TCM Group A/S Reports Solid Performance in Q3 2025
Company Announcement
No. 246/2025
We are pleased to share our interim report for the third quarter of 2025, covering the period from July 1 to September 30. In this quarter, TCM Group A/S demonstrated resilience against a fluctuating market, achieving stable sales growth paired with improvements in our gross margins.
Sales Growth and Market Trends
CEO Torben Paulin highlighted the positive trajectory of our sales, stating, “Sales in the third quarter met our expectations, with growth recorded across both the B2B and B2C segments.” We experienced a 4% year-on-year increase in total sales, reaching DKK 289 million, along with organic growth of 3%.
Order intake saw significant improvement this quarter, particularly with double-digit growth within the B2C segment. Although project orders in the B2B sector declined slightly compared to last year, we noted a substantial positive trend in orders from builders of turnkey residential homes.
Gross Margin Enhancements
The gross margin improved to 21.4% this quarter, up from 20.3% in the same quarter last year. This increase was driven by higher average selling prices, improved sales mix, and ongoing operational efficiencies within our production and supply chain.
Financial Highlights of Q3 2025
In addition to our sales growth, our adjusted EBIT remains largely unchanged year-on-year at DKK 16.6 million, reflecting a margin of 5.8%, which is slightly below the 6.0% from Q3 2024. The rise in operating costs during the quarter was mainly due to the acquisition of retail stores earlier this year. Once we identify new franchisees to oversee these outlets, we anticipate that the rise in costs will be temporary.
Our free cash flow recorded DKK 4 million for the quarter, a decrease from DKK 6 million the previous year. This decline was largely due to unfavorable working capital changes tied to retail operations and increased inventory levels. Meanwhile, capital expenditures came in at DKK 7.9 million, primarily associated with our ERP implementation project.
Refining Full-Year Guidance
In light of our performance trends across the first nine months and current order intake during Q3, TCM Group is refining its financial guidance for the full year of 2025. We expect a revenue range of DKK 1,260–1,280 million, and adjusted EBIT in the range of DKK 93–100 million.
Furthermore, on November 25, 2025, TCM Group will acquire complete ownership of Celebert. This acquisition is projected to have a minimal effect on the overall figures for TCM Group in 2025.
Impressive Year-to-Date Results
Looking at our cumulative performance for the first nine months of 2025, we have seen remarkable developments:
- Revenue has grown to DKK 946.1 million, compared to DKK 902.4 million previously, reflecting an impressive growth rate of 4.8%.
- Adjusted EBITDA for the first nine months stands at DKK 94 million, with a margin of 9.9%.
- Adjusted EBIT has also increased to DKK 67.4 million, representing a margin of 7.1%.
- The net profit for this period has risen to DKK 43.9 million, up from DKK 34.7 million.
- Free cash flow accumulated to DKK 32.7 million, although it has decreased from DKK 44.4 million last year.
Overall, we maintain our projections for revenue and adjusted EBIT margins for the complete financial year, with expectations set between DKK 1,260-1,280 million in revenue.
About TCM Group
TCM Group stands as Scandinavia’s third largest manufacturer specializing in kitchens and bathroom storage solutions. Our products, known for their quality craftsmanship, are designed and manufactured in Denmark. TCM Group follows a multi-brand strategy, boasting prominent brands such as Svane Køkkenet, Tvis Køkken, Nettoline, and AUBO. Together, they address a broad pricing spectrum through approximately 220 dealers across Denmark and Scandinavia.
For more inquiries, please contact: Torben Paulin, CEO, TCM Group A/S, +45 21 21 04 64, or reach our IR team via email at ir@tcmgroup.dk.
Frequently Asked Questions
What were the total sales figures for Q3 2025?
Total sales for the quarter increased to DKK 289 million, marking a growth of 4% from the previous year.
How did the gross margin perform in Q3 2025?
The gross margin rose to 21.4%, up from 20.3% in Q3 2024, driven by higher sales prices and improvements in production efficiency.
What is TCM Group's outlook for the full year of 2025?
TCM Group has narrowed its guidance, expecting revenue between DKK 1,260-1,280 million and adjusted EBIT of DKK 93-100 million.
What are the operational highlights for TCM Group in 2025?
Key operational highlights include stable sales growth, improved gross margins, and a strategic acquisition of Celebert.
Who should be contacted for additional information regarding TCM Group?
For further information, Torben Paulin, CEO, can be contacted directly at +45 21 21 04 64 or through the company's IR email at ir@tcmgroup.dk.
