Q3 2025 TCM Group A/S Earnings Call Transcript
Key Points
- TCM Group AS (OCSE:TCM) reported a 4.1% year-on-year increase in sales for Q3, with organic growth of 2.7%.
- The gross margin improved to 21.4% in Q3, up from 20.3% in the same quarter last year, driven by higher average selling prices and efficiency gains.
- Order intake showed positive development in both B2C and B2B segments, with solid growth driven by increased orders from house builders.
- Revenue in Norway increased by 7% compared to Q3 2024, continuing a positive trend from earlier in the year.
- The acquisition of the remaining 55% of Celeba strengthens TCM Group's digital position and supports its multi-channel growth strategy.
- Selling and administrative expenses increased by 12%, outpacing the 4% revenue growth, impacting profitability.
- The adjusted EBIT margin decreased to 5.8% from 6.0% in Q3 last year, primarily due to increased SG&A costs from the acquisition of retail stores.
- Networking capital was negatively impacted by increased inventories due to acquisitions, rising to DKK8 million from DKK1 million last year.
- Free cash flow decreased to DKK4 million from DKK6 million in Q3 last year, affected by networking capital developments.
- The B2B segment experienced fluctuations in order intake, with a strong Q1, softer Q2, and strong Q3, indicating instability.
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Good morning ladies and gentlemen, and welcome to the presentation of the 3rd quarter results for TCM Group.
Today, I, Tobin Pauline, the CEO of TCM Group, will be presenting, and I will comment on the business and the financial results, after which I will hand over to the operator for the Q&A session.
I would like to share that our new CFO Jan Bundorff Massen started in TCM Group 1st of November, but prior to his assignment, He had made other arrangements.
I'll hear from next time.
Let us start the presentation and turn to page 2 for the business update.
Sales in the 3rd quarter developed in line with our expectations with growth in both.
B2B segments.
Total say water increased by 4.1% year on year to 289 million d k.
To organic growth of 2.0.
11% increased by 7.0% compared to Q3 2024, reaching DkK51 million continuing the positive trend from the first two quarters of the year
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