COMPANY ANNOUNCEMENT
No. 246/2025
Tvis, 25 November 2025
Interim report Q3 2025 (July 1 - September 30)
(All figures in brackets refer to the corresponding period in 2024)
Delivering stable sales growth and gross margin improvements despite a volatile market.
CEO Torben Paulin:
"Sales in the third quarter developed in line with our expectations, with growth recorded in both the B2B and B2C segments. Total sales for the quarter increased by 4% year-on-year to DKK 289 million, corresponding to organic growth of 3%.
Order intake improved during the quarter, with high single-digit growth in the core business overall and double-digit growth in the B2C segment. In the B2B segment, project orders declined slightly compared to the prior year, while orders from builders of turnkey residential houses showed a strong positive trend.
The gross margin increased to 21.4% in Q3, up from 20.3% in Q3 2024, primarily driven by higher average selling prices, helped by the change in sales mix and continued efficiency gains in production and the supply chain.
Adjusted EBIT was broadly unchanged year-on-year at DKK 16.6 million, compared to DKK 16.7 million in Q3 2024, corresponding to an adjusted EBIT margin of 5.8% (Q3 2024: 6.0%). Operating costs increased during the quarter, mainly as a result of the acquisition of retail stores earlier in the year, which exceeded the additional gross profit contributed by these operations. The acquired retail stores will be spun off as soon as we have found suitable new franchisees to run the stores and thus the increase in operating costs should be of a temporary nature.
Free cash flow amounted to DKK 4 million in Q3, compared to DKK 6 million in the same period last year. The decrease was primarily attributable to adverse working capital development, driven by retail operations and higher inventory levels. CAPEX totaled DKK 7.9 million (Q3 2024: DKK 7.6 million), mainly related to the ongoing ERP implementation project.
Considering the results for the first nine months of the year and the current trend in order intake during Q3, TCM Group is narrowing its full-year 2025 guidance. The company now expects revenue in the range of DKK 1,260-1,280 million (previously DKK 1,250-1,300 million) and adjusted EBIT in the range of DKK 93-100 million (previously DKK 90-110 million).
TCM takes full ownership of Celebert 25 November 2025. Celebert is included in our consolidated figures for December month. It is assessed to have an insignificant effect on the 2025 TCM figures."
Financial highlights Q3 2025
- Revenue DKK 288.9 million (DKK 277.7 million), corresponding to a growth of 4.1%
- Adjusted EBITDA DKK 25.4 million (DKK 26.0 million). The adjusted EBITDA margin was 8.8% (9.4%)
- Adjusted EBIT DKK 16.6 million (DKK 16.7 million). The adjusted EBIT margin was 5.8% (6.0%)
- Non-recurring items had a total impact of DKK 0.0 million (DKK 0.0 million)
- EBIT DKK 16.6 million (DKK 16.7 million), corresponding to an EBIT margin of 5.8% (6.0%)
- Net profit DKK 9.6 million (DKK 8.8 million)
- Free cash flow DKK 4.2 million (DKK 6.0 million)
- Cash conversion ratio 75.0% (119.1%)
Financial highlights 9 months 2025
- Revenue DKK 946.1 million (DKK 902.4 million), corresponding to a growth of 4.8%
- Adjusted EBITDA DKK 94.0 million (DKK 87.1 million). The adjusted EBITDA margin was 9.9% (9.7%)
- Adjusted EBIT DKK 67.4 million (DKK 60.5 million). The adjusted EBIT margin was 7.1% (6.7%)
- Non-recurring items had a total impact of DKK 0.0 million (DKK 0.0 million)
- EBIT DKK 67.4 million (DKK 60.5 million), corresponding to an EBIT margin of 7.1% (6.7%)
- Net profit DKK 43.9 million (DKK 34.7 million)
- Free cash flow DKK 32.7 million (DKK 44.4 million)
- Cash conversion ratio 75.0% (119.1%)
- Full-year guidance for the financial year 2025 is revenue in the range DKK 1,260-1,280 million with earnings (adjusted EBIT) in the range of DKK 93-100 million.
For further information please contact:
Torben Paulin, CEO, TCM Group A/S, +45 21 21 04 64
IR Contact - ir@tcmgroup.dk
Presentation
The interim report will be presented on Tuesday 25 November 2025 at 9:30 CET in a teleconference that can be followed on TCM Group's website or at https://edge.media-server.com/mmc/p/zytkbocx.
To participate in the teleconference, and thus have the possibility to ask questions, participants are required to register in advance using the link below. Upon registering, each participant will be provided with dial-in numbers and a unique PIN.
Online registration for the call: https://register-conf.media-server.com/register/BI784ef4aab55e44a780f6a9775a2b77ea.
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. See www.tcmgroup.dk for more information.
This interim report contains statements relating to the future, including statements regarding TCM Group's future operating results, financial position, cash flows, business strategy and plans for the future. The statements are based on management's reasonable expectations and forecasts at the time of the disclosure of the report. Any such statements are subject to risks and uncertainties, and a number of different factors, many of which are beyond TCM Group's control, could mean that actual performance and actual results will differ significantly from the expectations expressed in this interim report. Without being exhaustive, such factors include general economic and commercial factors, including market and competitive matters, supplier issues and financial issues.
