Logitech

Logitech is a Swiss company founded in 1981, listed on the Swiss Stock Exchange (LOGN) and on the Nasdaq Exchange (LOGI) in the United States.

Logitech is developing devices to communicate efficiently in the digital world. The company develops a range of peripherals for computers - from navigation, gaming and Internet communication to music playback. One of the emerging areas is video conferencing solutions, which increase the efficiency of interaction between employees or partners.

Performance indicators

2023

Bracken Darrell fired as Logitech CEO

On June 13, 2023, it became known that Logitech CEO Bracken Darrell would leave Logitech after 10 years of work. According to a press release from the Swiss computer peripherals manufacturer, Darrell will leave the company within a month to "take advantage of another opportunity." Read more here.

Revenue decline by 17% to $4.54 billion

At the end of fiscal year 2023 (ended March 31, 2023), the Swiss company Logitech showed revenue of $4.54 billion. This is 17% less than the result for the previous fiscal year, when $5.48 billion was received. Such indicators are given in the report published on May 1, 2023.

Logitech's annual net profit was $364.58 million against $644.51 million in fiscal 2022. Thus, according to this indicator, the fall was at the level of 43.5%. The decline in product sales was recorded in all key markets - in North America, Europe, the Middle East, Africa and the Asia-Pacific region. This is explained by the negative economic situation, the high level of inflation and the reduced purchasing power of consumers in general.

Logitech's revenue in the gaming device segment in fiscal 2023 was approximately $1.21 billion, down $240 million from the previous fiscal year. The fall in constant currency is about 12%. Keyboards, as well as combined input kits (including a mouse) accounted for $836 million: the year-on-year drop was $131 million, or 10% in constant currency. Another $888 million was brought by solutions for organizing video conferencing - minus $110 million (7%) on an annualized basis.

Revenue in the segment of pointing devices was recorded at $728 million, which is $53 million (2% in constant currency) less compared to fiscal 2022. Audio products and wearable devices brought in $274 million - minus $127 million (29%) year-on-year. Tablets and accessories provided approximately $254 million: sales decreased by $56 million, or 14% in constant currency. Webcams provided revenue of $228, showing a drop of $176 million (minus 41%). Portable speakers generated $112 million, down $38 million (22%) year-on-year. ^[1]]

2021: Revenue growth by 76%, to $5.25 billion, profit - to $947.3 million

Logitech at the end of the 2021 financial year earned a record $5.25 billion, which is 76% more than a year ago. Such a significant increase in the income of the Swiss manufacturer was facilitated by the COVID-19 coronavirus pandemic - because of it, people began to spend more time at home, play computer games more often and use webcams for video communication.

Sales of Logitech webcams for the 12-month reporting period, closed at the end of March 2021 calendar year, reached $439.9 million, soaring 240% compared to the previous year. The company's sales of video conferencing products increased by 186% (to $1.04 billion from $365.6 million in fiscal 2020).

No less rapid growth (+ 184% to $384.3 million) was shown by the business of producing accessories for tablets and other electronics. The main contribution to this rise was made by keyboards for the iPad.

Sales of Logitech gaming equipment in 2021 financial year exceeded $1.23 billion, which is 80% more than a year earlier. In the computer mouse market, the company's revenue rose by 25% (to $680.9 million), keyboards - by 37% (to $784.5 million). Positive dynamics also took place in the segment of audio solutions and headphones, in particular: here annual sales increased by 71% and amounted to $468.8 million.

In other categories of Logitech products, there was a decrease in demand in monetary terms. Thus, smart home products in fiscal 2021 were bought in the amount of $34.4 million, which is 21% less than a year ago, and sales of portable speakers decreased by 21%, to $174.9 million.

As for the regions, the change in revenue there over two years can be observed on the charts below. Sales in EMEA grew the most.

Logitech's net profit in fiscal 2021 was $947.3 million against a profit of $449.7 million a year earlier. ^[2]

Products

Logitech is a Swiss company, developer and manufacturer of wired and wireless peripherals for personal computers. Logitech video conferencing equipment - Logitech's line of business - offers comprehensive video conferencing systems for meeting rooms and large conference rooms, separate headsets, webcams that support high-definition video, and other accessories for video communication.

Business in Russia

2022

Closure of the Russian representative office and dismissal of personnel

On August 29, 2022, it became known about Logitech's decision to close its Russian business. At the same time, the company expects to resume work in the Russian Federation in the future.

Ben Starkey, a member of the Logitech press service, told RIA Novosti that the company was closely monitoring the development of the situation in Russia even after the suspension of supplies to the country. However, Logitech concluded that the circumstances at the moment do not allow them to do business as before.

