Cherry SE Reports Q3 Decline and Adjusts 2024 Forecast

Munich-based Cherry SE has disclosed its preliminary figures for the third quarter of 2024, reporting a notable revenue dip. The company's revenue for the first nine months stood at EUR 84.2 million, down 5% from the previous year's EUR 88.6 million. Third-quarter revenue was particularly affected, dropping 17% to EUR 22.6 million from the previous EUR 27.3 million.

This shortfall is attributed to a sluggish notebook market and economic challenges in Germany, as well as structural issues in Cherry's Gaming & Office Peripherals division. However, the Digital Health & Solutions division showed robust performance, with significant sales growth.

As part of a new strategic approach, Cherry SE aims for EUR 120 million in consolidated revenue and an adjusted EBITDA margin of 3% for the year, marking a decrease from earlier projections. The company is implementing measures to streamline operations and introduce a new sales model, committing to cost savings and operational efficiency improvements.