Currency and calendar effects impact profit
1 January – 31 March
- Net sales for continuing operations amounted to SEK 959 m (985). Adjusted for exchange rate changes, net sales decreased by 1.6%.
- Accelerated rate of growth within the Meal Service business area, whereas Table Top and Consumer experienced weak growth in Central Europe.
- Earnings per share, for continuing operations, after dilution amounted to SEK 1.16 (1.50).
Key financials 1)
|SEK m||3 months|
|Net sales||959||985||4 174||4 200|
|Operating income 2)||87||107||507||528|
|Operating margin 2)||9.0%||10.9%||12.1%||12.6%|
|Income after financial items||74||95||438||459|
1) For continuing operations.
2) For bridge to EBIT, see the section entitled “Operating income - Non-recurring items”.
“Sales for the quarter were lower than last year, primarily due to an unfavorable calendar effect, negative currency effects as well as lower sales within the Consumer business area. Sales in other business areas were on par with, or exceeded, last year. Compared with the first quarter of 2015, income was adversely affected by under-absorption at our plants due to, amongst other things, ongoing investment in production capacity at the paper mill, which resulted in an additional couple of days’ downtime. Sales for the period amounted to SEK 959 m (985) and operating income declined to SEK 87 m (107).
Sales for the quarter in the Table Top business area were 1.9% lower relative to last year. Taking into account the calendar effect and the somewhat stronger Swedish krona, income reached the same level as last year. The strong sales trend in Southern and Eastern Europe is continuing, at the same time as we are witnessing somewhat lower sales of table covering products in Central Europe. Sales in the quarter declined to SEK 503 m (513) and operating income was SEK 60 m (78).
The Meal Service business area continues to outperform the market in terms of growth and we are currently witnessing relatively high growth in Central Europe, particularly in Germany. Growth in the business area is based on a consistent focus on customized and environmentally conscious product solutions. Sales in the quarter reached SEK 148 m (136) and operating income was SEK 3 m (2).
In the Consumer business area, the quarter was adversely affected by the expiry of several major contracts in 2015. At the same time, sales promotion activities have expanded in new, more profitable channels which we believe will bear fruit during the remainder of the year. Sales amounted to SEK 248 m (276) and operating income was SEK 19 m (24).
The New Markets business area continues to grow on all markets except Russia. Growth on prioritized markets continues to exceed 10% and interest in Duni’s products is increasing in South-East Asia, the Middle East and South America. Sales for the quarter amounted to SEK 47 m (47) and operating income was SEK 4 m (3).
Following a series of quarters of year-on-year higher earnings, such improvement has not been attained during Q1 2016. Nevertheless, it should be kept in mind that earnings for Q1 2016 are still second strongest relative to all first quarters since Duni’s IPO in autumn 2007. Since the weaker result is largely attributable to currency movements and calendar effects in production and sales, we remain convinced that 2016 will be an exciting and successful year,” says Thomas Gustafsson, President and CEO, Duni.
Duni is a leading supplier of innovative table-setting concepts and packaging solutions.
Our brand is built on the belief that every meal represents a golden opportunity for people to enjoy each other's. That is why we have made it our business to bring goodfoodmood to where people meet and eat.
Our products are found in over 40 markets and enjoy a number one position in Central and Northern Europe. We have about 2,100 employees in 18 countries. Our headquarters are in Malmö and our production units are in Sweden, Germany and Poland. The company is listed on the NASDAQ Stockholm.