Keo reports 8% profit decline in H1 2026 despite improved gross margin
Cypriot beverage company Keo plc reported a net profit of €2.97 million for the first half of 2026, marking an 8% decline from €3.23 million in the same period last year. This drop was primarily driven by weaker sales, with turnover falling by 3.13% to €32.34 million. Despite this, the company managed to improve its gross profit margin to 34.9% from 33.9% a year earlier, maintaining gross profit at €11.3 million.
Operating profit also decreased to €2.5 million from €2.9 million in the first half of 2025. The company attributed the softer financial results to challenging market conditions and a lack of one-off sales agreements that had boosted prior year figures. Keo's portfolio includes beer, wine, juice, and bottled water production, alongside imports and distribution within Cyprus.
Looking ahead, Keo is advancing plans for a new €25 million beverage factory in Kato Polemidia, which recently passed environmental screening and does not require a full impact assessment. The facility is expected to be operational within two years and will expand the company’s production and distribution capabilities, complementing its existing winery in Mallia.
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