We supported our employees all this time, but due to the instability of the situation, we began the process of curtailing the remaining business in Russia. After many years of work in the region, we hope to return one day if there are suitable conditions, - he noted

According to CNews, August 31, 2022 will be the last day of work of the Russian representative office of Logitech - employees will be fired. This was reported to the publication by a source in the video conferencing solutions market and a large distributor.

According to CNews interlocutors, Logitech is a very important technological partner in the context of the Aerospace Forces for Russia.

Their cameras are roughly equal in price to their Chinese counterparts, but much better in quality, says the whistleblower. - They de facto became the standard in equipping workplaces with peripheral equipment, and each workplace is now somehow prepared for participation in the Aerospace Forces.

According to Dmitry Sery, deputy director and co-founder of Vinteo, Logitech "has the best periphery in its segment, they are leaders in product quality, setting technological trends."

In Russia, local manufacturers do not have such solutions, and if the final departure of the Swiss vendor nevertheless takes place, their products will be replaced by Chinese counterparts, he notes. - In particular, at Yealink - I think for them the departure of Logitech will be an opportunity to significantly expand its presence and strengthen its position in the Russian market.[1]

Suspension of supplies to Russia against the background of Russia's special operation in Ukraine

On April 1, 2022, it was announced that amid Russia's special operation in Ukraine and subsequent sanctions by the United States and its allies, Logitech was suspending supplies to Russia.

2021: TAdviser interview with Irina Stepanova, Head of Video Solutions and Accessories for Collaboration

Irina Stepanova, head of video solutions and accessories for Logitech collaboration in Russia, spoke about the most popular solutions and trends in the VKS segment in November 2021 in an interview with TAdviser. Read more here.

2019: Polina Anokhina - Head of Logitech for Russia and the CIS

On July 2, 2019, Logitech announced the appointment of Polina Anokhina as Logitech Regional Director for Russia and the CIS. Read more here.

History

2023

Hanneke Faber's appointment as CEO

On October 30, 2023, Logitech announced that after a thorough search and discussion of possible candidates, the board decided on the choice of a new CEO - it was 54-year-old Hanneke Faber. She takes up a new position from December 1, 2023. Read more here.

The dismissal of hundreds of employees due to the collapse of demand for the company's devices

On March 23, 2023, the Swiss manufacturer of computer peripherals and gaming devices Logitech announced a restructuring, during which hundreds of employees will lose their jobs.

Logitech has faced a sharp drop in product demand across all categories. The company associates this with a high level of inflation and difficult macroeconomic conditions, which provoked a decrease in purchasing power in various regions around the world. As a result, Logitech significantly reduced revenue - by the end of 2022, the fall was approximately 22% on an annualized basis. Therefore, the company decided to reorganize: globally, the number of personnel will be reduced by about 300 people.

I can confirm that, unfortunately, the recent optimization of our organizational structure has affected a number of positions, "said Nicole Kenyon, head of global corporate communications at Logitech.

It is said that at the end of 2022, sales of Logitech gaming products decreased by 16% on an annualized basis. The demand for solutions for organizing video conferencing collapsed by 21%. Keyboards and mice also showed negative dynamics - minus 22% and 14%, respectively. The company says that such results reflect a difficult market situation, including fluctuations in exchange rates and reduced spending in the corporate and consumer segments. Under such circumstances, staff reductions are a necessary measure to reduce costs and improve the efficiency of managing various departments. The restructuring is expected to help Logitech strengthen its position in key segments and major geographic markets. The amount of expenses associated with the dismissal of employees is not reported.^[2]

2021: Logitech Rally Bar Video System Review

The covid pandemic forced many companies to switch to remote work in 2020. Working in distributed teams has encouraged companies to use video conferencing much more often for corporate communications, communication with customers and partners. There are universal end-to-end solutions for high-quality multimedia communications on the market, such as the Rally Bar video system developed by Logitech. More...

2020: Revenue growth 7% to $2.98 billion

Logitech ended fiscal 2020 with record revenues of $2.98 billion. Sales increased by 7%, and if you do not take into account the fluctuations in exchange rates, then the growth turned out to be 9 percent.

Logitech's financial upswing has been helped by the COVID-19 coronavirus pandemic, which has led to many companies moving their employees to work from home. The same applies to educational institutions and students. The massive transition to remote work and study spurred sales of video conferencing and webcam equipment, as well as gaming solutions.

Video conferencing, remote work, content creation and streaming, and gaming are long-term positive trends dragging our business forward, says Logitech CEO Bracken Darrell. - The pandemic has not changed these trends, it has accelerated them.

For the reporting 12-month period, which ended at the end of March 2020 calendar year, sales of video conferencing solutions at Logitech jumped by 41% on an annualized basis and reached $366 million. This dynamics has become the highest among all product categories in the assortment of the Swiss manufacturer.

