €1.69 million dividend payment, equivalent to four cents per fully paid ordinary share. That payment had been approved by shareholders at Keo’s annual general meeting in July and was funded from profits generated in 2024 and held in the company’s revenue reserve. The distribution was initially threatened by technical problems with Keo’s dividend calculation software, but the company subsequently confirmed that the payment had been completed. The latest dividend consideration therefore comes relatively soon after the previous shareholder payout, although the October announcement gives no indication yet of the amount that could be proposed. Keo’s recent financial performance follows a similar easing in its full-year results for 2025. The company reported operating profit of €8.80 million for 2025, compared with €9.30 million in 2024, while turnover fell by 1.1 per cent. Keo attributed the decline in turnover to the absence of a one-off sales agreement that had boosted the previous year’s figures. At the same time, the company is progressing with plans for a €25 million beverage factory in Kato Polemidia, near Limassol. The proposed facility cleared environmental screening in August, with the environmental authority deciding that a full environmental impact assessment was not required, subject to conditions. Construction is expected to take about two years once the remaining permits have been secured. The facility is planned to handle juice packaging, wine processing and bottling, spirits production, storage and distribution, while operating alongside Keo’s existing winery in Mallia. The project is intended to strengthen the company’s production and distribution infrastructure as it continues to operate across beer, wine, juices and natural mineral water, as well as importing and distributing a wider range of beverages and related products. The October 20 meeting will therefore provide the next indication of how Keo intends to distribute cash to shareholders while continuing to invest in its operations. Any dividend decision is expected to be followed by further details on the amount, payment date and eligibility requirements if the board approves a distribution.