TCM Group A/S Skautrupvej 16 7500 Holstebro 37291269 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 2021-01-01 2021-12-31<table width="100%"><tr><td colspan="1">Dette er til corporate governancelink</td></tr><tr><td colspan="1">http://investor-en.tcmgroup.dk/CorporateGovernance</td></tr></table><table width="100%"><tr><td colspan="1">Dette er til corporate governancelink</td></tr><tr><td colspan="1">http://investor-en.tcmgroup.dk/CorporateGovernance</td></tr></table>504 Regnskabsklasse D Årsrapport 37291269 TCM Group A/S Skautrupvej 16 7500 Holstebro xWizard version 1.1.1177.5, by EasyX Aps. www.easyx.eu Revisionspåtegning Grundlag for konklusion Konklusion 33771231 33771231 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 529900P5DOKT3XLWL480 2021-01-01 2021-12-31 529900P5DOKT3XLWL480 2022-12-31 529900P5DOKT3XLWL480 2021-12-31 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:IssuedCapitalMember 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:TreasurySharesMember 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:RetainedEarningsMember 529900P5DOKT3XLWL480 2021-12-31 tcm-group:DividendForTheYear 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 ifrs-full:IssuedCapitalMember 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 ifrs-full:TreasurySharesMember 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 ifrs-full:RetainedEarningsMember 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 tcm-group:DividendForTheYear 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 529900P5DOKT3XLWL480 2022-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 529900P5DOKT3XLWL480 2022-12-31 ifrs-full:IssuedCapitalMember 529900P5DOKT3XLWL480 2022-12-31 ifrs-full:TreasurySharesMember 529900P5DOKT3XLWL480 2022-12-31 ifrs-full:RetainedEarningsMember 529900P5DOKT3XLWL480 2022-12-31 tcm-group:DividendForTheYear 529900P5DOKT3XLWL480 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 529900P5DOKT3XLWL480 2020-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 529900P5DOKT3XLWL480 2020-12-31 ifrs-full:IssuedCapitalMember 529900P5DOKT3XLWL480 2020-12-31 ifrs-full:TreasurySharesMember 529900P5DOKT3XLWL480 2020-12-31 ifrs-full:RetainedEarningsMember 529900P5DOKT3XLWL480 2020-12-31 tcm-group:DividendForTheYear 529900P5DOKT3XLWL480 2020-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 529900P5DOKT3XLWL480 2021-01-01 2021-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 529900P5DOKT3XLWL480 2021-01-01 2021-12-31 ifrs-full:IssuedCapitalMember 529900P5DOKT3XLWL480 2021-01-01 2021-12-31 ifrs-full:TreasurySharesMember 529900P5DOKT3XLWL480 2021-01-01 2021-12-31 ifrs-full:RetainedEarningsMember 529900P5DOKT3XLWL480 2021-01-01 2021-12-31 tcm-group:DividendForTheYear 529900P5DOKT3XLWL480 2021-01-01 2021-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:IssuedCapitalMember 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:TreasurySharesMember 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:RetainedEarningsMember 529900P5DOKT3XLWL480 2021-12-31 tcm-group:DividendForTheYear 529900P5DOKT3XLWL480 2021-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 529900P5DOKT3XLWL480 2021-12-31 529900P5DOKT3XLWL480 2020-12-31 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 0 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 1 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 0 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 1 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 2 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 3 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 4 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 5 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 0 529900P5DOKT3XLWL480 2022-01-01 2022-12-31 cmn:ConsolidatedMember 1 iso4217:DKK iso4217:DKK xbrli:shares xbrli:pure
Annual report 2022
TCM Group A/S, Skautrupvej 16, DK-Holstebro, Denmark, CVR Nr. 37291269
Ch a i r m an an d CEO’s r epo r t
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TCM Group Annual report 20 22
2
Our purpose
Our overall purpose is to
create a better home life for
everyone. Regardless of family
constellation’s, housing type
and financial situation.
We create
better kitchen
environments
for the heart of
your home
We want to be a contributor to our
customer’s everyday happiness,
and we do so by working together
across teams and organizations,
always with the customer in focus.
