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Mall Of Cyprus Raises First-Half Profit 25.5% As Leasing Income Strengthens And Borrowing Costs Ease

by THEFUTURE.TEAM

September 30, 2026

Higher Rental Income And Lower Finance Costs Lift First-Half Earnings

Mall of Cyprus (MC) Plc reported a 25.5% rise in first-half profit for 2026, supported by stronger income from commercial space and a decline in finance costs, while its liquidity position improved materially.

According to the company’s unaudited interim financial statements for the six months ended June 30, 2026, filed via the Cyprus Stock Exchange’s official disclosure system, profit after tax increased to €5.96 million from €4.75 million a year earlier.

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Leasing Revenue Remains The Core Growth Driver

Revenue from rights for the use of space and other income climbed almost 8% to €10.39 million, compared with €9.63 million in the first half of 2025.

The improvement was driven primarily by stronger performance across the mall’s commercial spaces. Minimum licence fees rose to €7.75 million from €7.34 million, while additional licence fees increased to €185,118 from €151,837.

Licence fees tied to common-area contributions also edged higher, reaching €711,979 from €700,806, and turnover-related licence fees advanced to €173,486 from €152,951. In total, licence-fee income increased to €8.28 million from €7.82 million. Income from recharged utilities and other recoveries also improved, rising to €2.11 million from €1.81 million.

Other operating income, which includes advertising, car parking and electricity income, increased to €720,982 from €453,481 in the comparable period last year.

Operating Profit Expands Despite Higher Expenses

As a result, operating profit rose by about 17% to €8.68 million from €7.42 million.

Administration and other operating expenses also increased, though at a slower pace, to €2.75 million from €2.58 million. Property management, maintenance and utility costs accounted for roughly €2.25 million of that total.

Net finance costs declined slightly to €2.17 million from €2.24 million a year earlier, helping support the stronger bottom line. Profit before tax climbed to €6.53 million, compared with €5.14 million in the first half of 2025.

Tax Changes And Dividend Distribution Weighed On The Bottom Line

The company’s tax charge rose to €569,236 from €389,866, with the financial statements noting that Cyprus’ corporation tax rate increased to 15% from 12.5%.

Earnings per share improved to 1.79 cents from 1.42 cents in the prior-year period. On July 3, Mall of Cyprus also approved an interim dividend of €6 million, which was paid to shareholders on July 20.

Balance Sheet Strengthens As Cash Rises

The company ended the period with a stronger cash position. Cash at bank and in hand stood at €13.63 million on June 30, compared with €9.14 million at the end of 2025.

Total assets rose to €255.1 million from €250.7 million at the end of December, while total equity increased to €127.61 million from €121.65 million.

Investment property was valued at €239.73 million, with the company recording a €213,461 fair-value loss on investment property during the first half of the year.

Borrowings declined to €97.23 million from €98.14 million at the end of 2025, while the weighted average effective interest rate on bank loans fell to 4.02% from 4.28%.

Cash generated from operations came to €7.81 million, while net cash generated from operating activities reached €7.68 million, compared with €8.12 million in the same period last year.

Tenant Relations And Cost Discipline Remain The Focus

Mall of Cyprus’ principal activity remains the leasing and granting of rights for the use of space at Shacolas Emporium Park in Strovolos, home to the Mall of Cyprus, IKEA and other retail and commercial developments.

Management said its priorities are to maintain close relationships with tenants, secure new occupiers where possible and keep operating costs under control, while continuing to monitor economic and geopolitical risks that could affect consumer spending and the wider retail sector.

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Mitsides Lifts First-Half Profit 14% As Margin Gains Offset Softer Sales

by THEFUTURE.TEAM

September 30, 2026

Mitsides Public Company Ltd posted a solid improvement in first-half profitability in 2026, with net profit rising almost 14 per cent despite a modest decline in revenue, supported by a stronger gross margin and lower financing costs.

According to the group’s interim financial statements, published on its website (Mitsides Group), profit after tax increased to €727,134 in the six months to June 30, from €640,011 a year earlier, an advance of 13.6 per cent.

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Margins and Finance Costs Drive The Improvement

Turnover edged down 1.05 per cent to €18.92 million, compared with €19.12 million in the corresponding period of 2025. Mitsides, which produces and distributes flour and pasta, imports and distributes food products, trades grain and operates in Serbia through its wholly owned subsidiary Mitsides Point, nonetheless delivered stronger profitability across key lines.

The main driver was a wider gross margin, which increased to 27.96 per cent from 26.7 per cent a year earlier. Operating profit also improved, rising to €1.07 million from €1.03 million in the first half of 2025.

At the same time, selling, promotion and administrative expenses increased to €4.21 million, or 22.25 per cent of sales, from €4.03 million, or 21.08 per cent of sales, a year earlier. Even with that rise in overheads, the group benefited from lower borrowing costs, helping preserve momentum at the bottom line.

Lower Borrowing Costs Support Earnings

Net finance expenses fell 25 per cent to €163,225 from €217,775. As a result, profit before tax climbed to €902,192 from €810,508 in the comparable period of 2025. Earnings per share rose to 8.87 cents from 7.81 cents.

The company also reported an improvement in short-term liquidity. Its current ratio increased to 1.35 at the end of June from 1.25 at the end of 2025, although the quick ratio softened to 0.63 from 0.69.

Balance Sheet Strength Improves

Total assets stood at €38.01 million, down from €40.01 million at the end of December, while shareholders’ equity increased to €19.95 million from €19.23 million. Net asset value per share rose to €2.43 from €2.35.

At June 30, the group had €6.94 million in floating-rate borrowings, trade receivables of €7.75 million and bank balances of €717,088.

Growth Plans Continue Amid Geopolitical Uncertainty

Looking ahead, Mitsides said it will continue investing to expand exports while defending its position in the Cypriot market. The group also highlighted uncertainty linked to the wars in Ukraine and the Middle East, as well as persistent inflationary pressures.

In Serbia, where operations are carried out through the wholly owned subsidiary Mitsides Point D.o.o., the business continued to operate against a backdrop of political and economic uncertainty. The company noted that Serbia remains committed to its European path, with the government aiming to complete the technical criteria for EU accession by the end of 2026.

The board did not recommend an interim dividend for the period. Separately, Mitsides completed payment in August of a €410,000 final dividend, equivalent to €0.05 per share, drawn from profits accumulated during the 2023 financial year.