Q2 2026 TCM Group AS Earnings Call

August 20, 2026

Operator: Good day, and thank you for standing by. Welcome to the TCM Group Interim Q2 2026 report conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I will now like to hand the conference over to your speaker today, Jens Poulsen. Please go ahead.

Operator: Good day, and thank you for standing by. Welcome to the TCM Group Interim Q2 2026 Report Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I will now like to hand the conference over to your speaker today, Jens-Peter Poulsen. Please go ahead.

Speaker #2: Good day, and thank you for standing by. Welcome to the TCM Group interim Q2 2026 report conference call. At this time, all participants are in a listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.

Speaker #2: You will then hear an automated message advising that your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded.

Speaker #2: I will now hand the conference over to your speaker today, Jens Pieter Poulsen. Please go ahead.

Speaker #3: Good morning, ladies and gentlemen, and welcome to the presentation of the second quarter results for TCM Group. As most of you will know, I took over as CEO of TCM Group on August 1, succeeding Torben Paulin.

Jens Poulsen: Good morning, ladies and gentlemen, and welcome to the presentation of the Q2 results for TCM Group. As most of you will know, I took over as CEO of TCM Group on 1 August, succeeding Torben Paulin. I am happy to have joined TCM Group and returned to the kitchen industry. I have actually followed TCM Group from the sidelines since my time at Kvik started back in 2013. Presenters today are our interim CFO, Hans Barslund, and myself, Jens Poulsen, as CEO, 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. I do not see the presentation.

Jens-Peter Poulsen: Good morning, ladies and gentlemen, and welcome to the presentation of the Q2 results for TCM Group. As most of you will know, I took over as CEO of TCM Group on 1 August, succeeding Torben Paulin. I am happy to have joined TCM Group and returned to the kitchen industry. I have actually followed TCM Group from the sidelines since my time at Kvik started back in 2013. Presenters today are our Interim CFO, Hans Barslund, and myself, Jens Poulsen, as CEO, 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. I do not see the presentation.

Speaker #3: I'm happy to have joined TCM Group and returned to the kitchen industry. I've actually followed TCM Group from the sidelines since my time at Quick started, back in 2013.

Speaker #3: Presenters today are our interim CFO, Hans Barslund, and myself, Jens Pieter Poulsen, as CEO. We will comment on the business and the financial results, after which we’ll hand over to the operator for the Q&A session.

Speaker #3: Let's start the presentation and turn to page 2 of the business update. I don't see the presentation.

Speaker #4: No, but it's there, so you can just continue.

Hans Barslund: No, but it is there, so you can just continue.

Speaker #3: Sales in the second quarter developed broadly in line with our expectations. Total revenue for the quarter increased 7.4% year on year to DKK 375 million, corresponding to organic growth of 0.6%.

Jens Poulsen: Sales in the Q2 developed broadly in line with our expectations. Total revenue for the quarter increased 7.4% year on year to DKK 375 million, corresponding to an organic growth of 0.6%. Revenue was negatively impacted by lower order intake at the end of Q1 and the start of Q2. But order intake regained momentum during the last 2 months of the quarter. Revenue in Norway increased by 22.7% compared to Q2 2025, reaching DKK 80 million, driven by an improvement in trading conditions following a period of very low activity in the market. We also managed to renegotiate our agreement with Optimera, our exclusive outlet partner in Norway, extending the term from 3 to 5 years. Overall, order intake in the quarter was significantly higher than last year in both B2B and B2C.

Jens-Peter Poulsen: Sales in the Q2 developed broadly in line with our expectations. Total revenue for the quarter increased 7.4% year on year to DKK 375 million, corresponding to an organic growth of 0.6%. Revenue was negatively impacted by lower order intake at the end of Q1 and the start of Q2. But order intake regained momentum during the last 2 months of the quarter. Revenue in Norway increased by 22.7% compared to Q2 2025, reaching DKK 80 million, driven by an improvement in trading conditions following a period of very low activity in the market. We also managed to renegotiate our agreement with Optimera, our exclusive outlet partner in Norway, extending the term from 3 to 5 years. Overall, order intake in the quarter was significantly higher than last year in both B2B and B2C.

Speaker #3: Revenue was negatively impacted by lower order intake at the end of Q1 and the start of Q2, but order intake regained momentum during the last two months of the quarter.

Speaker #3: Revenue in Norway increased by 22.7% compared to Q2 2025, reaching DKK 80 million, driven by an improvement in trading conditions following a period of very low activity in the market.

Speaker #3: We also managed to renegotiate our agreement with Optimea, our exclusive outbound partner in Norway, extending the term from three to five years. Overall, order intake in the quarter was significantly higher than last year in both B2B and B2C.

Jens Poulsen: The sales price increase effect from 1 July brought some orders forward, and we enter the second half of the year with a strong order book. Gross margin was broadly stable at 23.8%, up from 23.7% in Q2 last year. Please turn to page three. Some financial headlines for the quarter. Reported revenue was DKK 375 million, corresponding to a revenue growth of 7.4%, hereof 0.6% organic. Adjusted EBITA was DKK 32.2 million, compared to DKK 36.1 million in Q2 last year. Adjusted EBITA margin was 8.6%, compared to 10.3% in Q2 last year. Net working capital ratio was -2.3% compared to -0.7% last year. Cash conversion was 107%, and we will now dive into the numbers in the coming slides. Please turn to page four.

