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Interim report for Duni Ab (publ) 1 January - 31 March

24 Apr 2019
Growth and improved operating income

Growth and improved operating income

1 JANUARY – 31 MARCH

  • Net sales amounted to SEK 1,264 m (1,080), which corresponds to a net sales increase of 17%. Adjusted for exchange rate movements, net sales increased by 12.5%.
  • Underlying growth in all business areas except in Consumer. Organic growth totaled 0.3% while organic pro forma growth1) was 3.2%.
  • Pulp prices fell slightly but are still substantially higher than the same period last year.
  • Price increases to compensate for higher costs have been implemented during the quarter.
  • Increased competition for high-volume business and challenges in the form of capacity shortages in the logistics market.
  • Earnings per share after dilution amounted to SEK 1.08 (1.22).KEY FINANCIALS
    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
    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.

    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.

    ::
    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
    ::

    • Contact us

    Katja Margell
    Investor Relations and Communications Director
    Katja.Margell@duni.com
    +46 76 8198326

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