Vassilico Cement reports €35.5 million net profit for 2025

Vassilico Cement Works Public Company Ltd on Friday reported strong financial results for 2025, with net profit reaching €35.52 million for the group and €34.99 million for the company.

The group recorded revenues of €152.75 million, while the company posted revenues of €152.66 million, marking an 11 per cent increase year-on-year.

According to the company’s financial results, this growth was primarily driven by higher domestic sales volumes, supported by stronger activity in Cyprus’ construction sector.

Gross profit rose significantly to €50.30 million for the group and €50.21 million for the company, compared with €42.49 million in 2024.

The improvement reflects gains in production efficiency and disciplined cost management, including enhanced electricity efficiency and increased use of alternative fuels, the company explained.

These initiatives contributed to lower unit production costs and supported the group’s environmental strategy.

Executive Chairman Antonis Antoniou pointed out that domestic demand remained strong throughout the year, underpinned by sustained construction activity across Cyprus.

“The group maintained a strong focus on the local market and operated with optimum production volumes, whilst exports were managed on a targeted basis,” Antoniou said.

He further stated that macroeconomic conditions in Cyprus remained supportive and contributed positively to overall performance during the year.

“The year 2025 was marked by improved activity in the local construction sector, while regulatory developments for environmental targets at European level and ongoing geopolitical uncertainty continued to shape industry conditions,” the executive chairman stated.

“Despite these challenges, the company and the group remained focused on their core priorities and delivered a strong operational and financial performance,” he added.

“Operationally, continued emphasis was placed on production efficiency, cost discipline and reliability,” Antoniou said.

The chairman also said that “the continued efforts of our people across all levels of the organisation once again played a central role in delivering consistent performance under increasingly demanding external conditions”.

Looking ahead, the group said its outlook is increasingly shaped by developments in global energy markets and evolving European climate policies.

Particular focus is being placed on carbon pricing mechanisms and the implementation of the Carbon Border Adjustment Mechanism (CBAM).

Energy costs remain volatile due to geopolitical developments affecting key international supply routes, especially in the wider Middle East region.

These pressures have resulted in higher fuel costs and increased strain on electricity prices, affecting energy-intensive industries.

“Uncertainty remains surrounding the European Green Deal, as the evolving CO2 emissions regulatory framework and the implementation of the Carbon Border Adjustment Mechanism continue to challenge planning and investment decisions across the sector,” Antoniou said.

The group acknowledged that cement production remains inherently emissions-intensive due to unavoidable process emissions.

Despite this, it continues to prioritise efficiency improvements and cost mitigation measures.

In renewable energy, the Group completed its contribution to the expansion of its photovoltaic park, increasing installed capacity to 16MW.

However, the connection of the additional 8MW capacity to the national grid remains dependent on infrastructure works by the Electricity Authority of Cyprus.

Once connected, the expanded facility is expected to improve the Group’s energy mix and reduce exposure to electricity price volatility.

At the same time, nationwide power curtailments imposed by the grid regulator continue to limit the effectiveness of photovoltaic installations, the company pointed out.

Meanwhile, the group said it continues to evaluate targeted investments to expand the use of alternative fuels and enhance operational efficiency.

It also remains closely aligned with developments in energy markets, regulation and geopolitics, adjusting its priorities accordingly.

It should be noted that on September 25, 2025, the board of directors approved an interim dividend of €0.15 per share, amounting to €10.79 million.

Based on the 2025 performance and outlook, the board will propose a final dividend of €16.55 million, or €0.23 per share.

Combined with the interim dividend, the total proposed dividend amounts to €27.34 million, or €0.38 per share.

“Going forward, we remain committed to efficiency, sustainability and long-term value creation,” Antoniou concluded.