TCM Group A/S: Interim report Q2 2023
17 Agosto 2023 - 12:43PM
TCM Group A/S: Interim report Q2 2023
COMPANY ANNOUNCEMENT
No. 179/2023
Tvis, 17 August
2023
Interim report Q2
2023
(April 1 -
June
30) (All figures
in brackets refer to the corresponding period in 2022, and unless
stated otherwise all figures are excl. Aubo Production A/S which
was acquired effective 3 July 2023)
Margins improved in Q2 compared to Q1
while revenue in the quarter developed in line with expectations.
Financial outlook on revenue and EBIT specified with narrower
ranges.
CEO Torben Paulin:“The Danish
market for new kitchens showed signs of a potential recovery as the
rate of decline in sales slowed in Q2. In TCM revenue declined by
3.5% compared to Q1, in line with our expectations. The decline in
revenue was 19% compared to the same quarter last year, which, it
must be recalled, was the strongest quarter ever for the TCM Group
in terms of revenue.
We are pleased that order-intake for the B2B
business remained stable in Q2 compared to Q1, while the
order-intake for B2C decreased slightly in the quarter.
Gross margin was 20.0% in Q2 compared to 21.3%
in Q2 last year, with the decline being attributable to a higher
share of B2B sales and higher input cost. Compared to Q1 2023 gross
margin improved by 1.5 percentage points due to increasing average
sales prices, and the effect of cost reduction initiatives
implemented during Q1. Raw material prices and the price of
components, such as fixtures and fittings, remained high in the
quarter with year-on-year increases of more than 10%, however we
expect prices to start declining in Q3 supporting our margins
further. As consumer demand is expected to remain soft in the
second half of 2023 further capacity reductions were initiated
towards the end of Q2 by reducing the blue-collar workforce by
approximately 5% (equal to 20 FTE’s).
During the quarter the Group incurred costs for
dealership restructurings of DKK 2.4 million, accounted for as
selling expenses.
On 19 June 2023 the Group announced the
acquisition of 100% of the shares in Aubo Production A/S. This
strategic acquisition will further strengthen the Groups market
position primarily in Norway. The transaction was completed on 3
July 2023, and Aubo Production A/S will form part of the
consolidated figures for the Group as from 3 July 2023. In
connection with the acquisition of Aubo Production A/S the Group
completed a directed rights issue on 26 June 2023 providing
proceeds of DKK 77.0 million, and we are very pleased with the
strong support shown by several existing shareholders in this
connection.
Reflecting on both the information gained from
the results for the first half of 2023 and the continued high
degree of uncertainty characterising the current market conditions
we adjust our financial outlook for the 2023 as follows: a full
year revenue guidance in the range DKK 1,050-1,125 million
(previously DKK 1,050-1,175 million), and an adjusted EBIT in the
range DKK 68-90 million (previously DKK 68-102 million). The
financial outlook includes figures for Aubo Production A/S as from
3 July 2023.”
Financial highlights Q2
- Revenue DKK 264.1 million (DKK
324.8 million) corresponding to a revenue decrease of 18.7%.
- Adjusted EBITDA DKK 27.5 million
(DKK 43.5 million). Adjusted EBITDA margin was 10.4% (13.4%).
- Adjusted EBIT of DKK 22.3 million
(DKK 39.1 million). Adjusted EBIT margin was 8.4% (12.0%).
- Non-recurring items had a total
negative impact of DKK 2.8 million (positive impact of DKK 3.6
million). Non-recurring items included transaction costs related to
the acquisition of Aubo Production A/S.
- EBIT of DKK 19.5 million (DKK 42.7
million), corresponding to an EBIT margin of 7.4% (13.1%).
- Net profit of DKK 12.2 million (DKK
32.2 million).
- Free cash flow was DKK -1.6 million
(DKK 26.5 million).
- Cash conversion ratio was 56.1%
(49.5%).
Financial highlights H1 2023
- Revenue DKK 537.7 million (DKK
606.2 million) corresponding to a revenue decrease of 11.3%.
- Adjusted EBITDA of DKK 45.5 million
(DKK 73.8 million). Adjusted EBITDA margin was 8.5% (12.2%).
- Adjusted EBIT of DKK 35.4 million
(DKK 65.1 million). Adjusted EBIT margin was 6.6% (10.7%).
- Non-recurring items had a negative
impact of DKK 4.5 million (DKK 1.8 million).
- EBIT of DKK 30.9 million (DKK 63.3
million), corresponding to an EBIT margin of 5.7% (10.4%).
- Net profit of DKK 17.6 million (DKK
48.8 million).
- Free cash flow was DKK -36.6
million (DKK -6.4 million).
- Full-year guidance for the
financial year 2023 is revenue in the range DKK 1,050-1,125
million, and adjusted EBIT in the range DKK 68-90 million (incl.
Aubo Production A/S as from 3 July 2023).
For further information please contact:
Torben Paulin, CEO, TCM Group A/S, +45 21 21 04 64Thomas
Hjannung, CFO, TCM Group A/S, +45 25 17 42 33IR Contact –
ir@tcmgroup.dk
Presentation
The interim report will be presented on Friday 18 August 2023 at
9:30 CEST in a teleconference that can be followed on TCM Groups
website or on
https://edge.media-server.com/mmc/p/veywy6qg.
To participate in the teleconference, and thus have the
possibility to ask questions, participants are required to register
in advance of the conference using the link provided below. Upon
registering, each participant will be provided with Participant
Dial In Numbers, and a unique Personal PIN.
Online Registration to the call:
https://register.vevent.com/register/BI6e79fdd84c1c43cf9c86b92e26fe5415
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, Nettoline and AUBO.
Combined, the brands cater for the entire price spectrum, and are
sold through c. 220 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 Wood. See www.tcmgroup.dk for
more information.
- 179. Interim report Q2 2023
- Q2 2023 interim report - UK
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