Jens-Peter Poulsen: The sales price increase effect from 1 July brought some orders forward, and we enter the second half of the year with a strong order book. Gross margin was broadly stable at 23.8%, up from 23.7% in Q2 last year. Please turn to page three. Some financial headlines for the quarter. Reported revenue was DKK 375 million, corresponding to a revenue growth of 7.4%, hereof 0.6% organic. Adjusted EBITA was DKK 32.2 million, compared to DKK 36.1 million in Q2 last year. Adjusted EBITA margin was 8.6%, compared to 10.3% in Q2 last year. Net working capital ratio was -2.3% compared to -0.7% last year. Cash conversion was 107%, and we will now dive into the numbers in the coming slides. Please turn to page four.

Speaker #3: The sales price increase, effective from 1 July, brought some orders forward, and we entered the second half of the year with a strong order book.

Speaker #3: Gross margin was broadly stable at 23.8%, up from 23.7% in Q2 last year. Please turn to page 3. Some financial headlines for the quarter:

Speaker #3: Reported revenue was DKK 375 million, corresponding to a revenue growth of 7.4%, of which 0.6% was organic. Adjusted EBITDA was DKK 32.2 million, compared to DKK 36.1 million in Q2 last year.

Speaker #3: Adjusted EBITDA margin was 8.6%, compared to 10.3% in Q2 last year. Net working capital ratio was minus 2.3%, compared to minus 0.7% last year. Cash conversion was 107%.

Speaker #3: And we'll now dive into the numbers in the coming slides. Please turn to page 4. As mentioned, revenue in Q2 increased organically by 0.6%, with a year-on-year increase of 7.4%, driven by the addition of Selebot and the retail stores.

Jens Poulsen: As mentioned, revenue in Q2 increased organically by 0.6%, with a year-on-year increase of 7.4%, driven by the addition of Celebert and the retail stores. Revenue in Denmark, our main market, at 78.1% of group revenue, increased by 4.2% year on year. Though with an organic decline of 4.1%, reflecting the softer order intake at the end of Q1 and the start of Q2. The Danish market regained though traction towards the end of the quarter. Revenue in Norway increased by 22.7% to DKK 80 million against a weak reference period last year. The share of lower margin third-party sales increased to 25% in Q2, up from 23% in Q1. I will now hand over to Hans Barslund. Please turn to page five.

Jens-Peter Poulsen: As mentioned, revenue in Q2 increased organically by 0.6%, with a year-on-year increase of 7.4%, driven by the addition of Celebert and the retail stores. Revenue in Denmark, our main market, at 78.1% of group revenue, increased by 4.2% year on year. Though with an organic decline of 4.1%, reflecting the softer order intake at the end of Q1 and the start of Q2. The Danish market regained though traction towards the end of the quarter. Revenue in Norway increased by 22.7% to DKK 80 million against a weak reference period last year. The share of lower margin third-party sales increased to 25% in Q2, up from 23% in Q1. I will now hand over to Hans Barslund. Please turn to page five.

Speaker #3: Revenue in Denmark, our main market, at 78.1% of group revenue, increased by 4.2% year-on-year, though with an organic decline of 4.1%, reflecting the soft order intake at the end of Q1 and the start of Q2.

Speaker #3: The Danish market regained traction towards the end of the quarter, though. Revenue in Norway increased by 22.7% to DKK 80 million, compared to a weak reference period last year.

Speaker #3: And the share of lower-margin, third-party sales increased to 25% in Q2, up from 23% in Q1. I'll now hand over to Hans Barslund.

Speaker #3: Please turn to page 5.

Speaker #4: Thank you, Jens Pieter. Gross margin was 23.8% in Q2, a minor improvement from the 23.7% in Q2 last year. The gross margin ratio is affected by two opposing effects.

Hans Barslund: Thank you, Jens Poulsen. Gross margin was 23.8% in Q2, a minor improvement to the 23.7% in Q2 last year. The gross margin ratio is affected by two opposing effects. Raising oil prices increased the cost of raw materials and freight, which has a negative effect on the margin. This was offset by a higher B2C share and our ongoing internal efficiency projects with a positive effect on the margin. Year to date, gross margin increased to 23.5% compared to 22.5% last year. Operating expenses increased 23% to DKK 62.8 million or 16.8% of the revenue, up from 14.7% last year. This is primarily a consequence of the inclusion of Celebert and the retail stores acquired during the last year, as well as additional overhead related to organizational upgrades and marketing platform enhancements in Celebert as we move towards a more self-service model there.

Speaker #4: Raising oil prices increased the cost of raw materials and freight, which has a negative effect on the margin. But this was offset by a higher B2C share and our ongoing internal efficiency projects.

Speaker #4: With a positive effect on the margin. Year to date, gross margin increased to 23.5%, compared to 22.5% last year. Operating expenses increased 23% to DKK 62.8 million, or 16.8% of the revenue.

Speaker #4: Up from 14.7% last year. This is primarily a consequence of the inclusion of Selebot and the retail stores acquired during the last year, as well as additional overhead related to organizational upgrades and marketing platform enhancements in Selebot. As we move towards a more self-service model there.

Hans Barslund: This is primarily a consequence of the inclusion of Celebert and the retail stores acquired during the last year, as well as additional overhead related to organizational upgrades and marketing platform enhancements in Celebert as we move towards a more self-service model there. In addition to that, we have had extra cost in relation to the ongoing ERP project. Adjusted EBITA in Q2 was DKK 32.2 million compared to DKK 36.1 million in the same period last year, corresponding to adjusted EBITA margin of 8.6% against 10.3% last year. Adjusted EBITA year to date was DKK 58.4 million compared to DKK 55.7 million last year.

Speaker #4: In addition to that, we have had extra costs in relation to the ongoing ERP project. Adjusted EBITDA in Q2 was DKK 32.2 million, compared to DKK 36.1 million in the same period last year.

