Mitsides Public Company Ltd increased first-half profit by almost 14 per cent in 2026 despite a slight decline in sales, helped by a stronger gross margin and lower financing costs.

According to the group’s newly published interim financial statements, profit after tax rose to €727,134 in the six months to June 30, from €640,011 a year earlier, an increase of about 13.6 per cent.

Turnover, however, slipped 1.05 per cent to €18.92 million, compared with €19.12m in the corresponding period of 2025. The company produces and distributes flour and pasta, imports and distributes food products, trades grain and operates in Serbia through its wholly owned subsidiary Mitsides Point.

The improvement in profitability came partly from a wider gross margin, which increased to 27.96 per cent from 26.7 per cent a year earlier.

Operating profit also moved higher, reaching €1.07m, compared with €1.03m in the first half of 2025.

At the same time, selling, promotion and administrative expenses increased to €4.21m, representing 22.25 per cent of sales, from €4.03m, or 21.08 per cent of sales, a year earlier.

The group nevertheless benefited from lower borrowing costs, with net finance expenses falling to €163,225 from €217,775, a reduction of roughly 25 per cent.

As a result, profit before tax increased to €902,192, from €810,508 in the corresponding period of 2025. Earnings per share rose to 8.87 cents from 7.81 cents.

Mitsides also reported an improvement in short-term liquidity. Its current ratio stood at 1.35 at the end of June, compared with 1.25 at the end of 2025, while its quick ratio was 0.63, down from 0.69.

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

The group had €6.94m of floating-rate borrowings at June 30, while trade receivables stood at €7.75m and bank balances at €717,088.

Looking ahead, Mitsides said it would continue its investment programme, including efforts to increase exports and maintain its position in the Cypriot market. It also pointed to uncertainty stemming from the wars in Ukraine and the Middle East, alongside inflationary pressures.

In Serbia, where the group operates through wholly owned subsidiary Mitsides Point D.o.o., operations continued despite political and economic uncertainty. The company said Serbia remained committed to its European course, with the government seeking 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 of a €410,000 final dividend in August, equivalent to €0.05 per share and drawn from profits accumulated during the 2023 financial year.