10/27/2010 8:00 AM
Stable operating margin
1 January – 30 September 2010
1 July – 30 September 2010
|3 months July - September||3 months July - September||12 months
|Net sales||2 873||3 063||943||1 021||4 031||4 220|
|Income after financial items||255||279||99||134||421||444|
"During the third quarter, Duni reached the same EBIT margin of 11% as for the last year despite somewhat lower sales, mainly related to changed exchange rates. Retail showed a continued weak trend and Tissue reported significantly lower sales – compared, however, with an unusually strong quarter last year. The fire which broke out at a production plant in June has negatively affected sales for the quarter: by almost 2% for Professional, approximately 15% for Tissue and only marginally for Retail.
Taking into account the fire Professional achieved an underlying volume growth in the quarter of just over 2%. The big picture is largely the same as in the preceding quarter and industry data signals an improved market trend in general, which will support continued positive volume development.
In principal all planned price increases were carried out during the quarter. This has given support to the gross margin, albeit the full effect will not be reached until the next quarter. It can also be noted that, as far as Duni is concerned, increasing costs for raw materials and traded goods have had additional impact during the third quarter. From this perspective it is satisfying that we have been able to maintain an operating margin of 11%. We achieved an operating income of SEK 103 m for the quarter, which is at fixed exchange rates at the same level as last year.
Finally, we believe that the recovery will continue on Duni's main markets, a factor which creates conditions for volume growth within Professional. As regards the Retail business area, we anticipate a more stable volume development during the final quarter of the year," says Fredrik von Oelreich, President and CEO, Duni.