Growth despite subdued demand and negative currency effects

January 1 - March 31

• Net sales amounted to SEK 1,863 m (1,736), corresponding to a 7.4% increase in sales. Adjusted for exchange rate movements, net sales increased by 7.7%, wherof 1.5% organic.
• Operating income amounted to SEK 110 m (140), impacted by currency effects of SEK -15 m, compared with SEK +10 m in the first quarter of 2024, a difference of SEK 25 m compared to pre- vious year's quarter.
• Earnings per share attributable to equity holders of the Parent Company amounted to SEK 1.35 (1.66).
• The acquisition of the UK converting company Poppies Europe, with annual net sales of approximately SEK 620 m, will be con- solidated in the Dining Solutions business area from February 1, 2025.
   

CEO summary 

Despite continued subdued demand in the European market, Duni Group reports healthy growth in sales in the first quarter. The positive trend was driven by both acqui- sitions and organic growth. However, operating income for the quarter was negatively affected by revaluation effects linked to a stronger Swedish krona. 

The first quarter was characterized primarily by growth, despite continued subdued demand in the European market. This is driven primarily by acquisitions but also organically from BioPak in Australia, while volumes are slightly lower in Europe. Net sales increased by SEK 128 m to SEK 1,863 m (1,736), which corresponds to growth of 7.7% at fixed exchange rates. 

The operating income is good given that the comparative quarter in 2024 was the strongest ever in the history of Duni Group. Our financial development has been gradually strengthened by efficiency improvements in production, continued focus on strategic purchasing as well as cost compensation measures. We can also see that our cost-saving measures in the European part of the Group are starting to pay off. Operating income amounted to SEK 110 m (140), corresponding to a margin of 5.9% (8.1%). The quarter was further affected by revaluation effects from the stronger Swedish krona, with currency effects of SEK -15 m in the quarter compared with SEK +10 m in the first quarter of 2024, a difference of SEK 25 m. We are also seeing an increase in costs in Food Packaging Solutions, linked to high inventory levels, which burdens the income figure by approximately SEK 20 m compared with the previous year. 

Dining Solutions - stability and award-winning innovation 
The Dining Solutions business area increased net sales by SEK 88 m to SEK 1,118 m - an increase of 8.2% at fixed exchange rates. Sales in Europe were stable, while the Asian market showed growth. Operating income amounted to SEK 102 m (109), affected by negative currency effects and an unfavorable product mix. 

We are delighted to welcome the newly acquired converting company Poppies to the Duni Group, and it is part of the business area from February. Together with the previously acquired company SETI, the companies contributed to the business area's positive income during the period. Another significant event was that we received the prestigious Best of Market award for the Bio Dunisoft range - a testament to our drive for innovation and focus on sustainability, and a clear sign that our efforts are making a difference. 

Food Packaging Solutions - focus on strategic initiative 
Food Packaging Solutions also achieved positive sales growth of SEK 40 m to SEK 745 m - corresponding to 6.9% at fixed exchange rates. Australia showed strong growth through BioPak, while the trend in the European market was weak. Operating income, which was negatively affected by mix effects and cost increases, amounted to SEK 7 m (30). The cost increase relates primarily to high inventory levels in the BioPak Group. 

In January, Duniform was relaunched with a dedicated organization, a new competence center and an enhanced market offering - a clear step in strengthening its position in the market. Later in the quarter, a collaboration was also initiated with an actor in the food delivery industry, with the aim of promoting sustainable packaging solutions and reducing food waste - a clear example of how we are positioning ourselves for the future in the area of sustainable and innovative packaging solutions. 

Dedicated sales and marketing team in each business area 
To strengthen our relevance in the market, we initiated a change in our sales and marketing organization during the quarter. By separate sales forces with specialist expertise within each business area, and also boosting our digital skills, we increase our ability to build strong customer relationships and adopt a more proactive approach in a changing market. 

Flexibility in a changing world 
The world around us is characterized by great uncertainty. Trade policy changes, such as US tariffs, are affecting our market - although the direct impact has so far been limited, as our sales exposure to the US market is low. In addition to trade policy, the regulatory landscape is also changing rapidly. New regulations, such as the PFAS ban and EUDR, place increased demands on flexibility and adaptability. We see an opportunity here to play a leading role and actively drive sustainable development. 

In these challenging conditions we have the advantage of our broad geographical presence where our independent business areas complement each other and help us become less vulnerable. This gives us a solid foundation on which to build. 

Robert Dackeskog, 
President and CEO,  
Duni Group