Raspberry Pi Reports Resilient FY 2024 Results Amid Industry Challenges
Why we think this is neutral
Raspberry Pi's FY 2024 results present a mixed picture. While revenue saw a slight 2% decrease to $259.5m, the company demonstrated resilience in a challenging market affected by industry-wide destocking. The significant drop in operating profit (53% decrease) and basic EPS (67% decrease) are concerning. However, these are balanced by positive factors such as improved H2 performance, new product launches, and strategic OEM partnerships. The company's outlook is cautiously optimistic, anticipating gradual improvements in end-demand and projecting solid sales growth for 2025. The secured $80m RCF provides additional financial flexibility. Despite current headwinds, Raspberry Pi's innovative product pipeline and strategic initiatives position it for potential recovery, warranting a neutral outlook.
Key Points
- Revenue decreased 2% to $259.5m
- Operating profit fell 53% to $17.6m
- Basic EPS dropped 67% to 6.5¢
- Cash position improved to $45.8m
- New $80m Revolving Credit Facility secured
- Stronger H2 performance indicating recovery
- Successful launch of 22 new products
- Strategic OEM partnerships advancing
- Cautiously optimistic outlook for 2025
- Industry-wide destocking impacted performance
Summary
Raspberry Pi reported resilient FY 2024 results amid challenging market conditions. Revenue slightly decreased by 2% to $259.5m, while operating profit fell 53% to $17.6m and basic EPS dropped 67% to 6.5¢. Despite these declines, the company showed signs of recovery with stronger H2 performance and successful new product launches. The company's strategic focus on OEM partnerships and a robust product pipeline positions it well for future growth. Cash position improved to $45.8m, and a new $80m RCF was secured post-period. The outlook remains cautiously optimistic, with expectations of gradual demand improvement and projected solid sales growth for 2025. However, challenges persist, including industry-wide destocking and economic uncertainties.