Hans Barslund: In addition to that, we have had extra cost in relation to the ongoing ERP project. Adjusted EBITA in Q2 was DKK 32.2 million compared to DKK 36.1 million in the same period last year, corresponding to adjusted EBITA margin of 8.6% against 10.3% last year. Adjusted EBITA year to date was DKK 58.4 million compared to DKK 55.7 million last year. We recorded non-recurring items of DKK 1.5 million in the quarter relating to the change in management. There was no non-recurring items in the same period last year. Please turn to page six. Net working capital at the end of Q2 was -DKK 31.5 million compared to -DKK 9.3 million last year, corresponding to a net working capital ratio of -2.3% against -0.7% last year. If you break it down, then inventories increased by DKK 11 million from acquisition of Celebert and one retail store, combined with higher factory inventories to support increased demand.

Speaker #4: Corresponding to an adjusted EBITDA margin of 8.6%, compared to 10.3% last year. Adjusted EBITDA year to date was €58.4 million, compared to €55.7 million last year.

Speaker #4: We recorded non-recurring items of DKK 1.5 million in the quarter relating to the change in management. There were no non-recurring items in the same period last year.

Hans Barslund: We recorded non-recurring items of DKK 1.5 million in the quarter relating to the change in management. There was no non-recurring items in the same period last year. Please turn to page six. Net working capital at the end of Q2 was -DKK 31.5 million compared to -DKK 9.3 million last year, corresponding to a net working capital ratio of -2.3% against -0.7% last year. If you break it down, then inventories increased by DKK 11 million from acquisition of Celebert and one retail store, combined with higher factory inventories to support increased demand.

Speaker #4: Please turn to page 6. Net working capital at the end of Q2 was minus 31.5 million, compared to minus 9.3 million last year. This corresponds to a net working capital ratio of minus 2.3%, against minus 0.7% last year.

Speaker #4: If you break it down, inventories increased by 11 million from the acquisition of Selebot and one retail store, combined with higher factory inventories to support increased demand.

Hans Barslund: Trade and all receivables actually decreased despite the higher revenue. Operating liabilities increased by DKK 29 million, primarily due to higher trade payables, partly a timing effect around the quarter end and therefore not a permanent nature. Net interest-bearing debt amounted to DKK 397 million at the end of Q2 compared to DKK 343 million last year. The increase is primarily a consequence of the Celebert acquisition at the end of last year. As a reminder, the dividend of DKK 46 million approved at our annual general meeting in April was paid out during the quarter and is reflected in the net interest-bearing debt development. The leverage ratio increased to 2.7 times at the end of Q2 compared to 2.5 times in the same period last year and remains well within our covenants. Please turn to page seven. Free cash flow in Q2 was DKK 32 million, essentially in line with Q2 last year.

Speaker #4: Trade and other receivables actually decreased despite the higher revenue. Operating liabilities increased by DKK 29 million, primarily due to higher trade payables, partly as a timing effect around the quarter end, and therefore not of a permanent nature.

Speaker #4: Net interest-bearing debt amounted to 397 million at the end of Q2, compared to 343 million last year. The increase is primarily a consequence of the Selebot acquisition at the end of last year.

Speaker #4: As a reminder, the dividend of DKK 46 million approved at our Annual General Meeting in April was paid out during the quarter and is reflected in the net interest-bearing debt development.

Hans Barslund: As a reminder, the dividend of DKK 46 million approved at our annual general meeting in April was paid out during the quarter and is reflected in the net interest-bearing debt development. The leverage ratio increased to 2.7 times at the end of Q2 compared to 2.5 times in the same period last year and remains well within our covenants. Please turn to page seven. Free cash flow in Q2 was DKK 32 million, essentially in line with Q2 last year.

Speaker #4: The leverage ratio increased to 2.7 times at the end of Q2, compared to 2.5 times in the same period last year, and remains well within our covenants.

Speaker #4: Please turn to page 7. Free cash flow in Q2 was €32 million, essentially in line with Q2 last year. For the first half of the year, free cash flow was €80 million, a significant improvement compared to €29 million in the same period last year.

Hans Barslund: For the H1 of the year, free cash flow was DKK 80 million, a significant improvement compared to DKK 29 million in the same period last year, benefiting from the positive development in the net working capital. CapEx ratio was 1.1% of revenue compared to 1.2% last year. Year to date, investments amount to DKK 26 million, down from DKK 34 million last year. The investment is primarily related to the ongoing ERP project. Cash conversion measured over the last 12 months was 107%. I now hand back to Jens Peter. Please turn to page eight.

Speaker #4: Benefiting from the positive development in net working capital. Capex ratio was 1.1% of revenue, compared to 1.2% last year. Year to date, investments amount to €26 million, down from €34 million last year.

Speaker #4: The investment is primarily related to the ongoing ERP project. Cash conversion, measured over the last 12 months, was 107%. I'll now hand back to Jens-Pieter. Please turn to page 8.

Speaker #3: So the results for the first half of 2026, together with the positive development in order intake during the second quarter, provide a positive backdrop for the remainder of the year.

Jens Poulsen: The results for the H1 of 2026, together with a positive development in order intake during the Q2, provide a positive backdrop for the remainder of the year. That said, we remain mindful of the potential impact of ongoing geopolitical uncertainty, including the situation around the Strait of Hormuz on consumer sentiment and demand. Taking this into account, we maintain our current guidance for 2026, and TCM Group thus expects full year revenue in the range of DKK 1.4 to DKK 1.5 million in sales and adjusted EBITA between DKK 120 and DKK 140 million. Before we conclude our presentation, I'd like to inform you that our new CFO, Esben Trier-Lund, will join TCM as of 1 September. This concludes our presentation, and we'll hand over to the operator for the Q&A session. Please turn to page nine.

