Information Technology Logitech grows in the second quarter of 2024/25 and raises outlook

Logitech increased both sales and profit in the second quarter of the 2024/25 financial year. In addition, the computer accessories manufacturer has once again raised its outlook, which was only increased in the first quarter of the year.

Turnover in the months of July to September rose by 6 percent to 1.12 billion US dollars, as the Group announced on Tuesday. The growth was broad-based across all regions and almost all categories, CEO Hanneke Faber was quoted as saying.

In addition, operating profit (EBIT, non-GAAP) adjusted for acquisition and restructuring costs rose by 5 percent to 192.8 million dollars. EBIT (GAAP) improved by 3 percent to 160.9 million. Logitech achieved a significant improvement in gross margin, which increased by 210 basis points to 43.6 percent (GAAP) and 44.1 percent (non-GAAP).

On the bottom line, Logitech posted unadjusted net income (GAAP) of 145.5 million dollars. This is an increase of 6 percent.

Logitech thus exceeded analysts' expectations, particularly with regard to the adjusted non-GAAP figures and the margin, but otherwise fell slightly short.

Regional and category growth

With regard to the individual regions, all three showed growth, the letter to shareholders continues. The EMEA region in particular grew strongly by 13 percent at constant exchange rates. However, the Americas also recorded an increase of 5 percent, while the Asia-Pacific region only achieved slight growth of 1 percent. Overall, demand has improved and business with both private end customers and business customers has grown.

In addition, the broadly diversified portfolio performed excellently for the second quarter in a row. Almost all categories increased in terms of net sales, for example the largest division, gaming, by 7 percent to just over 300 million dollars. Keyboards (+8%) and equipment for conference rooms (Video Collaboration, +5%) also recorded growth. The somewhat smaller segment for tablet accessories saw particularly strong growth (+34%), while sales of webcams (-9%) declined.

Outlook raised again

The company is once again raising its outlook for the full year 2024/25. Logitech is now targeting revenue of USD 4.39 to 4.47 billion, which would correspond to growth of 2 to 4 percent. Non-GAAP operating profit is expected to reach 720 to 750 million - an increase of 3 to 7 percent. The company had previously forecast sales of 4.34 to 4.43 billion US dollars and a non-GAAP operating profit of 700 to 730 million US dollars.

CEO Faber is positive in the press release thanks to the numerous innovations that Logitech has brought to the market. These include, for example, new keyboards for gamers and the "PRO Series" for e-athletes and gaming competitions. "We are ready for the holidays," she is quoted as saying.

SDA