TCM Group A/S

Interim report Q1 2024

COMPANY ANNOUNCEMENT

No. 191/2024

        Tvis, 16 May 2024

Interim report Q1 2024 (January 1 - March 31)
(All figures in brackets refer to the corresponding period in 2023 – AUBO Production A/S is incl.in the figures as from 3 July 2023)

Continued B2C recovery in Q1 under challenging market conditions.

CEO Torben Paulin:
“Sales in the quarter developed in line with our expectations, with the order-intake in the B2C market in Denmark continuing to improve across most of our brands. B2B sales, as expected, continued to contract primarily within project sales. Revenue in Q1, was DKK 293 million compared to DKK 264 million in Q1 last year. Underlying organic like-for-like sales declined by 12% in the quarter. Sales in Norway, which accounted for 20% of the Groups revenue, were negatively impacted by the slowdown in the B2B market which plays a large role in the Norwegian sales. Together with our Norwegian distributor we have directed our focus on gaining market share in the B2C market until the B2B market recovers.

As a result of higher margin B2C sales growing as a percentage of total sales and the inclusion of AUBO sales (AUBO Production was acquired in Q3 of 2023), the overall gross margin grew significantly in Q1 compared to the same quarter last year, going from 18.9% to 20.7%.

Adjusted EBIT in Q1 was DKK 16 million compared to DKK 13 million in Q1 last year, and the adjusted EBIT margin increased to 5.4% from 4.9% in Q1 last year.

Free cash-flow was DKK 13 million, compared to DKK -36 million last year, due to a significant improvement in working capital management, and leverage at the end of Q1 was 3.73, well within the covenants agreed.

In the first quarter TCM Group continued to expand its Danish footprint adding three new branded stores during the quarter, two in AUBO and one in Nettoline.

In TCM Group, our employees are our greatest asset. Therefore, it is very important to us that our employees are safe and secure while working, and we continue to build a culture where work-related accidents are not acceptable. We are therefore also satisfied that we in Q1 at one of the production sites could celebrate three years without accidents.

Based on the results of Q1 we reiterate 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 in the range of DKK 1,000-1,150 million with earnings (adjusted EBIT) in the range of DKK 55-85 million.”