Jens-Peter Poulsen: The results for the H1 of 2026, together with a positive development in order intake during the Q2, provide a positive backdrop for the remainder of the year. That said, we remain mindful of the potential impact of ongoing geopolitical uncertainty, including the situation around the Strait of Hormuz on consumer sentiment and demand. Taking this into account, we maintain our current guidance for 2026, and TCM Group thus expects full year revenue in the range of DKK 1.4 to DKK 1.5 million in sales and adjusted EBITA between DKK 120 and DKK 140 million. Before we conclude our presentation, I'd like to inform you that our new CFO, Esben Trier-Lund, will join TCM as of 1 September.

Speaker #3: That said, we remain mindful of the potential impact of ongoing geopolitical uncertainty, including the situation around the Strait of Hormuz, on consumer sentiment and demand.

Speaker #3: Taking this into account, we maintain our current guidance for 2026, and TCM Group thus expects full-year revenue in the range of DKK 1.4 to 1.5 billion in sales, and adjusted EBITDA of between DKK 120 and 140 million.

Speaker #3: Before we conclude our presentation, I'd like to inform you that our new CFO, Esben Trier Lund, will join TCM as of September 1. This concludes our presentation, and we'll hand over to the operator for the Q&A session.

Jens-Peter Poulsen: This concludes our presentation, and we'll hand over to the operator for the Q&A session. Please turn to page nine.

Speaker #3: Please turn to page 9.

Speaker #1: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. Do we hear your question?

Operator: Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. We will now take our first question from the line of Christian Thorne from SEB. Please go ahead.

Speaker #1: Please press star one one again. We will now take our first question from the line of Christian Turner from SEB. Please go ahead.

Speaker #5: Yes, thank you. And of course, welcome to you, Jens Peter. Looking forward to the dialogue. A couple of questions from my side: As I understand your description of the order pattern, it was weak in March and April, and then strong in May and June.

Christian Thorne: Yes. Thank you. Welcome to you, Jens Poulsen. Looking forward to the dialogue. A couple of questions from my side. As I understand your description of the order pattern, it was weak in March and April, then strong in May and June. Just curious on what your interpretation of this volatility is. Why do you think it picked up in May and June? Of course, the strength and the momentum in May and June, did that continue in July?

Kristian Tornøe: Yes. Thank you. Welcome to you, Jens Poulsen. Looking forward to the dialogue. A couple of questions from my side. As I understand your description of the order pattern, it was weak in March and April, then strong in May and June. Just curious on what your interpretation of this volatility is. Why do you think it picked up in May and June? Of course, the strength and the momentum in May and June, did that continue in July?

Speaker #5: Just curious on what your sort of interpretation of this volatility is, why do you think it picked up in May and June, and of course, the strength and the momentum in May and June, did that continue in July?

Speaker #3: Thank you, Christian, for the warm welcome. I'm very sure that a big impact on the growth in order intake at the end of Q2 was driven by the announced price increase.

Jens Poulsen: Thank you, Christian, for the warm welcome. I am very sure that a big impact on the growth in order intake at the end of Q2 was driven by the announced price increase. We do not know exactly how big a chunk of the increase was attributed to the price increase, but my assessment is it is a big chunk of it. If we look at the market, both B2C and B2B, that has not improved in the period. The interest development definitely does not support a stronger B2B market. If we look at the development on consumer confidence, especially in Denmark, that remains at a double-digit negative. Even though it is improved a little bit, it is still hugely negative. So it is not the market that is bringing the uplift in the order intake during the quarter, it is mostly the price increase.

Jens-Peter Poulsen: Thank you, Christian, for the warm welcome. I am very sure that a big impact on the growth in order intake at the end of Q2 was driven by the announced price increase. We do not know exactly how big a chunk of the increase was attributed to the price increase, but my assessment is it is a big chunk of it. If we look at the market, both B2C and B2B, that has not improved in the period. The interest development definitely does not support a stronger B2B market. If we look at the development on consumer confidence, especially in Denmark, that remains at a double-digit negative. Even though it is improved a little bit, it is still hugely negative.

Speaker #3: We don't know exactly how big a portion of the increase was attributable to the price increase, but my assessment is that it's a large part of it.

Speaker #3: If we look at the market, both B2C and B2B, that has not improved in the period. The interest rate development definitely does not support a stronger B2B market.

Speaker #3: And if we look at the development of consumer confidence, especially in Denmark, that remains at a double-digit negative. And even though it's improved a little bit, it's still hugely negative.

Speaker #3: So it's not the market that's bringing the uplift in the order intake during the quarter; it is mostly the price increase. Having said that, there are always, of course, movements in our ability to win orders in both segments, B2C and B2B.

Jens-Peter Poulsen: So it is not the market that is bringing the uplift in the order intake during the quarter, it is mostly the price increase. Having said that, there is always, of course, movements in our ability to win orders in both segments, B2C and B2B.

Jens Poulsen: Having said that, there is always, of course, movements in our ability to win orders in both segments, B2C and B2B.

Speaker #5: Okay, that makes sense. But have you then seen orders slow down in July? Because price increases took effect from July 1, right?

Christian Thorne: Okay. That makes sense, but have you then seen orders slow down in July? Price increases took effect from 1 July, right?

Kristian Tornøe: Okay. That makes sense, but have you then seen orders slow down in July? Price increases took effect from 1 July, right?

