TCM Group Management’s review Interim report Q2 2024 (April 1 - June 30) (All figures in brackets refer to the corresponding period in 2023 – AUBO Production A/S is included in the figures as from 3 July 2023) Organic growth in sales and improved earnings, despite challenging market conditions. CEO Torben Paulin: “Sales in the second quarter have developed positively despite the, as expected, weak B2B-kitchen market. Or- ganically sales grew by 5% year-on-year supported by a growth in B2C sales of more than 25% y-o-y. As expected B2B sales declined in the quarter due to the slowdown in the Project sales market. Overall revenue in Q2 was DKK 332 million compared to DKK 256 million in Q2 last year. Sales in Denmark, which accounts for 80% of the Group revenue, increased by 15%, with an underlying organic growth of 6%. Overall gross margin increased to 21.5% in Q2 compared to 20.2% in the same quarter last year. The growth in margin was caused by the inclusion of AUBO sales (AUBO Production was acquired in Q3 of 2023) and an increase in the share of higher margin B2C sales in the turnover. Adjusted EBIT in Q2 was DKK 28 million compared to DKK 22 million in Q2 last year, and the adjusted EBIT margin was 8.4% compared to 8.7% in Q2 last year. If the amortisation of intangible assets recognized as part of the AUBO acquisition is taken into account, the underlying adjusted EBIT-margin improved from 8.7% in Q2 last year to 8.9% in Q2 this year. Free cash-flow was DKK 26 million, compared to DKK -2 million last year, due to the higher earnings and a significant improvement in working capital. Leverage decreased further to 3.20 (down from 3.73 in the previous quarter), well within the agreed covenants. In the second quarter TCM Group continued to expand its Danish footprint adding two new AUBO branded stores. As part of the TCM Group’s journey towards creating full transparency of our products environmental impact, we released third party approved and validated Environmental Product declarations (EPD) for the AUBO brand in the quarter. This means that all brands now are covered by EPDs. As stated in Company announcement no. 193 dated 15. August 2024, we adjust the financial outlook for 2024 for the TCM Group with respect to sales and earnings. Our financial outlook for full year revenue for 2024 is now in the range of DKK 1,125-1,200 million (previously DKK 1,000-1,150 million) with earnings (adjusted EBIT) in the range of DKK 70-90 million (previously DKK 55-85 million). The outlook for adjusted EBIT includes an expected positive effect from adjustment of the contingent consideration related to the acquisition of AUBO Pro- duction A/S in the range of DKK 3-5 million.” TCM Group A/S, Skautrupvej 16, DK-7500 Holstebro, Company reg. (CVR) no: 37291269 Page 1 of 21
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