TCM Group A/S: Interim report Q3 2023
17 Noviembre 2023 - 12:27AM
TCM Group A/S: Interim report Q3 2023
COMPANY ANNOUNCEMENT
No. 182/2023
Tvis, 17 November
2023
Interim report Q3 2023 (July 1 - September 30)
(All figures in brackets refer to the corresponding period in 2022
– AUBO Production A/S is incl.in the figures as from 3 July
2023)
Q3 results confirmed, and outlook
re-iterated.
CEO Torben Paulin:“As stated in
our Company Announcement no. 181 dated 18 October 2023, sales in Q3
and order intake in the first half of October had not met our
expectations, despite a positive development in B2C sales in
especially the Svane Køkkenet brand, and as a result we adjusted
our sales outlook for 2023. Sales and or-der-intake has since the
announcement developed in-line with our adjusted expectations.
In Q3 the underlying gross margin improved
slightly compared to Q2, driven by an improved sales mix because of
the AUBO acquisition, however this was not enough to offset the
negative impact from the lower sales.
As a result of the weaker trading environment,
we have as stated previously, as a precautionary measure, decided
to increase our provisions for potential losses on our accounts
receivables, amounting to DKK 5.4 million in the quarter.
As we have previously communicated, the 2023
budget overstated the expected transit fees to be received from 3rd
party product suppliers and in the Q1 and Q2 financial reports the
overstated budget numbers were used to estimate actual fees. This
was corrected in Q3 (DKK 6.6 million), and also impacted the full
year earnings estimate negatively by approximately DKK 10
million.
In Company Announcement no. 181 dated 18 October
2023, we adjusted the outlook for 2023 due to the weaker trading
conditions, higher provisions for potential losses on accounts
receivables, and the correction of transit fees. Trading has since
developed in line with our revised expectations; hence we
re-iterate the outlook: a full year revenue of DKK 1,040 – 1,090
million, and an adjusted EBIT in the range DKK 40 – 50 million.
To mitigate the impact of the weaker trading, we
have reviewed our cost base in all areas to ensure that the Group
can improve operating margins going forward. As a result of this we
have in November 2023 further reduced our white-collar workforce
with 20 full-time employees.
To create full transparency regarding our
products environmental impact, we in Q3 released third party
approved and validated Environmental Product declarations (EPDs)
for all laminate worktops produced by TCM Group and for most of the
kitchen products produced for and sold through the Svane Køkkenet,
Tvis Køkken and Nettoline brands. As the first kitchen manufacturer
in Scandinavia the EPDs disclose data of all stages of the life
cycle assessment.”
Despite the reduction in earnings for 2023, the
TCM Group remains and will remain compliant with the covenants
included in the existing financing agreements for the TCM
Group.
As stated in company announcement no. 167 dated
19 June 2023 part of the purchase price for the shares in AUBO
Production A/S is linked to the performance of the company, and as
a result of the current trading conditions the expected future
earn-out payments will be lower. (i.e. fair market value of the
earn-out has been reduced).
Financial highlights Q3
- Revenue DKK 257.6 million (DKK
265.0 million) corresponding to a revenue decrease of 2.8%.
- Adjusted EBITDA DKK 10.8 million
(DKK 25.4 million). Adjusted EBITDA margin was 4.2% (9.6%).
- Adjusted EBIT of DKK 2.5 million
(DKK 20.6 million). Adjusted EBIT margin was 1.0% (7.8%).
- Non-recurring items had a total
negative impact of DKK 0.7 million (DKK 4.7 million). Non-recurring
items included restructuring costs.
- EBIT of DKK 1.8 million (DKK 15.9
million), corresponding to an EBIT margin of 0.7% (6.0%).
- Net profit of DKK -1.7 million (DKK
9.7 million).
- Free cash flow was DKK 16.5 million
(DKK -6.3 million).
- Cash conversion ratio was 88.1%
(54.9%).
Financial highlights 9 months 2023
- Revenue DKK 795.3 million (DKK
871.2 million) corresponding to a revenue decrease of 8.7%.
- Adjusted EBITDA of DKK 56.2 million
(DKK 99.2 million). Adjusted EBITDA margin was 7.1% (11.4%).
- Adjusted EBIT of DKK 37.8 million
(DKK 85.7 million). Adjusted EBIT margin was 4.8% (9.8%).
- Non-recurring items had a negative
impact of DKK 5.2 million (DKK 6.5 million).
- EBIT of DKK 32.7 million (DKK 79.2
million), corresponding to an EBIT margin of 4.1% (9.1%).
- Net profit of DKK 15.9 million (DKK
58.6 million).
- Free cash flow was DKK -19.9
million (DKK -12.7 million).
- Full-year guidance for the
financial year 2023 is revenue in the range DKK 1,040-1,090
million, and adjusted EBIT in the range DKK 40-50 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
PresentationThe interim report will be
presented on Friday 17 November 2023 at 9:30 CET in a
teleconference that can be followed on TCM Groups website or on
https://edge.media-server.com/mmc/p/kjgzgvp5
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/BIa56dd60898794c4c8eabf4e254ca5ee7
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.
- 182. Interim report Q3 2023
- Q3 2023 interim report - UK
Tcm Group A/s (LSE:0CUN)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Tcm Group A/s (LSE:0CUN)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024