Strong growth in revenue and profitability: Cherry continues growth course in first half-year

• Cherry achieves revenue of EUR 80.3 million and, with 34.4 % year-on-year revenue growth, lies well within the forecast range; strong growth of EBITDA adj. to EUR 24.3 million (+53.6 % year-on-year) 
• The Gaming business area recorded 26.0 % revenue growth and the Professional business area an increase of 44.8 % over the previous year - together with the good order book position, this creates an excellent basis for a successful second half of the year, in which stronger results are usually achieved than in the first months of the year
• The company is benefiting from trends such as the increasing popularity of computer games, growing concerns about data security, the spread of new forms of working, and the digitalization of the German healthcare system 
• With this and the IPO in June, Cherry is in an excellent position to drive further growth

Munich, August 16, 2021. Cherry AG, a global innovation and quality leader in the manufacture of premium mechanical gaming switches and peripherals for gaming, office and industry as well as healthcare and security applications, continued on its growth trajectory in the first half of this year. With revenue of EUR 80.3 million - representing 34.4 % year-on-year growth - the respective target was exceeded. Profits also grew. EBITDA (adjusted) grew at a disproportionately high rate compared to revenue, increasing by 53.6 % year-on-year to EUR 24.3 million. EBIT, adjusted for special effects such as costs in connection with the acquisition of Active Key, the repayment of existing bank loans and the IPO, also recorded disproportionate growth of 56.9 % compared to the same period of the previous year and amounted to EUR 17.0 million. Looking ahead to the full fiscal year of 2021, Cherry assumes that revenue can be increased in line with the previous expectations (guidance) of 30 to 40% compared with the 2020 financial year and EBITDA adj. is in line with 30% margin mid-term target. The net income was impacted by non-recurring one-off effects (e.g. IPO etc.). However, the company expects to achieve an increase in operating profitability for the current fiscal year. Inventory was increased to cope with expected price increases in the second half and possible shortages of raw materials.

The overall picture for the company's individual business areas in the first two quarters of the fiscal year was as follows. The Gaming business area, which comprises the development, manufacture and sale of mechanical switches and gaming peripherals, generated revenue of EUR 42.0 million (+26.0 % year-on-year). Here, the company benefited from the growing popularity of computer games, an increasing number of gamers worldwide and the growing popularity of so-called eSports, such as the League of Legends World Championship, among other factors. The Professional business area, which comprises the manufacture of PC peripherals (such as keyboards and mice) for office end users and the development of safe and hygienic computer input devices for the healthcare sector, recorded revenue of EUR 38.3 million (+44.8 % year-on-year). Cherry benefited here from the wave of digitalization in the German healthcare system, higher demand for peripheral devices in the context of new forms of working (mobile working and home office), as well as greater concerns about data security. These trends are also reflected in the company's well-filled order books of EUR 37.9 million, which include a major order from a government agency and very high demand for the company's e-health terminals.

This, together with the IPO in June 2021, puts the company in an excellent position to drive further ahead with both organic and inorganic growth. Entries into new markets - with recent successes including Hong Kong/Macau and Southeast Asia - combined with the good order book position and further product innovations create the conditions for a successful second half of the year, which usually accounts for a higher share of revenue than the first six months of the year.

Rolf Unterberger, CEO of Cherry AG: "We have made an excellent start to the year and are confident that our business will continue to grow dynamically in the second half of the year. Thanks to our stock market listing, we also see ourselves in a good position to drive our growth inorganically through M&A transactions. This strengthens our leading position in terms of innovation, quality and customer focus, which we are continuing to expand and consolidate."
 

EUR million   (unless otherwise stated)	01/01/2021 - 30/06/2021	01/01/2020 - 30/06/2020   (pro forma / unaudited)*	Change
Revenue	80.3	59.8	34.4%
of which Gaming   of which Professional	42.0   38.3	33.3   26.5	26.0%   44.8%
EBITDA (adjusted)	24.3	15.8	53.6%
EBITDA	18.9	15.7	20.6%
EBITDA margin (adjusted)	30.2 %	26.4 %
EBITDA margin	23.5 %	26.2 %
EBIT (adjusted)	17.0	10.9	56.9%
EBIT	11.7	10.7	8.9%
EBIT margin (adjusted)	21.2 %	18.2 %
EBIT margin	14.5 %	18.0 %

*As of June 30, 2020, the Cherry AG Group did not exist in its current structure. For this reason, 2020 pro forma comparative figures for the Cherry Holding Group are presented. 

About Cherry
Cherry is a global manufacturer of high-end mechanical keyboard switches and computer input devices. The business focus is on mechanical keyboard switches for gaming keyboards as well as various computer input devices, which are used in a wide range of applications - especially in the areas of gaming, office, industry, cybersecurity as well as telematics solutions for the healthcare industry. Since its founding in 1953, Cherry, with its two business areas Gaming and Professional, has stood for innovative and high-quality products that are developed specifically to meet the needs of its customers.
Cherry has its operational headquarters in Auerbach in Germany's Upper Palatinate region and currently employs over 500 people in production facilities in Auerbach, Zhuhai (China) and Vienna (Austria) as well as in several sales offices in Auerbach, Pegnitz, München, Paris, Kenosha (USA), Taipei and Hong Kong.
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