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Interim Report for Duni AB (publ) 1 January – 30 September 2016

21 okt 2016
Stable quarter with growth in all Business Areas but a weaker pound impacted

1 July – 30 September

  • Net sales amounted to SEK 1,064 m (1,043). Adjusted for exchange rate movements, net sales increased by 2.4%.
  • Earnings per share, for continuing operations, after dilution amounted to SEK 1.99 (2.10).
  • A weak pound sterling affected the margin on the UK market.
  • Organic growth in the quarter of 1%, in line with the market and the year as a whole.
  • The acquisition of Terinex Siam has been consolidated in Duni’s accounts as of August.

1 January – 30 September

  • Net sales amounted to SEK 3,037 m (3,030). Adjusted for exchange rate movements, net sales increased by 1.4%.
  • Earnings per share, for continuing operations, after dilution amounted to SEK 4.68 (5.05).
  • Germany now shows stabilization following a weak start of the year.

Key financials 1)

SEK m3 months
3 months
9 months
January- September
9 months
January- September
12 months


12 months
January- December
Net sales1 0641 0433 0373 0304 2074 200
Operating income 2)136146331357501528
Operating margin 2)12.8%14.0%10.9%11.8%12.2%12.6%
Income after financial items126130293315437459
Net income 9499220237329346

1) For continuing operations.

2) For bridge to EBIT, see the section entitled “Operating income - Non-recurring items”.

CEO’s comments

“Third-quarter sales are slightly above a strong quarter last year, but operating income was adversely affected by the weaker pound sterling. Organic growth was 1%, which is in line with the market as a whole. Apart from the UK, all regions demonstrated growth during the quarter. The effects of changes in exchange rates and other cost increases are being analyzed on a regular basis and we will need to compensate by future price increases. Net sales for the quarter amounted to SEK 1,064 m (1,043) and the operating income was SEK 136 m (146).

The acquisition of 60% of the shares in Terinex Siam is now complete and, as from August, the company is consolidated in Duni’s accounts. Terinex Siam is a market leading manufacturer and supplier of napkins and single-use products for food in Thailand. The company has historically achieved an annual growth of approximately 5%. Operations are now integrated in Duni’s New Markets business area and coordination is initially taking place in areas such as production, purchasing and sales. With Terinex Siam, Duni gets its first production site outside Europe and this creates additional opportunities for New Markets expansion in Southeast Asia. Several initiatives have now been put in place to increase sales on adjacent export markets; this will primarily take place through Duni’s developed sales structure.

Capacity utilization at our plants has been satisfactory during the quarter. The upgrading of the tissue machinery at our paper mill is complete and fine tuning is proceeding according to plan. It is estimated that the full operational effect on both production lines will be seen from the first quarter of 2017.

The Table Top business area reported net sales of SEK 579 m (578) and operating income of SEK 97 m (109). The lower operating income is attributable to the UK and the weaker pound sterling. On other markets, we see improvements throughout, with Central Europe having stabilized and southern Europe demonstrating continued solid growth.

The Meal Service business area grew by 8% during the quarter. Net sales reached SEK 167 m (155) and the operating income was SEK 13 m (10). We are now increasing our investments on a number of markets with the aim of securing the high rate of growth. Investments are being made in the sales team and for an increased product range renewal rate.

The Consumer business area achieved net sales of SEK 247 m (245), on par with last year. The adverse effects of the loss of certain contracts in 2015 have thereby diminished. Operating income declined to SEK 18 m (21) due to somewhat weaker capacity utilization and lower margins in the UK.

The New Markets business area increased its sales to SEK 59 m (53) and operating income to SEK 7 m (4). The improvements are wholly due to the acquisition of Terinex Siam. The Middle East and Russia are suffering from political instability and are experiencing weaker market demand.

The cash flow in the quarter was stable but net debt was SEK 115 m higher than on the corresponding date last year. This was due to the acquisition of Terinex Siam and the final payment for Duni Song Seng, which was acquired in 2013. Capacity utilization at our plants increases seasonally towards the end of the quarter and we now look forward to large-scale deliveries of the important Christmas collection,” says Thomas Gustafsson, President and CEO, Duni.


Duni is a leading supplier of attractive and convenient products for table setting and take-away. The Duni brand is sold in more than 40 markets and enjoys a number one position in Central and Northern Europe. Duni has some 2,200 employees in 19 countries, headquarters in Malmö and production units in Sweden, Germany, Poland and Thailand. Duni is listed on NASDAQ Stockholm under the ticker name “DUNI”. ISIN-code is SE 0000616716.

This information is information that Duni AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 7.45 CET on October 21, 2016.

Contact us

Katja Margell
Investor Relations and Communications Director