Svane Køkkenet
INFINITY Leaf
Front page photo
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TCM Group Annual report 20 22
3
About TCM Group
TCM Group is Scandinavia’s third largest kitchen
manufacturer, with headquarter in Denmark and
selling through approximately 140 stores across
Scandinavia. The majority of our business is
concentrated in Denmark with Norway being the
primary export market. The product oﬀering
includes kitchen, bathroom and storage
solutions.
TCM Group pursues a multi-brand strategy,
under which the main brand is Svane Køkkenet
and the other brands are Tvis køkken, Nettoline
and private label. Combined, the brands cover the
entire price spectrum. Products are mainly
marketed through a network of franchise stores
and independent kitchen retailers. Furthermore,
TCM Group is supplier to the 45% owned
e-commerce kitchen business Celebert, which
operates under the brands kitchn.dk, billigskabe.
dk, Celebert and Just Wood.
Manufacturing is to a large extent carried out
in-house at three manufacturing sites located in
Tvis and Aulum (in the western part of Denmark).
TCM Group is listed on Nasdaq Copenhagen.
Svane køkkenet
2
INFINITY Leaf
1
Nettoline
Satin mat sort
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TCM Group Annual report 20 22
4
02 management report
05 Chairman and
13 Our business
26 ESG
14 Strategy and ﬁnancial targets
16 Danish design and Danish production
17 Risk management
27
28
29
31
Highlights 2022
ESG strategy and approach
CEO’s report
06 Letter to our shareholders
A sustainable work life
We take responsibility
New ways ahead
33
34
36
37
07 Financial Highlights
08 Financial Highlights
09 Business review
19 CoRporate governance
20 Corporate governance
22 Board of Directors and
Executive Management
Together we improve
Governance
ESG key ﬁgures
10
11
Key ﬁgures and ratios
Financial review
24 Shareholder information
40 financial statements
41 consolidated financial
66 Financial statements of the
74 Statement by Management
on the annual report
statements
Parent company
42
Income statement
67 Income statement
42 Statement of comprehensive income
43 Balance sheet as of 31 December
44 Statement of changes in equity
44 Cash ﬂow statement
74 Independent
auditor’s repor T
67 Statement of comprehensive income
67 Balance sheet as of 31 December
68 Changes in shareholders´s equity
69 Cash ﬂow statement
45 Notes to the ﬁnancial statement
65 Deﬁnitions
69 Notes to the parent ﬁnancial statements
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TC M Gr oup Annual report 20 22
5
At Svane Køkkenet, we
are driven by innovation.
We are constantly challenging
the established by curiously
going new ways.
Chairman and
CEO’s report
S19 Brændt Grå
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At this time last year, with the Covid-19
raw materials and components we experienced
throughout 2022. The higher input costs were
passed on to our customers through multiple
sales price increases, but naturally the mitigating
impact from the sales price increases comes with
some delay. As a consequence the signiﬁcant cost
price inﬂation we saw in 2022 had a signiﬁcant
adverse net inﬂuence on the earnings in TCM
Group in 2022 as a whole. As the supply situation
normalised towards the end of 2022, we expect a
more stable input cost level for the coming year.
The development in 2023 is characterised by a
high degree of uncertainty with regards to the
macro economic development and the derived
eﬀect on the demand for kitchens. Macro
economic headwind during 2022 with high
pandemic receding, we, along with many others,
had a clear expectation the exceptional year 2021
would be followed by a return to “normality” in
2022. Soon after, Russia invaded Ukraine,
shattering any such hope and ensuring that 2022
would also be a year far from normal.
Letter to our
Shareholders
inﬂation a.o. following the war in Ukraine, higher
energy costs, higher interest rates etc. has led to a
slowdown of the Danish housing market with a
signiﬁcant drop in number of houses sold and
order intake from house builders. This has
impacted the kitchen market with lower demand
especially within B2C. As a consequence of the
above, we expect lower activity in 2023 in general
and we believe B2C sales will continue to be low
going into 2023.
