The Mall of Cyprus (MC) Plc this week reported a strong financial performance for the year ended December 31, 2024, with net profit after tax reaching €10.46 million, up from €9.67 million in 2023.

The company, which manages the Shacolas Emporium Park, recorded revenue of €19.57 million for the year, compared to €18.83 million the previous year.

Operating profit surged to €18.32 million from €15.75 million, reflecting what the board of directors called a “compelling narrative of growth and adaptability.”

The Mall of Cyprus, which includes the shopping mall, IKEA store, and additional retail and commercial buildings, benefited from increased consumer spending, improved tenant performance, and strategic upgrades to its offerings.

The growth in licensee turnover rose by 8 per cent in 2024, with vacancy rates reported as being close to zero.

“The substantial increase in foot traffic throughout 2024 not only reflects renewed consumer interest but also underscores the mall’s ability to attract visitors and foster a vibrant shopping atmosphere,” the board stated.

New brands and extensive store renovations were highlighted as key factors in reinforcing the mall’s role as a leading fashion destination in Cyprus.

“Despite encountering challenges such as inflationary pressures stemming from geopolitical tensions, the Mall demonstrated notable growth,” the board explained.

Total assets rose to €240.62 million from €230.88 million, although net assets dipped slightly to €116.06 million, down from €119.21 million.

The company’s financial position and performance were described as satisfactory, with the board noting that no significant changes in operations or financial standing are expected in the near future.

In terms of risk, the company remains exposed to interest rate volatility, with all borrowings totalling €100.31 million bearing variable interest rates.

The report also mentioned that management continues to monitor rate fluctuations closely, although hedge accounting is not applied.

Elsewhere, the report showed that the mall’s credit risk profile remained stable.

Trade and other receivables amounted to €2.06 million, net of cumulative expected credit losses of €509.81 thousand.

Loans receivable were recorded at €976,692 , and cash balances at year-end totalled €9.30 million.

Moreover, capital risk was managed prudently. Net debt climbed to €91 million in 2024, up from €83.83 million in 2023.

With equity of €116.06 million, the gearing ratio increased to 43.95 per cent from 41.29 per cent.

Two interim dividends were approved during the year. A dividend of €7.50 million was paid in April 2024 from the prior year’s profit, and another €5 million was approved in November 2024 for the current financial year.

The board has not recommended any additional dividend distributions beyond those already declared.

“The mall’s financial performance for 2024 exemplifies a compelling narrative of growth, and adaptability, underscored by significant increases in foot traffic and licensee turnover despite the backdrop of ongoing geopolitical uncertainties and economic challenges,” the board concluded.