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Interim Report for Duni AB (publ) 1 January - 30 June 2019

12 jul 2019
The margin program contributes to a historically strong second quarter

The margin program contributes to a historically strong second quarter

1 April – 30 June

  • Net sales amounted to SEK 1,348 m (1,197), corresponding to a 12.6% increase in sales. Adjusted for exchange rate movements, net sales increased by 9.9%.
  • Earnings per share after dilution amounted to SEK 1.41 (1.39).
  • Gradually declining raw material prices combined with the implemented price increases contributes to a recovery of the margin.

1 January – 30 June

  • Net sales amounted to SEK 2,612 m (2,277), corresponding to a 14.7% increase in sales. Adjusted for exchange rate movements, net sales increased by 11.1%.
  • Earnings per share after dilution amounted to SEK 2.49 (2.61).
  • Positive contribution from price increases and BioPak in Australia, which was acquired in October 2018.
  • Continuing higher expenses for input materials and increased year-on-year expenses for logistics services. 


SEK m 3 months Apr-Jun
3 months Apr-Jun 2018 6 months
6 months
12 months Jul-Jun 2018/2019 12 months Jan-Dec 2018
Net sales 1,348 1,197 2,612 2,277 5,263 4,927
Organic growth -2.1% 2.0% -0.9% 2.1% 0.1% 1.5%
Organic pro forma growth 1) 1.0% 2.1% 2.1% 2.2% 3.3% 2.5%
Operating income 2,3) 111 96 203 186 447 430
Operating margin 2,3) 8.2% 8.0% 7.8% 8.2% 8.5% 8.7%
Income after financial items 86 87 152 165 316 328
Net income 67 66 119 125 244 249

1) Currency-adjusted growth including acquired companies, which are compared with the previous year’s pro forma figures.
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.


“Sustainable packaging drives growth
In the second quarter, sales increased by 12.6% to SEK 1,348 m (1,197). Organic pro forma growth1) for the quarter amounted to 1.0%, despite fewer days of sales.

Restrictions on the use of single-use products made of plastic are now in the pipeline in many countries. Duni is positive about these important activities for the environment and it is well in line with our new strategy where we increase our focus on sustainability and see a very positive growth in sustainable packaging.

In addition to the positive sales development of sustainable packaging, we also see solid growth in premium napkins, while the table covers continue to develop negatively.

The trend for our geographic growth areas has carried over from the previous quarter. This means that we are growing in most regions with particularly high growth in Australia, our second largest country in terms of sales.

Margin program contributes to all-time-high income
Operating income for the quarter was SEK 111 m (96), which is an all-time high for Q2. We are seeing positive effects from our margin program which included price increases, to compensate for the significant rise in pulp prices, as well as indirect expense savings. Nevertheless, we humbly note that we benefitted from important external factors such as falling pulp prices and the weakened Swedish krona in the quarter. However, increased freight prices had a negative impact on our income.

Performance in our business areas
Taking a look at our business areas, Meal Service and New Markets saw positive growth in both sales and income and Table Top’s performance was steady while Business Area Consumer continues to have a weak performance. Organic pro forma growth1) amounted to 6% in Meal Service and 14% in New Markets, but Consumer had a negative sales development of 15% at fixed exchange rates. Our price increases in 2018 resulted in a loss of some high volumes contracts within Consumer. To boost our future competitiveness in the business area, we are now engaging in activities aiming to raise efficiency in the value chain.

Pulp prices continue to fall
Pulp prices continued to decline in the second quarter. This should have a positive impact on income in the third quarter as well,” says Johan Sundelin, President and CEO, Duni.


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
Business registration number: 556536-7488


Contact us

Katja Margell
Investor Relations and Communications Director