Demetra Holdings reported a lower net profit for the first half of 2026, with the company’s results affected by losses on equity investments despite stronger rental income and sharply lower finance costs.

The company’s board approved the interim condensed consolidated financial statements for the six months ended June 30, 2026 at a meeting earlier this week.

Demetra Holdings reported net profit after tax of €6.87 million, or 3.45 cents per share, for the first half of 2026, compared with €10.22 million, or 5.11 cents per share, in the corresponding period of 2025.

The company said the result was significantly affected by the recognition of €6.05 million in negative goodwill arising from the acquisition of a subsidiary during the period.

Negative goodwill is recognised when the value of the net assets acquired exceeds the purchase consideration paid for a business.

The company’s net asset value per share stood at 259.30 cents on June 30, 2026, up from 255.43 cents at the end of 2025, representing an increase of 1.5 per cent.

Demetra’s holdings in equity securities generated a loss of €2.18 million during the first half of the year, compared with a profit of €7.96 million in the same period of 2025.

Dividend income, however, increased substantially to €15,677 from €940 in the corresponding period.

Interest income fell by 4.6 per cent to €3.16 million, compared with €3.31 million a year earlier, mainly as a result of lower interest rates during 2026.

The group’s real estate activities provided a stronger contribution, with net rental income rising 31.2 per cent to €1.59 million, compared with €1.21 million in the first half of 2025.

Demetra attributed the increase mainly to its acquisition in March 2025 of a nine-storey office building valued at approximately €30.50 million.

The group also recorded a €54,364 loss from the revaluation of land and properties, compared with a €10,680 loss in the first half of 2025.

Operating expenses increased by a relatively modest 2.3 per cent to €1.17 million, from €1.15 million a year earlier.

Finance costs, meanwhile, fell sharply by 86.6 per cent to €80,616 from €602,901.

The company attributed the reduction to the full repayment of all its loan facilities in February 2026.

The €6.05 million negative goodwill recognised following the acquisition of a subsidiary was included in the group’s first-half 2026 results.

In the first half of 2025, the group had also recognised a provision of €26,010 for expected credit losses on bank balances under IFRS 9, the international accounting standard covering financial instruments.

As of June 30, 2026, the group’s total assets stood at €522.66 million, compared with €521.14 million at December 31, 2025.