Raspberry Pi profits tumble after supply shortages

Raspberry Pi has revealed its profits tumbled by more-than-half in its first year as a publicly listed company after it was impacted by supply issues.

But the microcomputer business saw shares lift in early trading as profits still surpassed industry forecasts.

The Cambridge-based business told shareholders that pre-tax profits dropped by 57% to 16.3 million US dollars (£12.6 million) in 2024, compared with the previous year.

Meanwhile, it posted adjusted earnings of 37.2 million dollars (£28.8 million), ahead of the 36.6 million dollars (£28.3 million) predicted by analysts.

The company added that sales were down 2% to 259.5 million dollars (£201 million) for the year.

It said this came after sales in the second and third quarters of the year were weaker due to lower levels of inventory in the wake of soaring demand following the pandemic.

Raspberry Pi said it had now “completed” its recovery from pandemic-related shortages and expected a steady build-up of demand to continue this year.

The company was behind one of last year’s biggest stock market floats in London, when it raised £178.9 million in an initial public offering (IPO).

In September, it was admitted to the FTSE 250 index of firms.

Eben Upton, chief executive of Raspberry Pi, said: “In the second half, we released more products than in any prior full year, despite the potential distraction of the IPO, continuing to excite our enthusiast and embedded communities.

“That flexibility helped us to meet market expectations in a year dominated by the widely reported inventory correction throughout our industry and following an exceptionally strong comparable previous financial year.

“I am confident that we will continue to see gradual improvements in end-demand during the current year.”

Shares in the company were 5.6% higher in early trading.