However, the current 2022/23 financial year will probably be a relatively slow one with expected sales growth of 2 to 4 percent. But they also grew by 74 percent in the peak year of the pandemic and many are amazed that Logitech is still growing from this level, Darell said on Friday.
In addition, the current financial year is unusual: the Ukraine war alone costs 2 percent of sales. In the long term, however, the CEO expects growth of 8 to 10 percent or even more. His mission is to achieve double-digit growth every year.
Meanwhile, the CEO has few concerns about the lockdowns in China, Logitech’s second largest sales market. With the pandemic, the Chinese market has become a huge opportunity – “people bought more products because they were locked in.” The production facilities are also still in operation despite the lockdown. Darrell was “more excited than ever” about China’s long-term potential.
The Logitech boss doesn’t feel any tiredness: “I’m not at all ready to do anything else.” He is absolutely enthusiastic about what he does and has never been happier in his job. Logitech has changed so much in the last three to four years that he feels like he’s at the beginning of something exciting and new.
“We’ve had a great ten years, but the time ahead will be even better and more exciting,” continued the CEO. He relies on the two “megatrends” metaverse and cloud gaming. These went above and beyond. He also sees great potential in video conferences.
He does not believe that the boom will end with the pandemic. Over 90 percent of the rooms worldwide are not video-enabled and the business with cameras in conference rooms continues to grow at double-digit rates. Logitech also wants to increasingly tap into the corporate market. The profit margins “tend to be higher” there.
Meanwhile, the CEO is skeptical about large-scale acquisitions. One is in principle interested in such. With net cash of $1.3 billion, Logitech isn’t short on capital either. However, large takeovers are complex and difficult to implement and therefore have to be well thought out. He doesn’t want to jeopardize the company’s future, Darrell said.
In principle, however, they are “very aggressive” in their search for takeovers and are constantly acquiring new technologies. Another small acquisition will soon be public.