Demetra Holdings on Thursday reported robust financial results for the year ending December 31, 2024, with net profit for the group reaching €132.46 million, corresponding to 66.23 cents per share.
This marks a substantial increase from €86.23 million (43.12 cents per share) in 2023.
The company attributed this performance largely to gains from its investment in Hellenic Bank and significant equity market returns.
The group’s earnings were primarily supported by €40.32 million in profit share from its stake in Hellenic Bank, recognised until June 30, 2024.
In addition, equity securities listed on the Cyprus Stock Exchange (CSE) yielded gains of €93.61 million, including those related to Hellenic Bank shares, which were reclassified from associate investments to financial assets at fair value through profit or loss as of July 1, 2024.
The group’s net asset value per share rose from 183.86 cents in 2023 to 249.92 cents by the end of 2024, representing a 35.9 per cent increase.
Dividend income rose by 4.4 per cent to €910,000, while interest income climbed by 14.5 per cent to €245,000.
Demetra also reported a net profit of €1.52 million from its real estate segment, driven by rental income and gains from property sales and revaluations.
Operating expenses increased significantly by 46.3 per cent, reaching €2.34 million, mainly due to non-recurring legal and professional fees related to the sale of Hellenic Bank shares.
What is more, finance costs slightly declined to €493,000.
Expected credit loss provisions on receivables from associates amounted to €5,000, reversing a €77,000 gain in 2023.
Additional provisions on these receivables totalled €1.63 million.
At the company level, Demetra recorded a net profit of €132.45 million for the year, compared to €85.29 million in 2023.
This reflected a similar performance pattern as the group, with major contributions from the Hellenic Bank stake and equity gains.
The company’s financial assets at fair value through profit or loss generated €93.52 million in gains.
Dividend income increased by 10.4 per cent to €1.53 million, while interest income rose 11.7 per cent to €238,000.
Interest-like income surged 34.8 per cent to €1.15 million due to rising floating interest rates.
The company’s net asset value per share increased by 36 per cent, from 183.33 cents to 249.38 cents.
The real estate segment generated a net profit of €95,000, reversing a €15,000 loss in 2023.
Net rental income reached €83,000, while revaluation gains amounted to €12,000.
Operating expenses rose sharply by 62.1 per cent to €2.11 million, largely due to exceptional legal and professional costs.
Finance costs dropped slightly to €490,000. Impairment losses on investments in subsidiaries stood at €337,000, significantly down from €1.23 million in the previous year.
At the end of 2024, the group’s total assets stood at €509.95 million, with company assets at €508.14 million, both up from approximately €375 million in 2023.
Asset allocation reflected a portfolio heavily weighted in equity investments and financial assets (89.9 per cent), with smaller exposures to real estate (8.6 per cent) and other projects (1.5 per cent).
No dividend decision has yet been made by the board for 2024. There were no changes in the company’s share capital, nor any share buybacks or employee stock option schemes during the year.
Although the annual general meeting on July 27, 2024, approved the extension of the share buyback programme, no repurchases had taken place as of year-end.
Demetra highlighted continued exposure to market and geopolitical risks, including uncertainties stemming from the conflicts in Ukraine and the Middle East.
These risks, the company said, could impact its investment returns, particularly in banking, tourism, real estate and equity markets.
Moreover, in its report submitted to the Cyprus Stock Exchange, the company said that the outlook for 2025 remains uncertain.
“The board is not in a position to make a reliable forecast for the company’s results for 2025,” Demetra noted, citing unpredictable market conditions and the impact of ongoing global conflicts.
Finally, it should be noted that while the group and company-level results appear nearly identical, the group figures reflect consolidated performance including subsidiaries, whereas the company-level results relate solely to Demetra Holdings Plc as a standalone entity.