Speaker #3: Yes, we are seeing a softer July, both because it's the seasonal pattern, of course, but also relative to last year. And I do expect some impact during Q3, as it definitely moved orders in the pipeline forward.

Jens Poulsen: Yes. We are seeing a softer July, both because it is the seasonal pattern, of course, but also relative to last year. I do expect some impact during Q3, as it definitely moved orders in the pipeline forward. I do expect some impact. However, on the other hand side, there are also here and there positive signals of us winning still in a difficult market during Q3. It is really hard to assess the net impact in Q3.

Jens-Peter Poulsen: Yes. We are seeing a softer July, both because it is the seasonal pattern, of course, but also relative to last year. I do expect some impact during Q3, as it definitely moved orders in the pipeline forward. I do expect some impact. However, on the other hand side, there are also here and there positive signals of us winning still in a difficult market during Q3. It is really hard to assess the net impact in Q3.

Speaker #3: So I do expect some impact. However, on the other hand, there are also, here and there, positive signals of us winning still in a difficult market during Q3.

Speaker #3: So, it's really hard to assess the net impact in Q3.

Christian Thorne: That makes sense. That brings me to my next question, which is your guidance. If we look at the implicit guidance for the H2 of the year, it implies revenue growth of 7% to 23%. The 7%, I guess, is more or less a continuation of the momentum we had in the H1. But obviously, 23% revenue growth would mean a substantial step-up. Given that the order strength you refer to more seems like a phasing due to price increases, what brings you any confidence that you can deliver more than 20% growth?

Kristian Tornøe: That makes sense. That brings me to my next question, which is your guidance. If we look at the implicit guidance for the H2 of the year, it implies revenue growth of 7% to 23%. The 7%, I guess, is more or less a continuation of the momentum we had in the H1. But obviously, 23% revenue growth would mean a substantial step-up. Given that the order strength you refer to more seems like a phasing due to price increases, what brings you any confidence that you can deliver more than 20% growth?

Speaker #5: That makes sense. That brings me to my next question, which is your guidance. If we look at the implicit guidance for the second half of the year, it implies revenue growth of 7% to 23%.

Speaker #5: So the 7%, I guess, is more or less a continuation of the momentum you had in the first half. But, obviously, 23% revenue growth would mean a substantial step up.

Speaker #5: And given that the order strength you refer to seems more like a phasing due to price increases, what brings you any confidence that you can deliver more than 20% growth?

Jens Poulsen: We have not related to the upper end of the spectrum right now. But in the dialogues with the dealers that we have, we have everything from dealers that see a moderate single-digit development to dealers having a strong double-digit development. That is why we maintain the spread on the top-line guidance here, Christian. It is really hard to gauge that one.

Jens-Peter Poulsen: We have not related to the upper end of the spectrum right now. But in the dialogues with the dealers that we have, we have everything from dealers that see a moderate single-digit development to dealers having a strong double-digit development. That is why we maintain the spread on the top-line guidance here, Christian. It is really hard to gauge that one.

Speaker #3: We are not related to the upper end of the spectrum right now. But in the dialogues with the dealers that we have, we see everything from dealers that expect a moderate single-digit development to dealers having a strong double-digit.

Speaker #3: Development. And that's why we maintain the spread on the top-line guidance here, Christian. It's really hard to gauge that one.

Speaker #5: Okay, so one thing is the revenue guidance. Obviously, the other thing is the earnings guidance. Again, if we look at the first half of the year, revenue increased by €80 million, but your adjusted EBITDA only increased by €3 million, sort of implying an incremental margin of only 3%.

Christian Thorne: Okay. One thing is the revenue guidance. Obviously, the other thing is the earnings guidance. Again, if we look at the H1 of the year, revenue increased by DKK 80 million, but your adjusted EBITA only increased by DKK 3 million, implying an incremental margin of only 3%. I guess the reason for that low number is the substantial increase in your OpEx. If you do the same calculation for your implicit guidance for the H2 of the year, you would need an incremental margin of 18% to 19%. Obviously, quite a meaningful improvement. Can you maybe just help me understand the mathematics really here, and especially what you are assuming on the OpEx within your guidance?

Kristian Tornøe: Okay. One thing is the revenue guidance. Obviously, the other thing is the earnings guidance. Again, if we look at the H1 of the year, revenue increased by DKK 80 million, but your adjusted EBITA only increased by DKK 3 million, implying an incremental margin of only 3%. I guess the reason for that low number is the substantial increase in your OpEx. If you do the same calculation for your implicit guidance for the H2 of the year, you would need an incremental margin of 18% to 19%. Obviously, quite a meaningful improvement. Can you maybe just help me understand the mathematics really here, and especially what you are assuming on the OpEx within your guidance?

Speaker #5: And I guess the reason for that low number is the substantial increase in your OPEX. If you do the same calculation for your implicit guidance for the second half, you get an incremental margin of 18% to 19%.

Speaker #5: So obviously, quite a meaningful improvement. So can you maybe just help me understand the mathematics, really, here—especially what you are assuming on the OPEX within your guides?

Speaker #3: Hence, will you pick that up?

Jens Poulsen: Hans, will you pick that up?

Jens-Peter Poulsen: Hans, will you pick that up?

Speaker #2: That's correct, your calculation is accurate; I can confirm that. But we also have to take into account that we incurred some one-off costs or extraordinary costs here in the first half of the year.

Hans Barslund: It is correct that your calculation, I can confirm that. But we also have to look into that we have some one-off cost or extraordinary cost here in the H1. Then, of course, the addition of Celebert, of course, will also be a part of the H2. But what we also will see is that our gross margin in the H1 were heavily influenced by the input cost increase. Of course, that will continue into the second part, but there we will see some effects from our sales price increase. So we expect our gross margin to improve in the H2.

