Logista: Not All Too Piggish

“Man thrives where angels would die of ecstasy and where pigs would die of disgust.” - Kenneth Rexroth

Logista’s Q1’26 report cited numerous challenges. The war between Russia and Ukraine was front and center in the geopolitical sphere, as were threats of military action between the United States and Iran. Fast-forward a mere few weeks, and those threats have materialized, with the United States having struck Iran in devastating fashion. No doubt, Logista will cite this in its coming reports as yet another source of uncertainty.

Tacked on to geopolitics, inflation, and blooming unease, Logista wastes no time in citing countless other issues as well. Within Ibera, the fruit season was delayed, directly affecting long-distance transport. International maritime transport was curbed by export restrictions due to swine flu. Fortunately, we will not catch the disease, as there has never been much piggishness in covering the company.

Despite all the near-term noise and even the legiment headwinds affecting parts of the business, Logista remains resilient. Just as it always has, it marches forward, expanding its reach and extending its importance. Revenues and economic sales sharply contrast with the macroeconomic context the company describes.

You could push back, pointing to the group’s net profit in Q1’26, measuring -8.4% below the same period last year. However, that would only show the pitfalls of placing too much importance on a single quarter. Of the three drivers primarily responsible for the reduction in net profit, one is largely outside management’s control: the reciprocal credit agreement Logista holds with Imperial Brands. While the terms were renewed to partly hedge against movements in rates, it is indeed still affected by the EU’s lower rates, reflecting in financial income declining by just under €3m for the period, with financial expenses declining by a mere €0.3m. The other two, directly related to operations, are primarily about timing.

A theme that ran through my Logista-related notes last year was the degree of cyclicality introduced to the business through its efforts to diversify away from tobacco and related products distribution. Growing pressures against El Mosca and Carbó led to restructuring last year, aimed at improving efficiency by better integrating both outfits into the parent’s broader operations. Unsurprisingly, these efforts have carried over into 2026, with a restructuring charge of €3.7m recognized in Q1; not a glaring figure, but a similar charge was absent in Q1’25.

It is again worth noting that while long-distance transport and maritime are being ironed out, not all non-TRP distribution faces the same struggles. Parcel has overall remained remarkably stable. Pharmaceutical Distribution posted a 1.7% decline in revenue; however, Pharma economic sales (the more important figure) increased by 6.5% as services expanded across hospitals and the total client list grew.

Last, but not least, concerning the three factors weighing on Q1’26’s net results, is the performance of TRP distribution in Italy. Over the last several years, this segment has grown meaningfully, more than offsetting declines in France. Driving this has been a tame decline rate in legacy combustibles paired with an accelerating contribution from next-gen products, primarily HnB. This has led to Italy outgrowing Iberia, well-captured in the trailing twelve-month figure below: