Munich, 18 July 2024 – Cherry SE today announced preliminary KPI for the second quarter and its forecast for the third quarter of 2024. The company was able to significantly increase profitability compared to Q1 and plans to continue to do so in the current quarter.

• Revenues of EUR 61.6 million in the first half of 2024 slightly above the previous year's figure of EUR 61.3 million and thus in line with the company's own expectations
• At EUR 31.3 million, revenues in the second quarter of 2024 were 3.2% higher than the comparable figure for the first quarter, but below the EUR 32.6 million achieved in the same quarter of the previous year
• Profitability in the first half, based on adjusted EBITDA, better than planned at 4%
• Adjusted EBITDA margin of 5.1% in the second quarter after 2.8% in the first quarter and burdened by special effects
• Equity ratio of 57% after 51% as at 31 December 2023
• Strong development of the Digital Health & Solutions segment
• Forecast for the third quarter envisages sales of around 35 million euros and an adjusted EBITDA margin of between 5 and 6%

CHERRY returned to growth in the first half of 2024, continued to manage costs and further increased profitability. The DIGITAL HEALTH & SOLUTIONS segment in particular recorded dynamic growth and generated its highest half-year revenue to date.

The COMPONENTS segment recorded the postponement of a major switch order to the third quarter. In the GAMING & OFFICE PERIPHERALS segment, management deliberately avoided high-volume but margin-dilutive business. As a result, a slight increase in revenues was achieved compared to the first half of 2023. Looking at the second quarter, CHERRY's revenues of EUR 31.3 million exceeded the previous quarter's figure of EUR 30.3 million but were still below the previous year's figure of EUR 32.6 million due to the factors mentioned above.

On the earnings side, CHERRY improved significantly sequentially (Q1: 2.8%) with an adjusted EBITDA margin of 5.1%. The comparable prior-year figure (Q2 2023: 13.8%) was influenced by a higher valuation of inventories in the amount of EUR 2.8 million. Adjusted for this, the reported margin is roughly flat year-on-year. The adjusted EBITDA for the second quarter of 2024 also includes non-adjustable one-off effects such as additional audit costs, the renegotiation of the existing loan agreement and the associated costs of legal advice. In total, these one-off effects amount to just over EUR 0.8 million.

With an equity ratio of 57%, CHERRY has a solid financial structure that is above the equity ratio of 51% at the end of 2023, despite the conservative impairments of EUR 96 million in the previous financial year.

Oliver Kaltner, CEO Cherry SE, comments: ‘The CHERRY team delivered a consistent performance in the second quarter of 2024. It takes the interaction of all three business segments to sustainably optimise our margin structure. In the first half of the year, we delivered sales in line with our targets and even exceeded our adjusted EBITDA margin. Stringent executional excellence and consistent cost management are the two key planning parameters for the second half of the year.’

For the third quarter, Cherry SE expects consolidated revenues of around EUR 35 million and an adjusted EBITDA margin of between 5 and 6% and confirms the forecast for the full financial year 2024. According to the forecast revenues within the range of EUR 140 to 150 million and an adjusted EBITDA margin of between 7 and 8% are to be achieved.

As planned, the company will publish its balance sheet, income statement and cash flow statement for the second quarter and first half of the year on 24 July 2024. Segment sales and profit will also be announced.

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).

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Cherry SE

Nicole Schillinger

Investor Relations

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

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