Interim report January 1 – March 31, 2024

Stronger operating income and strategically niched acquisitions

January 1 - March 31

• Net sales amounted to SEK 1,736 m (1,877), corresponding to a 7.5% decrease in sales. At fixed exchange rates, net sales decreased by 7.5%.
• The gross profit amounted to SEK 435 m (391), an increase of 11.2% in absolute terms compared with the same period last year. The gross margin increased by 4.2 percentage points.
• Operating income amounted to SEK 140 m (130), corresponding to an increase of 7.6% compared with the same period last year.
• Continued expansion in the field of sustainable, innovative food packaging solutions with majority acquisition of German company Relevo and acquisition of Australian company Huskee. The acquisition of New Zealand-based Decent Packaging in December was included in the Group’s consolidation from February.
• The quarter reported a continued low net debt and a strong financial position.
   

CEO's comment

Improved income despite weak European market

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

Despite falling inflation, we see a lower demand, due to lagging effects on household finances, especially in Europe. The recovery in Europe’s largest market, Germany, remains weak. At the same time, it is Europe that from relatively low levels is displaying the greatest optimism about the future of the economic situation.

Net sales decreased to SEK 1,736 m (1,877). This is mainly due to fewer invoicing days, partial price reductions and lower sales from low-margin contracts within retail trade, which in turn provide a better mix effect. The Group reported an operating income of SEK 140 m (130), which is the highest recorded first quarter in the Group’s history. This corresponds to an operating margin of 8.1% (6.9%).

Better price and cost balance in both business areas
The Dining Solution business area´s net sales decreased to SEK 1,030 m (1,130) and is primarily affected by lower demand in the retail sector, particularly in Germany and the UK. A stable price and cost balance, with a better mix within the customer segments, resulted in an improved operating margin and gross margin compared to the same period last year. The business area´s launch of new table lamps was very successful during the quarter. There is a growing trend for restaurants to choose LED table lamps instead of candles. From a sustainability and a safety perspective, but also to introduce more design elements into the restaurant environment.

During the quarter, Food Packaging Solutions launched a new, plastic-free food packaging solution with a unique seaweed coating, which offers both functionality and improved environmental performance, demonstrating the Group’s focus on material development. Net sales decreased to SEK 705 m (747) but at the same time achieves better cost efficiency with falling prices for, among other things, sea freight. It is also pleasing that the profitability of the European side of the business area is improving. The business area also accounted for almost all of the improvement in the Group’s operating income during the quarter.

Expanding in food packaging solutions
During the quarter, the Group continued to expand in the field of food packaging solutions in the Asia-Pacific region. New Zealand-based Decent Packaging, which was acquired in December and offers innovative packaging made from plant- based materials, has now been included in the Group’s consolidation since February. In addition, Australia-based Huskee has been acquired during the quarter. This company offers coffee cups that use waste and recycled materials to enable the transition to a waste-free world. Both companies thus have a clear sustainability profile and are B Corp-certified.

During the quarter, the Group also acquired a majority stake in the German startup company Relevo. This Munich-based impact company offers a complete digital solution for the reuse of serving items for catering and restaurant businesses. This is an important initiative that enables restaurants to move into the circular economy. The market for the reuse of serving items is still very young and volatile, and we want to be part of it as the market grows.

Strong financial position
After a couple of smaller acquisitions, the Group still has a strong financial position with room for maneuver for future growth opportunities.

Going forward, we see continued uncertainty in the market and a geopolitical instability.
However, our hope is that the lingering economic challenges for households will ease towards the end of the year.

Robert Dackeskog,
President and CEO,
Duni Group.

For additional information, please contact:
Magnus Carlsson, EVP Finance/CFO
+46 (0)40-10 62 00
magnus.carlsson@duni.com

Katja Margell, IR and Communications Director,
+46 (0)76-819 83 26
katja.margell@duni.com

Duni AB (publ)
Box 237
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, environmentally sound and functional products for table setting and take-away. The Group markets and sells two brands, Duni and BioPak, which are repre- sented in more than 40 markets. Duni has around 2,400 employees spread out across 22 countries, with its headquarters in Malmö and production sites in Sweden, Germany, Poland 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 24, 2024.