Raspberry Pi Holdings plc (RPI) Q2 2025 Earnings Call

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Replay transcript excerpt

WEBVTT 00:00:00.031 -- 00:00:05.780 Good morning everyone and welcome to our 2025 first half 00:00:05.780 -- 00:00:11.288 interim results. We're going to start by sharing a few highlights of the half 00:00:11.288 -- 00:00:15.916 and Richard is going to take us through the financials and we'll round off with an update 00:00:15.916 -- 00:00:22.162 on some of our strategic programs and then outlook for the second half and beyond. 00:00:22.525 -- 00:00:26.148 We're very pleased with our performance in the first half of the year. 00:00:26.148 -- 00:00:30.953 We saw a 9% sequential increase in unit volumes, 00:00:30.953 -- 00:00:36.418 underlying demand growth from our existing and new OEM customers. 00:00:36.418 -- 00:00:40.702 And this happened in the context of a normalized channel inventory position. 00:00:40.702 -- 00:00:45.727 Recall that heavy inventory both in channel and at our OEM customers was a significant 00:00:45.727 -- 00:00:50.572 drag on the performance of the business in the second half of last year. 00:00:50.572 -- 00:00:56.178 So an 8% sequential increase in direct unit sales and a 27% increase 00:00:56.178 -- 00:01:01.204 in direct revenue, reflecting the success of our strategy to move more of 00:01:01.204 -- 00:01:04.908 our large OEM customers into the direct channel. 00:01:04.908 -- 00:01:10.074 A good product mix, certainly a better product mix than in the second half of last 00:01:10.074 -- 00:01:15.239 year, which together gave us a 19% sequential increase in adjusted 00:01:15.239 -- 00:01:20.800 EBITDA. Just to probably address a couple of potential headwinds on the company. 00:01:20.800 -- 00:01:25.789 Obviously, we are now in a high and dynamic, probably more importantly, dynamic tariff 00:01:25.789 -- 00:01:28.894 environment in respect of s...