**Land Development Boosts Kythreotis Revenue Amid Profit Decline**
K. Kythreotis Holdings Public Ltd has reported a notable increase in revenue for the first half of 2026, driven primarily by heightened activity in land development. However, the company faced a significant decline in profits due to rising costs associated with raw materials and fuel, which adversely affected its quarrying and ready-mixed concrete operations.
In its unaudited interim consolidated financial statements approved by the board on Wednesday, Kythreotis disclosed that revenue rose by 4% to €13.03 million for the six months ending June 30, up from €12.54 million during the same period in 2025. Despite this revenue growth, net profit plummeted to €583,100, a stark decrease from €1.37 million reported in the first half of the previous year. Pre-tax profit also saw a substantial decline of 57.1%, falling to €669,500 from €1.56 million.
The increase in revenue was overshadowed by a rise in the cost of sales, which climbed to €11.64 million from €10.32 million. This surge in costs resulted in a gross profit decline of 21.8%, bringing it down to €1.39 million from €2.22 million, and significantly narrowing the gross profit margin to 10.7% compared to 17.7% in the same period last year.
Kythreotis attributed the weakened profit margins primarily to lower returns from its quarrying and ready-mixed concrete divisions, which were impacted by escalating costs of raw materials and fuel. Operating profit also fell sharply to €692,200, down from €1.59 million a year earlier.
The company’s selling and marketing expenses more than doubled to €104,900, largely due to estate agency commissions linked to its land development activities. Conversely, administrative expenses decreased by 4.4% to €630,800, partially due to a non-recurring expense recorded in the previous year.
Ready-mixed concrete remained Kythreotis' largest revenue-generating segment, bringing in €10.30 million, a slight increase from €10.15 million in 2025. However, the operating result for this segment fell to €610,700 from €1.02 million, with pre-tax profit declining to €254,700 from €749,000.
The quarrying and aggregate-processing division also reported weaker performance, with revenue decreasing to €1.98 million from €2.32 million. Operating profit for this segment dropped significantly to €440,600 from €1 million, and pre-tax profit fell to €292,700 from €868,300.
In contrast, the land development segment provided some positive support to the overall results, generating €720,000 in revenue, a significant turnaround from no sales recorded in the corresponding period last year. This division achieved a pre-tax profit of €134,200, compared to a loss of €78,200 a year earlier. However, revenue from renewable energy fell to €31,100 from €68,300, resulting in a pre-tax loss of €12,000, down from a profit of €20,400 in the previous year.
Despite the decline in earnings, Kythreotis demonstrated improved cash generation, with net cash from operating activities rising to €1.59 million from €445,100 in the first half of 2025. Following investment and financing flows, the company reported cash and cash equivalents of €360,500 at the end of June, a positive shift from a negative balance of €132,600 at the start of the year.
Total assets increased to €25.40 million, up from €24.70 million at the end of 2025, while total liabilities rose to €7.23 million from €5.97 million. The increase in liabilities was primarily due to an uptick in trade and other payables, which grew to €5.12 million from €3.61 million. However, borrowing decreased to €233,700 from €285,800, and bank overdrafts were reduced to €461,600 from €647,800.
In June, Kythreotis’ shareholders approved a dividend of €0.027 per share, totaling €1.15 million, derived from the company’s earnings for 2025. The company had previously indicated in June that it anticipated lower profitability for the first half of 2026.
Looking ahead, Kythreotis noted ongoing uncertainties stemming from geopolitical issues, including the Russia-Ukraine conflict and the crisis in the Middle East, although it emphasized that its direct exposure to these regions remains limited. The company expressed optimism about continuing to report positive financial results while adopting a cautious approach to future growth.
Founded in 1970 and based in the Limassol district, Kythreotis Holdings operates in aggregates and construction materials, including a quarry located between Parekklisia and Kellaki, alongside its ready-mixed concrete operations.