The sale of webcams increased by 7%, amounting to $129 million at the end of the 2020 financial year. In the gaming segment, an 8% increase in turnover was registered, up to $690 million.

Sales of computer mice and keyboards also increased: in 2020, they increased by 1% and 7%, to $545 million and $572 million, respectively. Logitech's revenue decreased in the markets of portable speakers (-2%, to $222 million) and smart home solutions (-12% to $43 million). Headphone sales remained practically unchanged from the 2019 financial year and amounted to $274 million.

Logitech managed a 74% increase in net income in fiscal 2020. It amounted to $449.7 million.^[3]

2019: Revenue growth 9% to $2.79 billion

Logitech ended fiscal year 2019 with record revenue of $2.79 billion and increased by 9% compared to 2018. If you do not take into account currency fluctuations, then the company's sales rose by 10%.

Commenting on the financial results, Logitech President and CEO Bracken Darrell noted that the company's revenue in constant currencies has increased at double-digit rates (from 10% and higher) for three years in a row.

Logitech's largest business was gaming device sales. During the reporting 12-month period, closed on March 31, 2019 of the calendar year, they reached $648.1 million, an increase of one third compared to the previous year.

The implementation of computer mice rose by 4% to $536.9 million. The company earned almost the same amount selling keyboards, but the growth rate of this business was higher - + 8%. Logitech recorded the same dynamics in the web camera market, their annual sales amounted to $121.3 million.

The report notes that sales of computer peripherals from the company have been growing for four years in a row. In 2019, the rise was measured at 7%.

The fastest growing business in fiscal 2019 was sales of devices and video conferencing software: they jumped 42% to 259.5 million.

The sale of accessories for tablets and other electronics rose by 19%, reaching $128.3 million. The strongest decline took place in the category of solutions for a smart home, where the company's revenue sank 45% and amounted to $49.3 million at the end of fiscal year 2019. Sales of portable speakers decreased by 27%, to $230.4 million.

In the division responsible for the development of headphones and other wearable gadgets, the annual turnover rose by 11%, reaching $277.4 million. This growth was largely due to the purchase of headset developer Blue Microphones.^[4]

2018

Record revenue: up 16% to $2.57 billion

In the 2018 fiscal year, closed on March 31, 2018 calendar, Logitech's revenue amounted to a record $2.57 billion, which is 16% more than a year earlier. Excluding currency fluctuations, sales rose 13%. The company's net profit increased to $208.5 million.

The largest sales growth (by 57%) was demonstrated by gaming solutions, on which Logitech earned about $492 million for the year. Sales of video conferencing devices increased by 44%, reaching $182.7 million. The top three fastest growing business areas included accessories for tablets and other electronics, sales of which jumped 40% to $107.9 million. Revenues in the segment of products for the smart home increased by 36%.

Most of the company's revenue is still generated by computer mice and keyboards. Revenue from them for fiscal year 2018 amounted to $516.6 million and $498.5 million, respectively, which is about 3-4% more than a year ago. The business in the field of computer webcams showed an increase of 5% to $112.1 million. Cash receipts from sales of portable speakers turned out to be $314.8 million, an increase of 5% compared to the 2017 fiscal year.

It follows from Logitech's reporting that the annual cash flow from core activities for the reporting year increased by 20% to the highest value in eight years - $346 million.

Commenting on the financial results, Logitech President and CEO Bracken Darrell noted that in five years the company has created a steadily growing business that covers an ever-expanding and easily adaptable product portfolio. He also added that in the context of growth, the company can increase its profitability goal, but the priority is to increase sales.^[5]

Buying Blue Microphones

On July 31, 2018, Logitech announced the purchase of microphone manufacturer Blue Microphones for $117 million. The entire amount will be paid from the buyer's own funds, that is, without attracting shares. Read more here.

2017: Record sales in 6 years

On April 25, 2017, Logitech presented its financial year 2017 activity report. The Swiss company reported its highest sales in six years, with the collaboration video solutions business showing the highest growth rate.

According to the results of the 12-month reporting period, which ended on March 31, 2017, Logitech's revenue reached $2.2 billion, which is 13% more than a year earlier. All revenues came from retail sales, while in 2016, small revenues ($71 million) fell on the OEM channel (the sale of equipment directly to manufacturers of computers and other equipment). Logitech's annual net income increased from $119.3 million to $191.5 million.

The 2017 fiscal year indicators demonstrate the strength of our strategy, "says Bracken Darrell, President and CEO of the company, quoted in a press release. - For the fourth year in a row, we have increased the pace of retail sales. We showed growth in almost all product categories and in all regions of presence.

