Interim Report for Duni AB (publ) January 1–September 30, 2021
July 1–September 30
- Net sales amounted to SEK 1,453 m (1,251), corresponding to a 16.2% increase in sales. Adjusted for exchange rate movements, net sales increased by 19.0%.
- Earnings per share after dilution amounted to SEK 2.16 (1.02).
- Strong recovery in sales for the Duni business area and continued high growth rate for the BioPak business area.
- High efficiency in factories and strong operational leverage on indirect costs boost income.
- Prices of raw materials, energy and sea freight continued to accelerate during the quarter and will, despite price increases announced, be challenging to compensate for in the short term.
- The paper mill in Skåpafors is first in the world to use fossil-free biogas.
January 1–September 30
- Net sales amounted to SEK 3,509 m (3,320), corresponding to a 5.7% increase in sales. Adjusted for exchange rate movements, net sales increased by 8.1%.
- Earnings per share after dilution amounted to SEK 1.43 (-0.68).
- Clear improvement in income from the middle of the second quarter attributable to easing of restrictions.
- Efforts to achieve the best sustainable offering have resulted in several investments in innovation and new business models during the year.
KEY FINANCIALS
| SEK m | 3 months Jul-Sep 2021 | 3 months Jul-Sep 2020 | 9 months Jan-Sep 2021 | 9 months Jan-Sep 2020 | 12 months Oct-Sep 2020/2021 | 12 months Jan-Dec 2020 |
| Net sales | 1,453 | 1,251 | 3,509 | 3,320 | 4,690 | 4,501 |
| Organic growth | 17.4% | -8.4% | 8.1% | -17.8% | -1.2% | -18.7% |
| Operating income 1) | 151 | 110 | 169 | 98 | 220 | 149 |
| Operating margin 1) | 10.4% | 8.8% | 4.8% | 3.0% | 4.7% | 3.3% |
| Income after financial items | 128 | 69 | 90 | -40 | 137 | 7 |
| Income after tax | 102 | 48 | 68 | -31 | 103 | 4 |
1) For key financials, definitions and reconciliation of alternative key financials, see pages 26-27.
CEO's comment
The road towards a more normalized existence and market leads to strong income in the quarter
Restaurant visits finally back
Restrictions were further eased during the third quarter, and restaurants in Europe are now effectively fully open in our main markets. There are, however, some markets, including Germany, require vaccine passport for restaurant visits. Outside Europe, the picture is not as clear. Both easing and new restrictions were introduced during the quarter, one country affected being Australia.
The easing of restrictions in Europe brought a distinct recovery in the third quarter. Group sales amounted to SEK 1,453 m (1,251). At fixed exchange rates, this corresponds to a sales increase of 19.0%.
There is less uncertainty surrounding the development of the pandemic, and there is a strong desire to socialize around good food and drink. Returning restaurant guests have had a positive impact on the Duni business area, which at fixed exchange rates increased its sales by 15.5% compared with the previous year. The take-away market also continues to grow, and the BioPak business area increased its sales by 24.7% in relation to the previous year. We are confident about the continued development.
Higher sales in both business areas had a direct impact on operating income, which amounted to SEK 151 m (110) during the quarter.
Cost pressure on raw materials and sea freight
Just as before, there is an ongoing shortage of container capacity from Asia, which means longer delivery times and significantly increased freight costs for containers. This mainly affects the BioPak business area. Input material and energy costs have also accelerated during the quarter and are contributing to high cost pressure. Announced price adjustments will mitigate these cost increases, but as always with some delay.
Towards a more sustainable future
Our goal is to offer innovative, sustainable and circular products, service and solutions, where food and drink are served and consumed. In our efforts to realize this, we have initiated a number of partnerships and activities. The Duni business area, for example, recently launched the world’s first fossil-free airlaid, which is used in our premium napkins. During the quarter, we also announced the news that our paper mill in Skåpafors is initiating a transition to fossil-free biogas, produced from by-products from the food industry, among others, which represents a major step forward towards an increasingly circular business model and a lower climate impact. This means that Duni Group will be the first in the world to fully implement this solution in the paper industry. In the rapidly expanding BioPak business area, we are constantly working with new, more sustainable material choices and circular solutions that take the entire value chain and the product cycle into account. The best-selling product right now is made using residues from sugar cane, which would otherwise have ended up as waste.
In our ambition to always be able to offer the most sustainable alternative, in mid-October, after the end of the quarter, we increased our portfolio with a minority holding in the Spanish re-use company Bûmerang Takeaway S.L. The partnership with Bûmerang complements the previously announced minority ownership of the German company Relevo GmbH. Both Bûmerang and Relevo work with reusable systems for take-away products using digital platforms to reduce litter in our cities.
We are now planning for a more normalized existence and demand. However, the accelerating cost increases in almost all raw material components entail both short- and long-term challenges for the industry, where cost compensation and increased efficiency are important measures, says Robert Dackeskog, President and CEO, Duni Group.
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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.duni.com
Company registration number: 556536-7488
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The 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 represented in more than 40 markets. Duni has around 2,200 employees in 24 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. This information is information that Duni AB is obligated to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:45 am CET on October 21, 2021.