With Covid-19 behind 2022 started out
optimistically and characterized by a high
demand and activity level. Following the Russian
invasion of Ukraine in late February uncertainty
about supply chains in general and the risk of
energy shortages in particular led to higher
energy costs and higher raw material prices.
Furthermore, the sharp increase in inﬂation
prompted a signiﬁcant rise in interest rates and
the booming housing market halted sharply
during the year leading to a drop in the demand
for kitchens.
With the currently uncertain situation both
economically and politically the outlook for the
kitchen market in 2023 is very cloudy. We remain
cautious and vigilant and ready to react to any
changes in the demand situation. TCM Group
beneﬁts from a high degree of variability in the
cost base and thus is well suited to retain
proﬁtability even under adverse conditions and
we remain committed to develop our brands and
the store network further in 2023.
Based on the above, we have widened our range
for the ﬁnancial outlook for 2023 compared to
previous years. Our ﬁnancial outlook for full year
revenue for 2023 is in the range of DKK 950-
1,050 million and adjusted EBIT in the range of
DKK 70-100 million.
1,146 mio. 3.4%
Given the backdrop of a general slowdown in the
Danish kitchen market during 2022, we consider
the organic like-for-like growth in our core
business* in Denmark of 4.5% as satisfactory.
Furthermore, our strategic focus on the
Norwegian market resulted in a revenue growth
outside Denmark of 17.2% in 2022, albeit from a
low starting point.
Revenue
Revenue growth
During 2022, we added three new Svane Køkkenet
stores in Norway as well as a new and unique
ﬂagship store in the Copenhagen area.
Furthermore, additional new stores were added
to the Tvis køkken and Nettoline brands. We will
continue to add more stores in Norway and to
consolidate our strong position in the Danish
market.
Finally, we would like to thank our employees
and business partners for their dedicated eﬀorts
during a year with many challenges.
With the slowdown in the danish
kitchen market during 2022 in
mind, the organic like-for-line
growth in our core business in
Denmark of 4.5% is deemed
satisfatory.
During 2022 the beneﬁt of our strong position in
B2B were clearly demonstrated. As the slowdown
in demand began to impact B2C sales in the
second half of 2022, our sales were supported by
a strong long tailed pipeline with B2B, which
helped to keep production close to capacity
throughout the year. However, the slowdown in
B2C sales had a negative impact on the gross
margin as it meant that high margin B2C sales
were replaced by lower margin B2B project sales
during the year. Thus the gross margin was
negatively impacted by the change in sales mix in
2022.
During 2022 we completed the share buy back
program of DKK 150 million and cancelled c. 9%
of the number of shares. In addition, we
distributed an ordinary dividend of DKK 54
million. As a consequence of a higher degree of
uncertainty, the Board of Directors has decided
not to propose a distribution of an ordinary
dividend, and instead propose to the upcoming
Annual General Meeting, that a mandate is
provided to the Board of Directors with the option
to distribute a dividend during the second half of
2023 of up to DKK 30 million.
Sanna Mari
Torben
Paulin
Suvanto-Harsaae
*
Organic like-for-like growth in core business is revenue excluding 3rd party
revenue and the merge the e-commerce activities Celebert/kitchn.dk.
Chairman
CEO
In addition, gross margin was negatively
TCM Group has been a member of the United National Global Compact since 2011
and commits to the 10 UNGC principles.
impacted by the signiﬁcantly higher prices on
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TCM Group Annual report 20 22
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We rethink expressions
and materials. We add
functional technology.
This is how we create
modern living spaces that
add tranquility, energy and
luxury to everyday life.
Financial
S12 RAW Ltd.
highlights
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TCM Group Annual report 20 22
8
Financial
highlights
Total of
Revenue, DKK
revenue Growth
Revenue
AVERAGE NO. of EMPLOYEES
Stores
Other countries
10% (9)
94
1,146 3 496
(branded stores include
Svane Køkkenet, Tvis
køkken and Danish
Nettoline stores)
%
90% (91)
Denmark
(1,108)
Mi0.
