Interim Report for Duni AB (publ) 1 January - 30 June 2008

Interim Report for Duni AB (publ) 1 January - 30 June 2008

Improved operating margin from 8.0% to 8.9% and continued increase in sales

1 January - 30 June 2008
• Net sales increased by 4.6% to SEK 1,981 m (1,894).
• Income after tax for the continuing operations amounted to SEK 102 m (3).
• Earnings per share for the continuing operations amounted, after dilution, to
SEK 2.17 (0.06).  
• Operating income increased by 16.6% to SEK 176 m (151).
• Operating margin increased to 8.9% from 8.0%.
• Income after financial items amounted to SEK 140 m (31).
• Continued stable growth within the Professional business area with operating
margin rising from 11.0% to 11.8%.

1 April - 30 June 2008 
• Net sales increased by 4.2% to SEK 1,012 m (971).   
• Income after tax for the continuing operations amounted to SEK 57 m (34).  
• Earnings per share for the continuing operations amounted, after dilution, to
SEK 1.21 (0.72).  
• Operating income increased by 23.3 % to SEK 90 m (73). 

CEO's comments"During the second quarter of the year, first and foremost our largest business
area, Professional, has continued to develop positively with a sales increase of
6.2%. For the Group as a whole, sales increased by 4.2%, primarily driven by an
improved mix combined with implemented price increases. 

Sales growth was strongest in Southern and Eastern Europe and in Benelux.
Continued good development could be noted in Germany for both the Professional
and Retail business areas. Also in the Nordic region both business areas
reported increased sales and improved profitability, primarily due to a better
product mix and price increases. Within the Professional business area, we also
benefit from strong growth within the take-away range, where we have noted
continued strong growth figures. 

Sales for the Retail and Tissue business areas were relatively unchanged during
the second quarter compared with last year. As regards Retail, this is in line
with what has been communicated previously, i.e. that profitability is
prioritised over increased sales. For Tissue, it concerns a small number of
large customers where deliveries can vary somewhat between quarters. In
addition, we benefited from some extra volumes to certain destinations at the
beginning of the year, with final deliveries having taken place in May. 

Overall, there has been strong income growth during the quarter, to the largest
extent within the Professional business area. The gross margin continued to
strengthen, mainly as a consequence of increased sales of premium products such
as Duniletto® and Elegance, and we succeeded in compensating for increased raw
materials cost by carrying out our own price increases. 
Looking forward, it can be noted that the macro economic trend has taken a more
negative direction than was the case earlier in the year. For example, in the UK
and Spain there are signs of an economic slowdown; however, Duni is not so
exposed to these markets and is continuing to gain market shares there. The
overall picture for Duni shows a generally healthy demand within our market
segments, even if the uncertainty regarding the market development during fall
has increased due to the general economic outlook. As the market leader and with
the effective operating platform put in place we feel well equipped in the event
decreased disposable income should lead to a weakening on our markets", says
Duni's CEO, Fredrik von Oelreich. 

Fredrik von Oelreich, President and CEO, Tel.: +46 40 10 62 00
Johan L. Malmqvist, CFO, Tel.: +46 40 10 62 00
Fredrik Wahrolén, Marketing and Communications Manager, Tel.:+46 734 19 62 07


Duni is a leading supplier of attractive and convenient products for table
setting and takeaway. The Duni brand is sold in more than 40 markets and enjoys
a number one position in Central and Northern Europe. Duni has some 2,000
employees in 17 countries, headquarters in Malmö and production units in Sweden,
Germany and Poland. Duni is listed on OMX Nordic Exchange Stockholm under the
ticker name "DUNI". ISIN-code is SE 0000616716.