Adtran Networks SE has updated its preliminary results for the financial year 2024, revealing a significant change in its IFRS pro forma EBIT expectations. The management board identified an adjustment to inventory, resulting in an increase in costs of goods sold. As a result, the company now expects a loss of approximately EUR 10.2 million, which is a notable increase from the previously published loss of EUR 4.5 million. This represents a -2.3% of revenues compared to the previously reported -1.0% of revenues.
It's important to note that this adjustment has no impact on the expected revenues for the financial year 2024 and does not negatively affect the company's cash position. The full consolidated financial statements and financial statements for the financial year 2024 are scheduled to be published on 30 April 2025 as planned.
This update indicates a significant change in the company's financial performance, with the expected loss more than doubling from the previously announced figures. The adjustment in inventory has resulted in a substantial impact on the costs of goods sold, leading to a reevaluation of the company's financial outlook for the year 2024. The market has reacted to these announcements by moving the company's shares -4.4% to a price of $7.37. For the full picture, make sure to review ADTRAN's 8-K report.
