Global ‘Work From Home’ trend results in $5bn revenue surge for Logitech
Computer peripherals and software manufacturers, Logitech, posted strong numbers for their financial year ending in March 2021.
“Fiscal Year 2021 was our best year ever,” said Bracken Darrell, Logitech president and chief executive officer. “It has been rewarding to see Logitech’s products play an essential role enabling work, creation, connection and entertainment as our homes became schools, offices and playgrounds. Our powerful and resilient capabilities allowed us to both deliver remarkable performance in a challenging FY 2021 and, at the same time, invest in compelling plans for the future. The world has just caught a glimpse of what Logitech will become.”
“We delivered excellent financial performance, including record net sales, operating profit, gross margin and cash flow,” said Nate Olmstead, Logitech chief financial officer. “The trends that fueled our growth pre-pandemic – work from anywhere, video everywhere, esports and the democratization of content creation – all accelerated. As our market opportunities have expanded, and we have become a larger, more profitable company, we’re investing in our capabilities to accelerate our innovation, reach new customers and deliver strong financial returns over the long-term.”
According to data presented by TradingPlatforms.com, Logitech’s global revenue in FY 2021 is up 76% to $5.25bn from FY 2020.
Logitech Sets Company Record By Passing $5bn Revenue Mark
One of the biggest names in the computer software and peripherals space is Swiss consumer electronics manufacturer, Logitech.
Logitech is more specifically considered one of the leading manufacturers of input and interface devices for PCs such as computer keyboards and mouse.
Logitech’s revenue in their financial year that ended in March 2021 amounted to $5.25bn after experiencing a 76% increase from 2020’s revenue numbers. This gives Logitech an impressive Compound Annual Growth Rate of 21.05% in the five-year period from 2016-2021.
Logitech’s most lucrative source of revenue is from its Americas region which accounted for an estimated $2.2bn in 2021.
Revenue from Logitech’s Europe, Middle-East and Africa (EMEA) region experienced the highest growth after an estimated 84% growth in revenue to an estimated $1.7bn.
Net Income Soars Closer to $1bn Despite Increase in Spending in 2021
Advertising costs and Research and Development (R&D) costs reached their highest level in the last five years in 2021.
Ad spending amounted to $450m in FY 2021 compared to just under $300m in 2020. R&D spending amounted to $226m after experiencing a 27% increase from 2020’s $178m R&D spend.
Despite the record high set in spending, Logitech still managed to more than double its net income. Logitech’s net income in FY 2021 amounted to $947m compared to just $450m in 2019.
Rex Pascual, editor at TradingPlatforms.com, commented: “As lockdowns forced offices to shut, people’s homes became their workspaces which spiked demand for consumer electronics and peripherals. With many large companies shifting to a hybrid work model even in a post-pandemic world, expect Logitech to continue its strong momentum in the ‘new-normal.’”