Cherry SE Releases 2024 Half-Year Report

Munich, August 6, 2024 – Cherry SE today published its report for the first half of 2024, confirming the preliminary results and forecasts for the third quarter and the full year 2024.

• Further progress achieved in the first half of the 2024 revitalization year
• First half 2024 revenue of EUR 61.6 million slightly above the previous year’s level; very positive development in the DIGITAL HEALTH & SOLUTIONS segment
• Adjusted EBITDA margin for the first six months at 4.0%; sequential margin increase from 2.8% in the first quarter to 5.1% in the second quarter of 2024
• Inventory at EUR 59 million as of June 30, 2024, seasonally higher than the EUR 55 million at the end of the first quarter, but significantly below the EUR 80 million as of June 30, 2023
• Equity ratio of 56% compared to 51% at year-end 2023
• Forecasts for the third quarter and full year 2024 confirmed

Group revenue 0.4% above previous year, driven by dynamic demand in the healthcare sector

Cherry SE today released its report for the first half of 2024. According to the report, the company achieved group revenue of EUR 61.6 million in the past half-year. This represents an increase of 0.4% compared to EUR 61.3 million in the same period of the previous year, driven by the positive development in the DIGITAL HEALTH & SOLUTIONS segment which achieved revenue growth of more than 60%. Revenue in the GAMING & OFFICE PERIPHERALS segment declined by approximately 6% as the company refrained from accepting orders with insufficient profitability. Due to a shift in orders to the third quarter and the base effect from the prior year’s comparison period, in which the switch business had not yet been discontinued, revenue in the COMPONENTS segment also fell short of the first half of 2023.

Adjusted EBITDA margin for the first half of 2024 reaches 4%

The adjusted EBITDA margin reached 4.0% in the first half, compared to 5.2% in the same period of the previous year. In the second quarter of 2023, an upward revaluation of inventories by EUR 2.8 million had raised the quarterly margin to nearly 14%. Without this valuation effect, the adjusted EBITDA margin in the second quarter of 2024 would have been roughly at the level of the prior year period, and the first half margin would have been significantly above the comparable figure. Here again, the DIGITAL HEALTH & SOLUTIONS segment was the main driver of the positive development.

Cherry SE confirms forecast for 2024

Against this backdrop, the Management Board of Cherry SE continues to expect to achieve the annual targets set on February 27, 2024, of EUR 140 – 150 million in group revenue and 7 – 8% in adjusted EBITDA margin.

Additionally, the Management Board maintains its forecast for the third quarter of 2024, published on July 18, 2024, expecting group revenue of approximately EUR 35 million (Q3 2023: EUR 27.3 million) and an adjusted EBITDA margin in the range of 5% - 6% (Q3 2023: -4.6%).

The full report can be downloaded at https://ir.cherry.de/home/publications/#interim-reports.

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 Munich
T: +49 (0) 9643 2061 848
E: nicole.schillinger@cherry.de