At A Glance
Our business
Perfomance Highlights
ESG
Corporate governance
Financial statements
ESG Statements
TCM Group Annual report 2023
11
still room for growing market share, both within
the B2C and the B2B segments. In recent years we
have focused on the B2B segment with the
ambition to gain further market share as a
contributor to growth in revenue and earnings.
Furthermore, the B2B segment has a different
cycle compared to the B2C segment a.o. including
a pipeline with a longer time horizon. During
2023 the strategy again proved to be right as we
saw a slowdown in both the B2C and B2B
segments, however the B2B pipeline build in 2022
supported the business, while the cost base was
adjusted to the lower demand. To further
strengthen the distribution network in the B2B
segment, we have in cooperation with multi store
franchisees, strengthened the B2B competences
in the three biggest cities in Denmark in recent
years.
in 2023, and further openings are planned for
2024. In Norway focus is on increasing same
store sale within both B2B and B2C as only a few
white spots remain.
Financial outlook 2024
For TCM Group, expectations for the development in 2024 are
characterized by a high degree of uncertainty with regards to
both the macro-economic development and the geopolitical
situation. The effect this uncertainty will have on consumer
confidence in general, and the demand for kitchens in particular
is difficult to quantify.
Strategy
NETTOLINE
and financial
targets
The Nettoline brand is selling through single
brand stores in Denmark and multibrand stores
in Norway. In both markets there are room for
additional stores, which will grow the brand
awareness and turnover. The cooperation with
private labels clients will continue as seen in the
recent years.
Market expectations are that inflation will continue to fall, and
that short term interest rates will start to decline in 2024, which
should support the Danish housing market and thereby the
demand for kitchens, especially within B2C sales. However, the
timing as to when and by how much short-term interest rates
will fall remains highly uncertain, and in addition the present
slowdown in B2B sales seem poised to continue well into 2024.
In view of this TCM Group does not expect the kitchen market in
neither Denmark nor Norway to make a speedy recovery in 2024.
Even though we invest
in growth, our target
is to remain in the
top tier of the kitchen
industry with regards
to profitability and
cash flow.
E-COMMERCE
The online activity with brands kitchn.dk,
billigskabe.dk, Celebert and Just Wood is expected
to continue to gain a greater share of the kitchen
market in Denmark and Norway. At the same
time we plan to continue the geographical
expansion, starting with Germany in 2024.
From 2024 TCM Group will change the classification of certain
income types from Revenue to a reduction in Cost of Goods Sold.
The change in classification will reduce the revenue in the range
of DKK 20-25 million annually. Comparative figures in 2024
financial reports will be restated accordingly.
For Svane Køkkenet in Norway, the mid-term
target is to open another 6-8 stores, and thereby
to bring the store network up to 18-20 stores.
However due to the economic slowdown store
openings were put on hold in 2023, and one store
closed in late 2023. We will revisit the growth
plans for Svane Køkkenet in Norway during 2024
in preparation for the expected recovery of the
kitchen market.
Group
To extend the different positionings of our brands
and being our customers’ first choice for the
heart of their homes, we will continue to develop
new, exciting, and sustainable kitchen, bath and
storage solutions, designs and functionalities.
Strategy
TCM Group estimates revenue for the
financial year 2024 to be in the range
DKK 1,000-1,150 million
TCM Group’s overall strategy is to aim for
double-digit annual growth rates in the short- to
mid-term. This means that we aim for growth in
all brands, markets and channels. Even though
we invest in growth, our target is to remain in the
top tier of the kitchen industry with regards to
profitability and cash flow. This will be achieved
through investments and optimization in our
production and supply chain setup. In addition to
organic growth, the Group is monitoring the
market for acquisition opportunities primarily in
Scandinavia, which resulted in the acquisition of
AUBO Production A/S in 2023. The acquisition
supports our growth strategy in Norway,
substantially improving the foothold in Norway ,
without creating a conflict with our distribution
of Svane Køkkenet and Nettoline.
TVIS KØKKEN
To support the growth ambitions in all brands
and markets, we continue to invest in flexibility
at our four factories, while also supporting our
long-term growth ambitions. We will invest in
further digitalizing processes in the supply chain,
in the administration and in the retail network,
and thereby continuously improve and
EBIT* is estimated to be in the range
The Tvis Køkken brand has opened and relocated
several stores in the past years, but there are still
a few white spots in Denmark to be addressed.
Market share and brand awareness is to be
increased in line with the development of the
store network. In 2023 we opened a new store in a
key shopping area outside Copenhagen, and
launched the MG30 line designed by Morten
Georgsen.
DKK 55-85 million
*EBIT excluding non-recurring items
Forward looking statements
This report contains statements relating to the future, including
statements regarding TCM Group’s future operating results, financial
position, cash flows, business strategy and plans for the future. The
statements are based on management’s reasonable expectations and
forecasts at the time of the disclosure of the report. Any such
statements are subject to risks and uncertainties, and a number of
different factors, many of which are beyond TCM Group’s control,
could mean that actual performance and actual results will differ
significantly from the expectations expressed in this annual report.
Without being exhaustive, such factors include general economic and
commercial factors, including market and competitive matters,
supplier issues and financial issues.
strengthen the entire value chain of our business.
In all we do, we are determined to do this as
responsible as possible with regards to people,
planet, and products. We refer to the separate
ESG section for further elaboration of our
strategic targets and initiatives.
AUBO
The AUBO brand is selling through single brand
stores in Denmark and in Norway through
dedicated shop-in-shops operated by the leading
building materials distributor, Optimera. In
Denmark one store opened in Southeast Jutland
SVANE KØKKENET
The Svane Køkkenet branded store network is
fully established in Denmark, however there is
