Duni

Strong quarter meets high comparison numbers

July 1 – September 30

• Net sales amounted to SEK 1,910 m (1,935), corresponding to a 1.3% decrease in sales. Adjusted for exchange rate movements, net sales decreased by 1.3%.
• Operating income amounted to SEK 151 m (225), which should be seen against the backdrop of an exceptionally strong comparative period.
• Positive cash flow and low net debt create a strong finan- cial position.
• The acquisition of Slovenian company Seti consolidates the Group’s position as market leader in Dining Solutions in Europe.
• The modern logistics facility in Meppen, Germany, strengthens the Group’s long-term competitiveness and contributes to the Group’s goal of net zero carbon emis- sions in the long term. Restructuring costs of SEK 125 m incurred during the period are charged to EBIT, but not to operating income.
   

1) For reconciliation of alternative key financials, definition of key financials and glossary, see pages 28-29.
 

CEO summary

The long-term trend of eating and drinking outside the home is clear, but interest rates and other effects of inflation is holding back consumption in Europe in particular.

The Group’s net sales amounted to SEK 1,910 m (1,935), representing the second best in a third quarter in the Group’s history. Pri- marily, we see good progress driven by the expansion of BioPak Group and its acquisitions carried out in the Pacific region during 2024. The lower figure for organic net sales should be seen against the backdrop of exceptionally high comparative figures follow- ing the easing of pandemic restrictions, as well as lower demand throughout 2024 with weaker purchasing power among con- sumers. In Germany, the restaurant market is developing more weakly than in the rest of Europe, and growth has been negative during the first nine months of the year. One contributing factor is that the VAT on meals in Germany has now returned to 19% after having been temporarily reduced to 7% for several years as part of the pandemic support measures.

Operating income amounted to SEK 151 m (225), with an operating margin of 7.9% (11.6%). The operating margin was impacted pri- marily by lower sales volumes as well as higher costs of raw materials and sea freight compared with the same period last year. Pulp prices are approximately 30% higher compared with the comparative period, and the costs of sea freight have increased gradually in the last ten months due to increased geopolitical unrest.

Net sales for the quarter for the Dining Solutions business area amounted to SEK 1,102 m (1,189). Sales declined primarily to the hotel and restaurant segments in Europe. Operating income for the Dining Solutions business area amounted to SEK 125 m (170), which should be seen in the light of exceptionally high comparative figures. The acquisition of the Slovenian conversion and sales company Seti strengthens the business area’s position as market leader in solutions for the set table in Europe. Seti is included in the business area from September 1, and therefore has a marginal effect on the quarter.

Net sales in the quarter for the Food Packaging Solutions business area amounted to SEK 808 m (746). The increase in sales is largely driven by BioPak Group and it’s acquisitions of Decent Packaging, Relevo and Huskee. However, sales to the hotel and restaurant segments in Europe had a negative impact on sales, while the Group’s packaging machines for take-away, which are marketed and sold under the Duniform brand in Europe, reflected a positive trend in the quarter. Operating income amounted to SEK 27 m (55), and was effected, among other things, by higher inventory costs and expansion investments in order to build an even more sustainable product portfolio.

During the quarter, the Group made the decision to invest in a modern warehouse and logistics facility in Meppen, Germany. Over time, the new facility will enhance the Group’s competitiveness and also contribute to the Group’s net-zero carbon emission goals. Restructuring costs, amounting to SEK 125 m, which impact EBIT but not operating income, were incurred during the quarter and are expected to pay off over two to three years, while also securing the future capacity needs within the logistics chain.

We are now building on our strong market position by investing in sustainability and activities to further enhancing the relevance of our offering.

Robert Dackeskog,
President and CEO
Duni Group
 

For additional information, please contact:
Magnus Carlsson, EVP Finance/CFO
+46 (0)40-10 62 00
magnus.carlsson@duni.com

Katja Margell, IR and Communications Director,
+46 (0)76-819 83 26
katja.margell@duni.com

Duni AB (publ)
Box 237
201 22 Malmö

Phone: +46 (0)40-10 62 00
www.dunigroup.com
Company registration number: 556536-7488

Duni Group is a market leader in attractive, environmentally sound and functional products for table setting and take-away. The Group markets and sells two brands, Duni and BioPak, which are rep- resented in more than 40 markets. Duni has around 2,500 employees spread out across 23 countries, with its headquarters in Malmö and production sites in Sweden, Slovenia, Germany, Poland and Thailand. Duni is listed on the NASDAQ Stockholm under the ticker name “DUNI”. Its ISIN code is SE0000616716.

This information is information that Duni AB is obligated to make public pursuant to the EU Market Abuse Regulation. The information was provided, through the contact person, for publication on October 24, 2024 at 07:45 CET.