In This Article:
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Revenue: Net sales increased by SEK 128 million to SEK 1.863 billion, a growth of 7.7% at fixed exchange rates.
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Operating Income: Decreased from SEK 140 million to SEK 110 million, with a margin of 5.9% compared to 8.1% last year.
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Currency Effects: Negative impact of SEK 25 million due to the strengthening of the Swedish krona against the Euro.
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Dining Solutions Sales: Increased to SEK 1.1 billion, with an operating income of SEK 102 million and a margin of 9.1%.
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Food Packaging Solutions Sales: Increased by 6% to SEK 745 million, but profit dropped to SEK 7 million, resulting in a 1% margin.
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Net Income: Declined from SEK 83 million to SEK 63 million.
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Inventory Levels: High inventory levels in Australia burdened income by approximately SEK 20 million.
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Dividend Proposal: SEK 5 per share, corresponding to 66% of net income adjusted for restructuring costs.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Duni AB (FRA:2DU) achieved growth of almost 8% in Q1 2025 despite weak demand in the European market.
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Both acquisitions and organic growth contributed positively to the company's development in the first quarter.
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The company maintained a strong financial position even after the acquisition of Poppies.
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Duni AB (FRA:2DU) initiated a transformation of its sales and marketing organization to improve efficiency and strengthen customer focus.
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There is strong momentum outside of Europe, with continued growth in premium napkins, LED lighting, and sustainable product offerings like Bio Dunisoft.
Negative Points
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Operating income was negatively impacted by currency effects, with a SEK 25 million difference due to the strengthening of the Swedish krona against the Euro.
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The European Food Service market remains down compared to pre-COVID levels, affecting consumer confidence and spending.
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The Food Packaging Solutions segment saw a significant drop in profit due to high inventory levels and lower volumes in the European takeaway segment.
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The company faces intense competition and a dynamic regulatory landscape related to packaging, sustainability, and waste management.
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Operating margin decreased to 5.9% from 8.1% last year, with a notable decline in net income from SEK 83 million to SEK 63 million.
Q & A Highlights
Q: Can you elaborate on the main factors impacting Duni AB's operating income this quarter? A: Robert Dackeskog, President and CEO, explained that the operating income was significantly impacted by negative currency effects, particularly due to the strengthening of the Swedish krona against the Euro. This resulted in a SEK 25 million negative currency effect, which was a major contributor to the SEK 30 million decline in operating income compared to the previous year.