TCM Group (TCM) Q4 2024 earnings summary

Executive summary

• Full-year revenue reached DKK 1,204 million, up 11% year-over-year and at the top end of guidance, driven by B2C recovery and AUBO integration, despite B2B headwinds.

• Q4 sales declined 2% organically year-over-year to DKK 301 million, with B2C sales up over 5% and B2C order intake showing double-digit growth, while B2B/project sales declined.

• Gross margin improved to 22.5% in Q4 (up from 22.3%), supported by a favorable sales mix but offset by higher production costs from supply chain bottlenecks.

• Adjusted EBIT for Q4 was DKK 29.8 million (margin 9.9%), positively impacted by a DKK 9.5 million adjustment to the AUBO contingent payment; full-year adjusted EBIT was DKK 90 million (margin 7.5%).

• Net profit increased to DKK 57.7 million, and the Board proposes a DKK 3 per share dividend, totaling DKK 31 million (54% of net profit).

Financial highlights

• Q4 2024 revenue: DKK 301.4 million (down 1.6% year-over-year); full-year revenue: DKK 1,203.8 million (up 11.0%).

• Q4 adjusted EBITDA: DKK 38.8 million (margin 12.9%); Q4 adjusted EBIT: DKK 29.8 million (margin 9.9%).

• Q4 net profit: DKK 23.0 million (up from DKK 5.6 million); full-year net profit: DKK 57.7 million (up from DKK 21.5 million).

• Free cash flow in Q4: DKK 14.5 million; full-year free cash flow: DKK 58.9 million.

• Cash conversion ratio improved to 84.3% from 34.2% year-over-year.

Outlook and guidance

• 2025 revenue guidance: DKK 1,250–1,400 million; adjusted EBIT: DKK 90–120 million, assuming full ownership of Celebert ApS in H2 2025.

• Anticipates continued B2C recovery and potential B2B market rebound in H2 2025, with ongoing efficiency and synergy improvements.

• Margin pressure expected from input cost inflation and logistics unless offset by price increases.

• Plans to acquire the remaining 55% of Celebert ApS in H2 2025 to strengthen online sales and synergies.