after-tax profit — Logicom Public Ltd has announced an impressive after-tax profit of €29,672,258 for the first half of 2025, reflecting a remarkable increase of approximately 87.4% from €15,826,856 during the same period last year.
- Management remains vigilant in monitoring developments to uphold growth prospects while ensuring the group’s sustainability and robust financial standing.
Despite this growth in profit, the company faced challenges as gross sales declined by 8.2%, totalling €582,035,865 compared to €634,187,515 in the first half of 2024. The distribution division’s sales fell by 5.7%, primarily impacted by reduced sales in the Gulf, Italy, Romania, and Greece.
The software and IT solutions division experienced a steeper decline, suffering a 33.4% drop in sales, largely due to decreased demand in Cyprus and Greece. Overall, the group’s sales decreased by 14.6% to €489,947,612 from €573,868,340 in the previous year.
In terms of profit margins, Logicom saw a slight improvement, with the gross profit margin on sales rising from 8.3% in the first half of 2024 to 8.9% this year, despite the overall sales reduction. Other income also saw a significant increase, climbing from €770,648 to €1,209,074, which included a notable compensation receipt of €762,462 from its subsidiary Logicom Italia s.r.l. in Italy.
The company reported a significant reduction in expected credit losses, which fell to €138,444 from €1,806,625 in the prior year. This positive shift was attributed to an additional impairment recognised in 2024 from Verendrya Ventures Limited.
Administrative expenses, however, increased by 6.1% to €30,298,488, driven by higher personnel and infrastructure costs as the company expanded into new markets and product offerings. Profit from operating activities took a hit, decreasing by 19.2% to €14,601,815, influenced by lower sales, reduced gross profit, and rising administrative expenses, even as other income increased and expected credit losses declined.
On a positive note, net financing costs saw a dramatic drop to €1,903,415 from €8,024,945, thanks to lower net borrowings and decreased interest rates in both US dollars and euros. Moreover, the group recorded a foreign exchange gain of €2,429,090, a stark contrast to a loss of €687,975 in the first half of 2024, bolstered by effective hedge accounting practices.
The net profit contribution from associated companies also increased, rising to €20,214,835 from €11,680,075 in 2024. This improvement was largely due to the elimination of negative goodwill following Logicom’s increased stake in Demetra Holdings Plc.
As of the end of June 2025, the company reported a debit balance of €56,521,136 in cash and cash equivalents, up from €50,610,466 at the end of 2024. Short-term loans decreased to €112,480,899 from €122,570,909, while long-term loans fell to €12,231,104 from €14,812,954.
Logicom’s subsidiary, Verendrya Ventures Limited, continues to play a vital role in water infrastructure projects, including operating desalination units in Episkopi and Larnaca, in collaboration with Demetra Holdings Plc. All outstanding arbitration claims related to these projects have been settled.
The board acknowledged that inflationary pressures and regional market volatility have raised operational costs during the first half of 2025. While profitability from regular operations showed a slight decline, several factors, including increased other income, lower expected credit losses, reduced financing costs, and favourable foreign exchange effects, contributed to a strengthened financial position.
Management remains vigilant in monitoring developments to uphold growth prospects while ensuring the group’s sustainability and robust financial standing.
