Keo first-half profit falls 8% to €2.97m as turnover declines

Limassol, Cyprus. Keo plc reported net profit of €2.97 million for the first half of 2026, down about 8 per cent from €3.23 million in the same period of 2025, as lower sales reduced operating earnings.

Turnover fell by 3.13 per cent to below the €33.4 million recorded a year earlier, while gross profit remained broadly unchanged at €11.3 million.

Margins and operating profit

Keo’s gross profit margin rose to 34.9 per cent in the first six months of 2026, compared with 33.9 per cent in the corresponding period of 2025.

However, profit from operations declined to €2.5 million from €2.9 million a year earlier.

The results follow a similar decline in operating performance during 2025, when the company reported operating profit of €8.8 million, compared with €9.3 million in 2024. Annual turnover fell by 1.1 per cent, which Keo attributed to the absence of a one-off sales agreement that had increased the previous year’s figures.

Business activities

Keo produces beer and wine, manufactures juices and bottles natural mineral water for domestic and export markets. The company also imports and distributes beer, wine, spirits, juices, bottled water and other products in Cyprus.

The board had said earlier this month that it would meet on September 22 to consider and approve unaudited interim accounts for the six months ended June 30.

Dividend and factory project

Keo completed a €1.69 million dividend payment in August after resolving software problems that had threatened to delay the distribution. Shareholders approved the payment in July, with the dividend set at four cents per fully paid share and funded from the company’s 2024 profits.

The company is also progressing with a proposed €25 million beverage factory in Kato Polemidia. The project cleared environmental screening in August, with the environmental authority determining that a full impact assessment was not required. Remaining permits are required before construction can begin.