The margin program contributes to a historically strong second quarter
With sales growth of 17% in the quarter, Duni has now exceeded SEK 5,000 m in sales for the past 12 months.
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.
Linus has been instrumental in the very positive development of the Meal Service Business Area in the last six years. I’m confident he will also lead the Table Top Business Area, which focuses on the HoReCa market, in the same successful way.
Looking forward, in Q4 Duni will still be affected negatively by the high pulp prices, since the price increases we have announced will not begin to have an effect until during Q1 2019.
We have admired BioPak’s consistent promise to provide sustainable products to the food service industry, and are now looking forward to collaborating with Gary, Richard and their fantastic team in our common mission. This acquisition perfectly meets our strategic ambitions of growing in sustainable packaging and in building a stronger business in the APAC region.
In overall terms, another quarter in which Duni achieved some growth, but with margins under pressure from the strongly increasing pulp prices.
Our organization’s approach to customers is equally important to the assortment we deliver, and this new role and related initiatives will establish this clearly.
Developing sustainable products has been one of Duni's top priority areas for several years, and today we offer a wide range of alternatives with high design factor under our ecoecho® brand
Thomas Lööb has been a great asset to Duni as member of the Management Team and in developing Rexcell. Thomas will continue as Chairman at Rexcell, but we are also looking forward to his collaboration on other selected strategic initiatives in the future. We are very pleased to welcome Magnus into the Duni Management Team, and it is especially exciting as this internal recruitment further strengthens our commitment to develop talent within Duni Group.
We look forward to collaborating with stakeholders to drive change and raise awareness regarding a sustainable assortment and waste handling methods. This proposal comes in a time when our customers are already demanding sustainable products, and growth of our ecoecho® assortment is highest in all Duni categories. We welcome this increased focus and possibility to collaborate with key influencers in this area
Sofie Lindström, HR Director at Duni
Overall, a stable result showing some growth but with strong negative impacts seen in high raw material prices and yet, positive currency effects.
After my first quarter as President and CEO of Duni, and after meeting many of Duni's employees, I can note that Duni is ready to meet the future opportunities and challenges.
This investment comes at a time when demand for premium materials for napkins is on a rise. As a market leader in airlaid napkins across Europe, we will now have additional capacity to respond effectively to customer demand.
The nomination makes us proud of course. There is a lot of work behind Amazonica. Our vision was to combine a beautiful design with nature's materials and ultimately highlight the food that is served. It's a great honour to receive recognition from the industry for the results of our efforts.
The production units delivered a stable quarter without any substantial divergences from past performance and we now head into the peak season with slightly better inventory levels and delivery readiness than last year.
This collection places food, form and nature in the center
The growth was mainly generated from the higher organic growth in Table Top, the acquisitions in New Markets and continuing market share gains in the take-away segment within Meal Service.
The acquisition of Sharp Serviettes not only enables Duni to gain significant market share in New Zealand, but along with our other sales and converting operations in South East Asia, we now have added developmental possibilities in Asia Pacific. We look forward to a rewarding collaboration with Sharp Serviettes and its fantastic team.
Several key projects and investments were completed in the past year and we expect that they will now give a boost to our performance.
The acquisition of Terinex Siam has lifted New Markets, and we are witnessing a gradually improved sales trend in Table Top.
Organic growth was 1%, which is in line with the market as a whole.
Following a weak start to the year, the second quarter shows more stable growth on our main markets. It is also pleasing that we have concluded an agreement regarding the acquisition of Terinex Siam, which will strengthen our competitiveness in the prioritized Asian market.
This concept is truly relevant today and we are delighted to be able to offer it to a large audience during the tennis week in Båstad.
The acquisition of Terinex is an important step in our goal to increase growth in South East Asia. Combining Duni’s premium offer with Terinex and its production capacity creates favorable conditions for increasing market share. It is therefore very encouraging that we now agreed with the founding families to jointly develop the business.
Tina Andersson has with great results developed Duni’s brand and strategic platform. Due to these improvements, we are now approaching our customers with a more distinct market offer. I wish Tina all the best in her future career. Our focus is now on finding the right successor, a process that begins immediately.
Tina Andersson, Business Area Director Consumer & Corporate Marketing
Since the weaker result is largely attributable to currency movements and calendar effects in production and sales, we remain convinced that 2016 will be an exciting and successful year.
Our operating income for the year as a whole increased by 17%, at the same time as a number of important structural projects were successfully concluded.
We are passionate about being outstanding in our field. So what better than to collaborate with Titti Qvarnström who is truly outstanding in her field, and who shares our interests in food, design and sustainability? We are extremely proud to be working with Titti.
With the new Snack Box range, we provide deli and take away managers with a sustainable, user-friendly ‘to-go’ solution, which meets the needs of today’s increasingly eco-conscious – and knowledgeable – customers
The operating income for the quarter is historically strong and exceeds the third quarter of last year by a considerable margin.
Despite a late and cold spring, with an unfavorable calendar effect, quarterly earnings improved by SEK 11 m as compared with last year.
The strong start to the year gives us good reasons to continue to invest in growth, attractiveness and efficiency.
For the year as a whole, sales increased by 7.5% and the operating margin strengthened to 11.2%.
The third quarter results are historically strong and it is pleasing that both structural effects and improvements in the core business are contributing to growth and an increase in operating income.
As we now enter the second half of the year, we are doing so supported by underlying growth and the acquisition of Paper+Design.
I'm very pleased that Song Seng is set to become a part of the Duni Group. This acquisition is a key step in our growth strategy of expanding on emerging markets and increasing our level of service in the growing take-away and fast food chain segment.
Duni's business model has demonstrated its staying power and stability during tough times.