Information Technology Logitech with increased earnings in the third quarter - outlook raised

The computer accessories manufacturer Logitech performed strongly in terms of both sales and profits in the important Christmas quarter. Logitech once again raised its outlook. The company's figures clearly exceeded analysts' expectations.

Sales in the third quarter of the 2024/25 financial year rose by 7 percent to 1.34 billion US dollars, as Logitech announced late Tuesday evening. At constant currencies, revenue would have increased by 6 percent. The adjusted gross margin (non-GAAP) improved by 90 basis points to 43.2 percent.

Operating profit (EBIT, non-GAAP) adjusted for acquisition and restructuring costs also increased by 7 percent to 265.9 million dollars.

Following the strong recovery in the previous year, the corresponding net profit (non-GAAP) remained at the previous year's level at 241.5 million dollars. At 200.1 million dollars, however, reported profit was 18% down on the previous year.

Sales in the various product categories developed positively for the most part. For example, sales of gaming accessories rose by 14 percent, which, thanks to innovations, are now close to the high coronavirus pandemic level again, according to reports.

Keyboards and combos saw an increase of 3 percent. Demand for video collaboration increased by 4 percent. Only PC webcams (-2 percent) and other accessories (-27 percent) were less in demand, while headsets (+10 percent) were strong.

The Group now expects sales of 4.54 to 4.57 billion dollars, which corresponds to an increase in sales of 5.4 to 6.4 percent in dollar terms. Non-GAAP EBIT is now expected to be between 755 and 770 million. This represents an increase of 8 to 10 percent.

Logitech had previously forecast sales of between 4.39 and 4.47 billion dollars, which would have been an increase of between 2 and 4 percent. Adjusted EBIT should increase by 3 to 7 percent to 720 to 750 million.

SDA