Interim Report January 1 – September 30, 2025

July 1 – September 30

• Net sales amounted to SEK 1,972 m (1,910), corresponding to an increase of 3.3%. Adjusted for exchange rate movements, net sales increased by 7.9%, driven by acquisitions.
• Operating income amounted to SEK 168 m (151) and improved by just over 10% during the quarter, despite a market that remains challenging. 
• Earnings per share attributable to equity holders of the Parent Company amounted to SEK 2.23 (-0.04).
• BioPak Group acquired Australia-based ByGreen during the quarter, with the aim of strengthening the offering in the field of sustainable single-use products.
• The Board of Directors has set new Group targets for 2026, with revised growth and dividend levels, as well as broadened sustainability targets.

1) For reconciliation of alternative key financials, definition of key financials and glossary, see pages 28-29.

CEO summary

Despite a market that remains challenging, Duni Group’s operating income improved by just over 10% in the third quarter. Previous acquisitions, efficiency improvements and good cost control all contributed to this positive trend. 

In the third quarter, the Group’s net sales increased by SEK 62 m to SEK 1,972 m (1,910), compared with the same period in the previous year. This corresponds to a 7.9% increase at fixed exchange rates. Operating income improved by just over 10% to SEK 168 m (151), primarily driven by increased cost efficiency in operating activities and contributions from acquired companies. Cost-saving initiatives implemented in the sales chain are also starting to show results, and are expected to achieve their full effect in Q4.

Demand in the European hotel and restaurant market remains weak and has not fully recovered from the pandemic. In Germany, for example, which is our biggest market, inflation-adjusted net sales in restaurants fell by 3.5% according to the latest statistics available. We are seeing few new establishments and an increased number of bankruptcies, with consequences that include increased price pressure in our product categories. As a result of the weak recovery, Germany has proposed a permanent reduction in VAT for restaurants from 19% to 7%, effective from January 1, 2026.

Dining Solutions: Growth through acquisitions and efficiency improvements
In Dining Solutions, net sales increased by SEK 119 m and amounted to SEK 1,221 m (1,102). At fixed exchange rates, this corresponds to a sales increase of 13.4%. Operating income improved to SEK 140 m (125), thanks to improved efficiency and good cost control. Previous acquisitions made a positive contribution – to both increased net sales and operating income. Despite continued intense competition, several major contracts were secured during the quarter, confirming the strength in our offering of cost-efficient, sustainable solutions. For the third consecutive quarter, sales to the restaurant sector in Germany continued to grow, in contrast to the general market landscape.

Food Packaging Solutions: Stabilization in Europe and the transition continues 
Net sales for the quarter fell by SEK 57 m and amounted to SEK 751 m (808). At fixed exchange rates, this corresponds to a sales increase of 0.3%. There were signs of stabilization in Europe. But the trend varied within the product range, with Duniform® performing significantly better than the rest. Operating income amounted to SEK 27 m (27), in line with the previous year. During the quarter, BioPak Group completed an acquisition of the Australia-based company ByGreen, with the aim of enhancing the portfolio of sustainable single-use products.

Looking towards 2030: updated company targets for profitable and sustainable growth 
We are now half way through our Decade of Action – a journey that sees us consciously building a stronger, more sustainable and more profitable company. The company targets that have guided us until 2025 will now be updated, in line with the Board’s decision, to more clearly reflect our strategic direction going forward.

Our three financial targets will be adjusted to be better aligned with our strategy and business model. The growth target is being increased to 6% from the previous 5% and includes both organic development and acquisitions. The aim is that around half of annual sales growth will be organic. The dividend target is being increased from >40% to >50% of income after tax, while the operating margin target of >10% remains. 

The sustainability targets are being broadened and more clearly anchored in the strategy. We are retaining our long-term ambitions for circularity and net zero emissions (e.g. Scope 1 & 2: -57% by 2030), but with an adjusted target for circularity (90% circular input materials). We are also adding targets for supplier responsibility (100% signing up to code of conduct) and occupational health and safety (<10 Loss Time Incidents “LTI”/1,000 employees).

The targets will come into force as of January 2026.

Positioned for recovery 
After the pandemic, we and many others predicted a faster recovery than the one we have actually seen. At the same time, the weaker market situation has created a more favorable climate for acquisitions, restructuring and efficiency improvements. An opportunity that we have seized. We are now well-equipped to achieve our updated targets for 2030. 

Robert Dackeskog,
President and CEO, 
Duni Group