TCM Group's Financial Outlook for 2025
TCM Group A/S is set on a promising path as we look ahead to 2025. The company expresses a cautious optimism regarding the overall market dynamics. Recent trends indicate that inflationary pressures may be easing, coupled with central banks beginning to lower short-term interest rates. However, the reactions of consumers and the housing market remain to be seen, making the financial outlook for TCM Group both intriguing and complex.
Anticipated Revenue Growth
The financial projections for 2025 anticipate revenue growth in the core markets of Denmark and Norway. This growth is expected to be fueled by a continued recovery in consumer spending (B2C) as well as a resurgence in the business-to-business (B2B) project market as the year progresses. TCM Group believes that it can translate this potential sales growth into increased profitability by leveraging ongoing improvements in efficiency and integrating synergies with AUBO.
Challenges from Input Costs
Despite this optimism, TCM Group is mindful of the ongoing challenges presented by input cost inflation. Rising costs related to raw materials, labor, and logistics have become pressing concerns, creating pressure on profit margins. The company is prepared to navigate these challenges, although they may impact pricing strategies.
Strategic Acquisition of Celebert ApS
In a significant move for the company's growth, TCM Group expects to complete the acquisition of the remaining 55% stake in Celebert ApS in the latter half of 2025. Celebert has shown remarkable revenue and earnings growth in the online market, and gaining total control over this entity will open doors for additional sales opportunities and cost efficiencies.
Full-Year Revenue Projections
For the upcoming year, TCM Group anticipates full-year revenues between DKK 1,250 million and DKK 1,400 million, with an adjusted EBIT ranging from DKK 90 million to DKK 120 million. These figures consider the expected acquisition of Celebert late in the year.
Contact Information
For more information about the company's financial outlook and strategic direction, please reach out to:
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 A/S
TCM Group is recognized as Scandinavia’s third largest manufacturer in the kitchen and furniture sector. The products are crafted in Denmark, embodying a rich tradition of quality and craftsmanship. With a multi-brand approach, TCM Group's primary brand is Svane Køkkenet, complemented by Tvis Køkken, Nettoline, and AUBO. These brands serve a diverse market spectrum and are available through approximately 220 dealers across Denmark and Scandinavia. Additionally, TCM Group supplies private label kitchens for DIY stores in Denmark and independent kitchen retailers in Norway, alongside a 45% stake in the e-commerce platform Celebert, which operates brands like kitchn.dk and billigskabe.dk.
Frequently Asked Questions
What is TCM Group's financial outlook for 2025?
TCM Group anticipates revenue growth driven by a recovery in both B2C and B2B markets, with expected revenues between DKK 1,250 million and DKK 1,400 million.
What challenges does TCM Group face in 2025?
Challenges include ongoing input cost inflation affecting margins, particularly in raw materials, wages, and logistics.
How will the acquisition of Celebert ApS impact TCM Group?
The acquisition will grant TCM Group full control of an important sales channel, allowing for enhanced sales and cost synergies.
Who can I contact for more information about TCM Group?
You can contact Torben Paulin, CEO, or Thomas Hjannung, CFO, using the phone numbers provided or via email at ir@tcmgroup.dk.
What brands does TCM Group operate under?
TCM Group operates under several brands, including Svane Køkkenet, Tvis Køkken, Nettoline, and AUBO, catering to a wide price range.
