Raspberry Pi profits fell by more than half amid supply issues

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

But after announcing its earnings, the Cambridge-based microcomputer business saw shares lift in early trading as profits still surpassed industry forecasts.

Shareholders were advised that pre-tax profits dropped by 57 per cent to £12.6million ($16.3m) in 2024, compared to the previous year.

It posted adjusted earnings of £28.8m ($37.2m), ahead of the £28.3m ($36.6m) predicted by analysts.

The company added that sales were down two per cent to £201m ($259.5m) for the year.

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, it confirmed.

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 rose 5.6 per cent in early trading after the announcement last week.

The Cambridge Independent has reported how the company was considering the significant opportunity of muscling in on the semiconductor market. That came as rivals faced pressure because US President Donald Trump has stated he wants to get rid of a law that gives more than $50bn in subsidies for US semiconductor manufacturing – arguing that the money is not being spent.