(11)
(504)
41
Adjusted EBIT, DKK
Adjusted EBIT Margin
NWC ratio (31 December)
LEVERAGE RATIO (31 december)
Svane Køkkenet
28
Tvis køkken
25
Nettoline
103 Mio. 9.0
%
-5.0
%
2.35
(138)
(12.4)
(-7.4)
(1.33)
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TCM Group Annual report 20 22
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stated in the Annual report 2021, was DKK 1,150-
1,225 million.
Business
Within Svane Køkkenet a new unique ﬂagship
store opened in the Greater Copenhagen area, and
three new stores opened in Norway. This was
oﬀset by a closure of the store in Taastrup as part
of the restructuring of the store network, and the
closure of a store in Mandal, Norway. Within Tvis
køkken a new store opened in Slagelse, whereas a
few Norwegian dealers converted to private label
customers and transferred to Nettoline and
thereby are no longer considered branded stores.
In the Nettoline brand new stores opened in
Næstved, Odense and Ringsted.
review
Reported revenue grew by 3.4% in 2022 to DKK
1,146 million (DKK 1,108 million). The organic
like-for-like growth in the core business was
6.0% (revenue excluding 3rd party revenue and
the merge of the e-commerce activities Celebert/
kitchn.dk).
Revenue in Denmark grew from DKK 1,011 million
in 2021 to DKK 1,032 million corresponding to an
increase of 2.1%. The organic like-for-like
The slowdown in the kitchen market during 2022
initially impacted the B2C sales, which declined
in the second half of the year. The long term
strategic focus on B2B pursued by TCM for a
number of years proved its worth, as strong B2B
pipeline ensured that overall sales remained
strong in spite of the slowdown in B2C sales
during H2 2022. However, the change in sales
mix with lower B2C sales oﬀset by higher B2B
project sales had a negative impact on gross
margin. Furthermore, gross margin was
growth in the core business in Denmark was 4.5%
(excluding 3rd party revenue and the merge of
the e-commerce activities Celebert/kitchn.dk).
Revenue outside Denmark grew from DKK 97
million in 2021 to DKK 114 million corresponding
to an increase of 17.2%. The growth was driven by
both same store growth and revenue from new
stores in Norway primarily within Svane
Køkkenet. The number of branded stores
increased to 94 during 2022.
negatively impacted by signiﬁcant higher cost
prices on raw materials and components. The
higher input costs were passed on to our
Tvis Køkken
strategy of TCM Group. In 2022 TCM launched
new products in all of the three brands a.o. the
new H22 in Svane Køkkenet, Tirano Nordic oak in
Nettoline, and the MG50 line in Tvis køkken. With
the launch of INFINITY in Svane Køkkenet 2023,
TCM Group takes another big step towards
working with circular product design.
the end of December 2022 the number of
employees was 482.
M-line Mørk Eg
Momento Antracit
Reported revenue of DKK 1,146 million was in line
with the latest ﬁnancial outlook of DKK 1,120-
1,160 million. Initial ﬁnancial outlook for 2022,
customers through multiple sales price increases
during the year. However, the mitigating impact
from the implemented sales price increases came
with some delay resulting in a lower gross margin
20.4% compared to 23.0% in 2021.
The focus on sustainability and our ESG strategy
continued in 2022. Among other achievements
TCM delivered a signiﬁcant reduction in the Co2
emissions of the group (scope 1+2) of 18%
compared to 2021. This was a good step forwards
towards the ambition of TCM, which is to achieve
a Co2 neutral production by 2028. To promote
diversity and inclusion, TCM during 2022 formed
a diversity and inclusion policy, formalizing the
work towards ensuring minimum 40%
Within Svane Køkkenet
a new unigue flagship
store opened in The
Greather Copenhagen
area.
Adjusted EBIT ended at DKK 103.4 million
compared to DKK 137.8 million in 2021 and the
latest ﬁnancial outlook in the range of DKK 100-
130 million. Initial ﬁnancial outlook for 2022,
stated in the Annual report 2021, was DKK 140-
170 million.
