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Year- end report for Duni AB (publ) 1 January - December 2018

14 Feb 2019
Organic growth and continuing high input material costs

Organic growth and continuing high input material costs

1 October – 31 December

  • Net sales amounted to SEK 1,460 m (1,254). Adjusted for exchange rate movements, net sales increased by 11.9%. Organic growth for the quarter was 1.5%.
  • Earnings per share after dilution amounted to SEK 1.21 (2.55) SEK.
  • Pulp prices remain high, increasing year-on-year by approximately 35%.
  • Price increases to compensate for the raw material prices have been implemented and further price increases have been initiated.
  • Duni acquired 75% of the shares in BioPak Ltd based in Australia and New Zealand, which is consolidated in New Markets since mid-October.

1 January – 31 December

  • Net sales amounted to SEK 4,927 m (4,441). Adjusted for exchange rate movements, net sales increased by 6.0%.
  • Earnings per share after dilution amounted to SEK 5.22 (6.99).
  • Prices for input material have increased dramatically during the year, impacting all business areas except Meal Service.
  • 75% of the shares in Biopac UK Ltd were acquired, and is consolidated in the Meal Service business area since February.
  • The Board of Directors proposes a dividend of SEK 5.00 (5.00) per share, to be divided into two installments.

Key Financials 

SEK m 3 months Oct-Dec
3 months Oct-Dec 2017 12 months Jan-Dec 2018 12 months Jan-Dec 2017
Net sales 1,460 1,254 4,927 4,441
Operating income 1) 137 169 430 491
Operating margin 1) 9.4% 13.5% 8.7% 11.1%
Income after financial items 74 155 328 439
Net income 58 121 249 334

1) For key financials and reconciliation of alternative key financials, see pages 29-30.


”Net sales increased by 16% from SEK 1,254 m to SEK 1,460 m in Q4. Adjusted for exchange rate movements, net sales increased by 11.9% and organic growth excluding the acquisition of Biopac UK and BioPak AU amounted to 1.5%. Both acquisitions have performed well with continuing strong growth.

Operating income was SEK 137 m (169). This decrease in operating income was a result of continuing high pulp prices during the quarter. Pulp prices were up approximately 35% from the same period in 2017.

On the business area level, both Table Top and Consumer were negatively impacted by the high pulp prices and New Markets was affected by costs related to the restructuring of operations in Singapore. In the Meal Service business area, both growth and operating income increased during the quarter, driven by the current strong performance of our ecoecho® range.

Ongoing program to strengthen margins

In order to improve earnings and free up resources for investment in the new strategy, we are now undertaking three major initiatives to improve margins:

  1. The most recently announced price increase has been implemented and will gradually take effect in Q1 2019.
  2. We commenced a major optimization effort of our logistics flow, where we can foresee positive effects for both our own costs and the environment. This initiative is expected to gradually have a positive effect during 2019.
  3. In Q3 2018, we initiated an efficiency program for indirect costs, including redundancies. In Q4, SEK 31 m in restructuring costs were recognized for this initiative. The annual savings related to the program, once it has been fully implemented, are estimated to exceed SEK 35 m. This program is also expected to have a gradually increasing effect during 2019.

Stronger position in sustainable packaging

The strategic acquisitions of BioPak Pty Ltd in Australia and New Zealand, as well as Biopac Ltd in the UK gives Duni an annual sales of more than SEK 700 m in the rapidly growing market of sustainable disposable packaging. We do not see any slowdown in the growth of this market as both market forces and political initiatives are driving the trend toward more sustainable solutions.

Pulp price on a high level

2018 turned out to be a challenging year for Duni with continually increasing prices for inputs and energy. We announced a price increase early on, but it proved insufficient as the price of pulp continued to increase. Another price increase was announced that will gradually take effect in Q1 2019. The Board of Directors will propose to keep the dividend in line with the previous year, SEK 5.00 per share, at the Annual General Meeting on 7 May 2019,” says Johan Sundelin, President and CEO of 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