**Mitsides Reports Increased Profit in First Half of 2026 Despite Declining Sales**
Mitsides Public Company Ltd has announced a notable increase in its first-half profit for 2026, achieving a rise of nearly 14% despite a slight decline in sales. The company attributes this growth to a stronger gross margin and reduced financing costs, as detailed in its recently published interim financial statements.
For the six months ending June 30, Mitsides reported a profit after tax of €727,134, up from €640,011 during the same period in 2025, marking an increase of approximately 13.6%. However, the company experienced a 1.05% decrease in turnover, which fell to €18.92 million from €19.12 million a year prior.
Mitsides, known for its production and distribution of flour and pasta, as well as its importation and distribution of food products, operates in both Cyprus and Serbia through its wholly owned subsidiary, Mitsides Point. The firm’s profitability improvement was significantly influenced by an increase in gross margin, which rose to 27.96% from 26.7% in the previous year. Operating profit also saw a rise, reaching €1.07 million compared to €1.03 million in the first half of 2025.
Despite the increase in operating profit, the company reported a rise in selling, promotion, and administrative expenses, which grew to €4.21 million, accounting for 22.25% of sales. This is an increase from €4.03 million, or 21.08% of sales, in the previous year. On a positive note, Mitsides benefited from lower borrowing costs, with net finance expenses decreasing to €163,225 from €217,775, representing a reduction of approximately 25%. Consequently, profit before tax rose to €902,192, up from €810,508 in the first half of 2025.
Earnings per share also improved, increasing to 8.87 cents from 7.81 cents. The company reported an enhancement in its short-term liquidity, with a current ratio of 1.35 at the end of June, compared to 1.25 at the end of 2025. The quick ratio, however, saw a slight decline, falling to 0.63 from 0.69.
Mitsides’ total assets were reported at €38.01 million, down from €40.01 million at the end of December 2025. Shareholders’ equity increased to €19.95 million from €19.23 million, with net asset value per share also rising to €2.43 from €2.35. The company had €6.94 million in floating-rate borrowings as of June 30, with trade receivables amounting to €7.75 million and bank balances at €717,088.
Looking ahead, Mitsides plans to continue its investment program, which includes efforts to boost exports and solidify its position in the Cypriot market. However, the company has acknowledged the uncertainty posed by ongoing conflicts in Ukraine and the Middle East, as well as inflationary pressures that could impact its operations.
In Serbia, where Mitsides operates through Mitsides Point D.o.o., the company has continued its activities amid political and economic uncertainty. The Serbian government remains focused on its European integration, aiming to meet the technical criteria for EU accession by the end of 2026.
In terms of shareholder returns, the board of Mitsides did not recommend an interim dividend for the period. However, the company completed the payment of a final dividend of €410,000 in August, which equates to €0.05 per share, drawn from profits accumulated during the 2023 financial year.
As Mitsides navigates the challenges of the current economic landscape, its focus on maintaining profitability and expanding its market presence appears to be a key priority for the company moving forward.