TCM Group AS: B2C Sales Surge and EBIT Improvement in Q4 2024

TCM Group AS (OCSE:TCM) has reported strong B2C sales and improved earnings in the fourth quarter of 2024, according to the company's earnings call. The Danish furniture manufacturer saw a decline in B2B project sales, but this was partially offset by a solid uplift in B2C sales, which grew by more than 5% year on year. This growth in B2C sales contributed to an overall positive order intake in the quarter, with high-single-digit growth year on year.

The gross margin for TCM Group improved slightly in the quarter, as the positive impacts from the improved sales mix were partially offset by increased production costs related to short-term bottlenecks in parts of the supply chain. Despite this, the adjusted EBIT margin increased to 12.9% in Q4 2024 compared to 9.5% in Q4 2023, driven by the strong performance in B2C sales and improved efficiency.



TCM Group's CEO, Torben Paulin, commented on the results, "Sales in the fourth quarter developed as expected, with declining B2B project sales and a solid uplift in B2C sales. Organically, sales in the quarter declined by 2% year on year to DKK 301 million, as the decline in B2B project sales was only partially recouped through B2C sales growth of more than 5% year on year. Full-year revenue was DKK 1,204 million and therefore at the top end of our financial guidance."



The company also announced that it expects 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 drive revenue growth and increased profitability through ongoing efficiency improvements and integration synergies in AUBO. 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.



In conclusion, TCM Group's strong B2C sales and improved EBIT margin in Q4 2024 demonstrate the company's resilience and adaptability in the face of challenging B2B market conditions. The acquisition of the remaining stake in Celebert ApS is expected to further drive revenue growth and increased profitability in 2025. Investors should keep a close eye on TCM Group's progress as it continues to execute on its growth strategy.