Cherry SE publishes financial statement on the first quarter of 2024 and confirms outlook for the year

Cherry SE publishes financial statement on the first quarter of 2024 and confirms outlook for the year 

Munich, 22 May 2024 – Cherry SE, an international manufacturer of computer input devices such as keyboards, mice, and headsets for applications in the Gaming & E-Sports, Office & Hybrid Workplaces, Industry and Healthcare sectors, today published its report for the first quarter of 2024 and reaffirmed its full-year guidance for 2024. 

• First quarter 2024 group revenue up 5.6% on comparable quarter of 2023
• Adjusted EBITDA margin reached 2.8% and is 7.4 percentage points above the first quarter of 2023 as a result of strong demand for e-health terminals.
• Full year 2024 forecast confirmed

Group revenue up 5.6% on previous year, with dynamic demand in the healthcare sector being one of the drivers

Cherry SE published its report for the first quarter of 2024 today. In the past financial quarter, the company generated consolidated revenue of EUR 30.3 million. This corresponds to an increase of 5.6% compared to the EUR 28.7 million achieved in the same quarter of the previous year. The increase results in particular from the pleasant development in the DIGITAL HEALTH & SOLUTIONS segment, which achieved revenue growth of almost 76%. The strong demand for the company's e-health terminals as a result of the introduction of e-prescriptions contributed significantly to the dynamic sales growth. The business with hygiene keyboards and mice for hospitals and medical practices grew dynamically, too. In the GAMING & OFFICE PERIPHERALS segment, revenue was around 3% higher than in the same quarter of the previous year. Due to the switch business being largely discontinued in the second half of 2023, COMPONENTS did not yet make a significant contribution to Group sales again in the first quarter.

Adjusted EBITDA margin for the first quarter of 2024 significantly above previous year 

The adjusted EBITDA margin reached 2.8% in the first quarter, significantly exceeding the previous year's figure of -4.6%. The main driver for the pleasing increase in profitability was the profit growth in the DIGITAL HEALTH & SOLUTIONS segment due to the development in demand described above. The profit levels of the GAMING & OFFICE PERIPHERALS and COMPONENTS segments were roughly on a par with those of the first quarter of 2023. 

Cherry confirms forecast for 2024

On the back of this, the Management Board of Cherry SE continues to expect to achieve the full year forecast set on February 27, 2024, of EUR 140 - 150 million in consolidated revenue and 7 - 8% in the adjusted EBITDA margin.

Oliver Kaltner, CEO of Cherry SE, explains: “The realignment of the Cherry Group has presented us with immense challenges. The decisions we made were tough, but they are leading us consistently along the path of profitable growth. As of today, all these decisions have largely been implemented, so that we will steer through our revitalization year 2024 based on the following framework conditions: Our adjusted product pipeline and optimized planning process will allow us to maintain an inventory level significantly below that of recent quarters. Stringent cash and cost management are already having a positive impact on liquidity and profitability. New sales partnerships are increasing our presence on both sides of the Atlantic and in Asia, particularly in China. Further favorable regulatory conditions and structural demand growth support the dynamic expansion of our position in the healthcare sector. This paves the way for us to return to a profitability level above the 20% mark in the medium term.”

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

Contact

Cherry SE

Nicole Schillinger

Investor Relations

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

T: +49 (0) 9643 2061 848

E: nicole.schillinger@cherry.de