Nicosia, Cyprus. Logicom Public Ltd reported that profit attributable to shareholders fell by 55.2 per cent to €10.7m in the first quarter of 2026, compared with €23.9m in the same period of 2025, according to its interim management report. The company said the decline was mainly due to a lower write-off of negative goodwill from the acquisition of investments, as well as reduced turnover, gross profit and other income.
Factors affecting results
The company said the weaker performance was partly offset by lower administrative expenses, reduced expected credit losses and lower taxation compared with the first quarter of 2025.
Sales performance
Gross sales decreased by 2 per cent to €286.6m from €292.4m a year earlier.
The group said the distribution sector recorded a marginal decline of 0.9 per cent, mainly due to lower sales in Saudi Arabia, the United Arab Emirates, Kuwait and Romania.
The software solutions and integrated IT solutions division posted a larger decline, with gross sales falling by 18.4 per cent, mainly as a result of weaker activity in Cyprus and Greece.
Reported group sales
Group sales, which include revenue from contracts where Logicom acts as principal as well as gross profit from agency transactions, fell by 14.6 per cent to €199.9m, compared with €234m in the first quarter of 2025.
Logicom said that under IFRS 15, certain transactions involving software licences and cloud computing products are treated on an agency basis, meaning only the gross profit is recognised as sales.
Profit margins
Despite the decline in sales, the group’s gross profit margin on gross sales edged up to 7.9 per cent from 7.8 per cent a year earlier.
The gross profit margin on reported sales also improved, rising to 11.3 per cent from 9.7 per cent in the corresponding period of 2025.