Germany · Delayed Price · Currency is EUR Cherry SE Earnings Call Transcripts
Fiscal Year 2025
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Revenue declined 15% in 2025 due to divestments and weak Components, but like-for-like sales grew 4.7%. Inventory and costs were significantly reduced, with margin recovery in Peripherals and strong Digital Health growth. Strategic review for a major segment sale is ongoing.
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Revenue declined 25% YoY to €46M in H1 2025, with adjusted EBITDA margin at -5% due to restructuring and weak demand. Liquidity improved via inventory reduction and the sale of the hygiene business, while digital health is positioned for growth amid regulatory tailwinds.
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Restructuring includes shifting switch production to China, major SKU reduction, and a new focus on high-margin peripherals and digital health. 2025 guidance targets EUR 105–120 million revenue and 3–6% EBITDA margin, with margin recovery expected in H2.
Fiscal Year 2024
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2024 revenue fell short of forecasts due to weak Americas and switch business, but digital health saw strong growth and cost controls led to positive Q4 free cash flow. Strategic restructuring and new partner programs aim to drive recovery, with a focus on returning to profitability in 2025.
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Q3 2024 saw a sharp revenue and EBITDA decline, mainly due to weak German demand and internal issues, prompting restructuring and cost-cutting. Digital Health showed strong growth, while Gaming and Office Peripherals and Components lagged. Full-year guidance was lowered.
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H1 2024 saw modest sales growth and a significant margin improvement, driven by Digital Health and Solutions, while cost controls and restructuring advanced ahead of plan. Full-year guidance is maintained despite macroeconomic and logistical risks, with Q4 expected to deliver strong seasonal results.