Speaker #2: And then, of course, the addition of the labor, of course, will also be a part of the second half of the year. But what we also will see is that our gross margin in the first half of the year was heavily influenced by the input cost increases.

Speaker #2: And of course, that will continue into the second part. But there we will see some effects from our sales price increase. So, we expect our gross margin to improve in the second half of the year.

Speaker #5: All right. So maybe just to understand, so if I understood you correctly, when you say you had some one-off cost in the first half, does that mean all things equal, we should expect I mean, a lower fixed cost base in the second half of the year or ask differently, your OPEX increase?

Christian Thorne: All right. So maybe just to understand. If I understood you correctly, when you say you had some one-off costs in the H1, does that mean all things equal, we should expect a lower fixed cost base in the H2? Or asked differently, your OpEx-

Kristian Tornøe: All right. So maybe just to understand. If I understood you correctly, when you say you had some one-off costs in the H1, does that mean all things equal, we should expect a lower fixed cost base in the H2? Or asked differently, your OpEx-

Hans Barslund: You should expect a lower OpEx ratio in the second part than in the first part.

Speaker #2: You should expect a lower OPEX ratio in the second part than in the first part.

Speaker #5: Okay, that is clear. And then to your other point around the price increases and the cost pressure—so orders taken at the end of the quarter, they would be booked as revenue in Q3, right?

Christian Thorne: That is clear. Then to your other point around the price increases and the cost pressure. Orders taken at the end of the quarter, they would be booked as revenue in Q3, right? So you will still carry that gross margin pressure into Q3 in your P&L. Is that correct?

Kristian Tornøe: That is clear. Then to your other point around the price increases and the cost pressure. Orders taken at the end of the quarter, they would be booked as revenue in Q3, right? So you will still carry that gross margin pressure into Q3 in your P&L. Is that correct?

Speaker #5: So, you will still carry that gross margin pressure into Q3 in your P&L. Is that correct?

Speaker #2: That's correct.

Hans Barslund: That is correct.

Christian Thorne: All right. Excellent. That was all for me. Thank you.

Kristian Tornøe: All right. Excellent. That was all for me. Thank you.

Speaker #5: All right. Excellent. That was all from me. Thank you.

Speaker #3: Thank you, Christian.

Hans Barslund: Thank you, Christian.

Jens-Peter Poulsen: Thank you, Christian.

Speaker #1: Thank you. We will now take the next question. From the line of Anders Christian Pritzman from Danske Bank, please go ahead.

Operator: Thank you. We will now take the next question from the line of Anders Christian Pritchman from Danske Bank. Please go ahead.

Speaker #3: Thank you very much, and hello Jens, Peter, and Hans. Thank you for taking my questions as well. I also have a few. Going back to the gross margin, you just mentioned that you expect it to be higher in H2 compared to H1.

Anders Christian Pritchman: Thank you very much. Hello, Jens, Peter, and Hans, and thank you for taking my questions as well. I also have a few. Going back to the gross margin, obviously, you just mentioned that you expect it to be higher in H2 compared to H1. Given the strong order intake here at the end of Q2, I would expect us to see quite an uptick in gross margin for Q3. Can you please help elaborate a bit on how you see the gross margins coming in for the two remaining quarters of the year?

Anders Christian Preetzmann: Thank you very much. Hello, Jens, Peter, and Hans, and thank you for taking my questions as well. I also have a few. Going back to the gross margin, obviously, you just mentioned that you expect it to be higher in H2 compared to H1. Given the strong order intake here at the end of Q2, I would expect us to see quite an uptick in gross margin for Q3. Can you please help elaborate a bit on how you see the gross margins coming in for the two remaining quarters of the year?

Speaker #3: But given the strong order intake here at the end of Q2, I would expect us to see quite an uptick in gross margin for Q3.

Speaker #3: Can you please elaborate a bit on how you see the gross margins coming in for the two remaining quarters of the year?

Speaker #2: If I should answer that, the order book here at the end of Q2 will mean some of our business will be at old prices in Q3, and then we'll start to see the effect in Q4 from the price increases.

Hans Barslund: If I should answer that, the order book here end of Q2 would in some of our business will be at old prices in Q3, and then we will start to see the effect in Q4 on the price increases. We also, business as Celebert and Nettoline and so on is more day-to-day business and selling off the shelves. So there we will see effect on price increases here in Q2 as well.

Speaker #2: But we also have business as the Labor and Netto line, and so on, which is more day-to-day business and selling off the shelves. So, there we will see the effect of price increases here in Q2 as well.

Speaker #3: Okay, so it's fair to assume that gross margins for Q3 and Q4 are similar, but higher than H1?

Anders Christian Pritchman: Okay, so it is fair to assume that gross margins for Q3 and Q4 are similar but higher than H1?

Anders Christian Preetzmann: Okay, so it is fair to assume that gross margins for Q3 and Q4 are similar but higher than H1?

Speaker #2: Yeah. And you'll also see an improvement in—I'll see Q3 on level with Q2, and an increase in Q4.

Hans Barslund: Yeah. You will see an improvement in, I'd say Q3 on level with Q2 and an increase in Q4.

Anders Christian Pritchman: All right. Thanks a lot. Going back to the price increases that you've implemented here from 1 July, can you just please reiterate the magnitude of those price increases and maybe also what the feedback has been from customers and dealers so far? Has there been any elasticity or any pushback on the price increases?

Anders Christian Preetzmann: All right. Thanks a lot. Going back to the price increases that you've implemented here from 1 July, can you just please reiterate the magnitude of those price increases and maybe also what the feedback has been from customers and dealers so far? Has there been any elasticity or any pushback on the price increases?

