Logicom Public Ltd on Friday reported a profit after tax of €29,672,258 for the first half of 2025, nearly doubling from €15,826,856 in the same period last year, representing an increase of approximately 87.4 per cent, according to the company’s interim financial statements.

However, the group’s gross sales fell by 8.2 per cent to €582,035,865, compared with €634,187,515 for the first half of 2024.

Sales from the distribution division declined by 5.7 per cent due to lower sales in the Gulf, Italy, Romania and Greece.

The software and IT solutions division saw a steeper decline of 33.4 per cent, primarily driven by reduced sales in Cyprus and Greece.

Overall group sales decreased by 14.6 per cent to €489,947,612 compared with €573,868,340 for the same period last year.

The gross profit margin on sales improved slightly, rising from 8.3 per cent in the first half of 2024 to 8.9 per cent this year, despite the overall reduction in sales.

Other income increased from €770,648 to €1,209,074, largely due to a compensation receipt of €762,462 from subsidiary Logicom Italia s.r.l. in Italy for insurance coverage, alongside supplier contributions and third-party collaboration income.

Expected credit losses fell significantly to €138,444 from €1,806,625 in the prior year, reflecting an additional impairment recognised in 2024 from Verendrya Ventures Limited.

Administrative expenses rose by 6.1 per cent to €30,298,488, reflecting higher personnel and infrastructure costs linked to expansion into new markets and product offerings.

Profit from operating activities decreased by 19.2 per cent to €14,601,815, mainly due to lower sales, reduced gross profit, and higher administrative expenses, despite the rise in other income and the drop in expected credit losses.

Net financing costs dropped sharply to €1,903,415 from €8,024,945, thanks to lower net borrowings and reduced interest rates in US dollars and euros.

What is more, the group recorded a foreign exchange gain of €2,429,090 compared with a loss of €687,975 in the first half of 2024, supported by hedge accounting practices.

The net profit contribution from associated companies rose to €20,214,835 from €11,680,075 in 2024, boosted by the elimination of negative goodwill following the increased stake in Demetra Holdings Plc.

The group’s cash and cash equivalents, net of bank overdrafts, showed a debit balance of €56,521,136 at the end of June 2025, compared with €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.

The company also reported that Logicom’s subsidiary, Verendrya Ventures Limited, continued its involvement in water infrastructure projects, including the operation of desalination units in Episkopi and Larnaca in partnership with Demetra Holdings Plc, with all outstanding arbitration claims settled.

The board further stated that inflationary pressures and regional market volatility increased operational costs during the first half of 2025.

It added that profitability from regular operations showed a marginal decline, but that positive factors including higher other income, lower expected credit losses, reduced financing costs, and favourable foreign exchange effects helped strengthen the group’s financial position.

Finally, management confirmed that it is “closely monitoring developments to maintain growth prospects while safeguarding the group’s sustainability and strong financial standing“.