logicom profit — Logicom’s impressive profit growth of 25.8% to €32,069,630 for the first nine months of 2025 highlights the company’s resilience, even as sales see a downturn.
- logicom profit — Logicom's impressive profit growth of 25.8% to €32,069,630 for the first nine months of 2025 highlights the company's resilience, even as sales see a downturn.
- A foreign exchange gain of €2,290,348 was recorded, a significant increase from €81,325 in 2024, primarily due to the US dollar's strengthening against the euro.
The surge in profit, compared to €25,497,710 during the same period last year, is attributed to increased other income from its controlled entity, Demetra Holdings Plc. This financial uplift comes despite a backdrop of declining turnover and rising costs.
Logicom profit: Sales Decline Yet Profit Grows
Gross sales for Logicom fell by 5.1% to €899.3 million from €947.7 million, with sales in the distribution division dipping by 3.6%. Key markets such as Saudi Arabia, Qatar, Kuwait, Italy, and Romania experienced reduced volumes, while the software and integrated IT solutions division saw a staggering 23.3% drop, largely due to weaker sales in Cyprus and Greece.
Group sales, encompassing both principal revenues and agency transaction profits, decreased by 8.6% to €768.1 million, down from €840.7 million last year. Nevertheless, the gross profit margin remained steady at 8.5%, demonstrating some operational stability.
Boost from Other Income
Logicom’s other income skyrocketed to €10,299,288 from just €1,007,712, significantly bolstered by contributions from Demetra Holdings Plc. This included interest, rent, dividends, and profits from financial assets totalling €9,074,386. Additional support came from supplier contributions and collaboration agreements.
Reduced Expected Credit Losses
The firm also reported a notable reduction in expected credit losses, which fell to €244,763 from €1,883,293. The previous year had seen a significant impairment of €1,652,332 on a loan to the jointly controlled company M.N. Larnaca Desalination Co. Ltd, following a reassessment of cash flows under arbitration.
Rising Administrative Costs
Despite the profit increase, Logicom faced an 8.1% rise in administrative expenses, which reached €45,953,776. This hike reflects higher personnel and infrastructure costs linked to expansion efforts, along with the consolidation of operating expenses from Demetra Holdings Plc amounting to €1,483,295.
Operating Profit Dynamics
Profit from operating activities, excluding Demetra’s results, saw a decline of 20.8% due to lower turnover and increased administrative costs. Conversely, total operating profit, including Demetra, rose by 6.3% to €29,686,024 from €27,932,051, thanks to the surge in other income.
Foreign Exchange Gains Contribute
A foreign exchange gain of €2,290,348 was recorded, a significant increase from €81,325 in 2024, primarily due to the US dollar’s strengthening against the euro.
Increased Stake in Demetra
Logicom’s investment in Demetra Holdings Plc has also been a critical factor. The company increased its shareholding to 38.5% throughout January and April 2025, which resulted in negative goodwill of €16,278,001 being eliminated from the consolidated profit and loss statement.
Outlook for the Future
Looking ahead, Logicom remains optimistic about its profitability from ordinary activities, bolstered by higher other income, reduced expected credit losses, and favourable exchange rates. However, the company acknowledges the challenges posed by lower turnover and rising administrative expenses. Management is committed to monitoring market conditions closely while aiming for growth in both existing and new markets throughout 2025.
