Robust Financial Results and Strategic Leadership
At its annual general meeting on June 24, Demetra Holdings Plc announced a profit of €132.5 million for 2024. Acting chairman Nearchos Ioannou acknowledged the unwavering support of shareholders, emphasizing that the company’s strong performance reflects years of disciplined execution and a strategic focus that has established it as the largest listed investment company on the regulated Cyprus Stock Exchange.
Steady Growth in a Volatile Global Environment
Ioannou detailed how Demetra maintained its upward momentum despite the ongoing global economic and geopolitical uncertainties. Focusing on the domestic economy, he noted that Cyprus posted one of the highest growth rates in the eurozone at 3.4 percent, driven primarily by a renaissance in tourism, vigorous domestic consumption, and expansive growth in the services and technology sectors.
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Macroeconomic Trends and Future Outlook
Highlighting other key economic indicators, Ioannou pointed out that inflation moderated to 2.2 percent and unemployment fell to 4.6 percent by the fourth quarter. A fiscal surplus of 4.3 percent also contributed to a reduction in public debt to 65 percent of GDP. Looking ahead, he forecast stable growth of around 3 percent in 2025, with inflation remaining near 2.2 percent. Strength in net exports, especially within the services sector, along with accelerated investment activity fueled by EU Recovery and Resilience funds, underpin the optimistic outlook.
Risks and Strategic Responses
Despite the positive trends, Ioannou cautioned against emerging challenges. Warnings from OECD and IMF regarding global growth deceleration and risks of an overheated domestic economy were acknowledged. Concerns about public spending pressures and elevated non-performing loans within credit-acquiring institutions also persist, potentially constraining domestic capital mobilisation. Additionally, the high concentration in the banking sector poses competitive challenges that require attention.
Investment Milestones and Future Development
Reviewing the company’s financial journey, Ioannou recounted the successful exit from a long-standing investment in Hellenic Bank—a decision that, over 12 years, yielded a compounded annual return of 19.7 percent. Although the profits reported in 2024 do not include realised gains, the sale of Hellenic Bank shares in February 2025 further bolstered the company’s financial profile. With net assets rising by 35.9 percent to €499.8 million, Demetra now stands on a robust footing to navigate its next phase of growth.
Maintaining Commitment to Long-Term Value Creation
In closing, Ioannou reaffirmed Demetra’s commitment to building long-term value. He stressed the necessity for adaptability, flexibility, and transparency in the face of ongoing global challenges, including geopolitical tensions, trade disruptions, and energy price volatility. As Demetra continues to refine its forward-planning and investment strategy, the company remains determined to support both consumer and business interests, underpinning its strategic vision for the future.