According to Logitech Chief Financial Officer Vincent Pilette, this year has been a watershed year for the company, as a combination of continued investments in growing areas has provided it with a "superior platform to work in the future."

In 2017, sales of Logitech video conferencing devices amounted to $125.4 million, an increase of 40%, which was the strongest increase among all product categories. High dynamics were also observed among portable speakers (+ 30%) and gaming products (+ 27%).

Mice and keyboards still bring Logitech the largest revenues, amounting to 498.2 and 478 million, respectively, which is 1% and 11% higher than a year ago. The drop - by 27% - was shown only by the segment of accessories for tablets and other electronics.^[6]

2016

Profit growth 13 times

At the end of April 2016, Logitech published its results in fiscal year 2016. The Swiss company's profits jumped nearly 13 times in part thanks to fast-growing sales of video conferencing (VKS) solutions, as well as a focus on the retail business and reduced costs.

For the 12-month reporting period, which ended on March 31, 2016, Logitech's revenue amounted to $2 billion, which is approximately the same as a year ago. Net profit during this time rose to $119.3 million from $9.3 million.

Logitech noted that in 2016, the share of operating expenses in retail revenue turned out to be the smallest in the previous six years - 25.9%. At the same time, R&D costs increased by 5%.

During the 2016 financial year, Logitech curtailed device sales to PC manufacturers, focusing entirely on retail distribution of its products. The volume of the retail business jumped by 9% excluding currency fluctuations and reached $1.95 billion. In 2015, the financial year there was an increase of 4%, in 2014 the financial year - by 2%.

The highest rate of revenue growth in 2016 was demonstrated by the division responsible for the release of video solutions for collaboration, such as Logitech ConferenceCam video cameras. The annual revenue of this division rose by 44% to $89.3 million.

The top three fastest growing areas of the company also included speaker systems for mobile devices and gaming equipment, sales of which increased by 29% and 16%, respectively.

Sales of computer mice and keyboards, which still generate the most revenue for Logitech, increased by 1%.

The company's report also said that revenue in EMEA countries did not grow in fiscal year 2016, but rose 15% in the fourth quarter, the best result in three years thanks to strong sales of gaming products and video collaboration solutions. In the Asia-Pacific region, annual revenue increased by 9%, in the Americas there was an 8% increase. In China, Logitech's quarterly sales increased to a record high.^[7]

Closing of the Ukrainian office of Logitech

October 12, 2016 it became known about the closure of the Ukrainian representative office of Logitech. Asbis will supply products to the country. Read more here.

2015: Revenue drop to $2bn

On April 23, 2015, Logitech released its financial year 2015 performance. The company's revenue fell 1% despite growing demand for mobile products.

For the 12-month reporting period, closed on March 31, 2015, Logitech sales amounted to $2.11 billion against $2.13 billion a year earlier. Net profit for the same period increased to $135.3 million from $74.3 million. Operating profit rose to $141.3 million, which is the best result for the Swiss vendor since fiscal 2008, the company said.^[8]

In a 2015 report, the company indicated that financial data could be adjusted, but did not name the reasons for the changes. Ultimately, the adjustment occurred: the report for 2016 specifies (see the illustration below) that in 2015 Logitech's profit amounted to only $9.3 million, and revenue - $2 billion (previously reported $2.11 billion).

Logitech, as well as other companies with a significant part of the business tied to dollars, faced the negative impact of the growth of the American currency. Since the beginning of 2015, the euro has fallen 12% against the dollar, reducing Logitech's sales in the eurozone, where the company generates about a quarter of its revenue.

Meanwhile, Logitech CEO and President Bracken Darrell said the company was able to end fiscal 2015 with better results than previously expected despite unfavorable currency fluctuations. Excluding this factor, the computer peripherals manufacturer's annual revenue grew by 2%.

It follows from the Logitech report that the company earned $211.9 million on gaming devices in fiscal 2015 dollars (+ 13.4% compared to the previous year), electronic engineers $141 million (-18.3%) on accessories for tablets and others, and $178 million on stereo systems for mobile devices (+ 104%).

Most of Logitech's revenue continues to be sales of computer mice and keyboards, which reached $487.2 million and $426.1 million in fiscal 2015, respectively.

Retail sales brought Logitech annual revenue of $1.89 billion, which is 1.1% more than 2014 fiscal year. The company announced its intention to focus on the development of retail and in the future stop the OEM business, the volume of which for the reporting year decreased by 17.1% to $117.5 million. By the end of 2015, Logitech promises to release about 25 new products.

2009: Ukrainian office of Logitech transferred to Russian and CIS area of responsibility

In 2009, the Ukrainian office of Logitech was transferred to the area of ​ ​ responsibility of Russia and the CIS as part of the company's anti-crisis policy.

Notes