TCM Group Management’s review Interim report Q1 2025 (January 1 – March 31) (All figures in brackets refer to the corresponding period in 2024.) Organic sales growth driven by a recovering B2C market. CEO Torben Paulin: “Sales in the first quarter developed in line with our expectations, with a decline in B2B project sales offset by a robust increase in B2C sales. Total sales for the quarter rose by 5% year-on-year to DKK 308 million, with an organic growth of 4%. Order intake showed positive development in the first quarter, with growth in both the B2C and B2B segments, and across all our brands. Additionally, we observed early signs of recovery in the Norwegian market, marked by double-digit growth in order intake. The gross margin increased to 21.1% in Q1, compared to 20.5% in Q1 2024, primarily due to the acquisition of two Svane Køkkenet stores in Denmark. The underlying gross margin remained stable year-on-year, as the benefits from the changed sales mix were offset by higher production and logistics costs. The higher production costs were driven by a decision to increase production capacity ahead of the peak season in Q2, as well as cost related to the ramp-up of the new lacquering facility. Adjusted EBIT for the first quarter amounted to DKK 17.1 million, up from DKK 15.8 million in Q1 2024, corre- sponding to an adjusted EBIT margin of 5.6%, compared to 5.4% in the same period last year. Free cash flow in Q1 was negative at DKK 4 million, compared to a positive DKK 13 million in Q1 2024. This decline was driven by investments in the new lacquering facility and the ERP project, as well as an increase in net working capital, primarily due to the acquisition of the two Svane Køkkenet stores. In Q1, TCM launched new products across our portfolio. To mark AUBO’s 40th anniversary, we introduced “Truffel” as an extension of the Sense product line. In Svane Køkkenet, we launched Notes Bronze, a new addition to our veneer assortment. While we are encouraged by the positive order intake in the quarter, we continue to closely monitor the potential negative impact of recent geopolitical turmoil on consumer confidence and kitchen demand. Given this renewed uncertainty, we maintain our current guidance for 2025: TCM Group expects full-year revenue in the range of DKK 1,250-1,400 million and adjusted EBIT of DKK 90-120 million. As previously communicated, this assumes full ownership of Celebert in the latter months of the year.” TCM Group A/S, Skautrupvej 16, 7500 Holstebro, Company reg. (CVR) no.: 37291269 Page 1 of 18
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