Speaker #3: All right, thanks a lot. Going back to the price increases that you've implemented here from the 1st of July, can you please just reiterate the magnitude of those price increases and maybe also share what the feedback has been from customers and dealers so far—as of any elasticity or pushback on the price increases?

Speaker #2: We've taken a single-digit price increase. We have taken an increase reflecting the raw material developments, the developments in transportation costs that we're facing, and salary increases due to union negotiations done previously.

Jens Poulsen: We've taken a single-digit price increase. We have taken an increase reflecting the raw material development, the development in transportation costs that we're facing, and salary increases due to union negotiations done previously. The costs that we have literally faced amount to a level that is equal to the price increase that we have taken. Gauging from market reactions, people are never happy, Anders, for price increases, but I sense some understanding for why it's happening. Of course, we'll see here and there customers trying to negotiate around it, but it is a real price increase reflecting real cost increases that we are facing, and I expect the market to increase more or less in line with the level of price increase that we have done.

Jens-Peter Poulsen: We've taken a single-digit price increase. We have taken an increase reflecting the raw material development, the development in transportation costs that we're facing, and salary increases due to union negotiations done previously. The costs that we have literally faced amount to a level that is equal to the price increase that we have taken. Gauging from market reactions, people are never happy, Anders, for price increases, but I sense some understanding for why it's happening. Of course, we'll see here and there customers trying to negotiate around it, but it is a real price increase reflecting real cost increases that we are facing, and I expect the market to increase more or less in line with the level of price increase that we have done.

Speaker #2: So, the costs that we have literally faced amount to a level that is equal to the price increase that we have taken. Gauging from market reactions, people are never happy with us for price increases.

Speaker #2: But I sense some understanding for why it's happening. Of course, we'll see customers here and there trying to negotiate around it. But it is a real price increase reflecting the real cost increases that we are facing.

Speaker #2: And I expect the market to increase more or less in line with the level of price increase that we have done.

Speaker #3: Okay, thank you very much. That was very clear. A final question from me, directed to you, Jens Peter. I know it's still early days, but now that you've joined on as CEO, are you maybe able to share some of your focus points for the time going forward, now that you've started to settle into the role?

Anders Christian Pritchman: Okay. Thank you very much. That was very clear. A final question for me, directed to you, Jens Peter. I know it's still early days, but now that you've joined on as CEO, are we able to share some of your focus points for the time going forward now that you've started to settle into the role?

Anders Christian Preetzmann: Okay. Thank you very much. That was very clear. A final question for me, directed to you, Jens Peter. I know it's still early days, but now that you've joined on as CEO, are we able to share some of your focus points for the time going forward now that you've started to settle into the role?

Jens Poulsen: This is my 14th day on the job, Anders, so it's early days. I'm very happy to have joined. I see a company with great potential, and I'm in the process of meeting clients. I'm with a client today in Oslo. I'm meeting also the team. I'm getting acquainted with the factories that we operate, the product range, and all of it. Even though I've been in the industry for 12 years previously, and I know quite a lot, there are still quite some differences to where I've landed. My general feeling is very positive.

Jens-Peter Poulsen: This is my 14th day on the job, Anders, so it's early days. I'm very happy to have joined. I see a company with great potential, and I'm in the process of meeting clients. I'm with a client today in Oslo. I'm meeting also the team. I'm getting acquainted with the factories that we operate, the product range, and all of it. Even though I've been in the industry for 12 years previously, and I know quite a lot, there are still quite some differences to where I've landed. My general feeling is very positive.

Speaker #2: This is my 14th day on the job, Anders, so it's early days. I'm very happy to have joined. I see a company with great potential.

Speaker #2: And I'm in the process of meeting clients. I'm with a client today in Oslo. I'm also meeting the team. I'm getting acquainted with the factories that we operate, their product range, and all of it.

Speaker #2: And even though I've been in the industry for 12 years previously, and I know quite a lot, there are still quite a few differences compared to where I've landed.

Speaker #2: But my general feeling is very positive. In terms of things to focus on, just to give you one idea, the significant uplift in order intake at the end of Q2, of course, means we need to provide some attention to the supply chain right now, to be able to execute this order pipeline without too long of a delivery time for our clients, as well as our partners in the stores.

Jens Poulsen: In terms of things to focus on, just to give you one idea of it, the significant uplift in order intake at the end of Q2, of course, means we need to provide some attention on the supply chain right now to be able to execute this order pipeline without too long of a delivery time for our clients as well as our partners in the stores. Supply chain is definitely one.

Jens-Peter Poulsen: In terms of things to focus on, just to give you one idea of it, the significant uplift in order intake at the end of Q2, of course, means we need to provide some attention on the supply chain right now to be able to execute this order pipeline without too long of a delivery time for our clients as well as our partners in the stores. Supply chain is definitely one.

Speaker #2: So supply chain definitely one.

Speaker #3: Okay, thanks very much. And Peter, that was all from me. I'm looking forward to future dialogue.

Anders Christian Pritchman: Okay, thanks very much, Jens Poulsen. That was all for me. I'm looking forward to the future dialogue.

Anders Christian Preetzmann: Okay, thanks very much, Jens Poulsen. That was all for me. I'm looking forward to the future dialogue.

Speaker #2: Thank you.

Hans Barslund: Thank you.

Jens-Peter Poulsen: Thank you.

Speaker #1: Thank you. We will now take the next question. From the line of Christian Turner from SEB, please go ahead.

Operator: Thank you. We will now take the next question from the line of Christian Thorne from SEB. Please go ahead.

