Cherry (C3RY) Analyst Day 2025 summary

Strategic restructuring and business realignment

• Comprehensive reorganization in January 2025 consolidated sales and marketing for peripherals and centralized product management across Europe.

• Switch production discontinued at Auerbach, with manufacturing shifted to China and Slovakia to address competitive disadvantages and reduce costs.

• Auerbach site transformed into a development, logistics, and service hub for Europe, retaining strategic value.

• Portfolio optimization in peripherals, reducing SKUs by 75% and focusing on high-margin, high-demand products, especially cordless and gaming.

• New partner program and master distribution model launched to streamline go-to-market and improve profitability.

Financial performance and guidance

• 2024 revenue was EUR 110.4 million, down 13% year-over-year, with adjusted EBITDA at EUR -7 million due to inventory write-downs and impairments.

• Q1 2025 revenue was EUR 25.3 million, 16% lower than Q1 2024, with an adjusted EBITDA margin of -8%.

• Inventory levels reduced to EUR 50.4 million by March 2025, with trade working capital at EUR 51.8 million.

• 2025 guidance: group revenue of EUR 105–120 million and adjusted EBITDA margin of 3–6%, expecting margin recovery in H2 due to seasonality and restructuring benefits.

• Financing facility with UniCredit extended to 2027, focusing on liquidity milestones rather than leverage covenants, with EUR 23m facility and scheduled repayments.

Market and operational highlights

• Achieved over 70% market share in e-health new terminal sales; digital health segment remains a growth focus with SmartLink provider approval and SaaS opportunities.

• Peripherals business saw strong market share gains in Germany and EU3 retail, reaching 23% by Q4 2024, but remains underpenetrated in the UK and France.

• Shift from sell-in to sell-out models, with a focus on demand-driven sales, margin improvement, and channel/customer separation.

• U.S. business impacted by tariffs and inventory challenges; new partner network established to reactivate growth.

• Asia-Pacific outperformed expectations, with inventory reduction and a 22nd anniversary campaign planned to boost sales.