Cherry SE reports results for 2022 fiscal year

Cherry SE reports results for 2022 fiscal year


Cherry SE / Key word(s): Annual Report
Cherry SE reports results for 2022 fiscal year

30.03.2023 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

Cherry SE reports results for 2022 fiscal year

Group revenue down 21.4% to EUR 132.5 million (2021: EUR 168.5 million)
(Adjusted) Group EBITDA margin at 11.5% (2021: 29.0%)
GAMING business area with a decline of 50.2% to EUR 41.2 million impacted by currently unfavorable market conditions (2021: EUR 82.8 million)
PROFESSIONAL business area grows by 6.5 % to EUR 91.3 million (2021: EUR 85.7 million)
Forecast for the current fiscal year: growth of Group revenue to EUR 135 - 165 million and profitability in the range of 10 to 14 % (adjusted) EBITDA margin


Munich, March 30, 2023 – Cherry SE [ISIN: DE000A3CRRN9] today published its consolidated financial statements for 2022 fiscal year and its forecast for the current fiscal year.

“Cherry was exposed to some considerable economic headwinds during the past fiscal year. In addition to international supply chain disruptions, lockdowns in China, and high inventory levels in the various sales channels, worldwide consumer demand for computer peripherals also lost pace during the year as a result of the war in Ukraine,” said Oliver Kaltner, CEO of Cherry SE, commenting on Cherry’s business performance. “In the current fiscal year, we are focusing on the further development of our business model, the implementation of strategic investments, and the expansion of our sales activities in a total of 30 countries, with the aim of increasing operating profitability again and optimizing how best to allocate capital. With our “Gaming Goes Global” project, we intend to significantly grow and internationalize our gaming peripherals line of business as of the second quarter 2023.”

“For the current fiscal year we expect Group revenue to be within the range of EUR 135 and 165 million,” adds Bernd Wagner, CFO of Cherry SE. “This will again depend to a large extent on how the economy develops, as it is currently still fraught with a high degree of uncertainty. Taking into account the measures already implemented and planned, we predict an (adjusted) EBITDA margin of between 10% and 14% for the current year.”

In light of the persistently challenging business environment during the 2022 fiscal year, particularly for the Components business unit, Group revenue fell by 21.4% to EUR 132.5 million (2021: EUR 168.5 million).

Within the GAMING business area, revenue generated in the Components business unit decreased by 62.6% from EUR 57.7 million to EUR 21.6 million. Business with keyboard switches was most heavily impacted by the negative macroeconomic conditions due to high pressure on prices, significant excess inventories at distributors and customers, and the new market trend among end consumers towards smaller gaming keyboards with a 20 to 30% reduced number of switches.

The PROFESSIONAL business area continued to grow well overall, despite the current unfavorable economic conditions, total revenue increased by EUR 5.6 million from EUR 85.7 million to EUR 91.3 million. Revenue generated with office, industry, security and PoS peripherals rose by 10.7% to EUR 65.2 million (previous year: EUR 58.9 million). The expansion of e-commerce activities made it possible to exploit existing market potential in the PERIPHERALS business unit.

The gross profit margin (GP II and manufacturing cost margin) went down to 27.8% on Group revenue (2021: 40.9%) on Group revenue. The main reasons for the lower gross profit margin were product mix effects, idle production costs due to lower capacity utilization, severance payments in the context of restructuring, impairment losses on the VIOLA product series, and increased material and logistics costs.

Adjusted EBITDA amounted to EUR 15.2 million (2021: EUR 48.9 million), with the adjusted EBITDA margin declining by 17.5 percentage points to 11.5% (2021: 29.0%). In reaching the adjusted EBITDA figure, non-recurring net expenses totaling approximately EUR 3.0 million were taken into account.

Since the largest current customer and strategic project partner for the Cherry VIOLA switches is apparently discontinuing its products based on this technology due to a lack of profitability, as well as a lack of alternative customers and sales potential, the Management Board of Cherry, in consultation with the Supervisory Board, has decided to terminate the joint project prematurely and to phase out the technology early for commercial, economic and strategic/conceptual reasons. This resulted in an impairment requirement of around EUR 3.5 million, which reduced EBIT.

