TCM Group's 2025 Outlook: Cautious Optimism Amidst Market Uncertainties

As we step into 2025, TCM Group, Scandinavia's third-largest manufacturer of kitchens and furniture for bathrooms and storage, has shared its financial outlook for the year. The company's cautious optimism is reflected in its anticipated revenue growth and increased profitability, driven by various strategic initiatives and market trends. Let's delve into the key aspects of TCM Group's 2025 outlook.



Market Outlook and Revenue Growth

TCM Group remains cautiously optimistic about the market outlook, with some inflationary pressures easing and central banks lowering short-term interest rates. The company expects revenue growth across its core markets in Denmark and Norway, driven by continued B2C recovery and a potential recovery in the B2B project market in the second half of the year. This growth is anticipated to be converted into increased profitability through ongoing efficiency improvements and further integration synergies in AUBO.



Input Cost Inflation and Margin Management

TCM Group acknowledges the ongoing input cost inflation on raw materials, wages, and logistics costs, which may put pressure on margins. To mitigate this impact, the company plans to pass on these increases to customers through sales price adjustments. Additionally, TCM Group aims to maintain and improve its margins through operational efficiency improvements and strategic sales mix adjustments, as demonstrated by its improved gross margin and adjusted EBIT margin in the second quarter of 2024.

Acquisition of Celebert ApS

TCM Group plans to take full control of Celebert ApS by acquiring the remaining 55% stake in the company during the second half of 2025. This acquisition is expected to enable further sales and cost synergies, contributing to the overall growth. Celebert ApS has delivered impressive revenue and earnings growth on the online market in recent years, making it an attractive target for TCM Group's expansion strategy.

Financial Outlook for 2025

For 2025, TCM Group expects full-year revenue in the range of DKK 1,250-1,400 million and adjusted EBIT of DKK 90-120 million. This outlook assumes full ownership of Celebert in the latter months of the year. The company's financial calendar for 2025 includes the publication of interim reports, annual reports, and the annual general meeting, with the first interim report for Q4 2024 and the annual report for 2024 scheduled for release on February 28, 2025.

In conclusion, TCM Group's 2025 outlook reflects a cautious optimism amidst market uncertainties, with anticipated revenue growth, margin management strategies, and strategic acquisitions driving the company's growth. As investors, we can monitor the company's progress throughout the year and assess the potential impact of market conditions on its financial performance.