Interim Report for Duni AB (publ) January 1–March 31, 2021
Continued strong impact from restrictions, preparations for easing
January 1–March 31
- Net sales amounted to SEK 932 m (1,249), corresponding to an 25.4% decrease in sales. Adjusted for exchange rate movements, net sales decreased by 22.9%.
- Earnings per share after dilution amounted to SEK -1.11 (0.43).
- The performance of both sales and income for Q1 are directly related to the social restrictions.
- The Duni business area is well prepared to meet the increase in demand expected as social restrictions are eased.
- Operating income for the BioPak business area nearly doubled from the previous year, from SEK 24 m to SEK 43 m.
- Despite a strong focus on costs, investments to future-proof the offering are continuing.
KEY FINANCIALS
|
SEK m |
3 months Jan-Mar 2021 |
3 months Jan-Mar 2020 |
12 months Apr-Mar 2020/2021 |
12 months Jan-Dec 2020 |
| Net sales | 932 | 1,249 | 4,184 | 4,501 |
| Organic growth | -22.9% | -4.2% | -23.2% | -18.7% |
| Operating income 1) | -41 | 80 | 28 | 149 |
| Operating margin 1) | -4.4% | 6.4% | 0.7% | 3.3% |
| Income after financial items | 72 | 29 | -94 | 7 |
| Income after tax | -51 | 22 | -70 | 4 |
1) For key financials, definitions and reconciliation of alternative key financials, see pages 26-27.
CEO's Comment
Despite low vaccination rates in larger parts of Europe, which led to a relatively unchanged situation since the fourth quarter, we are optimistic about the future. Our experience from last year shows that demand recovers rapidly once the restrictions are lifted.
Continued restrictions put Q1 2021 at par with Q4 2020
Continued restrictions and a low rate of vaccination in our main markets led to a relatively unchanged situation compared with the fourth quarter of 2020. The hotel and restaurant markets, which are the main segments of the Duni business area, are still operating under strict restrictions. It is difficult to foresee when the restrictions will be eased at this time.
We see continued strong and growing demand for sustainable packaging solutions, which primarily benefits the BioPak business area. The growth in take-away, which has been positive for several years, is further accelerating as most restaurants have transitioned from table service to take-away solutions. The pandemic and its consequences also caused a shortage in container capacity from Asia, which resulted in longer delivery times and increased logistics costs in some cases. During the quarter, we also saw price increases for raw materials, including pulp. We continue to work on mitigating these by having a strict cost focus, but as always, we also review the need for possible price adjustments.
Sales amounted to SEK 932 m (1,249), at fixed exchange rates this corresponds to a sales decrease of 22.9%. The decrease is exclusively attributable to the Duni business area, which focuses on the set table, going down with 48.2% of its sales from the previous year. The BioPak business area, which focuses on sustainable packaging solutions for take-away, increased it sales by 23.7% year-on-year. The Group’s lower sales figure has a direct impact on operating income, which amounted to SEK -41 m (80) for the quarter.
As communicated to the market on March 18, we are preparing to apply for government support for fixed costs in Germany. The amount we will apply for is within the range previously communicated and is currently estimated at around EUR 5-6 m for the period November 2020 to March 2021. As the uncertainty about how much we will finally receive is large, revenue has not been reported in the first quarter. If we still qualify for support, we will continue to apply monthly.
Turbulent market in wake of the pandemic
The pandemic has a substantial negative impact on the hotel, tourism and restaurant industry, and it is difficult to foresee exactly when a future recovery will occur. However, restrictions and other measures linked to the pandemic have accelerated a series of trends, especially in sustainability, hygiene and digital interaction. We see new opportunities for both the industry and for Duni Group in these areas, and we are now stepping up our activity in them.
Preparation for reopening
As the rate of vaccination increases in our main markets, the restrictions will be eased and demand will increase. In summer 2020, we saw a very rapid recovery based on lower infection rates and eased restrictions. The same pattern was also seen in the third quarter. Our main focus now is to secure the supply chain for our most-in demand products for outdoor dining and take-away. An example of these is our best-seller Sacchetto®, which is both suitable for outdoor dining and contributes to hygienic table service.
Despite continued market turbulence, we look to the future with confidence. The market is still challenging for the Duni business area, but, conversely, we are pleased with the strong increase in sales for the BioPak business area,” says Robert Dackeskog, President and CEO, Duni Group.
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For more information, please contact:
Robert Dackeskog, President and CEO, +46 (0)40 10 62 00
Magnus Carlsson, CFO, +46 (0)40 10 62 00
Helena Haglund, Group Accounting Manager, +46 (0)734 19 63 04
Duni AB (publ)
Box 237
SE-201 22 Malmö
Phone: +46 (40) 10 62 00
www.duni.com
Company registration number: 556536-7488
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The Duni Group is a market leader in attractive, environmentally-sound and functional products for table setting and take-away. The Group markets and sells two brands, Duni and BioPak, which are represented in more than 40 markets. Duni has around 2,200 employees in 24 countries, its headquarters in Malmö and production units in Sweden, Germany, Poland, New Zealand and Thailand. Duni is listed on the 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 set out above, at 07:45 CET on April 22, 2021.