Moreover, the economic development in the past fiscal year lead to reduced sales and earnings growth expectations for subsequent years, which – together with increased capital costs – have a negative impact on the present value of expected cash flows. The impairment test of the balance sheet goodwill as of December 31, 2022, therefore resulted in an impairment requirement of EUR 29.9 million, which is mainly driven by the sharp decline in revenue of the Components business unit and is fully attributable to the assets of Cherry Europe GmbH. The impairment is reported separately in the income statement under “Impairment of goodwill”.

In the 2022 fiscal year, earnings before interest and taxes (EBIT) was thus a loss of EUR -36.5 million (2021: profit of EUR +27.6 million), resulting in an EBIT margin of -27.5% (2021: +16.4%).

As of December 31, 2022, Group net assets amounted to EUR 379.1 million, which increased by EUR 31.9 million or 7.8% compared to the previous year (December 31, 2021: EUR 411.0 million).

Taking depreciation and amortization and impairment of goodwill into account, non-current assets amounted to EUR 202.3 million as of December 31, 2022 and were therefore EUR 32.1 million or 13.7% below the previous year’s figure of EUR 234.4 million. This is mainly due to the impairment of goodwill and a reduction of IFRS 16 rights of use by EUR 3.4 million and of property, plant and equipment by EUR 0.8 million. Conversely, deferred tax assets increased by EUR 3.6 million.

Net working capital, i.e. current assets (excluding cash and cash equivalents) less current liabilities (excluding financial liabilities), went up by 7.6% from EUR 38.0 million to 40.9 million year on year, driven primarily by an increase in inventories, which was greater than the increase in trade payables, and therefore needed to be financed out of CHERRY’s own resources.

Compared to the 2021 fiscal year, equity decreased by EUR 41.3 million to EUR 251.8 million, reflecting the combined effect of the share buyback program 2022 (EUR -6.8 million), which are recognized as a reduction in equity, and the Group net loss for the year (EUR -35.7 million), primarily from goodwill amortization.

As of December 31, 2022, cash and cash equivalents stood at EUR 92.8 million (December 31, 2021: EUR 109.7 million), i.e. 24.5% of total assets (2021: 26.7%). The amount reported includes EUR 45.0 million drawn down out of a credit facility totaling EUR 55.0 million.

Net cash inflows from operating activities totaled EUR 5.8 million (2021: EUR 7.8 million). Net cash outflows for investing activities totaled EUR 11.3 million (2021: EUR 14.4 million).

Despite the macroeconomic challenges, the Management Board expects a year-on-year revenue growth from EUR 132.5 million to EUR 135-165 million and an adjusted EBITDA margin in the range of 10-14% for 2023 fiscal year.

The Management Board forecasts double-digit revenue growth and a slightly higher adjusted EBITDA margin for the GAMING business area in the 2023 fiscal year (2022 fiscal year: negative 0.7%).

The Management Board forecasts single-digit revenue growth and a slightly lower adjusted EBITDA margin for the PROFESSIONAL business area in the 2023 fiscal year (2022 fiscal year: 17.0%).

The Management Board sees the 2023 fiscal year as a transitional year and aims to return to an EBITDA margin of over 20% in the medium term.



The Annual Report, together with the Combined Management Report, the Consolidated Financial Statements and the Separate Financial Statements of Cherry SE are available on the Cherry website at


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 over 500 people in production facilities in Auerbach, Zhuhai (China), and Vienna (Austria) as well as in various sales offices in Auerbach, Pegnitz, Munich, Landskrona (Sweden), Paris, Kenosha (USA), Taipei, and Hong Kong.

More information is available online at:


Dr. Kai Holtmann

Investor Relations

Rosental 7, c/o Mindspace, 80331 Munich, Germany

Postal address: Cherrystrasse 2, 91275 Auerbach, Germany

T +49 (0)175-1971503

F +49 (0)9643 20 61-900


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1596313  30.03.2023 CET/CEST