Bli medlem
Bli medlem

Du är här

2016-10-21

Duni AB: Interim Report for Duni AB (publ) 1 January - 30 September 2016

Stable quarter with growth in all Business Areas but a weaker pound
impacted

1 July - 30 September

· Net sales amounted to SEK 1,064 m (1,043). Adjusted for exchange
rate movements, net sales increased by 2.4%.

· Earnings per share, for continuing operations, after dilution
amounted to SEK 1.99 (2.10).

· A weak pound sterling affected the margin on the UK market.
· Organic growth in the quarter of 1%, in line with the market and
the year as a whole.

· The acquisition of Terinex Siam has been consolidated in Duni's
accounts as of August.

1 January - 30 September

· Net sales amounted to SEK 3,037 m (3,030). Adjusted for exchange
rate movements, net sales increased by 1.4%.

· Earnings per share, for continuing operations, after dilution
amounted to SEK 4.68 (5.05).

· Germany now shows stabilization following a weak start of the
year.

Key financials 1)

----------------------------------------------------------------------

SEK m 3 months 3 months 9 months 9 months 12 months 12
July- July- January- January- October- months
September September September September September January-
2016 2015 2016 2015 2015/2016 December
2015
Net sales 1 064 1 043 3 037 3 030 4 207 4 200
Operating 136 146 331 357 501 528
income 2)
Operating 12.8% 14.0% 10.9% 11.8% 12.2% 12.6%
margin 2)
Income after 126 130 293 315 437 459
financial
items
Net income 94 99 220 237 329 346

1) For continuing operations.
2) For bridge to EBIT, see the section entitled "Operating income -
Non-recurring items".

CEO's comments

"Third-quarter sales are slightly above a strong quarter last year,
but operating income was adversely affected by the weaker pound
sterling. Organic growth was 1%, which is in line with the market as
a whole. Apart from the UK, all regions demonstrated growth during
the quarter. The effects of changes in exchange rates and other cost
increases are being analyzed on a regular basis and we will need to
compensate by future price increases. Net sales for the quarter
amounted to SEK 1,064 m (1,043) and the operating income was SEK 136
m (146).

The acquisition of 60% of the shares in Terinex Siam is now complete
and, as from August, the company is consolidated in Duni's accounts.
Terinex Siam is a market leading manufacturer and supplier of napkins
and single-use products for food in Thailand. The company has
historically achieved an annual growth of approximately 5%.
Operations are now integrated in Duni's New Markets business area and
coordination is initially taking place in areas such as production,
purchasing and sales. With Terinex Siam, Duni gets its first
production site outside Europe and this creates additional
opportunities for New Markets expansion in Southeast Asia. Several
initiatives have now been put in place to increase sales on adjacent
export markets; this will primarily take place through Duni's
developed sales structure.

Capacity utilization at our plants has been satisfactory during the
quarter. The upgrading of the tissue machinery at our paper mill is
complete and fine tuning is proceeding according to plan. It is
estimated that the full operational effect on both production lines
will be seen from the first quarter of 2017.

The Table Top business area reported net sales of SEK 579 m (578) and
operating income of SEK 97 m (109). The lower operating income is
attributable to the UK and the weaker pound sterling. On other
markets, we see improvements throughout, with Central Europe having
stabilized and southern Europe demonstrating continued solid growth.

The Meal Service business area grew by 8% during the quarter. Net
sales reached SEK 167 m (155) and the operating income was SEK 13 m
(10). We are now increasing our investments on a number of markets
with the aim of securing the high rate of growth. Investments are
being made in the sales team and for an increased product range
renewal rate.

The Consumer business area achieved net sales of SEK 247 m (245), on
par with last year. The adverse effects of the loss of certain
contracts in 2015 have thereby diminished. Operating income declined
to SEK 18 m (21) due to somewhat weaker capacity utilization and
lower margins in the UK.

The New Markets business area increased its sales to SEK 59 m (53) and
operating income to SEK 7 m (4). The improvements are wholly due to
the acquisition of Terinex Siam. The Middle East and Russia are
suffering from political instability and are experiencing weaker
market demand.

The cash flow in the quarter was stable but net debt was SEK 115 m
higher than on the corresponding date last year. This was due to the
acquisition of Terinex Siam and the final payment for Duni Song Seng,
which was acquired in 2013. Capacity utilization at our plants
increases seasonally towards the end of the quarter and we now look
forward to large-scale deliveries of the important Christmas
collection," says Thomas Gustafsson, President and CEO, Duni.

Additional information is provided by:
Thomas Gustafsson, President and CEO, +46 40 10 62 00
Mats Lindroth, CFO, +46 40 10 62 00
Helena Haglund, Group Accounting Manager, 0734-19 63 04

Duni is a leading supplier of attractive and convenient products for
table setting and take-away. The Duni brand is sold in more than 40
markets and enjoys a number one position in Central and Northern
Europe. Duni has some 2,200 employees in 19 countries, headquarters
in Malmö and production units in Sweden, Germany, Poland and
Thailand. Duni is listed on NASDAQ Stockholm under the ticker name
"DUNI". ISIN-code is SE 0000616716.

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 7.45 CET on October 21, 2016.

-----------------------------------------------------------
http://news.cision.com/duni-ab/r/interim-report-for-duni-ab--publ--1-jan...
http://mb.cision.com/Main/295/2105762/578124.pdf

Författare WKR

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.