Cherry SE releases additional preliminary figures for the fourth quarter and fiscal year 2024

Munich, 27 February 2025 – Cherry SE announces additional preliminary group key figures, along with divisional sales and results for the last fiscal year.

As previously announced on 11 February 2025, Cherry SE concluded the 2024 financial year with a consolidated group revenue of approximately EUR 110 million and an adjusted EBITDA margin of around -2.0%, based on preliminary and unaudited figures.

In the final quarter of the 2024 financial year, Cherry SE recorded a consolidated group revenue of EUR 25.8 million, compared to EUR 37.9 million in the same quarter of the previous year. Adjusted EBITDA amounted to EUR -1.5 million in Q4 2024, following a break-even result of EUR 0.1 million in Q4 2023.

Due to a challenging market environment, the targeted elimination of the gray market, and weakness in Cherry Americas, the Peripherals segment generated sales of only EUR 15.8 million in the fourth quarter, compared to EUR 27.3 million in the same quarter of the previous year. Full year sales in this segment amounted to EUR 72 million, reflecting a 22% decline compared to the previous year's figure of just under EUR 93 million. The quarterly result (adjusted EBITDA) was EUR -2.4 million, down from EUR 0.6 million in Q4 2023, driven by the reduced fixed cost coverage in line with the decline in revenue. As a result, Peripherals' full year profit amounted to EUR 1.4 million, significantly lower than the previous year's EUR 14.1 million.

The new organizational structure, announced on 14 November 2024, along with the realignment of the company in Europe and the fundamentally revised partner program, has gotten off to a promising start in recent weeks and months. Street prices for volume products in the Peripherals segment were already increased by more than 50%. Contracts with key distributors were revised as of 1 January 2025. The resulting consolidation of sales across office, gaming, hygiene, and security peripherals, coupled with the ongoing streamlining of the product range, will generate synergies and significantly enhance efficiency.

In the Components division, the increasingly accelerated product and development cycles, particularly in China, present a growing challenge. As a result, order volumes fell short of Cherry SE's expectations. Despite the significant reduction in unit costs due to the partial shift of switch assembly to China and the resulting lower prices, the switch market remains highly competitive. Consequently, quarterly revenue of EUR 2.2 million fell short of expectations and the previous year's quarterly revenue of EUR 2.3 million. For the 2024 financial year, Components reported sales of EUR 7.4 million, compared to EUR 10.9 million in the prior year. Accordingly, the adjusted EBITDA for 2024 was EUR 0.2 million, breaking even and falling short of the previous year's result of EUR 1.8 million.

The Digital Health & Solutions segment recorded strong year-on-year growth, with sales increasing by over 30%. Although quarterly sales of EUR 7.8 million were slightly below the fourth quarter of 2023 (EUR 8.2 million) due to the imminent introduction of the e-prescription at that time, a look at the full year reveals a pleasing sales increase from EUR 23 million to EUR 30 million in 2024. In the past financial year, the adjusted EBITDA of Digital Health & Solutions grew approximately 2.5 times, rising from EUR 4.7 million to EUR 12 million, further strengthening the division's internal financing and margin capacity.

The cost savings of EUR 3.5 million for the final quarter, announced to the capital markets on 24 October 2024, were slightly exceeded, reaching EUR 3.6 million. As of 31 December 2024, the company's liquidity amounted to EUR 16.4 million, compared to EUR 8.4 million on 30 September 2024. In addition to the successful cost-cutting program, the increase is primarily attributed to stringent working capital management.

Cherry SE will release additional preliminary data for the 2024 financial year and the fourth quarter of 2024 on 27 February 2025, available at https://ir.cherry.de/en/home/publications/

About Cherry

Cherry SE [ISIN: DE000A3CRRN9] is a global manufacturer of high-end switches for mechanical keyboards and computer input devices such as keyboards, mice, and headsets for applications in the fields of Gaming & E-Sports, Office & Hybrid Workplaces, Industry, and Healthcare. Since its founding in 1953, Cherry has been known for innovative, high-quality products specifically designed to meet diverse customer needs.

Cherry’s operational headquarters is in Auerbach in der Oberpfalz (Bavaria) and it employs staff in production facilities in Auerbach, Zhuhai (China), and Vienna (Austria), as well as several sales offices in Auerbach (Germany), Munich (Germany), Landskrona (Sweden), Paris (France), Kenosha (USA), Chicago (USA), Hongkong (China), Taipei (China) and Shanghai (China).

For more information, visit: https://ir.cherry.de/en/

Contact

Cherry SE

Nicole Schillinger

Investor Relations

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

T: +49 (0) 9643 2061 848

E: ir@cherry.de