Christian Thorne: Yes, thank you. Just a follow-up for clarification. Just the commentary you made on what we should expect for gross margin. You said Q3 should be in line with Q2, and then Q4 should be higher than Q3. Is that more on like-for-like gross margin? Because there is some seasonality to a gross margin, and I assume mix is a big explanation here. Typically, your gross margin in Q3 is lower than it is in Q2. So just want to make sure whether that commentary is more on a like-for-like basis within, say, B2C and B2B, or whether it is reported gross margin you are referring to.

Kristian Tornøe: Yes, thank you. Just a follow-up for clarification. Just the commentary you made on what we should expect for gross margin. You said Q3 should be in line with Q2, and then Q4 should be higher than Q3. Is that more on like-for-like gross margin? Because there is some seasonality to a gross margin, and I assume mix is a big explanation here. Typically, your gross margin in Q3 is lower than it is in Q2. So just want to make sure whether that commentary is more on a like-for-like basis within, say, B2C and B2B, or whether it is reported gross margin you are referring to.

Speaker #5: Yes, thank you. Just a follow-up for clarification: in your commentary on what we should expect for gross margin, you said Q3 should be in line with Q2, and then Q4 should be higher than Q3.

Speaker #5: I mean, is that more on like-for-like gross margin? Because there's some seasonality to gross margin, and I assume mix is a big explanation here.

Speaker #5: Typically, your gross margin in Q3 is lower than it is in Q2. So I just want to make sure—was that commentary more on a sort of like-for-like basis within, say, B2C and B2B, or were you referring to reported gross margin?

Jens Poulsen: It is a like-for-like, because, of course, there is an influence from the production is stopped in July and so on. There is always some effect on that. But that will be similar from last year.

Hans Barslund: It is a like-for-like, because, of course, there is an influence from the production is stopped in July and so on. There is always some effect on that. But that will be similar from last year.

Speaker #2: It is a like-for-like. Because, of course, there is an influence from the production being stopped in July and so on. There's always some effect from that.

Speaker #2: But that'll be similar to last year.

Speaker #5: Okay, and maybe just to follow up, because it seems that you've had a positive impact on your gross margin from a mix shift towards B2C.

Christian Thorne: Okay. And maybe just to follow up, because it seems that you have had a positive impact on your gross margin from a mix shift towards B2C.

Kristian Tornøe: Okay. And maybe just to follow up, because it seems that you have had a positive impact on your gross margin from a mix shift towards B2C. Based on what you can see now, should that continue in the coming quarters as well?

Speaker #5: Based on what you can see now, should that continue in the coming quarters as well?

Christian Thorne: Based on what you can see now, should that continue in the coming quarters as well?

Jens Poulsen: We see quite a level of B2B in the order pipeline relative to previously. So that will counter a little bit, the development that we saw, Christian, during Q2.

Jens-Peter Poulsen: We see quite a level of B2B in the order pipeline relative to previously. So that will counter a little bit, the development that we saw, Christian, during Q2.

Speaker #2: We see quite a level of B2B in the order pipeline relative to previously, so that will counter a little bit the development that we saw, Christian, during Q2.

Speaker #5: Okay. No, thanks. Excellent. Thank you for clarifying.

Christian Thorne: Okay. No other things. Excellent. Thank you for clarifying.

Kristian Tornøe: Okay. No other things. Excellent. Thank you for clarifying.

Speaker #2: You're welcome.

Jens Poulsen: You are welcome.

Jens-Peter Poulsen: You are welcome.

Speaker #1: Thank you. There are no further questions at this time. I would now like to turn the conference back to remarks.

Operator: Thank you. There are no further questions at this time. I would now like to turn the conference back to Jens Poulsen for closing remarks.

Speaker #3: Thank you very much, everyone, for joining in and showing interest. Thank you for the warm welcome. It's great to be back in the kitchen industry and at TCM Group, where I see a lot of potential going forward.

Jens Poulsen: Thank you very much, everyone, for joining in and showing interest. Thank you for the warm welcome from you. It is great to be back in the kitchen industry and in TCM Group, where I see a lot of potential going forward. It is not like growth will come by itself in a market that is challenged both in the B2C and B2B segment. I keep reminding myself and the team that as we only have a certain market share, we do not necessarily need a growing market to drive growth for the group. We just need to get our act together and perform better relative to competition. I am happy to be here. I see great potential, and we work hard to do our best for the shareholders going forward. Thank you very much for joining in. Have a great day.

Jens-Peter Poulsen: Thank you very much, everyone, for joining in and showing interest. Thank you for the warm welcome from you. It is great to be back in the kitchen industry and in TCM Group, where I see a lot of potential going forward. It is not like growth will come by itself in a market that is challenged both in the B2C and B2B segment. I keep reminding myself and the team that as we only have a certain market share, we do not necessarily need a growing market to drive growth for the group. We just need to get our act together and perform better relative to competition. I am happy to be here. I see great potential, and we work hard to do our best for the shareholders going forward.

Speaker #3: It's not like growth will come by itself in a market that's challenged both in the B2C and B2B segments. But I keep reminding myself and the team that, as we only have a certain market share, we don't necessarily need a growing market to drive growth for the Group.

Speaker #3: We just need to get our act together and perform better relative to the competition. So, I'm happy to be here. I see great potential, and we'll work hard to do our best for the shareholders going forward.

Speaker #3: So, thank you very much for joining in. Have a great day.

Jens-Peter Poulsen: Thank you very much for joining in. Have a great day.

Operator: Today's conference call, thank you for participating. You may now disconnect.

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Q2 2026 TCM Group AS Earnings Call

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