The average number of employees in 2022 was
496 compared to 504 in 2021. Towards the end of
the year the third shift (night shift) was shut down
and the organisation was restructured. The
restructuring was implemented to mitigate the
slowdown in demand and the third shift was
discontinued as increased eﬃcienty in the
production sites has increased the overall
94
Branded stores at the
end of 2022
representation of the underrepresented gender
throughout the organisation. Please refer to the
ESG section for further information.
Innovation and development of new attractively
designed products following the latest trends and
customer demands plays an important role of the
production capacity in the remaining two shifts. At
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1 0
Key figures
and ratios
DKK’000
2022
2021
2020
2019*
2018
DKK’000
2022
2021
2020
2019*
2018
Income statement
Revenue
Growth ratios
1,146,052
1,108,274
1,024,588
1,006,942
899,911
Revenue growth, %
Gross proﬁt growth, %
Adjusted EBIT growth, %
EBIT growth, %
3.4%
-8.1%
8.2%
-6.7%
-1.4%
2.8%
1.8%
-2.4%
-9.0%
-8.1%
-8.2%
11.9%
6.4%
9.6%
6.1%
7.3%
10.1%
13.7%
21.6%
70.7%
116.1%
Gross proﬁt
234,020
2 5 4,601
2 7 2,8 1 9
1 5 6,0 58
161,0 58
142,2 77
2 79,622
16 7,3 87
1 7 4,3 99
1 5 4,11 8
262,8 3 5
-24.9%
-30.0%
-36.3%
Earnings before interest. tax.
depreciation and amortisation (EBITDA)
114,8 64
121,342
9 6,9 13
1 55,36 5
1 5 4,6 7 4
13 9,7 0 7
1 5 3,59 4
1 55,59 0
14 5,6 7 2
Adjusted EBITDA
Net proﬁt growth, %
8.3%
Earnings before interest. tax
and amortisation (EBITA)
Margins
Operating proﬁt before non-recurring items
(Adjusted EBIT)
103,391
96,913
-8,8 0 9
89,401
7 0,4 9 2
137,756
138,447
-3,262
13 5,7 3 8
110,7 0 9
139,717
134,717
-3,997
130,7 20
102,243
153,570
146,558
-4,201
140,108
138,112
-5,8 12
Gross margin, %
20.4%
10.6%
9.0%
23.0%
14.0%
12.4%
12.5%
26.6%
1 5.7%
13.6%
13.1%
2 7.8%
1 7.3%
1 5.3%
14.6%
29.2%
17.3%
15.6%
15.3%
Operating proﬁt (EBIT)
Adjusted EBITDA margin, %
Adjusted EBIT margin, %
EBIT margin, %
Financial items
Proﬁt before tax
142,3 57
111,322
132,300
103,7 10
8.5%
Net proﬁt for the year
Other ratios
Balance sheet
Solvency ratio, %
43.4%
2.3 5
46.3%
1.33
61.8%
-0.23
5 1.9%
0.31
48.4%
0.58
Total assets
97 0,22 7
-57,0 8 0
2 88,112
420,62 9
9 0 7,321
-8 1,64 9
1 99,461
41 9,6 9 1
9 2 9,4 5 1
-116,978
-42,87 3
57 4,3 7 3
9 11,0 9 6
-10 8,8 6 8
5 1,7 02
8 44,044
-9 4,0 9 2
9 0,7 1 8
Leverage ratio
Net working capital
Net interest-bearing debt (NIBD)
Equity
NWC ratio, %
-5.0%
2.0%
-7.4%
2.6%
-11.4%
3.0%
-10.8%
1.5%
-10.5%
1.0%
Capex ratio excl. acquisitions, %
4 7 2,7 44
40 8,8 3 9
Cash Flow
Share information
Operating cash ﬂow before acquisitions of
3 9,4 78
22,6 9 6
61.0%
44,462
2 9,16 8
58.3%
101,04 8
30,99 3
85.8%
132,326
14,99 6
99.9%
141,40 9
9,1 9 2
Number of outstanding shares
9,06 7,2 9 4
9,0 7 4,8 4 7
75,000
7.77
9,1 7 4,0 7 3 10,000,000 10,000,000 10,000,000
9,58 4,9 33 10,000,000 10,000,000 10,000,000
operations
Capex excl. acquisitions
Weighted average number of outstanding shares
Number of treasury shares
Cash conversion, %
102.6%
8 2 5,9 2 7
11.55
0
10.22
10.22
0
11.13
11.13
0
10.37
10.37
Earnings per share before dilution, DKK
Earnings per share after dilution, DKK
*
As of 1 January 201 9 IFRS 16 Leases is implemented without restating comparative ﬁgures, why 201 9 is not directly comparable to previus periods.
