Cherry AG Lowers Fiscal 2025 View On Weak Demand, Restructuring

(RTTNews) - German computer peripheral device manufacturer Cherry AG (C3RY.DE) said on Monday that it has revised down its fiscal 2025 guidance, due to the impact of restructuring measures in the first half of the year and ongoing weak demand in both its Components division and Americas business.

The company said that it now expects consolidated revenue between 100 million euros and 115 million euros, down from the earlier forecast of between 105 million euros and 120 million euros. The adjusted EBITDA margin has also been lowered to a range of 0 percent to 2 percent from the earlier projected range of between 3 percent and 6 percent.

According to Cherry AG, the downward revision is mainly the result of a deliberate reduction in sales volume during the first half of the year. This was done as a result of strategic decisions to streamline distribution channels and reinforce long-term pricing stability in the Peripherals segment, the company added.

Cherry AG said that in the future, it will continue to focus on realigning its operations toward profitable core business areas. A key milestone in this direction was the sale of its hygiene peripherals unit, Active Key, in the second quarter, the proceeds of which are expected to improve the company's liquidity.

The company said that it will announce its results for the first half of 2025 on August 14.