CHERRY SE Affirms Steady Execution of its Strategic Plan for the Peripherals Business in Q4

Munich, 19 December 2024 – Cherry SE reports tangible successes following the organizational restructuring of its core business, as well as strategic adjustments to its product portfolio and sales approach concerning its new partner and pricing models. Furthermore, the optimized supply chain and strict cost management have yielded positive effects in the final quarter of the 2024 fiscal year.

• Positive feedback from partners regarding CHERRY’s redesigned sales program
• Elimination of gray market activities
• Increase in market prices for CHERRY peripheral devices
• Inventory target between EUR 55 and EUR 57 million to be reached by year end

Starting in Q4, we initiated a shift from a pure sell-in strategy to a sell-through and sell-out approach, aligning inventory levels at partners and CHERRY’s in-house stock with market demand. Additionally, we are streamlining the product range within the Peripherals segment to focus on high-revenue items, aiming to increase margins and profitability for all partners involved. Beyond these positive impacts on our distribution partners, our partnership with Amazon in the consumer market demonstrates promising growth. During the so-called Black Week alone, we achieved seven-figure revenue.

Alongside consistent inventory management, CHERRY focuses on reliable, demand-driven monthly delivery capabilities and balanced capital allocation.

Trade Working Capital has already improved in Q4 compared to the first nine months of 2024 with inventory levels expected to be at least EUR 5 million lower by year-end compared to September 30.

CHERRY CEO Oliver Kaltner shares his optimistic view on the current development:

"Revamping the Peripherals business during the high season is undoubtedly a bold move. At the same time, it’s the natural period to decisively shift away from pure sell-in targets. Since September, we’ve made significant progress in restructuring and realigning our business segments. This momentum will carry into 2025, embedding our efforts into a new partner and business model that should finally place us back on a growth trajectory."

We extend our heartfelt thanks to our partners and customers for their support throughout 2024 and look forward to a successful 2025 together. Wishing everyone a Merry Christmas and an energetic start to the new year.

About Cherry SE

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, Pegnitz, Munich, Landskrona (Sweden), Paris, Kenosha (USA), Taipei, and Hong Kong.

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