Earnings And Profitability In Q1 2026

Logicom Public Ltd reported a 55.2% decline in shareholder profit for the first quarter of 2026, with earnings falling to €10.7 million from €23.9 million in the same period last year.

According to the company, the decrease mainly reflected a smaller write-off of negative goodwill related to investment acquisitions, as well as lower turnover, gross profit, and other income. Lower administrative expenses, reduced expected credit losses, and lower taxation partly offset the impact.

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Regional Sales And Division Performance

Gross sales declined by 2% to €286.6 million, compared with €292.4 million a year earlier. Sales in the distribution segment fell by 0.9%, with weaker performance recorded in Saudi Arabia, the United Arab Emirates, Kuwait, and Romania. A steeper decline was reported in the software solutions and integrated IT division, where gross sales dropped by 18.4%, mainly due to lower activity in Cyprus and Greece.

Operational Adjustments And Financial Management

Despite lower revenue, gross profit margins on gross sales improved slightly to 7.9% from 7.8%, while reported sales margins increased to 11.3% from 9.7%. Excluding controlled entity Demetra Holdings Plc, operating profit from ordinary activities rose by 4%, supported by lower administrative expenses and reduced expected credit losses. Financing costs also declined. Expenses related to banking facilities fell by 27.7% to €1.6 million, reflecting lower net borrowings and more favourable lending rates.

Strategic Acquisitions And Future Outlook

Logicom acquired a 31.8% stake in AGI-Cypre Property 45 Limited through Najada Holdings Limited, while Demetra Holdings Plc acquired an additional 26.3% stake. According to the company, the transaction resulted in a write-off of negative goodwill, reflecting the difference between the acquisition cost and the net asset valuation at the time of purchase. Operations through Verendrya Ventures Limited also continued, with the group maintaining its participation in the desalination plants in Episkopi and Larnaca.

Outlook

In line with board estimates, first-quarter results did not include non-recurring gains or extraordinary items. Management said it remains focused on financial discipline and operational efficiency as the group responds to current economic conditions.