Year-end report January 1 – December 31, 2022

Strengthened result under continued cost pressure

October 1 - December 31

• Net sales amounted to SEK 1,974 m (1,552), corresponding to a 27.2% increase in sales. At fixed exchange rates, this corresponds to a 19.0% increase.
• Operating income amounted to SEK 153 m (110).
• Strong growth compared to the previous year, although continued cost increases are putting pressure on the operating margin.
• Strengthened balance sheet following divestment of 25% of the shares in the Australian company BioPak Pty Ltd.

January 1 – December 31

• Net sales amounted to SEK 6,976 m (5,061), corresponding to a 37.8% increase in sales. At fixed exchange rates, this corresponds to a 30.9% increase.
• Operating income amounted to SEK 450 m (279), an improvement of more than 60%, primarily attributable to a strong recovery of the HoReCa market.
• The Board of Directors proposes a dividend of SEK 3,00 (0) per share, to be split into two payments.

 

 

KEY FINANCIALS

SEK m	3 months Oct-Dec 2022	3 months Oct-Dec2021	12 months Jan-Dec2022	12 months Jan-Dec 2021
Net sales	1,974	1,552	6,976	5,061
Organic growth	19.1%	31.5%	30.9%	14.4%
Operating income 1)	153	110	450	279
Operating margin 1)	7.8%	7.1%	6.4%	5.5%
EBIT	100	51	326	173
EBIT margin	5.1%	3.3%	4.7%	3.4%
Income after financial items	91	43	283	133
Income after tax	59	9	201	77
Earnings per share attributable to equity holders of the Parent Company	1.28	0.18	4.25	1.62
Return on capital employed, excluding goodwill	16.6%	14.4%	16.6%	14.4%

¹⁾ For reconciliation of alternative key financials, definition of key financials and glossary, see pages 32-34.


A strong ending of the year

Demand in the HoReCa market made a satisfactory recovery during the year, and it became clear that restaurant visits were being prioritized again once this was possible. The year was also characterized by a sharp rise in inflation, which resulted in a number of necessary price increases. The company’s long-term ambition to the industry’s sustainability leader is a key part of the overall strategy. Several new initiatives, concerning both materials and business models, were initiated and confirmed the strategy of always providing “the most sustainable solution for every consumption occasion”. Broader solutions increase our relevance and we become better equipped for new requirements and consumption patterns.  

Positive trend in sales and income

Both business areas showed growth during the quarter, with sales growth totaling 27% compared to the same period last year. At fixed exchange rates, the increase corresponds to 19%. It is good to see that our main markets, Germany and Australia, continued to grow faster than the company’s overall growth level.

The Group’s operating income for the fourth quarter increased by 40% compared to the same period last year. The operating margin for the quarter was 7.8% (7.1%). The increase was mainly driven by stronger demand, but also by price adjustments. The adjustments implemented during the second half of 2022 are expected to take effect during the first quarter of 2023. Given the current global situation, we believe that not only input materials and logistics services, but also energy prices will be compensated during the coming quarter. Ongoing work on cost compensation is also expected to be a feature of the year to come.

In December 2022, 25% of the shares in BioPak Pty Ltd were divested to the Australia-based private equity firm Five V Capital. Duni Group retains 55% of the shares. The purpose of the transaction is to accelerate the expansion of the business both inside and outside of Australia, while at the same time we have a strengthened balance sheet. The transaction resulted in total restructuring costs of SEK 34 m for the quarter, which is included in EBIT.

Progress in sustainable innovations

During the year, the Group made strong progress in its long-term investments in sustainability and circularity. The company has a goal to have a fully circular product range by 2030 and is investing in existing startups such as Relevo and Bûmerang, as well as in-house developed solutions that will be tested in the coming year. The Group will continue to work with new strategic partnerships to secure its long-term position as the most sustainable alternative for the consumer market in hotels, restaurants and cafés.

After the end of the year, we confirmed our Gold status from EcoVadis in January. We improved our ranking to 73 points of 100 possible, which puts us among the best three per cent in our industry. This strengthens and deepens our dialog with stakeholders in the HoReCa market who want a speaking partner for both sustainable reuse and single-use solutions.

Together we succeded

The Duni Group’s performance during the year showed the strength of the organization. Despite many challenges early in the year, we delivered strong results in 2022, thanks to substantial performance from employees and the trust from our customers.

Robert Dackeskog, President and CEO, Duni Group.

 

For more information, please contact:
Robert Dackeskog, President and CEO, +46 (0)40 10 62 00
Magnus Carlsson, CFO, +46 (0)40 10 62 00
Helena Haglund, Group Accounting Manager, +46 (0)734 19 63 04

Duni AB (publ)
Box 237
SE-201 22 Malmö
Phone: +46 (0)40 10 62 00

www.dunigroup.com
Company registration number: 556536-7488

The Duni Group is a market leader in attractive, environmentally sound and functional products for table setting and take-away. The Group markets and sells two brands, Duni and BioPak, which are represented in more than 40 markets. Duni has around 2,200 employees in 21 countries, its headquarters in Malmö and production units in Sweden, Germany, Poland, New Zealand and Thailand. Duni is listed on the NASDAQ Stockholm under the ticker name “DUNI”. Its ISIN code is SE0000616716. This information is information that Duni AB is obligated to make public pursuant to the EU Market Abuse Regulation. The information was provided, through the contact person, for publication on February 14, 2023 at 07:45 CET.