Subdued economic situation balanced by targeted measures and acquisitions

April 1 - June 30

• Net sales amounted to SEK 1,884 m (1,875), corresponding to an increase of 0.5%. Adjusted for exchange rate movements, net sales increased by 5.2%, driven by acquisitions.
• Operating income amounted to SEK 121 m (135).
• Earnings per share attributable to equity holders of the Parent Company amounted to SEK 1.25 (1.72).
• Strengthened operating cash flow as a result of lower inventory levels, which decreased by approxomately SEK 130 m in the quarter.
• The restructuring of the sales and marketing organization, including the business area-integrated and specialized sales forces, has been completed according to plan, with a reduction in the workforce of just under 10%. Estimated full-year effect on operating income of approximately SEK 30 m starting from Q4 2025.

1) For reconciliation of alternative key financials, definition of key financials and glossary, see pages 27-28.

CEO summary

The weak economic climate in Europe persists, and the hotel and restaurant sector is characterized by weak demand and increased price pressure. Completed acquisitions and structural efficiency projects partly offset this during the quarter, but also strengthen our competitiveness going forward.

The second quarter ended more strongly than it began, although we are still in a period of subdued demand. European industry data indicates a general slowdown in the hotel and restaurant sector, where price increases have failed to make up for reduced volumes. In Germany, our largest market, HoReCa visits fell by 4.8% in the first quarter. Increased caution among customers has had a negative impact on volume and mix in our core segments in Europe. The Group's net sales for the quarter amounted to SEK 1,884 m (1,875), corresponding to an increase of 5.2% at fixed exchange rates compared with the same period in the previous year. The increase came from acquired businesses. 

Currency effects have been less significant in the second quarter compared to the first and have therefore had a limited impact on earnings. At the same time, price adjustments continued to have a gradual impact on the income trend, which confirms the strength of our offering and commercial model. Operating income amounted to SEK 121 m (135), with an operating margin of 6.4% (7.2%).

Dining Solutions: Acquisitions and cost control provide stability  
In Dining Solutions, net sales in comparable currency terms increased by 9.5% in the quarter. Net sales amounted to SEK 1,138 m (1,069), driven primarily by the acquired units Poppies and SETI. The quarter saw positive effects from price adjustments and efficiency improvement projects within production. There was, however, a negative impact on the gross margin, as our production units had lower capacity utilization and a generally high cost level.

Food Packaging Solutions: Strategic initiative strengthens position
For Food Packaging Solutions in Europe, market restraint remains noticeable, while BioPak Group showed growth during the quarter. During the period, the Duniform brand enhanced its offering through the acquisition of Linepack OY, which strengthens our position in automated packaging solutions in the Nordic region. Net sales decreased by SEK 60 m in the quarter and amounted to SEK 746 m (806). Adjusted for currency effects, this corresponds to a 0.5% decrease.    

Continued transformation for adapted cost structure and increased accuracy 
As previously communicated, we initiated a restructuring of our sales and marketing organization at the beginning of the year. During the quarter, most of this initiative was completed, including the establishment of separate and specialized sales forces and centralized digital marketing functions within each business area. In connection with the restructuring process, we have completed a reduction in the workforce of just under 10% in sales and marketing, with the aim of adjusting the cost structure and creating a more flexible, customer-driven and insight-based organization. This work is proceeding according to plan with an expected impact on earnings from the fourth quarter onwards, with an estimated full-year effect of approximately SEK 30 m. Furthermore, preparatory work for the relocation of our central warehouse to an external logistics center in Meppen, Germany, which is expected to take effect in the second half of 2026.

Strengthened resilience in a challenging market situation 
In summary, the second quarter was characterized by an economy that continued to be generally weak. The subdued demand and negative mix development affected the quarter's volume and earnings performance. In this challenging market situation, we have responded proactively and purposefully through price adjustments, structural efficiency improvements and increased flexibility - measures that strengthen our resilience and provide better conditions for achieving our targets. Our acquisitions performed according to plan and confirm our strategic direction. 

We are well positioned for when the market recovers. The measures we are taking today lay the foundation for profitable growth and create a leverage effect that gives us a stronger starting position for the future.

Robert Dackeskog,
President and CEO, Duni Group