TCM Group (TCM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 5.3% year-over-year to DKK 308.1 million, driven by strong B2C sales and early recovery in Norway.

• Gross margin improved to 21.1% from 20.5%, aided by the acquisition of two Svane Køkkenet stores.

• Adjusted EBIT rose to DKK 17.1 million (5.6% margin), up from DKK 15.8 million (5.4% margin) in Q1 2024.

• Free cash flow turned negative at DKK -3.7 million, mainly due to higher CapEx, investments, and earlier tax payments.

• Two new product launches: AUBO's "Truffel" and Svane Køkkenet's "Notes Bronze".

Financial highlights

• Revenue: DKK 308.1 million (+5.3% year-over-year); organic growth 3.6%.

• Adjusted EBIT: DKK 17.1 million (margin 5.6%), up from DKK 15.8 million (5.4%).

• Gross margin: 21.1% (Q1 2024: 20.5%).

• Free cash flow: DKK -3.7 million (Q1 2024: DKK 12.6 million), impacted by higher CapEx and tax timing.

• Cash conversion ratio: 76.8% (Q1 2024: 69.1%).

Outlook and guidance

• 2025 guidance maintained: revenue DKK 1,250–1,400 million, adjusted EBIT DKK 90–120 million, assuming full ownership of Celebert ApS later in the year.

• Cautious outlook due to macroeconomic and geopolitical uncertainty affecting consumer confidence and kitchen demand.