TCM Group A/S: Interim report Q1 2021

COMPANY ANNOUNCEMENT

No. 82/2021

Tvis, 19 April 2021

Interim report Q1 2021 (January 1 - March 31)

(All figures in brackets refer to the corresponding period in 2020)

Double-digit growth in revenue and earnings in the first quarter.

CEO Torben Paulin:

“We had a good start in the first quarter of 2021 with double-digit growth in both revenue and earnings. Revenue grew by 10.6% to record high DKK 281 million, through organic growth of 13% off-set by the divestment of the Svane Køkkenet store in Copenhagen.

The revenue growth was driven by all our four brands with the highest growth rates within our DIY segment (Nettoline and kitchn.dk) and a higher share of revenue from third party products.

Adjusted EBIT grew 11.0% from DKK 29.7 million to DKK 33.0 million.

We reiterate our financial outlook: a revenue in the range of DKK 1,040-1,100 million, and adjusted EBIT in the range of DKK 145-160 million. The market is characterized by pressure on raw material prices and availability, combined with general market uncertainties.”

Financial highlights Q1

• Revenue DKK 281.1 million (DKK 254.2 million) corresponding to a revenue growth of 10.6%.
• Adjusted EBITDA DKK 37.6 million (DKK 35.0 million). Adjusted EBITDA margin was 13.4% (13.8%).
• Adjusted EBIT up DKK 3.3 million to DKK 33.0 million (DKK 29.7 million). Adjusted EBIT margin was 11.7% (11.7%)
• Non-recurring items had a total negative impact of DKK 1.3 million. Non-recurring items included costs related to Covid-19 precautions, restructuring costs within our supply chain organisation offset by the gain from the divestment of an own operated store.
• EBIT up DKK 1.9 million to DKK 31.6 million (DKK 29.7 million), corresponding to an EBIT margin of 11.3% (11.7%).
• Net profit up DKK 2.1 million to DKK 24.7 million (DKK 22.6 million).
• Free cash flow was DKK -24.6 million (DKK -22.3 million).
• Cash conversion ratio was 83.4% (87.3%).

Contact

For further information, please contact:

CEO Torben Paulin

CFO Mogens Elbrønd Pedersen

IR Contact -

Presentation

The interim report will be presented on Wednesday 19 May at 9:30 CEST in a teleconference that can be followed on TCM Groups website or on

To participate in the teleconference, and thus have the possibility to ask questions, call one of the following numbers:

Confirmation Code: 8968792

Denmark, Copenhagen        +45 32 72 04 17

United Kingdom        +44 (0) 8444819752

Sweden, Stockholm        +46 (0) 856618467

About TCM Group A/S

TCM Group is Scandinavia’s third largest kitchen manufacturer, with the major part of its business concentrated in Denmark. The product offering includes cabinets, table tops and storage.

Manufacturing is generally carried out in-house and more than 90% is manufactures to a specific customer order. Production sites are located in Denmark, with three factories in Tvis and Aulum (outskirts of Holstebro).

The Group pursues a multi-brand strategy, under which the main brand is Svane Køkkenet and the secondary brands are Tvis Køkkener, Nettoline, kitchn and private label. Combined, the brands cater for the entire price range. Products are mainly marketed through a network of franchise stores and independent kitchen retailers.

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