Logicalis Latin America performance

Logicalis Latin America revenue
percentage contribution by geography

Logicalis Latin America gross profit
percentage contribution by geography

US$ million	FY24 Reported	FY23 Reported	% Movement	Note reference
Revenue	512.9	491.0	4	1
Gross profit	117.9	109.5	8	2
Gross margin (%)	*23.0*	22.3
Operating costs	(106.4)	(88.3)	21	3
EBITDA	11.5	21.2	(46)
EBITDA margin (%)	*2.2*	4.3
Adjusted EBITDA	12.6	24.9	(49)	4
Adjusted EBITDA margin (%)	*2.5*	5.1
Operating profit	2.7	13.8	(80)	5
Operating profit margin (%)	*0.5*	2.8

1	In constant currency, revenue improved by 15.7%.

2	Underlying gross margin percentage remained stable.

3	Operating costs increased to US$106.4 million (FY23: US$88.3 million) mainly due to increased foreign exchange losses compared to the prior year.

4	Adjusted EBITDA excluded restructuring costs of US$3.0 million, share‑based payments costs of US$0.3 million and once‑off tax items credits of US$2.2 million.

5	Operating profit was US$2.7 million (FY23: US$13.8 million). The net interest charge reduced to US$5.9 million (FY23: US$10.4 million), reflecting the lower volume of borrowing in the region.

Net working capital

Improved debtor collections, lower inventory levels and stable supplier accounts payable at year-end resulted in an overall reduction of net working capital by US$44.0 million. Net debt was eliminated at year-end and a US$5.2 million cash balance was generated (FY23: US$25.2 million net debt).

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	FY24	FY23
Cash resources	74.0	56.8
Bank overdrafts	(28.9)	(47.2)
Short-term interest-bearing liabilities and short-term leases	(7.5)	(13.8)
Long-term interest-bearing liabilities and long-term leases	(32.3)	(21.0)
Net debt	5.2	(25.2)

Non-financial performance

Despite the challenging scenario and performance, Logicalis Latin America achieved relevant expansion on its high-value added services portfolio (eg: application modernisation) based on large hyperscalers. This trend also helped the diversification and improvement on the partners business mix, reducing concentration with main partners.

The Company strengthened its capabilities in Digital Offerings (eg: Cloud, Data Analytics, InfoSec) in Hispanic American markets in line with market needs/dynamics, and also expanded its presence in high potential markets such as Monterrey and Guadalajara in Mexico.