Louis plc has reported a sharper first-half loss for 2026, underscoring how quickly geopolitical instability can ripple through the tourism economy.
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Tourism Slowdown Hits Revenue And Profitability
The Cyprus-based hotel and tourism group said its net loss after tax attributable to shareholders widened to €18.70 million in the six months to June 30, 2026, up from €11.10 million in the same period a year earlier. That represents an increase of €7.60 million, or about 68 per cent.
Turnover also declined, falling to €44.80 million from €49.30 million in the first half of 2025, a drop of €4.50 million, or 9.2 per cent. Louis plc said the decline was primarily driven by weaker tourist traffic to Cyprus, which it linked to geopolitical developments and rising uncertainty across the wider Middle East.
Earnings before interest, tax, depreciation and amortisation, or EBITDA, fell to €1.40 million from €5.10 million a year earlier. The decrease of €3.70 million, or 72 per cent, pushed the group’s operating profit margin down from 10.3 per cent to 3.2 per cent.
Cost Pressures Reflect Lower Trading Volumes
The company said changes in operating expenses and staff costs were largely the result of lower group turnover. In effect, softer demand reduced the scale of the business just as fixed and semi-fixed costs continued to weigh on margins.
Louis plc added that the war in the Middle East had negatively affected tourist flows to Cyprus and that the impact was clearly visible in its interim results. “Taking into account the current circumstances, we expect the final results of 2026 to be lower than those of the previous year,” the company said.
Core Operations Remain Focused On Hospitality
During the first half of the year, Louis plc continued to focus on the ownership, operation and management of hotels and restaurants in Cyprus and Greece, alongside the purchase and disposal of movable and immovable property. The group also provided financial facilities to companies within the group and associated companies.
The financial statements for the six months to June 30 were unaudited. The board approved the condensed consolidated interim financial statements and interim management report at a meeting on September 21. The accounts were prepared in accordance with International Accounting Standard 34 and presented in euros.
Louis plc said it applied the same accounting policies used in its audited consolidated financial statements for the year ended December 31, 2025, aside from new and revised International Financial Reporting Standards adopted by the European Union for periods beginning on or after January 1, 2026. The company said these changes did not have a material effect on its first-half interim financial statements.
The interim financial statements were not audited by the group’s independent external auditors.
Sustainability Reporting Moves Up The Agenda
Louis plc also outlined its approach to environmental, social and governance reporting, saying it is investing in sustainability reporting and meeting its disclosure obligations. The company said transparency remains central to its sustainability strategy and pointed to its annual non-financial information report as evidence of its commitment to accountability.
The report includes non-financial disclosures covering sustainability and ESG matters. Louis plc also referenced the EU Taxonomy, the European Union’s framework for classifying economic activities that are considered environmentally sustainable.
The company said it expects expanded reporting to support greater transparency under the EU Taxonomy. It added that the adoption of the Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards would help further integrate the taxonomy into its business strategy, systems, investment processes and lending activities.
Mandatory non-financial disclosures for 2026 are scheduled to be published in the group’s non-financial information report in 2027.
Risks, Governance And Annual Meeting
Louis plc identified credit risk, interest rate risk, liquidity risk and tourism-related risks as its main exposures. Details of these risks, along with the uncertainties facing the group and how they are monitored and managed, are set out in note 22 of the interim consolidated financial statements.
Related-party transactions are disclosed in note 19, while significant events after the reporting period are covered in note 25.
The board also said the company’s annual general meeting will be held on November 11, 2026, at 11 a.m. at Hilton Nicosia.
