Source: cyprus-mail.com
K. Kythreotis Holdings Public Ltd reported higher revenue in the first half of 2026, but profits fell sharply as rising raw-material and fuel costs weighed on its quarrying and ready-mixed concrete businesses.
Revenue rose 4 per cent to €13.03 million in the six months to June 30, from €12.54m a year earlier, helped mainly by increased activity in land development.
However, profit for the period dropped to €583,100, from €1.37m in the first half of 2025, while pre-tax profit fell 57.1 per cent to €669,500, from €1.56m.
Basic and diluted earnings per share consequently declined to 1.37 cents, compared with 3.23 cents a year earlier.
The figures were included in the group’s unaudited interim consolidated financial statements, which were approved by its board on Wednesday.
The fall in profitability came as the cost of sales increased to €11.64m, from €10.32m, more than offsetting the growth in revenue.
As a result, gross profit fell 21.8 per cent to €1.39m, from €2.22m, while the gross profit margin narrowed considerably to 10.7 per cent, compared with 17.7 per cent in the same period last year.
Kythreotis attributed the weaker margin mainly to lower returns from its quarrying and ready-mixed concrete operations, following increases in the cost of raw materials and fuel.
Operating profit fell to €692,200, from €1.59m a year earlier.
Meanwhile, selling and marketing expenses more than doubled to €104,900, largely because of estate agency commissions linked to the group’s land development business.
Administrative expenses moved in the opposite direction, falling 4.4 per cent to €630,800, partly because the corresponding period of 2025 included a non-recurring expense.
Ready-mixed concrete remained the group’s largest activity, generating revenue of €10.30m, compared with €10.15m a year earlier.
However, its operating result fell to €610,700 from €1.02m, while pre-tax profit declined to €254,700, from €749,000.
The quarrying and aggregate-processing business also recorded a weaker first half. Revenue fell to €1.98m, from €2.32m, while operating profit dropped to €440,600 from €1m.
Pre-tax profit from the division stood at €292,700, compared with €868,300 in the first half of last year.
Land development, however, provided some support to the group’s results.
The division generated €720,000 in revenue, having recorded no sales in the corresponding period last year, and produced a pre-tax profit of €134,200. This compared with a loss of €78,200 a year earlier.
Renewable energy revenue fell to €31,100 from €68,300, with the division recording a pre-tax loss of €12,000, compared with a profit of €20,400 last year.
Despite the drop in earnings, cash generation improved markedly.
Net cash generated from operating activities rose to €1.59m, from €445,100 in the first half of 2025.
After investment and financing flows, cash and cash equivalents, including bank overdrafts, improved to a positive €360,500 at the end of June, compared with a negative €132,600 at the start of the year.
Total assets stood at €25.40m, up from €24.70m at the end of 2025, while total liabilities increased to €7.23m from €5.97m.
The rise in liabilities was mainly driven by trade and other payables, which increased to €5.12m, from €3.61m.
Borrowing, however, declined to €233,700 from €285,800, while bank overdrafts fell to €461,600 from €647,800.
Kythreotis’ shareholders in June approved a dividend of €0.027 per share, worth a total €1.15m, from the group’s 2025 earnings.
The company had already flagged in June that its first-half profitability was expected to be lower than a year earlier, before its board met on September 24 to review the results.
Looking ahead, the group referred to continuing uncertainty stemming from the Russia-Ukraine war and the crisis in the Middle East, although it said its direct exposure to the affected countries remained limited.
It nevertheless expects to continue reporting positive financial results, while maintaining what it described as a prudent approach to future growth.
Founded in 1970, Kythreotis operates in the Limassol district and is active in aggregates and construction materials, including through a quarry between Parekklisia and Kellaki and its ready-mixed concrete operations.