Duni Group reports an improvement in operating income for the first quarter, despite subdued demand in Europe in particular. The level of acquisitions has been high, with further expansion in food packaging solutions.

Duni Group presents a historically strong result for the first quarter. Increased volumes indicates that the Group’s increasingly wider range of sustainable solutions is meeting new consumption trends, where we eat out more often and on the go.

We can see that the recovery in the HoReCa market, which already started in the second quarter, continues, resulting in a 26% increase in sales in the third quarter.”

It’s pleasing to see that the industry is back, with a strong recovery in sales for the Duni Group

Despite continued unrest in the market, we are experiencing a normalization in demand, as a result of eased restrictions. We look forward to spring and summer with confidence.

The updated strategy defines a distinctly higher purpose for the Group, which will pervade all parts of the business. Together, we will inspire the world to give more than we take, so that everyone can enjoy good food, well-being and togetherness – today and for generations to come

We are now planning for a more normalized existence and demand. However, the accelerating cost increases in almost all raw material components entail both short- and long-term challenges for the industry, where cost compensation and increased efficiency are important measures

After a long time spent in a tough market situation, we are optimistic about the months ahead, with eased restrictions and an increased vaccination rate creating the conditions for a return to a more normal existence.

This is the first step of the journey to change from plastic to fiber-based packaging. Using QR-codes on the layout, we will collect valuable customer insight, to support the development and improve the packaging further

It’s still difficult to say exactly when each country will re-open, but in light of increased vaccination in our main markets, we are undergoing intensive preparations to be ready when this happens,

What we have learned during the year is that we still have a need to spend time together, eat good food and travel, and the Duni Group’s readiness to meet an increase in demand once the restrictions are eased is better than ever

It is encouraging to see that, despite continued social restrictions, we have achieved a strong improvement in income with timely measures from our organization. Therefore, in spite of the continued uncertainty, we look to the future with confidence

With a continuing sound financial position and liquidity, a strong organization and an offering well aligned with market needs, I look to the period ahead with confidence

We have a great offering to support restaurants and hotels in making a quick comeback with a focus on good hygiene and take-away

We are now entering 2020 with a strong confidence in our strategy and our business plans.

Improved operating margin and continuing growth in sustainable packaging solutions

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 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.