BOX, Sweden--(BUSINESS WIRE)--Regulatory News:
1 October – 31 December 2015
- Net sales amounted to SEK 1,170 m (1,134). Adjusted for exchange rate changes, net sales increased by 1.0%.
- Earnings per share, for continuing operations, after dilution amounted to SEK 2.32 (2.23).
- The operating margin continues to strengthen, reaching 14.6% (14.5%) in the quarter.
- Stable core business with expanding Meal Service.
1 January – 31 December 2015
- Net sales amounted to SEK 4,200 m (3,870). Adjusted for exchange rate changes, net sales increased by 4.4%.
- Earnings per share, for continuing operations, after dilution amounted to SEK 7.37 (6.42).
- Cash flow remains strong and net debt decreased significantly in 2015.
- Decision to invest SEK 110 m in upgrading two of the paper machines in Skåpafors in order to increase capacity.
- Hygiene production in Skåpafors has now been closed down and the hygiene business, as well as the restructuring work within the business area Materials & Services, are reported as discontinued operations.
- The Board proposes a dividend of SEK 5.00 (4.50) per share.
“Sales increased during the fourth quarter, albeit at a slower pace than seen in the preceding quarters. Sales in the quarter for Table Top and Consumer were affected by a weaker trend in Central Europe and the Nordic region together with, among other things, lower Christmas sales. At the same time, Meal Service benefited from the stable demand we are witnessing in the rest of Europe and in the take-away and catering segment. Sales for the period in the continuing operations amounted to SEK 1,170 m (1,134) and operating income was SEK 171 m (164). The operating margin continues to strengthen, reaching 14.6% (14.5%) during the quarter.
For the financial year as a whole, sales in the continuing operations increased by 8.5%, to SEK 4,200 m (3,870). Adjusted for exchange rate changes, sales increased by 4.4%. Operating income increased to SEK 528 m (452) and the operating margin strengthened to 12.6% (11.7%). In addition, the balance sheet was strengthened and net debt relative to income before amortization/depreciation is once again at the same level as at the end of 2013, i.e. prior to the acquisition of Paper+Design.
The part of the Rexcell restructuring program involving concentration of continuing production at the mill in Skåpafors was completed during the quarter. Production in Dals Långed was discontinued in October, and the plant was placed in mothballs. Despite a high level of activity, the restructuring has been implemented without any significant impact on the day-to-day operations. Installation work at the paper mill, with the previously announced investment to increase capacity, is proceeding according to plan and is expected to be completed during the latter part of 2016.
The Table Top business area increased its sales in the quarter by 1%, due entirely to positive currency effects. The growth we witnessed in western and southern Europe could not fully compensate for somewhat weaker sales in Central Europe and the Nordic region. Growth regeneration in Central Europe and the Nordic region has top priority and, accordingly, a change in the business area’s management was carried out during the quarter. Table Top’s sales in the quarter increased to SEK 612 m (604), but operating income weakened to SEK 118 m (126).
The Meal Service business area is continuing to develop strongly; the business area reaches a growth of almost 13% in the quarter. Continued high market demand in our prioritized segments, and successful product launchings, are strengthening our position as an innovative player. Sales amounted to SEK 162 m (144) and operating income increased to SEK 8 m (6).
The Consumer business area increased its sales by 2.4% during the quarter and similar to Table Top, growth was generated by positive currency effects. Paper+Design, which was acquired in 2014, had a strong quarter in terms of sales, whereas sales in Norway were adversely affected by the loss of a major customer and by weaker demand in Central Europe. Sales in the quarter amounted to SEK 330 m (322) and operating income increased to SEK 40 m (32).
The New Markets business area experiences a positive trend, with the exception of Russia where demand continues to shrink. Southeast Asia grew during the quarter and we experienced continued strong growth on our other export markets. Sales in the quarter amounted to SEK 52 m (54) and operating income increased to SEK 4 m (0).
Our operating income for the year as a whole increased by 17%, at the same time as a number of important structural projects were successfully concluded. We have continued to invest in delivery service and our customer satisfaction rate increased during the year. All things considered, we are convinced that we can look forward to an exciting and successful 2016,” says Thomas Gustafsson, President and CEO, Duni.
Duni is a leading supplier of attractive and convenient products for table setting and take-away. The Duni brand is sold in more than 40 markets and enjoys a number one position in Central and Northern Europe. Duni has some 2,100 employees in 18 countries, headquarters in Malmö and production units in Sweden, Germany and Poland. Duni is listed on NASDAQ Stockholm under the ticker name “DUNI”. ISIN-code is SE 0000616716.
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