STOCKHOLM, October 18, 2018
STOCKHOLM, October 18, 2018 /PRNewswire/ --
Margins under pressure from higher pulp prices - efficiency program initiated
1 July - 30 September
1 January - 30 September
Events after the end of the period
SEK m 3 months 3 months 9 months 9 months 12 months 12 months Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec 2018 2017 2018 2017 2017/2018 2017 Net sales 1,190 1,082 3,467 3,188 4,721 4,441 Operating income1) 107 123 293 322 463 491 Operating margin1) 9.0% 11.4% 8.5% 10.1% 9.8% 11.1% Income after 90 108 254 284 409 439 financial items Net income 66 80 191 212 313 334
1)For key financials and reconciliation of alternative key financials, see pages 27-28: http://mb.cision.com/Main/295/2647670/928452.pdf
"Net sales increased by 10% from SEK 1,082 m to SEK 1,190 m in Q3. Adjusted for exchange rate movements, net sales increased by 2.7% and organic growth amounted to 0.8%. Operating income was SEK 107 m (123). The lower result is a consequence of continuously increasing pulp prices during the quarter. Pulp prices have increased by more than 40% during the last 12 months.
The Table Top and Consumer business areas were both affected negatively by the high pulp prices during the period. For New Markets, costs related to the restructuring activities in Singapore had an impact on the result. In the Meal Service business area, both growth and operating income increased during the quarter, driven by the continually strong performance of the ecoecho® range.
Program to strengthen margins
In order to improve results, and to release resources for investment in an improved customer experience, Duni is now undertaking three major initiatives to improve margins:
A new strategy for a more customer-oriented and sustainable Duni
The objective with Duni's new strategy is to be a more customer-oriented and sustainable company. This includes increasing investments in digital customer experiences, development of organic products and a more customer-oriented offering. We will also seek to achieve further organic growth, as well as growth throughout acquisitions, in Asia and Oceania.
Acquisition of rapidly growing packaging company, with focus on sustainability
As of 15 October, Duni acquired 75% of BioPak Pty Ltd in Australia and New Zealand. With sales of around SEK 385 m, the company is a rapidly expanding market leader for sustainable disposable packaging and exhibit an annual historical growth above 20%. The acquisition of BioPak is in line with our strategy, since it strengthens our position within the prioritized product area of sustainable packaging, and also in the growth region of Asia and Oceania.
Looking forward, in Q4 Duni will still be affected negatively by the high pulp prices, since the price increases we have announced will not begin to have an effect until during Q1 2019," says Johan Sundelin, President and CEO, Duni.
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 18 October 2018.