Year-End Report for Duni AB (publ) 1 January - 31 December 2016

BOX, Sweden, Feb 10, 2017 /PRNewswire/ --

Growth within Table Top business area

1 October – 31 December

• Net sales amounted to SEK 1,234 m (1,170). Adjusted for exchange rate movements, net sales increased by 3.6%.
• Earnings per share, for continuing operations, after dilution amounted to SEK 2.41 (2.32).
• Table Top business area demonstrates continued growth.

• A strong US dollar is pushing up raw material prices.

1 January – 31 December

• Net sales amounted to SEK 4,271 m (4,200). Adjusted for exchange rate movements, net sales increased by 2.0%.
• Earnings per share, for continuing operations, after dilution amounted to SEK 7.06 (7.37).
• The acquired company Terinex Siam is consolidated in Duni as from August 2016.
• Net debt is higher than last year due to acquisition and increased investments.
• The Board of Directors proposes a dividend of SEK 5.00 (5.00) per share.

Key financials 1)

1) For continuing operations.
2) For bridge to EBIT, see the section entitled "Operating income - Non-recurring items".

CEO's comments

"Sales in the fourth quarter amounted to SEK 1,234 m (1,170) and it is pleasing that all business areas reported an increase in sales. The acquisition of Terinex Siam has lifted New Markets, and we are witnessing a gradually improved sales trend in Table Top. Operating income amounted to SEK 171 m (171) and, just as in the previous quarter, the weaker margin is primarily due to the weakness of the pound sterling. Net profit after tax increased to SEK 113 m (109).

Net debt at the end of the year amounted to SEK 757 m. This represents an increase of approximately SEK 180 m compared with last year and is due to the acquisition of Terinex Siam and an increased level of investments. SEK 10 m (10) has been taken in restructuring costs for the outstanding part of the program that was initiated in 2015. These costs have related primarily to organizational changes in Germany and the Nordic region.

One of the most important priorities during the year has been to strengthen growth in the Table Top business area. For some time, growth in Central Europe and the Nordic region in particular has been adversely affected by lower demand for table coverings and a weaker trend in the Cash & Carry sales channel. During the year, a number of measures have been implemented and we see a positive shift in the previously declining trend during the last two quarters.

Our sites are meeting their production targets and throughout we have experienced a positive trend during the quarter. The previously announced investment to expand capacity in Rexcell (the paper mill in Skåpafors) has been completed and the ongoing installation work has been carried out without any significant disruptions.

The Table Top business area grew by 5.5% in the quarter, with sales reaching SEK 645 m (612). With the exception of the Nordic region, all sales regions reported a growth in sales compared to last year, with the strongest growth being visible in southern Europe where double-digit growth was achieved. Operating income increased to SEK 125 m (118), while the somewhat weaker operating margin is mainly due to the weaker pound sterling.

The Meal Service business area reported lower growth than the previous quarters, amounting to 3% when adjusted for currency effects. The fourth quarter of last year was very strong as demand for Duni's products increased due to the large inflow of refugees, particularly in Germany. Apart from the Nordic region, all regions demonstrated a continued stable increase in sales. Due to ongoing sales investments, operating income was lower at SEK 6 m (8).

The Consumer business area achieved sales of SEK 331 m (330). Operating income declined to SEK 28 m (40) due to lower production efficiency, increased inventory write-downs and a weaker customer mix than last year. Measures are now being implemented aimed at strengthening the business area's long-term efficiency and product offering.

The New Markets business area increased its sales to SEK 73 m (52), where growth is driven by the acquisition of Terinex Siam as well as an improved trend in Russia. The integration of Terinex Siam is proceeding according to plan and current measures are focused on improved production efficiency as well as a stronger presence in neighbouring markets, such as Southeast Asia and Australia. Operating income increased to SEK 10 m (4) and the operating margin strengthened to 13.7% (7.9%).

A number of important projects were initiated and completed during 2016. The acquisition of Terinex Siam strengthens our product offering and thereby our competitiveness on the South East Asian market. The investment to increase capacity in Rexcell is improving the cost efficiency of our tissue material, while measures implemented in the largest business area, Table Top, are expected to contribute to an improved sales trend. After three years of increases in income, we note that our Group operating profit for the full year is below last year's level. This downturn is mainly due to the weaker pound sterling, but we have also been affected by relatively weak sales at the beginning of the year", says Thomas Gustafsson, President and CEO, Duni.

Additional information is provided by:

Thomas Gustafsson,
President and CEO,
Tel: +46 40-10-62-00

Mats Lindroth,
CFO,
Tel: +46 40-10-62-00

Helena Haglund,
Group Accounting Manager,
Tel: +46 734-19-63-04

Duni AB (publ)
Box 237
201 22 Malmö
Tel.: +46 40-10-62-00
www.duni.com
Registration no: 556536-7488

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 2,200 employees in 19 countries, headquarters in Malmö and production units in Sweden, Germany, Poland and Thailand. Duni is listed on NASDAQ Stockholm under the ticker name "DUNI". ISIN-code is SE 0000616716.

This information is information that Duni AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 7.45 CET on February 10, 2017.

This information was brought to you by Cision http://news.cision.com
http://news.cision.com/duni-ab/r/year-end-report-for-duni-ab--publ--1-january---31-december-2016,c2184965

The following files are available for download:

Related Links

http://www.duni.com

SOURCE Duni AB