Q2 2024 TCM Group A/S Earnings Call Transcript
Key Points
- TCM Group A/S (OCSE:TCM) reported a 30% increase in revenue year-on-year for Q2 2024.
- Organic sales growth was 5%, driven by a 25% increase in B2C orders.
- Gross margin improved from 20.2% in Q2 last year to 21.5% in Q2 2024.
- Adjusted EBIT increased to DKK28 million from DKK22 million in Q2 last year.
- Free cash flow significantly improved to DKK26 million from minus DKK2 million in Q2 last year.
- B2B sales declined due to a continued slowdown in the project sales market.
- Adjusted EBIT margin slightly decreased to 8.4% from 8.7% in Q2 last year.
- Net debt increased to DKK326 million from DKK259 million at the end of Q2 last year.
- The leverage ratio rose from 2.8% last year to 3.2% at the end of Q2.
- The company expects the B2B project market to continue declining in the second half of 2024.
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Good morning, ladies and gentlemen, and welcome to the presentation of the Q2 results for TCM Group. Presenters today are our CFO, Thomas Hjannung; and myself, CEO, Torben Paulin. 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 developed positively despite the expected weak B2B-kitchen market. We delivered an organic sales growth of 5%, supported by a very strong uplift in B2C orders of more than 25%. As expected, and in line with the market, B2B sales declined, driven by the continued slowdown in the project sales market.
Revenue increased by 30% in the quarter due to the organic sales growth and the inclusion of AUBO. On a like-for-like basis, order-intake in Denmark was up 9% compared to Q2 last year. The improvement in gross margin compared to last year, Q2 was
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