Raspberry Pi debuts with 55% profit jump

24th Sep 2024 07:05

(Sharecast News) - Low-cost micro computer maker Raspberry Pi posted better than-expected interim profit in its maiden results as a listed company, sending shares in the firm higher.

Adjusted core earnings rose 55% to $21m, beating internal expectations, while on a pre-tax basis, profits were flat at $10.8m. Revenues surged 61% to $144m.

Raspberry Pi held full-year guidance, adding that volumes should normalise towards the end of the 12-month period. Stock in the company rose 5% in early London trade.

"The first half of 2024 was characterised by a return to availability of components and in turn our products to our reseller partners and customers. Whilst volumes were marginally lower than expected, sales were skewed towards higher margin variants, yielding stronger unit economics and higher gross profits," said chief executive Eben Upton.

Raspberry Pi, which makes small affordable single-board computers with a built-in microchip and memory, floated on the stock market in June at 280p a share against Monday's closing price of 348p.

"The higher than usual customer and channel inventory levels which were evident at the time of the IPO have continued to unwind, and there is a growing sense that this will have concluded by the year end," Upton added.

Reporting by Frank Prenesti for Sharecast.com