Improved margins in strong quarter

• Net sales amounted to SEK 1,936 m (1,724), corresponding to a 12.3% increase in sales. At fixed exchange rates, this corresponds to a 5.6% increase.
• The gross profit amounted to SEK 440 m (283), an increase of 55% in absolute terms compared with the same period last year. The gross margin increased by 6 percentage points.
• Operating income amounted to SEK 170 m (91), corresponding to an increase of 87.1% compared with the same period last year.
• The quarter showed a strong cash flow with a reduced net debt.

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KEY FINANCIALS

[][]
SEK m  3 months 3 months 6 month 6 month 12 12
Apr-Jun Apr-Jun s s months months
2023 2022 Jan Jan Jul Jan
-Jun -Jun -Jun -Dec
2023 2022 22/23 2022
Net sales 1,936 1,724 3,813 3,167 7,621 6,976
Organic growth 5.9% 47.2% 14.0% 48.1% 16.6% 30.9%
Operating income 170 91 300 142 607 450
[1)]
Operating margin 8.8% 5.3% 7.9% 4.5% 8.0% 6.4%
[1)]
EBIT 154 67 265 93 498 326
EBIT margin 8.0% 3.9% 7.0% 2.9% 6.5% 4.7%
Income after 144 60 238 72 449 283
financial items 
Net income 120 49 211 55 357 201
Earnings per 2.20 1.02 3.86 1.13 6.97 4.25
share
attributable to
equity holders of
the Parent
Company
Return on capital 22.2% 16.7% 22.2% 16.7% 22.2% 16.6%
employed,
excluding
goodwill

[1)] For reconciliation of alternative key financials, definition of key financials and glossary, see pages 28-30. 
CEO's comment 
"During the second quarter, we saw an improved margin, which contributed to a historically strong result"
Continued good demand

During the second quarter of the year, we continued to see good growth in our underlying business. We saw a continued increase in the number of restaurant visits, while demand for take-away in Europe fell in relation to the high demand during the pandemic.

The Group's sales in the second quarter amounted to SEK 1,936 m (1,724), which is equivalent to a sales increase of more than 12% compared with the same period of the previous year. Volumes in the second quarter are slightly lower, but increased somewhat compared with pre-pandemic levels. Compensation for inflation-based cost increases was implemented in the previous year and in the first quarter of the year, which had a significant positive effect on net sales in the second quarter.

Business area launches

The Duni business area, which focuses on solutions for the set table, grew its sales during the quarter by just under 18%, compared with the same period of the previous year. During the year, the product portfolio's sales followed the trend from recent years of increased net sales, primarily in napkins. The recently launched, fully compostable and fossil-free napkin, BioDunisoft®, helped the premium napkin segment develop positively.

The BioPak business area, which focuses on sustainable food packaging solutions, grew its sales during the quarter by just under 5%, compared with the same period of the previous year, and should be seen in the light of lower demand for take-away in Europe. Net sales remained good in the business area's largest market, Australia. Demand for the business area's environmentally sound products continued with the launch of, among other items, a paper cup, Melli, with a water-based barrier. Duniform® also broadened its range with additional fiber-based products for take-away.
 

Historically strong results

The operating margin was just under 9% and strengthened relative to the comparative period, in line with the pre-pandemic levels for the second quarter.

This stronger performance can be viewed in the light of ongoing efficiency improvements in the business areas, primarly within the conversion plants which are positive affected by the fact that the volumes have now normalized after the pandemic. This has resulted in a significant improvement in operating income, which amounted to SEK 170 m (91), equivalent to an increase of 87%, compared with the same period last year. Historically, this is the strongest second quarter in absolute terms. The increase in income also stems from a better balance between cost increases and cost compensation measures. The work with reducing inventory levels has also contributed to a strong cash flow in 2023.

More big events

We also saw growth in the segment for big events, festivals and sporting events, and demand from festival organizers and artists to tour sustainably increased. The Group's products appeared during the quarter at festivals such as Sweden Rock and the international Lollapalooza festival. 

With a focus on sustainability and circular solutions, we want to help restaurants and fast-food restaurants to be part of the circular economy. With our solution, restaurants will also comply with legislation in the area of reusable serving products. Idun, which is our fully circular solution for this, was launched as a pilot during the Almedalen political event in Visby. We are experiencing a high level of interest from relevant stakeholders in circular micro-solutions designed for single restaurants, that can also be scaled up in cities and countries.

Robert Dackeskog, President and CEO, Duni Group.

 
For more information, please contact:

Magnus Carlsson, EVP Finance/CFO, +46 (0)40 10 62 00, magnus.carlsson@duni.com

Katja Margell, Director of IR and Communications, +46 (0)76 819 83 26, katja.margell@duni.com

Duni AB (publ)
Box 237
SE-201 22 Malmö
Phone: +46 (0)40 10 62 00

www.dunigroup.com
Company registration number: 556536-7488 
The Duni Group is a market leader in sustainable solutions for table setting and food packaging for the restaurant market. The Group markets and sells its products under the brands Duni, BioPak and Paper+Design, which are represented in more than 40 markets. The Duni Group has around 2,200 employees in 21 countries, with its headquarters in Malmö and production units in Sweden, Germany, Poland, New Zealand and Thailand. The Duni Group is listed on 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, on July 14, 2023 at 12.00 CET.