Interim report January 1 – March 31, 2023
Historically strong Q1 result
January 1–March 31
- Net sales amounted to SEK 1,877 m (1,443), corresponding to a 30.1% increase in sales. Adjusted for exchange rate movements, net sales increased by 23.5%.
- The gross profit amounted to SEK 391 m (271), an increase of 45% in absolute terms compared with the same period last year. The gross margin increased by 2 percentage points.
- Operating income amounted to SEK 130 m (51), corresponding to an increase of 153% compared with the same period last year. Income is historically strong in absolute terms in a seasonally weak quarter.
- The period was characterized by normalized levels and indicates a strong recovery for the restaurant industry.
- Cash flow from operating activities improved by more than SEK 300 m compared with the same period last year.
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KEY FINANCIALS
| SEK m | 3 months Jan-Mar 2023 |
3 months Jan-Mar 2022 |
12 months Apr-Mar 22/23 |
12 months Jan-Dec 2022 |
| Net sales | 1,877 | 1,443 | 7,410 | 6,976 |
| Organic growth | 23.5% | 49.3% | 25.9% | 30.9% |
| Operating income 1) | 130 | 51 | 528 | 450 |
| Operating margin 1) | 6.9% | 3.6% | 7.1% | 6.4% |
| EBIT | 111 | 26 | 411 | 326 |
| EBIT margin | 5.9% | 1.8% | 5.5% | 4.7% |
| Income after financial items | 93 | 12 | 365 | 283 |
| Income after tax | 90 | 6 | 286 | 201 |
| Earnings per share attributable to equity holders of the Parent Company | 1.65 | 0.11 | 5.79 | 4.25 |
| Return on capital employed, excluding goodwill | 18.2% | 16.1% | 18.2% | 16.6% |
1) For reconciliation of alternative key financials, definition of key financials and glossary, see pages 28–30.
CEO's comment
“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.”
Normalized levels
During the first quarter of the year, we saw demand at pre-pandemic levels within restaurant and catering, which is the part of the consumer market in which we operate. It is our impression that people wanted to socialize and eat together, and prioritized restaurant visits. Consumption trends also show that we are eating more times over the course of a day and on the go, which is driving the take-away industry in particular. This trend in the restaurant industry contrasted with the trends in the consumer market in general during the first quarter. Consumers seemed to be holding back on more expensive items such as travel, hotel nights and renovations, as higher inflation and interest rates affected household finances. At the same time, many people continued to eat served food in their day-to-day lives, at home, in restaurants or on the go between different activities. As a result of this, the Group’s business operations were also characterized by normalized levels during the first quarter compared with before the pandemic.
Historically strong results
The Group’s sales in the first quarter amounted to SEK 1,877 m (1,443), an increase of 24% at fixed exchange rates compared with the same period of the previous year. Sales were also higher than before the pandemic. The Group’s gross profit amounted to SEK 391 m (271), an increase of 45% in absolute terms compared with the same period of the previous year. This can be viewed against the background of ongoing efficiency improvements in our value chains having been effective. The gross margin increased by 2 percentage points compared with the same period last year, but did not reach pre-pandemic levels. The main explanation is the balancing between inflationary pressure and the cost compensation measures implemented during the quarter. The Group’s operating income was historically strong and amounted to SEK 130 m (51), an increase of 153% compared with the same period of the previous year, when restrictions on restaurants were still in place. The comparison with the same period of the previous year may also be viewed in the light of the higher volumes, and with good cost efficiency we gained sound operational leverage. The increase in volume was mainly due to a normalized market, but it also gives an indication that consumption patterns have changed over time, as we now eat out more often and on the go. Needs that the Group’s increasingly wider range of sustainable solutions has been able to meet.
Growth in business areas
The Duni business area increased its sales during the quarter by 34% at fixed exchange rates compared with the same period in the previous year. Sales were also higher than before the pandemic. All markets made a positive contribution to growth during the quarter. The BioPak business area increased its sales during the quarter by 11% compared with the same period of the previous year. Growth also increased compared with before the pandemic, driven primarily by the Australian market. Stock levels, which were elevated after the pandemic in Europe, are falling, even though contract and stock lead times are delaying the positive effect.
Important consumer trends
The trend towards sustainable solutions is strong and is ultimately being driven by consumer demand. With the new insights when comes to consumption patterns and trends, I am therefore extra pleased that we have reduced our level of virgin fossil plastic. We achieved an index of 70 in the first quarter, with the goal of achieving an index of 50 in 2025. It is also pleasing to report that the Group’s Australian operations won several prestigious awards during the quarter, including the Worldstar Packaging Awards innovation competition for two alternatives to conventional plastic solutions. The Group develops new, innovative products and materials on an ongoing basis to meet consumer demand. Our vision for 2030 is clear: we want to be the industry’s sustainability leader, driven by innovation and operational performance.
Robert Dackeskog, President and CEO, Duni Group.
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 (0)40 10 62 00
www.dunigroup.com
Company registration number: 556536-7488
Duni Group is a market leader in attractive and sustainable products for table setting and take-away. The Group markets and sells its solutions under primarily the brands Duni. BioPak and Paper+Design, which are represented in more than 40 markets. Duni Group has around 2,200 employees in 21 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. Dunigroup.com. This information is information that Duni AB is obligated to make public pursuant to the EU Market Abuse Regulation. The information was provided, through the contact person, for publication on April 21, 2023 at 07:45 CET.
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