Raspberry Pi profits jump more than expected on higher demand

(Sharecast News) - Raspberry Pi posted a higher-than-expected jump in annual earnings and sales, boosted by strong demand for its single board computers and favourable unit economics during the second half of the year. Adjusted core earnings rose 25% in the 12 months to December to £46.4m, while revenue was also up by a quarter to £323.2m.

Shipments increased 7% to 7.6 million for the year. For the first time, semiconductor device volumes exceeded those of boards and modules, with 8.4 million semiconductor units sold, the company said on Tuesday.

It added that strong sales momentum had carried into the opening months of this year, but warned that the current lack of supply of dynamic random access memory (DRAM) for processors due to demand from artificial intelligence data centres was restricting second-half visibility.

"While the DRAM environment limits second-half visibility, we have the inventory position, supplier relationships and pricing flexibility to navigate it effectively. Against that backdrop full-year profitability is anticipated to be in-line with market estimates, with revenue materially higher," the company said.

Reporting by Frank Prenesti for Sharecast.com