On Thursday, the CHERRY share is under a lot of pressure after the preliminary figures for the 2023 financial year were presented.
CHERRY presented preliminary and unaudited key figures for the 2023 financial year on Wednesday evening. It emerged that the company is unlikely to be able to meet its own forecast.
For the 2023 financial year, sales are expected to amount to 126 million euros, the company announced in an ad hoc announcement. The company’s own forecast, on the other hand, was 140 million euros. The adjusted Group EBITDA margin also falls well short of its own expectations: CHERRY previously announced a margin of around 10 percent, but according to the statement, this will probably only be around 2 percent.
Fourth quarter growth slows
Sales for the fourth quarter of 2023 are reported at around 38 million euros, which is higher than in the same quarter of the previous year (34.5 million euros).
“The deviation from the forecast is due to slower growth in the fourth fiscal quarter. The growth in demand for computer peripherals, particularly in the B2B business, fell short of the company’s expectations. The resulting lack of sales led to a decline in adjusted EBITDA margin because costs could not be reduced to the same extent,” explains the company in the statement.
However, CHERRY is giving investors a small ray of hope and is relying on restructuring: “For the year as a whole, we were able to record positive double-digit sales growth compared to the previous year in the areas of gaming and office peripherals, but this was not yet enough to compensate for the decline in the switch business and to compensate for the delay in the area of Digital Health and Solutions. The announced restructuring, cost reduction and transformation measures will be implemented stringently and the company expects that these will lead to an improvement in CHERRY’s financial situation in the near future.”
CHERRY shares: Investors are fleeing in droves
The numbers caused a strong flight of investors: the CHERRY share was ultimately 36.38 percent lower at 1.86 euros in XETRA trading on Thursday.
Editorial team finanzen.net / EQS-Ad-hoc: CHERRY SE
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