In This Article:
-
Net Sales: 1.9 billion, representing a 1.3% decline compared to last year.
-
Organic Growth: -5%.
-
Operating Income: 151 million, with an operating margin of 7.9%.
-
Dining Solutions Sales: Decreased by 87 million, a 7.7% drop.
-
Dining Solutions Operating Income: Declined to 125 million, with a margin of 11.3%.
-
Food Packaging Solutions Sales: Increased by 9%, primarily driven by acquisitions.
-
Food Packaging Solutions Profit: Decreased to 27 million from 55 million last year.
-
Gross Margin: 23.7% excluding restructuring costs.
-
Operating Cash Flow: 238 million year-to-date, 626 million over the last 12 months.
-
Net Debt: Reduced, close to one versus EBITDA.
-
Dividend: Set to SEK 5, exceeding the target of distributing more than 40% of net income.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Duni AB (FRA:2DU) reported its second-best third quarter in the company's history, demonstrating strong financial performance despite challenging market conditions.
-
The company maintained a low net debt and strong financial position, providing a solid foundation for future investments and growth.
-
Duni AB (FRA:2DU) successfully acquired the Slovenian company Seti, enhancing its market presence in Southeast Europe.
-
A strategic partnership with CEVA Logistics was announced to modernize and consolidate logistics operations in Germany, which is expected to improve efficiency and reduce CO2 emissions.
-
The company continues to invest in sustainability initiatives, including collaborations for plastic-free food packaging and energy-efficient improvements in its paper mills.
Negative Points
-
The HoReCa market, particularly in Germany, is experiencing a decline, with consumer visits and demand remaining below pre-pandemic levels.
-
Duni AB (FRA:2DU) reported a 1.3% decline in total sales for the quarter, with organic growth at minus 5%, reflecting weaker consumer purchasing power.
-
Operating income and margins were impacted by lower sales volumes and increased costs of raw materials and sea freight.
-
The dining solutions segment saw a 7.7% drop in sales, partly due to price reductions in the competitive retail segment.
-
High storage costs and inventory levels, particularly in the APAC region, have negatively affected profitability in the food packaging solutions segment.
Q & A Highlights
Q: Can you provide an overview of Duni AB's financial performance for Q3 2024? A: Robert Dackeskog, President and CEO, highlighted that Duni AB had a strong quarter, achieving the second-best third quarter in the company's history. The group net sales amounted to 1.9 billion, representing a 1.3% decline in fixed currencies, with organic growth at minus 5%. The operating margin was 7.9%, impacted by lower sales volumes and higher costs of raw materials and sea freight.