Logicom sales up, but profits lower in 9M08 period

Logicom Public Ltd (LOG.CY) reported sharply higher sales, mostly arising from abroad but higher finance costs and exchange losses forced profits lower by 6% to EUR5.0 mln in 9M 2008.
Group revenue increased 23.6% to EUR294.8 mln driven both by sales in Cyprus and abroad (U.A.E., Saudi Arabia, Turkey, Greece and New Europe countries). Local sales increased 7.8% to EUR 38.4 mln while sales abroad increased 26.3% to EUR 256.4 mln.
Gross margins in 9M 2008 increased to 7.2% from 6.9% in 9M 2007 mainly due to the Company’s undertaking of higher margin operations.
Operating profits increased 35.2% to EUR 2.2 mln while EBIT margins slightly increased to 2.9% from 2.6% in 9M 2007 as a result of operating cost containment despite the Company’s expansion in new markets such as Saudi Arabia, Hungary, Romania and Bulgaria.
LOG reported increased net finance costs at EUR 3.1 mln (9M 2007: EUR 473k) due higher EUR 2.5 mln finance costs and EUR 509k forex losses arising from the movement of the US dollar against the euro.
Management expects that 2008 results to be lower compared to the corresponding period in 2007 mainly due to the strengthening of the US$ against the Euro.