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Duni 2Q 2021 Results: Net Sales Up 37.1 Percent From Year Ago to SEK 1.1 billion
JANUARY 1–JUNE 30
CEO'S COMMENT The easing of restrictions for restaurants, primarily as from June, is contributing to the group’s strong recovery during the quarter. EUROPE IS OPENING UP The second quarter saw a gradual easing of restrictions in our main markets. This has resulted in increased guest flows and hours of opening for restaurants, even though continued restrictions on serving indoors have had a moderate effect. The easing of restrictions is contributing to the Group’s recovery during the quarter. Looking ahead there are still uncertainty about the long-term effects of the pandemic with regards to, among other things, business travel, events, and catering, as well as other market conditions.
Group sales amounted to SEK 1,124 m (820). At fixed exchange rates, this corresponds to a sales increase of 41.3 percent. Eased restrictions have had a positive impact on the Duni business area, which has grown by 41.4 percent compared with the previous year. The BioPak business area increased its sales by 41.1 percent in relation to the previous year. The higher sales figure combined with government support has a direct impact on operating income, which amounted to SEK 58 m (-92) for the quarter. Government support for fixed costs of SEK 46 m was reported during the quarter for the German companies. This relates to the period from November 2020 until March 2021. An application for the period from April to June 2021 will be submitted, although this is expected to have a much lower impact, as the negative effect of the pandemic on the Group has been reduced during the quarter. COST PRESSURE ON RAW MATERIALS AND SEA FREIGHT The shortage of container capacity from Asia has increased, causing extended delivery times and significant increases in freight costs for containers. We continue to work to mitigate these by maintaining a strict cost focus, but also through price adjustments, which were announced during the quarter. But there is, as always, some delay when compensating for cost increases in the short term. PARTNERSHIPS FOR SUSTAINABLE SOLUTIONS AND CIRCULARITY The group’s goals are to offer the most sustainable packaging solutions for all consumption occasions and to contribute to a sustainable future through partnerships and innovation. Important steps towards full circularity are the recently announced partnership agreement with & Repeat and a minority acquisition and partnership with German company Relevo GmbH. Furthermore, the Duni business area, through its own innovation and partnership with OrganoClick AB, has launched new, fossil-free product materials for premium napkins and table covers. This supplements the most recent innovation with fiber-based external packaging for napkins, which was communicated during the first quarter. After a long time spent in a tough market situation, we are optimistic about the months ahead, with eased restrictions and an increased vaccination rate creating the conditions for a return to a more normal existence, says Robert Dackeskog, president and CEO, Duni Group. The Duni Group is a market leader in attractive, eco-conscious and functional products for table setting and takeaway. 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 24 countries, its headquarters in Malmö and production units in Sweden, Germany, Poland, New Zealand and Thailand. Duni is listed on the NASDAQ Stockholm. |
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