Press release -
Interim report for Duni Ab (publ) 1 January - 31 March
Growth and improved operating income
1 JANUARY – 31 MARCH
| SEK m | 3 months Jan-Mar 2019 | 3 months Jan-Mar 2018 | 12 months Apr-Mar 2018/2019 | 12 months Jan-Dec 2018 |
| Net sales | 1,264 | 1,080 | 5,111 | 4,927 |
| Organic growth | 0.3% | 2.2% | 1.1% | 1.5% |
| Organic pro forma growth 1) | 3.2% | 2.2% | 2.7% | 2.5% |
| Operating income 2,3) | 93 | 90 | 432 | 430 |
| Operating margin 2,3) | 7.3% | 8.4% | 8.5% | 8.7% |
| Income after financial items | 67 | 78 | 317 | 328 |
| Net income | 52 | 59 | 243 | 249 |
2) For key financials, definitions and reconciliation of alternative key financials, see pages 26-27.
3) For impact of the new leasing standard as of 1 January 2019, see Note 1.
CEO’S COMMENTS
Increasing growth rate
“With sales growth of 17% in the quarter, Duni has now exceeded SEK 5,000 m in sales for the past 12 months. When recalculated using the over 25% growth rate of our acquired companies, organic pro forma growth1) totaled 3.2% in the quarter.
We see broad growth in nearly every geographic market. In terms of product segments, we continue to experience solid growth in premium napkins along with very strong growth in sustainable packaging. The table covers product segment continues to perform negatively.
Our most recent acquisitions, BioPak in Australia and New Zealand and Biopac in the UK, have both continued their positive performance and contributed to higher overall growth for the quarter.
Positive impact of margin program
Operating income for the quarter was SEK 93 m (90). Several parts of our ongoing program to strengthen margins have already had an impact in the first quarter:
1)Price increases due to the high level of pulp prices have gradually had a positive impact in the quarter. They have now largely been implemented according to plan.
2)As planned, our program to rationalize indirect costs made a positive contribution to income for the quarter.
3)A capacity shortage in the distribution market increased distribution costs. As a result, Q1 did not see any positive net effect of our initiative to improve our logistics flow.
High yet falling pulp prices
Pulp prices for the first quarter were up 10% compared to the same quarter in the previous year but have exhibited a slow downward trend. In the second quarter, Duni’s price compensation in the market will be fully implemented. If pulp prices are stable, this will make a positive contribution to income in Q2,” says Johan Sundelin, President and CEO, Duni.
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Additional information is provided by:
Johan Sundelin, President and CEO, +46 40 10 62 00
Mats Lindroth, CFO, +46 40 10 62 00
Helena Haglund, Group Accounting Manager, +46 734 19 63 04
Duni AB (publ)
Box 237
SE-201 22 Malmö
Tel.: +46 40 10 62 00
www.duni.com
Business registration number: 556536-7488
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Topics
Duni is a leading supplier of innovative table-setting concepts and packaging solutions.
Our brand is built on the belief that every meal represents a golden opportunity for people to enjoy each other's. That is why we have made it our business to bring goodfoodmood to where people meet and eat.
Our products are found in over 40 markets and enjoy a number one position in Central and Northern Europe. We have about 2,500 employees in 24 countries. Our headquarters are in Malmö and our production units are in Sweden, Germany, Poland, New Zealand and Thailand. The company is listed on NASDAQ Stockholm.
