Demetra Holdings Plc reported a profit of €132.5 million for 2024 during its annual general meeting on June 24, with acting chairman Nearchos Ioannou addressing shareholders.

Opening the meeting, Ioannou thanked shareholders for their “continued support”, stressing that the occasion was particularly significant given Demetra’s position as the largest listed investment company on the regulated market of the Cyprus Stock Exchange.

He said this achievement was the result of “consistent strategic focus and disciplined execution”.

Ioannou added that Demetra had “maintained upward momentum despite a global economic and geopolitical landscape marked by volatility and uncertainty since the beginning of the year”.

Turning to the domestic economy, Ioannou pointed out that Cyprus posted one of the highest growth rates in the eurozone in 2024, with GDP growing by 3.4 per cent.

This was driven by a strong recovery in tourism, robust domestic consumption, and increased penetration in services and technology.

Inflation, meanwhile, moderated to 2.2 per cent, while unemployment fell to 4.6 per cent in the fourth quarter. In addition, a fiscal surplus of 4.3 per cent helped reduce public debt to 65 per cent of GDP.

Looking ahead, he forecast stable growth of around 3 per cent in 2025, with inflation remaining close to 2.2 per cent.

He said net exports were expected to remain strong, particularly in the services sector, while investment activity would accelerate, supported by EU Recovery and Resilience funds and ongoing large-scale construction projects.

Furthermore, he cited Moody’s upgrade of Cyprus’ credit rating to A3 in November 2024 as a sign of confidence in the economy.

However, Ioannou warned that risks remained. He said that both the OECD and the IMF had recently cautioned about slowing global growth and the risk of overheating in the Cypriot economy.

Public spending pressures, he continued, and a persistently high level of non-performing loans within credit-acquiring companies were also concerns, as they continued to “constrain domestic capital mobilisation“.

He added that the high concentration in the banking sector should also prompt reflection, noting that “a healthy degree of competition benefits both consumers and businesses”.

Moreover, he urged immediate action to “liberalise the energy market“, arguing that the current delays were harming both business competitiveness and household living standards.

On the international front, he pointed to ongoing geopolitical tensions, trade disruptions and energy price volatility as key risks threatening macroeconomic stability and financial markets worldwide.

He said that “Demetra was carefully evaluating these risks as part of its forward planning and investment strategy”.

“We must adapt, remain flexible, and grow under new terms and new conditions,” he added.

In reviewing 2024 financial results, Ioannou said they were largely shaped by the successful exit from Demetra’s long-standing investment in Hellenic Bank.

“After 12 years as a shareholder”, he said, “the company believed it had contributed meaningfully to the bank’s restructuring”.

Although Demetra received no dividends during that time, the investment ultimately yielded a compounded annual return of 19.7 per cent between 2012 and 2024.

The company reported a group profit after tax for 2024 totalled €132.5 million, up from €86.2 million in 2023.

Net assets rose to €499.8 million, equivalent to €2.50 per share, reflecting a 35.9 per cent annual increase and a compound annual return of 16.6 per cent since 2021.

He clarified that the gains from the sale of Hellenic Bank shares were only realised in February 2025, following the transaction with Eurobank S.A.

“The reported profits in 2024 and earlier years do not reflect realised gains,” he said.

“With a now healthy and robust balance sheet”, Ioannou said, “Demetra was well-positioned to enter its next phase of development”.

“The road ahead demands adaptability, flexibility and transparency,” he stated.

Finally, he assured shareholders that Demetra would remain committed to its mission of creating long-term value, saying “that is, and will remain, our focus”.