7.75
11.5 4
Reference is made to description in note 1 Accounting policies.
Reference to deﬁnitions of Key ﬁgures and ratios - see page 6 5
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Operating expenses - cost ratio 11.4%
Revenue (DKKM)
Adjusted Ebit (DKKM)
Operating expenses in 2022 were DKK 130.6
million (DKK 116.8 million). The increase in
operating expenses of DKK 13.8 million was
primarily due to higher marketing spend a.o.
related to product launches in all three brands,
higher costs related to new stores opened during
the year, and an increase in the provisions made
to cover potential losses on debtors, given the
higher macro economic uncertainty. Operating
expenses amounted to 11.4% of revenue in 2022
against 10.5% in 2021.
Financial
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1 200
1 000
800
600
400
200
0
220
200
180
160
140
120
100
80
review
Revenue - 6.0% core organic like-for-like growth
Revenue in 2022 grew by 3.4% to DKK 1,146.1
million (DKK 1,108.3 million).
60
40
Revenue in Denmark was DKK 1,032.5 million (DKK
1,011.4 million). The organic like-for-like growth in
the core business was 4.5% excluding third party
revenue and the eﬀect from the merge of the
e-commerce activities in kitchn.dk and Celebert.
Adjusted EBITDA – 10.6% margin
Adjusted EBITDA in 2022 was DKK 121.3 million
20
0
(DKK 154.7 million), corresponding to an EBITDA
margin of 10.6% (14.0%). The decrease in
Adjusted EBITDA margin was primarily driven by
a lower gross margin.
Revenue in Other countries was DKK 113.6 million
(DKK 96.9 million), up 17.2%.
Adjusted EBIT – 9.0% margin
Adjusted EBIT in 2022 was DKK 103.4 million
(DKK 137.8 million), corresponding to an adjusted
EBIT margin of 9.0% (12.4%). The decrease in
adjusted EBIT was driven by a lower gross
margin. Depreciations and amortizations were
DKK 18.0 million (DKK 16.9 million).
Gross profit - gross margin of 20.4%
Gross proﬁt in 2022 was 234.0 DKK million (DKK
254.6 million), corresponding to a gross margin
of 20.4% (23.0%). The merge of the e-commerce
activities in kitchn.dk and Celebert had a
technical negative impact on gross margin of
0.5%-point compared to 2021. The Russian
invasion of Ukraine led to further input cost
inﬂation, which has been mitigated through sales
price increase. The impact from the sales price
increases though implemented immediately
came with some delay, and therefore the gross
margin for the ﬁnancial year as a whole, has been
negatively impacted by the rise of cost of raw
materials and energy etc. During the second half
of the year B2C sales declined resulting in a sales
mix with a higher share of lower margin B2B
project sales.The change in sales mix had a
signiﬁcant negative impact on gross margin in
the second half of the year.
Non-recurring items
TCM Group presents non-recurring items
separately to ensure comparability. Non-
recurring items consist of income and expenses
that are special and of a non-recurring nature.
For 2022 non-recurring items consist of costs
related to Covid-19 and supply chain disruptions,
restructuring costs related to the restructuring of
the store network in the Greater Copenhagen area
as well as organisational restructuring carried out
during 2022. The non-recurring costs are partly
oﬀset by a non-recurring gain from the ﬁnal
earn-out from the Celebert/kitchn.dk transaction.
