Q2 2025 TCM Group A/S Earnings Call Transcript
Key Points
- Total revenue increased by 5% to DKK349 million with an organic growth of more than 3%.
- The gross margin improved by more than 2 margin points compared to Q2 last year, driven by higher average sales prices and stable input costs.
- Adjusted EBITDA increased by 20% to DKK34 million, with an improved EBITDA margin of 9.6% compared to 8.4% in Q2 last year.
- Revenue in Denmark, the main market, increased by 5.2% year on year, supported by solid growth in B2C revenues.
- The acquisition of the remaining 55% stake in Saliba is expected to strengthen TCM Group's digital position and support its multi-channel growth strategy.
- The B2B segment experienced headwinds, with project orders continuing to decrease as expected.
- Traffic and signing of orders in the B2C segment slowed down in the second half of Q2, leading to a narrowing of the full-year guidance.
- Networking capital was negatively impacted by increasing inventories due to acquisitions and externally sourced components.
- Net debt increased to DKK343 million following a distribution of ordinary dividend, with a leverage ratio of 2.5 times EBITDA.
- The acquisition price range for Saliba shares is large, indicating uncertainty in finalizing the exact amount.
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Good morning, ladies and gentlemen, and welcome to the presentation of the second quarter results for TCM Group.
Presenters today are our CFO Thomas Hjannung and myself, CEO Torben Paulin, and we will comment on the business and the financial results after which we will hand over to the operator for the Q&A session.
Let us start the presentation and turn to page 2 for the business update.
Sales in the second quarter of 2025 developed generally in line with our expectations, with growth in both B2C and B2B on the backdrop of the strong order intake in the first quarter of 2025. Total revenue increased by 5% to DKK349 million with an organic growth of more than 3%.
The positive development in Norway in Q1 continued in the second quarter with an organic sales growth of more than 5%.
[Or intake] developed positively in B2C even if at a slower pace than in Q1, whereas the B2B segment experienced headwinds in the quarter.
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