TCM Group

Earnings Release • Aug 15, 2018

TCM Group A/S: Interim report Q2 2018

TCM Group A/S: Interim report Q2 2018

COMPANY ANNOUNCEMENT                                                                                                                  

Nr. 32/2018

Tvis, 15 August 2018

Interim report Q2 2018 (April 1 - June 30)

(All figures in brackets refer to the corresponding period in 2017)

A strong Q2 for TCM Group with 10% revenue growth – outlook increased

Financial highlights Q2 2018:

• Revenue DKK 232.1 million (DKK 211.1 million) corresponding to an organic growth of 9.9%
• Adjusted EBITA up DKK 9.8 million to DKK 40.6 million (DKK 30.8 million), corresponding to an increase of 31.8%. Adjusted EBITA margin was 17.5% (14.6%)
• EBIT up DKK 12.6 million to DKK 38.7 million (DKK 26.1 million), corresponding to an EBIT margin of 16.7% (12.4%). Non-recurring items had a negative impact of DKK 2.8 million in Q2 2017
• Net profit up 64.0% to DKK 29.2 million (DKK 17.8 million)
• Free cash flow excl. acquisitions of operations was DKK 28.2 million (DKK 24.7 million)
• Cash conversion ratio was 103.6% (97.3%)

Financial highlights H1 2018:

• Revenue DKK 445.7 million (DKK 417.5 million) corresponding to an organic growth of 6.7%
• Adjusted EBITA up DKK 13.9 million to DKK 69.0 million (DKK 55.1 million), corresponding to an adjusted EBITA margin of 15.5% (13.2%)
• Non-recurring items had a negative impact of DKK 2.0 million in H1 2018 due to costs related to the integration of Nettoline. This compares to non-recurring costs in H1 2017 of DKK 3.5 million related to the acquisition of Nettoline and Initial Public Offering
• EBIT up DKK 15.4 million to DKK 63.2 million (DKK 47.8 million), corresponding to an EBIT margin of 14.2% (11.4%)
• Net profit up 45.7% to DKK 47.2 million (DKK 32.4 million)
• Free cash flow excl. acquisitions of operations was DKK 52.8 million (DKK 40.8 million)
• Outlook for the financial year 2018 is upgraded to revenue in the range DKK 890-910 million (previously DKK 870-900 million), adjusted EBITA in the range DKK 140-150 million (previously DKK 130-140 million) and EBIT in the range of DKK 130-140 million (previously DKK 120-130 million)

CEO Ole Lund Andersen:

“TCM Group continued to see robust growth in Q2 of 2018. Revenue grew organically by 10% and we gained market share across the board. At the same time earnings developed positively growing more than 30% driven by revenue growth, production effeciencies and synergies. On the back of this performance we have adjusted our full year outlook upwards both with regards to revenue and earnings. Through our strong brands and product innovation TCM is proving to be an attractive partner for new franchisees and dealers supporting continued future growth.”

Conference call

A conference call for investors and analysts will be held today at 9:30 CEST. The presentation for the conference call will be available on www.investor-en.tcmgroup.dk

Dial-in numbers for the conference call:

Confirmation Code: 7627568

Denmark: +45 35158049

Finland: +358 (0)9 7479 0361

United Kingdom: +44 (0)330 336 9105

Contact:

For further information, please contact:

CEO Ole Lund Andersen +45 97435200

CFO Mogens Elbrønd Pedersen +45 97435200

IR Contact - ir@tcmgroup.dk

About TCM Group

TCM Group is Scandinavia’s third largest manufacturer of kitchens and furniture for bathrooms and storage. The products are Danish design, 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

Køkkener, Nettoline and kitchn. Combined, the brands cater for the entire price spectrum, and are sold through c. 125 dealers in Denmark and the rest of the Scandinavia. In addition, 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 the TCM Group's future operating results, financial position, cash flows, business strategy and future targets. Such statements are based on management’s reasonable expectations and forecasts at the time of release of the interim report. Forward-looking statements are subject to risks and uncertainties and a number of other factors, many of which are beyond the TCM Group's control. This may have the effect that actual results may differ significantly from the expectations expressed in the interim report. Without being exhaustive, such factor include general economic and commercial factors, including market and competitive conditions, supplier issues and financial and regulatory issues.

Attachments

• 32. Interim report Q2 2018
• Q2 2018 interim report