The non-recurring items are speciﬁed next page:
Reported revenue
growth
Adjusted EBIT
margin
3.4% 9.0%
*
Figures in brackets refer to the corresponding period in 2021.
Ch a i r m an an d CEO’s r epo r t
Financial Highlights
Our business
Corporate governance
ESG
Fi nan ci a l s t a teme n ts
TCM Group Annual report 20 22
1 2
Net working capital (dkkm)
chain disruptions. As the supply chain situation
normalised during 2022, the buﬀer levels for
inventory were reduced towards the end of the
year.
due to the completion of the share buyback
program initiated in 2021 and the distribution of
dividend of DKK 54.4 million.
non-recurring items
Non-recurring items, DKK m
2022
2021
0
-20
Costs related to Covid-19 and
supply chain disruptions
Equity - solvency ratio 43.4%
5.4
4.7
14.0
1.3
Trade receivables and other receivables increased
by DKK 9.9 million. The increase was driven by
higher trade receivables due to accruals as a
result of the normal production shutdown during
Christmas holidays starting later than previous
years leading to a higher number of outstanding
debtor days as of 31 December compared to 2021.
Other receivables as of 31 December 2022 is
excluding the value of DKK 8.3 million, which
relates to subleases due to the implementation of
IFRS 16. This is not included in the net working
capital.
Equity at the end of 2022 amounted to DKK 420.6
million (DKK 419.7 million). The equity increased
by DKK 0.9 million since 1 January 2022. The net
proﬁt for the year was oﬀset by the dividend
distribution of DKK 54.4 million and the
completion of the share buy back program
initiated in 2021, of which DKK 14.4 million of the
total of DKK 150 million has been carried out
during 2022.
-40
Restructuring
-60
Net gain from the Celebert/
kitchn.dk transaction
-3.5
-13.5
-80
-100
-120
-140
-160
-180
Gain from the divestment of an
own operated store
0.0
-2.5
Total
6.5
-0.7
EBIT
The solvency ratio was 43.4% at the end of 2022
(46.3%).
EBIT for the ﬁnancial year 2022 was DKK 9 6.9
million (DKK 138.4 million). The decrease in EBIT
compared to 2021 was driven by a lower gross
margin and non-recurring costs.
The operating liabilities decreased by DKK 11.8
million driven by lower trade payables due to a
reduction in supply of raw material towards the
end of the year as the buﬀer levels for inventory
were reduced.
Events after the balance sheet date
Apart from the events recognized or disclosed in
the annual report, no other events have occurred
after the balance sheet date to this date which
would inﬂuence the evaluation of this annual
report.
Net profit
Net proﬁt for the ﬁnancial year 2022 was DKK
70.5 million (DKK 110.7 million).
Equity at the end of
Net interest-bearing debt – leverage ratio 2.35
Free cash flow excl. acquisitions of operation
Free cash ﬂow excl. acquisitions of operations for
2022 was DKK 39.5 million against DKK 44.5
million in 2021. Free cash ﬂow was negatively
impacted by a lower operating proﬁt and a
change in NWC of DKK -35.9 million compared to
DKK -38.3 million in 2021.
Net interest-bearing debt amounted to DKK 288.1
million at the end of 2022 (DKK 199.5 million).
The increase in net interest-bearing debt was a.o.
2022 amounted to DKK
420.6 million. The sol-
vency ratio was 43.4%
at the end of 2022.
Cash conversion in 2022 was 61.0% (58.3%).
Net working capital - NWC ratio -5.0%
Net working capital at the end of 2022 was DKK
-57.1 million (DKK -81.6 million). NWC ratio at
the end of 2022 was -5.0 (-7.4%).
NWC ratio (%)
Leverage ratio
The increase in inventory of DKK 2.9 million was
due to impact from increased raw material prices.
During the unstable supply situation during the
Covid-19 pandemic,it was decided to increase
inventory levels to create a buﬀer against supply
-5.0 2.35
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