In This Article:
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Net Sales: Increased by 4.4% to SEK2,057 million.
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Operating Income: Decreased to SEK178 million from SEK191 million.
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Operating Margin: 8.7% compared to 9.7% last year.
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Dining Solutions Sales: SEK1.2 billion, largely in line with the previous year.
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Dining Solutions Operating Margin: 12.6%.
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Food Packaging Solutions Sales Increase: 12% on comparable exchange rates.
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Food Packaging Solutions Profit: SEK26 million with a margin of 3.1%.
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Operating Cash Flow: Close to SEK500 million for the year, with nearly SEK300 million generated in Q4 alone.
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CapEx: Slightly exceeding SEK200 million for 2024.
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Net Debt: Remains at low levels despite acquisitions and dividends.
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Return on Capital Employed: 25%, slightly lower than 32% a year ago.
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Organic Growth: 4.9%.
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Proposed Dividend: $0.05 per share.
Release Date: February 11, 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 the highest quarterly sales in the company's history, with net sales increasing by 4.4% to SEK2,057 million.
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The acquisition of UK converter Poppies significantly strengthens Duni AB's presence in the UK and Ireland, making it their second-largest market after Germany.
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The company has a low net debt and maintains a strong financial position, providing flexibility for future investments and acquisitions.
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Duni AB's sustainability initiatives are progressing well, with a 62% reduction in emissions compared to the 2019 base year and recognition on Time's list for the world's best companies in sustainable growth.
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The food packaging solutions segment recorded a 12% sales increase, driven by acquisitions and strong organic growth in Australia.
Negative Points
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Operating income decreased to SEK178 million from SEK191 million, resulting in a lower operating margin of 8.7% compared to 9.7% last year.
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The German market remains weak, impacting sales in the dining solutions segment, which saw a slight organic decline.
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High costs for power, freight, and storage continue to affect profitability, with inflation and rising salary costs adding further pressure.
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The food packaging solutions segment faces intense competition and regulatory challenges in Europe, impacting growth and profitability.
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Inventory levels are higher than desired, particularly in the food packaging segment outside Europe, contributing to increased storage costs.
Q & A Highlights
Q: Could you provide insights into the volume growth for Dining Solutions in Q4, given the operating margin of roughly 13%? A: Magnus Carlsson, CFO, explained that the slight decline in organic growth was mainly due to volume, with minimal price effect. Improvements were noted in the Horeca segment, which returned to flat levels compared to previous quarters.