Logitech broke the market expectations in the first quarter (closed at the end of June) of the extraordinary year 2019/20, particularly in terms of profitability. The manufacturer of computer accessories and peripherals has also confirmed the Chief Financial Officer Nate Olmstead, which has been operating since the end of May.
Multinational companies in California and California generated sales of 644.2 million dollars (634.1 million Swiss francs during the day), which is 6% more than in the previous year.
Operating surplus (non-GAAP Ebit, excluding recurring factors) increased by 11% to $ 67.0 million and net income increased by 10% to $ 65.6 million, a statement said, published overnight. from Monday to Tuesday. The extraordinary items included, EBIT reached 47.5 million and net profit was 45.3 million.
Analysts consulted by AWP expected a median income of 635.1 million dollars, adjusted EBIT of 61.8 million dollars and net income of 55.1 million dollars.
Audio and video accessories are progressing
"The first quarter was good, we reached the top of our target range," said Logitech AWP General Manager Bracken Darrell. Growth is particularly strong for the category of mobile speakers and video accessories. However, the 51% jump in fixed exchange rates in the first segment should not be considered as a trend, partly reflecting a favorable base effect.
The video collaboration industry has continued the expansion that lasts five or six years, continued the American. Logitech continues to invest in new products and software. In local currencies, sales in this segment grew by 28%.
Evolution is considerably more unfavorable in the games category (+ 2%), but it is not enough to worry Mr. Darrell. This is the "Fortnite effect". Thanks to Fortnite's video game, Logitech sold many handsets last year.
The slowdown in the Asian region is also not a problem, said Bracken Darrell. In retrospect, the region has grown by about 20% over the past two years. "The reality is that such growth will not last forever," he explained. However, the decline is virtually unrelated to the Sino-US trade conflict.
In any case, Logitech takes advantage of its wide geographic footprint, Darrell notes. As Asia's activity is somewhat weakening, the region of Europe, the Middle East and Africa (EMEA) continues to grow.
While Logitech focuses on organic growth, acquisitions made in recent years have accelerated growth and further differentiated the company. "In this respect, we are constantly looking for acquisitions, even now, but we never talk about it until we reach an agreement," Darrell said.
With regard to the entire ongoing exercise, Logitech's management has confirmed its roadmap. The Group aims to grow from 5 to 10% of turnover. Non-GAAP Ebit is expected to be in the range of $ 375-385 million.
Bracken Darell does not exclude reconsideration of financial targets up the year: "We have done so in recent years but after the first quarter it is still too early to decide on this issue. he added.
Canton of Zurich (ZKB) applauds the adjusted operating profit "again much better than expected". Wontoble pointed out that growth is supported by all options and a balanced mix of products.
Investors did not fail to congratulate the Valdo-California group's performance. Around 3:20 pm Logitech's nominee flew 6.4% to CHF 41.03, which resulted in an SLI increase of 0.80%.
MIK / VJ / RP