Alkis H. Hadjikyriacos (Frou - Frou Biscuits) Public Limited recorded a significant increase in profitability in 2025, mainly due to the increase in turnover and credit dividends, as well as surpluses from the revaluation of investments in gold and investment properties.
More specifically, according to last year's annual financial statements, profit before tax increased by €3,359,132, reaching €5,992,513, marking an increase of 127.56%.
At the same time, the Group's turnover for the year increased by €899,603, reaching €25,293,973, which corresponds to an increase of 3.69% compared to 2024.
The company's profit for the year amounted to €3,482,058 from €1,747,857 in 2024, while in the consolidated statement the profit for 2025 reached €4,569,506 compared to €2,460,482 in 2024.
It is noted that the Board of Directors will propose to the Annual General Meeting of Shareholders (to be held on 28 May 2020) the payment of a dividend of €1,878,353 (2024: €1,581,772), corresponding to €0.0190 per share (2024: €0.0160) or 7.31% (2024: 6.15%) of the nominal value of the company's share capital. The proposed dividend is distributed from profits of 2024 and 2025 and is equivalent to a dividend yield of 4.42%, on the average closing price of the share of €0.43 on 31 December 2025 (2024: €0.34).
Operating profits increased
The Group's gross profit for 2025 increased by €806,084 to €9,881,489, an increase of 8.88% compared to 2024, mainly due to the increase in turnover, while other income increased by €840,341 to €2,252,894, mainly due to the increase in credit dividends and other investment income. The increase in other operating income mainly concerns the reversal of a provision for legal fees, relating to cases that were either closed or did not proceed to court.
At the same time, operating profit increased by €3,887,612 to €6,701,345. Administrative expenses increased by €429,805 to €3,625,522, mainly due to the increase in personnel costs, and sales and distribution expenses decreased by €232,688 to €3,372,708, mainly due to the decrease in promotion, marketing and advertising expenses.
Financing costs increased
According to the annual financial statements of Alkis H. Hadjikyriacos (Frou - Frou Biscuits) Public Limited, net financing costs increased from €180,352 to €708,832, mainly due to the loss from the dollar exchange rate on the zero-interest bonds of the United States of America.
It is noted that part of the total foreign exchange loss was not realised, as it comes from the conversion at the exchange rate in effect on December 31, 2025.
Furthermore, during 2024, machinery, equipment and development costs relating to recipes and know-how that are no longer used in the production of the Group's products were fully written off. Losses of €495,208 relating to the write-off were recognised in the consolidated income statement for the year ended 31 December 2024.
Sale of investments in New York and Cyprus
It is worth mentioning that during 2025, the subsidiary company Frou-Frou Investments Limited made a profit from the sale of its portfolio investments in New York and Cyprus of €368,978 and €670,311, respectively, compared to €663,380 and €459,280 respectively in 2024 from the liquidation of shares.
As noted, the realised profit had previously been recognised in the investment revaluation reserve and therefore the profit was transferred from the investment revaluation reserve to the income reserve.
Profit from sale of shares and possible liquidation in 2026
As a result of the sale of certain shares listed on stock exchanges during the year, a gain of €1,039 thousand has been realised from €1,123 thousand in 2024, in the consolidated financial statements representing an amount previously recognised in the investment revaluation reserve and therefore the gain was transferred from the investment revaluation reserve to the revenue reserve.
As of 31 December 2025, the Group's current assets exceeded total current liabilities by €13,833,292 (2024: €528,595).
As noted, during 2026, the Board of Directors may proceed to liquidate a specific number of investments depending on prevailing market conditions and these investments have been classified as current assets.
(Source: InBusinessNews)
