2/14/2019 7:45 AM
Organic growth and continuing high input material costs
|SEK m||3 months
|Income after financial items||74||155||328||439|
1)For key financials and reconciliation of alternative key financials, see pages 29-30.
”Net sales increased by 16% from SEK 1,254 m to SEK 1,460 m in Q4. Adjusted for exchange rate movements, net sales increased by 11.9% and organic growth excluding the acquisition of Biopac UK and BioPak AU amounted to 1.5%. Both acquisitions have performed well with continuing strong growth.
Operating income was SEK 137 m (169). This decrease in operating income was a result of continuing high pulp prices during the quarter. Pulp prices were up approximately 35% from the same period in 2017.
On the business area level, both Table Top and Consumer were negatively impacted by the high pulp prices and New Markets was affected by costs related to the restructuring of operations in Singapore. In the Meal Service business area, both growth and operating income increased during the quarter, driven by the current strong performance of our ecoecho® range.
Ongoing program to strengthen margins
In order to improve earnings and free up resources for investment in the new strategy, we are now undertaking three major initiatives to improve margins:
Stronger position in sustainable packaging
The strategic acquisitions of BioPak Pty Ltd in Australia and New Zealand, as well as Biopac Ltd in the UK gives Duni an annual sales of more than SEK 700 m in the rapidly growing market of sustainable disposable packaging. We do not see any slowdown in the growth of this market as both market forces and political initiatives are driving the trend toward more sustainable solutions.
2018 turned out to be a challenging year for Duni with continually increasing prices for inputs and energy. We announced a price increase early on, but it proved insufficient as the price of pulp continued to increase. Another price increase was announced that will gradually take effect in Q1 2019. The Board of Directors will propose to keep the dividend in line with the previous year, SEK 5.00 per share, at the Annual General Meeting on 7 May 2019,” says Johan Sundelin, President and CEO of Duni.
Additional information is provided by:
Johan Sundelin, President and CEO, +46 40 10 62 00
Mats Lindroth, CFO, +46 40 10 62 00
Helena Haglund, Group Accounting Manager, +46 734 19 63 04
Duni AB (publ)
SE-201 22 Malmö
Tel.: +46 40 10 62 00
Business registration number: 556536-7488
Duni is a leading supplier of attractive and convenient products for table setting and take-away. The Duni brand name is sold in more than 40 markets and enjoys a number one position in Central and Northern Europe. Duni has around 2,500 employees in 24 countries, headquarters in Malmö, Sweden, and production units in Sweden, Germany, Poland, Thailand and New Zealand. Duni is listed on NASDAQ Stockholm under the ticker name “DUNI”. The ISIN code is SE0000616716. This information is information that Duni AB is obliged 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 14 February 2019.