TCM Group A/S: Interim report Q1 2023
16 Mayo 2023 - 12:53PM
TCM Group A/S: Interim report Q1 2023
COMPANY ANNOUNCEMENT
No. 166/2023
Tvis, 16 May
2023
Interim report Q1 2023
(January 1 - March 31) (All figures in brackets
refer to the corresponding period in 2022)
Sales showing strong resilience in
challenged market, but earnings negatively impacted by mix effects,
higher operating costs and dealership restructuring costs. Full
year revenue guidance reiterated, but EBIT guidance
revised.
CEO Torben Paulin:“We are
pleased that sales showed strong resilience in Q1 despite
challenging market conditions. Consumer demand in Q1 continued the
soft trend from the second half of 2022, but due to TCM’s strong
position in B2B and the sales price increases implemented during
2022, sales were broadly unchanged, decreasing by only 3% in Q1
compared to Q1 last year.
Our flagship Svane Køkkenet brand successfully defended its
market position in Denmark with unchanged sales in a declining
market, while both the private label business and the sale in the
e-commerce channel showed good growth rates. In Norway the strong
performance continued with a sales growth of 4.4% measured in local
currency.
Despite the sales price increases implemented over the last 12
months, gross margin in the quarter was negatively impacted by mix
effects stemming from an increasing share of lower margin B2B sales
compared to Q1 last year. In addition, rising raw material prices
and increases in the price of components such as fixtures and
fittings also diluted the margin. In total direct input cost
increased by more than 10% compared to Q1 last year. Furthermore,
significantly higher energy and freight cost impacted gross profit
negatively. Finally, SG&A costs were negatively affected in the
quarter by DKK 3 million related to a number of dealership
restructurings.
During the first quarter of 2023, and in line with the prior two
quarters, TCM continued the restructuring of the organisation to
reflect the development in consumer demand. As such the workforce
in both production and staff functions was reduced by in total of
35 FTEs in the quarter. The reductions, which are expected to have
full impact from Q3 2023, lead to a non-recurring restructuring
cost of DKK 1.7 million.
We reiterate our full year revenue guidance, but we revise our
adjusted EBIT-guidance: Full year revenue is still expected to be
in the range DKK 950-1,050 million (unchanged), while we now expect
an adjusted EBIT in the range DKK 60-90 million (previously DKK
70-100 million).”
Financial highlights Q1
- Revenue DKK 273.6 million (DKK
281.4 million) corresponding to a revenue decrease of 2.8%.
- Adjusted EBITDA DKK 17.9 million
(DKK 30.3 million). Adjusted EBITDA margin was 6.6% (10.8%).
- Adjusted EBIT down DKK 12.9 million
to DKK 13.1 million (DKK 26.0 million). Adjusted EBIT margin was
4.8% (9.3%).
- Non-recurring items had a total
negative impact of DKK 1.7 million (DKK 5.4 million). Non-recurring
items included costs related to organisational restructuring.
- EBIT down DKK 9.2 million to DKK
11.4 million (DKK 20.6 million), corresponding to an EBIT margin of
4.1% (7.3%).
- Net profit down DKK 11.2 million to
DKK 5.4 million (DKK 16.6 million).
- Free cash flow was DKK -35.0
million (DKK -32.9 million).
- Cash conversion ratio was 68.2%
(60.5%).
- Full-year guidance for the
financial year 2023 is revenue in the range DKK 950-1,050 million,
and adjusted EBIT in the range DKK 60-90 million.
For further information please contact:
Torben Paulin, CEO, TCM Group A/S, +45 21 21 04 64Thomas
Hjannung, CFO, TCM Group A/S, +45 97 43 52 00IR Contact –
ir@tcmgroup.dk
About TCM Group
TCM Group is Scandinavia’s third largest
manufacturer of kitchens and furniture for bathrooms and storage.
The products are designed and produced in Denmark and rooted in a
proud tradition of good quality and good craftsmanship. TCM Group
pursues a multi-brand strategy, under which the main brand is Svane
Køkkenet and the other brands are Tvis Køkken and Nettoline.
Combined, the brands cater for the entire price spectrum, and are
sold through c. 140 dealers in Denmark and the rest of the
Scandinavia. TCM Group sells private label kitchens through DIY
stores in Denmark and independent kitchen stores in Norway. TCM
Group is supplier to the 45% owned e-commerce kitchen business
Celebert, which operates under the brands kitchn.dk,
billigskabe.dk, Celebert and Just Woods. See www.tcmgroup.dk for
more information.
- 166. Interim report Q1 2023
- Q1 2023 interim report - UK
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