Preliminary figures for the financial year 2023 and the fourth quarter of 2023 below forecast

PUBLICATION OF AN INSIDE INFORMATION ACC. TO ARTICLE 17 OF REGULATION (EU) NO. 596/2014

Cherry SE: Preliminary figures for the financial year 2023 and the fourth quarter of 2023 below forecast

Munich, January 31, 2024 – According to preliminary and as yet unaudited figures for the financial year 2023, Group sales and the adjusted Group EBITDA margin* will not reach the previous forecast. In 2023 as a whole, Group sales are expected to amount to around EUR 126 million (forecast: around EUR 140 million) and the adjusted Group EBITDA margin* is expected to be around 2% (forecast: around 10%).

Also according to preliminary and as yet unaudited figures, Group sales in Q4/2023 amounted to around EUR 38 million (Q4/2022: EUR 34.5 million) and the adjusted Group EBITDA margin to around 1% (Q4/2022: 4.6%).

The deviation from the forecast is due to slower than expected growth in the fourth quarter. Growth in demand for computer peripherals, in particular in the B2B business, fell short of the company's expectations. The resulting lack of sales led to a fall in the adjusted EBITDA margin, as costs could not be reduced to the same extent.

For the full year, while we saw a positive year-on-year double-digit revenue growth trajectory in Gaming and Office Peripherals, it was not yet sufficient to offset the decline in the Component business and the delay in the Digital Health and Solutions business. The announced restructuring, cost-cutting and transformation measures are being stringently implemented and the company expects that these will lead to an improvement in Cherry’s financial position in 2024.

*The definition of the adjusted EBITDA margin can be found on page 27 of Cherry SE's 2022 Annual Report, which is available at https://ir.cherry.de

Notifying person: Oliver Kaltner, Chairman of the Executive Board
 

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Disclaimer:

This publication contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Cherry SE and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied by such statements. Actual results, performance or events may differ materially from those described herein as a result of factors affecting Cherry SE, such as changes in general economic conditions and the competitive environment, capital market risks, foreign exchange rate fluctuations and competition from other companies, as well as changes in international and national laws and regulations, particularly with respect to tax laws and regulations. Cherry SE assumes no obligation to update forward-looking statements.

This publication contains supplementary financial measures (not specifically identified in relevant accounting frameworks) that are, or may be, so-called alternative performance measures. For purposes of evaluating Cherry's financial condition and results of operations, these supplemental financial measures should not be considered in isolation or as an alternative to the financial measures presented in the consolidated financial statements and determined in accordance with relevant accounting frameworks. Other companies that present or report alternative performance measures with a similar title may calculate them differently. Explanations of financial ratios used can be found in Cherry SE's Annual Reports, which are available at https://ir.cherry.de/.

About Cherry

Cherry SE [ISIN: DE000A3CRRN9] is a globally operating manufacturer of high-end mechanical keyboard switches and computer input devices such as keyboards, mice, and headsets for applications in the worlds of gaming, e-sports, office and hybrid workplaces, industry, and healthcare. Since it was founded in 1953, Cherry has been synonymous with innovative, high-quality products developed specifically to meet the various needs of its customers.

Cherry has its operational headquarters in Auerbach in Germany's Upper Palatinate region and employs in production facilities in Auerbach, Zhuhai (China), and Vienna (Austria) as well as in various sales offices in Auerbach (Germany), Pegnitz (Germany) Munich (Germany), Landskrona (Sweden), Paris (France), Kenosha (USA), Taipei (Taiwan), and Hong Kong (China).

For more information: https://ir.cherry.de

IR Contact

Cherry SE

Nicole Schillinger

Investor Relations

P: Rosental 7, c/o Mindspace, 80331 Munich, Germany

T: +49 (0) 9643 2061 848

E: nicole.schillinger@cherry.de