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Viewing: Logicalis Latin America – Financial performance / Next: Corporate and Management Consulting – Overview

Logicalis Latin America – Financial performance

Logicalis Latin America delivered an improved operating profit. This turnaround is supported by improved macroeconomic indicators in the region, which have positively impacted the operations. In addition, Logicalis Latin America continues to focus on improving its customer diversification, driving high-value added services and expanding its product portfolio.

US$ million   FY25  FY24  % movement  Note reference 
Revenue   455.1  512.9  (11.3)%
1
Gross profit   103.6  117.9  (12.1)%
1
Gross margin (%)   22.8%  23.0%   
1
Operating costs   (84.2) (106.4) (20.9)%
2
EBITDA   19.4   11.5  68.7%   
EBITDA margin (%)   4.3%  2.2% 
 
Adjusted EBITDA   20.1  12.6  59.5% 
3
Adjusted EBITDA margin (%)   4.4%  2.5%     
Adjusted EBITDA as a % of gross profit   19.4%  10.7%     
Depreciation and amortisation   (8.6) (8.8)   (2.3)%  
Operating profit   10.8  2.7  300.0%   
Operating profit margin (%)   2.4%  0.5%     
Net finance costs   (8.2) (6.0)  36.7% 
4
Profit/(loss) before tax   2.6  (3.5)    (174.3%)  
1

Revenue decreased by 11.3% to US$455.1 million (FY24: US$512.9 million). This was driven by reduced volume in Brazil and a lower opening backlog.

The reduced gross profit of US$103.7 million (FY24:US$117.9 million) and gross margin % of 22.8% (FY24: 23.0%) are a result of the decrease in revenue mainly from Brazil.

2

Operating costs reduction is partly a result of the strong recovery in Argentina's performance, which showed profitability after a period of losses (FY24 materially impacted by foreign exchange losses). Restructuring costs of US$3.5 million were incurred in FY25, mainly from Brazil and Chile (FY24: US$3.0 million).

3

Adjusted EBITDA significantly improved and is attributed to good operating cost management and effective mitigation of the foreign exchange impact. EBITDA was impacted by net foreign exchange losses of US$2.2 million (FY24: US$20.3 million arising mainly in Argentina).

4

The net finance costs increase was primarily driven by liquidity requirements in Argentina on the back of improved trading.

US$ million   FY25  FY24 
Cash resources   67.3  74.0 
Bank overdrafts   (45.3) (28.9)
Short-term interest-bearing liabilities and short-term leases   (4.1) (7.5)
Long-term interest-bearing liabilities and long-term leases   (10.3) (32.3)
Net cash   7.6  5.2