15/07/2011 08:00

Interim Report for Duni AB (publ) 1 January – 30 June 2011

Stronger sales trend

1 January – 30 June 2011

  • Net sales amounted to SEK 1,827 m (1,930). Adjusted for exchange rate changes, net sales increased by 0.2%.
  • Earnings per share amounted, after dilution, to SEK 2.12 (2.48).
  • Increased marketing measures within growth areas.

1 April – 30 June 2011

  • Net sales amounted to SEK 960 m (970). Adjusted for exchange rate changes, net sales increased by 3.5%.
  • Earnings per share amounted, after dilution, to SEK 1.25 (1.40).
  • Both Professional and Retail demonstrated an improved sales development compared with the preceding quarter.

Key financials

6 months
January-June
6 months
January-June
3 months April-
June
3 months April-
June
12 months
July-
June
12 months
January-December
SEK m 2011 2010 2011 2010 10/11 2010
Net sales 1 827 1 930 960 970 3 868 3 971
Operating income1) 155 168 88 91 421 435
Operating margin1) 8.5% 8.7% 9.1% 9.4% 10.9% 10,9%
Income after financial items 134 156 79 90 397 418
Net income 99 117 59 66 289 306

1)   Underlying operating income; for link to reported operating income, see the section entitled "Non-recurring items".

CEO’s comments

"It is pleasing to note that the volume trend during the second quarter of the year improved compared with the first quarter and largely reflects the continued recovery on our main markets.

Both Professional and Retail increased their sales volumes compared with last year, by just over 3% and 1.5% respectively. However, the sales trend within the Tissue business area remained weak, primarily within the hygiene products sector, and sales fell from SEK 125 m to SEK 109 m. For Duni as a whole, sales experienced an upward turn during the quarter and reached SEK 960 m. At fixed exchange rates, this corresponds to an increase of 3.5% compared with the second quarter of last year.

Thanks to the improved sales trend, we achieved a seasonally strong operating profit of SEK 88 m. At fixed exchange rates, this corresponds to SEK 93 m, which is somewhat better than last year's result. Both Professional and Retail reported increased income at fixed exchange rates, while Tissue fell back due to a decrease in sales and lower capacity utilization. However, the order book is expected to improve during the second half of the year.

During the quarter, costs for certain input materials and in particular for traded goods, continued to increase. Going forward, this will impact on the cost of sold goods, but we believe that Duni will be able to mitigate this effect thanks to the price increases that we are currently implementing. As regards the market trend in general, we anticipate continued volume growth within our main area, Professional," says Fredrik von Oelreich, President and CEO, Duni.

Interim Report for Duni AB (publ) 1 January – 30 June 2011

Duni AB, P.O Box 237, SE 201 22 MALMÖ, Sweden. Tel: + 46 40 10 62 00