TCM Group A/S Shows Positive Growth in Q1 2025
COMPANY ANNOUNCEMENT
No. 207/2025
Interim report Q1 2025 (January 1 - March 31)
Organic Sales Growth Driven by a Recovering B2C Market
CEO Torben Paulin Shares Insights:
“In the first quarter, we saw our sales evolve as expected, with a decline in B2B project sales offset by a significant rise in B2C sales. Total sales increased by 5% compared to the same quarter last year, reaching DKK 308 million, alongside an organic growth of 4%.”
The company's order intake showed promising signs in the initial quarter, with notable growth in both the B2C and B2B segments across all brands. The Norwegian market is also showing early recovery, evidenced by double-digit growth in order intakes.
A rise in gross margin to 21.1% in Q1, up from 20.5% in Q1 2024, was driven largely by the acquisition of two Svane Køkkenet stores in Denmark. This improvement in profitability represents stability, as the benefits from the changed sales mix balanced against increases in production and logistics costs. The decision to expand production capacity ahead of the peak season in the second quarter also contributed to these increased costs, along with related expenses for the new lacquering facility.
TCM Group reported an adjusted EBIT of DKK 17.1 million for the first quarter, up from DKK 15.8 million in the same period last year. This reflects an adjusted EBIT margin of 5.6% compared to 5.4% previously.
However, free cash flow reported a decline in Q1, with negative cash flow amounting to DKK 4 million against a positive DKK 13 million in Q1 2024. This shift is attributed to investments in the new lacquering facility and ERP project, in addition to an increase in net working capital largely due to the stores' acquisition.
New product launches were a highlight during Q1, coinciding with AUBO’s 40th anniversary, where “Truffel” marked an exciting extension of the Sense product line. In addition, Svane Køkkenet debuted Notes Bronze, which enriches their veneer assortment.
Although TCM Group is optimistic about the positive order intake for the quarter, the potential effects of geopolitical instability on consumer confidence and kitchen demand are closely monitored. Consequently, TCM maintains its revenue forecast for 2025 in the range of DKK 1,250-1,400 million, with an adjusted EBIT expectation of DKK 90-120 million, assuming full ownership of Celebert later this year.
Financial Highlights for Q1 2025
Important financial metrics include:
- Revenue of DKK 308.1 million, reflecting a growth of 5.3% from DKK 292.5 million.
- Adjusted EBITDA reached DKK 25.9 million, with an adjusted EBITDA margin of 8.4%.
- Adjusted EBIT reported at DKK 17.1 million, maintaining an EBIT margin of 5.6%.
- Non-recurring items had no significant impact on results.
- Net profit increased to DKK 12.1 million, significantly up from DKK 7.0 million in Q1 2024.
- Essentials like the cash conversion ratio improved to 76.8% from 69.1% in the previous year.
- TCE Group provides a full-year guidance estimating revenue between DKK 1,250-1,400 million and adjusted EBIT in the DKK 90-120 million range.
Contact Information:
Torben Paulin, CEO, TCM Group A/S, +45 21 21 04 64
Thomas Hjannung, CFO, TCM Group A/S, +45 25 17 42 33
IR Contact – ir@tcmgroup.dk
About TCM Group
TCM Group stands as Scandinavia's third-largest manufacturer of kitchen and bathroom furniture. The company offers products designed and produced in Denmark, upholding a tradition of superior quality and craftsmanship. Employing a multi-brand strategy, TCM operates notably under the Svane Køkkenet brand, complemented by Tvis Køkken, Nettoline, and AUBO. Collectively, they cater to diverse price ranges, with availability through approximately 220 dealers in Denmark and Scandinavia. TCM Group also supplies private label kitchens to DIY stores in Denmark and independent kitchen retailers across Norway.
An exciting avenue for TCM Group is its 45% ownership stake in Celebert, an e-commerce kitchen business that operates under various brands, including kitchn.dk and billigskabe.dk.
Frequently Asked Questions
What were TCM Group's sales growth figures for Q1 2025?
TCM Group reported a total sales growth of 5%, reaching DKK 308 million in Q1 2025.
How did the gross margin change in Q1 2025?
The gross margin increased to 21.1%, up from 20.5% in Q1 2024.
What is the outlook for the full-year revenue of TCM Group?
TCM Group maintains a revenue forecast range of DKK 1,250-1,400 million for the year 2025.
What are the key products launched by TCM in Q1 2025?
In Q1 2025, TCM launched the “Truffel” product as part of AUBO’s 40th anniversary and the Notes Bronze within Svane Køkkenet's veneer offering.
Who to contact for more information about TCM Group?
For inquiries, you can reach out to Torben Paulin, CEO, or Thomas Hjannung, CFO, using the provided contact details.
