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Year-end report for Duni AB (publ) January 1 – December 31 2019

Regulatory press release 7 Feb 2020 07:45
Historically strong operating income


  • Net sales amounted to SEK 1,558 m (1,460), corresponding to a 6.7% increase in sales. Adjusted for exchange rate movements, net sales increased by 3.4%.
  • A non-recurring cost in the form of goodwill impairment for Duni Song Seng and Sharp Serviettes was incurred in the quarter totaling SEK 58 m.
  • Earnings per share after dilution amounted to SEK 1.52 (1.21). Adjusted for goodwill impairment, earnings per share after dilution amounted to SEK 2.77 (1.21).
  • Duni acquired Horizons Supply Pty in Australia and was consolidated in New Markets as of October 1, 2019.


  • Net sales amounted to SEK 5,547 m (4,927), corresponding to a 12.6% increase in sales. Adjusted for exchange rate movements, net sales increased by 9.3%.
  • Earnings per share after dilution amounted to SEK 5.73 (5.22). Adjusted for goodwill impairment, earnings per share after dilution amounted to SEK 6.97 (5.22).
  • Operating cash flow was very strong during the year, amounting to SEK 665 m (343).
  • The Board of Directors proposes a dividend of SEK 5.00 (5.00) per share to be divided into two partial payments.

EVENTS SINCE December 31

  • Duni Group announced in a press release on January 16, 2020 that trade union negotiations will be initiated to change the sales and marketing organization and focus on two global brands; Duni and BioPak. This results in changes to the management team and changed segment reporting as of January 1, 2020. The current four business areas will instead become two segments aligned with the Duni and BioPak brands.
  • The change results in restructuring costs estimated at approximately SEK 40 m and the majority of these are estimated to be charged to the first quarter of 2020. The program is expected to cut annual expenses by approximately SEK 20 m.


SEK m  3 months Oct-Dec
3 months Oct-Dec 2018 12 months Jan-Dec 2019 12 months Jan-Dec 2018
Net sales 1,558 1,460 5,547 4,927
Organic growth -0.5% 1.5% -0.5% 1.5%
Organic pro forma growth 1) 1.8% 4.0% 2.4% 2.5%
Operating income 2,3) 199 137 533 430
Operating margin 2,3) 12.8% 9.4% 9.6% 8.7%
Income after financial items  118 74 377 328
Income after tax  73 58 273 249
1) Currency-adjusted growth including acquisitions, which are compared with the previous year’s pro forma figures.
2) For key financials, definitions and reconciliation of alternative key financials, see pages 27-32.
3) For the impact of IFRS 16 Leases as of January 1, 2019, see Note 1.


CEO’s comments

2019 operating income improved by SEK 103 m
“The Group’s new strategy, margin program and falling pulp prices have been three of the greatest positive factors driving the gradual improvement in operating income over each quarter in 2019. The single biggest negative impact on earnings has been increased logistics costs. When summarizing the year, operating income improved by SEK 103 m. We also exhibited pro forma growth of over 2.4% driven by the strong sales performance of sustainable packaging. We are now entering 2020 with a strong confidence in our strategy and our business plans.

Strong increase in operating income for Q4
Operating income for Q4 increased by SEK 62 m to SEK 199 m (137). This resulted in an operating margin of 12.8% (9.4%). The main reasons for this improved income are cost-cutting activities and the continuing decline of pulp prices. In addition, income was impacted negatively by rising logistics costs and weak income in Singapore and New Zealand.

Operating cash flow was record-high for both the full year and the quarter, totaling SEK 665 m and SEK 369 m respectively. The reasons for this strong cash flow are the improvement in EBIT, limited investments and activities to improve inventories and working capital. This cash flow improved the Group's financial position during the year with the net debt (excluding lease liability) decreasing from SEK 1,490 m in December 2018 to SEK 1,354 m in December 2019.

Sustainable packaging now growing at over 30%
Organic pro forma growth for the quarter amounted to 1.8%. Sustainable packaging solutions in the take-away market remains the largest growth driver with growth at over 30%. This product segment now accounts for approximately SEK 1 000 m in net sales. The acquisitions of BioPak in Australia/New Zealand, Biopac in the UK and Horizons Supply continued to perform well in this segment. Sales of plastic articles and table covers continue to decline.

Change in income reporting for 2020
This final report of income by business area in the current reporting structure shows that all four business areas saw improved income in the quarter. Sales development varies more. New Markets is experiencing strong growth, Meal Service is growing, Table Top is exhibiting stable sales growth while Consumer is on the decline.

As previously announced, we decided to build two global brands, Duni and BioPak, and change our organization in line with this. Our current organizational structure of four business areas is now being transformed into one global sales and one global marketing function. In line with this, the Duni Group will report income for the Duni and BioPak segments as of the first quarter of 2020.

Goodwill impairment
Given the weak income performance of Duni Song Seng in Singapore and Sharp Serviettes in New Zealand since the second half of 2018, an impairment loss on goodwill totaling SEK 58 m was incurred in the quarter. Extensive improvement programs are underway in both companies.

Stable prices
Pulp prices stabilized during the quarter but are expected to rise again in 2020,” says Johan Sundelin, President and CEO, Duni Group.

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


For more information, please contact:
Johan Sundelin, President and CEO, +46 (0)40 10 62 00
Mats Lindroth, CFO and EVP Finance, +46 (0)40 10 62 00

Helena Haglund, Group Accounting Manager, +46 (0)734 19 63 04

Duni AB (publ)
Box 237
SE-201 22 Malmö
Phone: +46 (0) 40-10 62 00
Company registration no.: 556536-7488


Duni Group is a market leader in attractive, sustainable and convenient products for table setting and take-away. The Group markets and sells two brands, Duni and BioPak, which are represented in more than 40 markets. Duni Group has around 2,400 employees in 24 countries, its headquarters in Malmö and production units in Sweden, Germany, Poland, New Zealand and Thailand. Duni Group is listed on the NASDAQ Stockholm under the ticker name “DUNI”. Its ISIN code is SE0000616716. This information is information that Duni AB is obligated 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 07:45 am CET on February 7, 2020.