Interim Report for Duni AB (publ) 1 January - 30 September 2011
Stable development and strong cash flow
1 January - 30 September 2011
· Net sales amounted to SEK 2,744 m (2,873). Adjusted for exchange
rate changes, net sales decreased by 0.4%.
· Earnings per share amounted, after dilution, to SEK 3.46 (4.02).
1 July - 30 September 2011
· Net sales amounted to SEK 917 m (943). Adjusted for exchange rate
changes, net sales decreased by 1.6%.
· Earnings per share amounted, after dilution, to SEK 1.34 (1.54).
· Continued sales increase within Professional.
Key financials
9 9 3
3 12 12 months
months months
months July-September months July-September months
January-December
January-September January-September
October-September
SEK m 2011 2010 2011
2010 10/11 2010
Net sales 2 744 2 873 917
943 3 842 3 971
Operating income 1) 253 272 98
103 416 435
Operating margin 1) 9.2% 9.5%
10.7% 11.0% 10.8% 10,9%
Income after financial items 224 255 90
99 387 418
Net income 163 189 63
72 280 306
1) Underlying operating income; for link to reported operating income,
see the section entitled "Non-recurring items".
CEO's comments
"Duni's sales at fixed exchange rates fell by 1.6% during the third
quarter. This is attributable entirely to weak sales growth within
Retail and Tissue. As regards Retail, this is due to the impact
following the loss of most of the business with a major private label
customer. Within Tissue, sales to the hygiene products sector weakened,
while internal deliveries increased somewhat. Thanks to satisfactory
capacity utilization combined with higher productivity, Tissue is
reporting an improvement in income for the quarter.
In the Professional business area, sales increased by 3.7% at fixed
exchange rates, equal to a volume increase of approximately 1%. Sales on
certain mature main markets were somewhat weaker than in the second
quarter, but it is too early to draw any conclusions as to whether this
is due to a generally weaker market or a phasing of orders. The focus on
prioritized markets in eastern and southern Europe is creating continued
solid growth, but increased sales and marketing expenses are affecting
income.
In the quarter, Duni achieved an operating income of SEK 98 m and a
stable operating margin of 10.7%. The SEK 5 m reduction in income was
largely a consequence of weaker sales within Retail and the investments
which are being made within Professional.
Cash flow has developed positively compared with last year, thanks to
stable profitability combined with sound control of working capital. The
capital expenditure level has been high, primarily due to investments in
new technology for the production of new materials which, according to
plan, are to be launched during the first quarter 2012.
We are now entering Duni's seasonally strongest quarter. The price
increases that were gradually implemented during the third quarter are
expected to have full impact in the fourth quarter. However, uncertainty
concerning market conditions has increased since the summer. In the
current situation, it is a question of carefully monitoring developments
and being ready to take measures in the event we perceive a clear
downturn in demand," says Fredrik von Oelreich, President and CEO, Duni.
Additional information is provided by:
Fredrik von Oelreich, President and CEO, +46 40 10 62 00
Mats Lindroth, CFO, +46 40 10 62 00
Helena Haglund, Group Accounting Manager, +46 734 19 63 04
Interim Report for Duni AB (publ) 1 January - 30 September 2011
| Source: DUNI AB
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