Logicalis Latin America performance

US$ million		FY23	FY22	% movement
Revenue		491.0	522.7	(6)
In constant currency, revenue improved by 1.2%.
Gross profit		109.5	106.5	3
Gross margin (%)		22.3	20.4
Underlying gross margin percentage remained solid with the headline increase caused by the better mix of services delivered in FY23.
Operating costs		(88.3)	(78.0)	13
The FY23 increase in operating costs reflects restructuring costs of US$2.2 million and US$2.1 million of Brazil IPO cost write-offs.
EBITDA		21.2	28.5	(26)
EBITDA margin (%)		4.3	5.5
Adjusted EBITDA		24.9	27.9	(11)
Adjusted EBITDA excluded restructuring costs of US$2.2 million, Brazil IPO cost write-offs of US$2.1 million, share-based payments costs of US$0.5 million and one-off tax items credits of US$1.1 million.
Adjusted EBITDA margin (%)		5.1	5.3
Operating profit		13.8	21.0	(34)
Operating profit was US$13.8 million (FY22 profit: US$21.0 million). The net interest charge decreased by US$2.4 million, reflecting the lower volume of borrowing and factoring required for working capital in Brazil as a result of reduced volumes.
Operating profit margin (%)		2.8	4.0

Cash and net debt

The decrease in net debt compared to FY22 was driven primarily by decreased volume of business, reducing working capital requirements.

US$ million		FY23	FY22
Cash resources		56.8	32.0
Bank overdrafts		(47.2)	(31.9)
Short-term interest-bearing liabilities and short-term leases		(13.8)	(14.4)
Long-term interest-bearing liabilities and long-term leases		(21.0)	(26.1)
Net debt		(25.2)	(40.4)

Non-financial performance

Logicalis Latin America achieved its FY23 strategic objectives. Cloud professional and managed services revenues increased with the introduction of new lifecycle solutions. It also expanded its continuous delivery services throughout Latin America. Notable improvements were made towards it responsible business agenda and Logicalis Brazil issued a Sustainability Report in 2022.