Interim Report for Duni AB (publ) 1 January – 30 September 2013

Growth and higher earnings in a strong third quarter
1 July – 30 September 2013

Net sales amounted to SEK 936 m (849). Adjusted for exchange rate changes, net
sales increased by 9.1%.

  · Earnings per share, after dilution, amounted to SEK 1.25 (1.01).
  · Higher earnings within all business areas.
  · Continued strong cash flow and a low net debt.

1 January – 30 September 2013

  · Net sales amounted to SEK 2,701 m (2,638). Adjusted for exchange rate
changes, net sales increased by 4.1%.
  · Earnings per share, after dilution, amounted to SEK 3.43 (2.98).
  · Growth within all business areas.

Key financials

                  3 months    3 months    9 months    9 months    12 months  12
months
                  July        July        January     January     October –
January
                  -September  -September  –September  –September  September
–December

SEK   m           2013        2012        2013        2012        2012/2013
2012
Net   sales       936         849         2 701       2 638       3 733      3
669
Operating income  88          63          234         212         363        342
1) 2)
Operating margin  9.4%        7.4%        8.6%        8.1%        9.7%
9.3%
1) 2)
Income after      75          59          212         186         230        204
financial items
Net income 2)     59          47          161         140         147        126

1)  Underlying operating income; for link to reported operating income, see the
section entitled "Non-recurring items".
2) Comparison figures for 2012 recalculated in accordance with IAS19R; see
further in Note 2.

 CEO’s comment regarding the quarter

“The third quarter of the year shows growth and improved profitability in all
business areas. Sales in the quarter amounted to SEK 936 m (849), corresponding
to an increase of 9.1% at fixed exchange rates. Operating income, before
structural costs, improved to SEK 88 m (63). Cash flow for the period is strong
and, at the end of the quarter, net debt (including also acquisition
expenditures of SEK 57 m) amounted to SEK 673 m (819).

Demand remains weak on the European HoReCa market and follows the same pattern
as in the previous quarter. The trend is continuing whereby more easily
available concepts (such as take-away and fast food) are growing at the expense
of the traditional market. This trend benefits our Meal Service product category
within Professional, where we are witnessing somewhat improved growth, but also
results in challenges to the traditional restaurant and hotel market. In total,
the business area increased its sales during the quarter to SEK 671 m (635), an
increase (excluding exchange rate effects) of 4%. Growth as a whole is driven by
the fact that the acquired Song Seng business in Singapore is now included in
the business area. European sales follow the market and ended on a par with last
year.

Sales on our export markets are continuing to grow by double figures. A great
deal of focus has been placed on the takeover of Song Seng, where the
administrative part of the acquisition has been completed. The next step is to
commence launch of Duni’s premium range, and our ambition is to develop the
market in the same way as we have previously done in Europe.

During the year, the Consumer business area has carried out a number of measures
which, among other things, have resulted in successful product launches and
sales successes among both existing as well as new customers. The market, which
is not growing in volume, is being driven to an ever increasing degree by
relatively short term contracts. Several customer contracts have been secured
during 2012 and 2013, and thus we are witnessing an improved sales trend. Sales
during the quarter increased to SEK 123 m (101), representing an increase of 21%
in comparable currency. Operating income improved to SEK -3 m (-12).

The decision to discontinue the hygiene products business after the first
quarter 2014 has resulted in a temporary increase in volume demand. The higher
rate of production in the quarter, with improved product mix, has significantly
strengthened capacity utilization compared with last year. The Tissue business
area’s external sales during the quarter increased to SEK 141 m (112), and the
operating income was SEK 9 m (-2).

As a consequence of the efficiency program announced in the previous report,
structural costs of SEK 5 m were incurred in the quarter. The structural program
primarily involves efficiency improvements within our commercial organization
and is estimated to cost in total approximately SEK 20 m. The program is
expected to generate annual savings on par with the structural costs and the
full impact on earnings is expected to be generated during the second half of
2014.

Despite a continued weak market, it is pleasing that the rate of growth from the
previous quarters has been further strengthened, albeit that the improvement in
operating income must be seen in light of a weak quarter last year. We are now
entering into the most intensive months of the year, with large scale Christmas
deliveries. Just as in previous years, the coming quarter will have a major
impact on Duni's income for the year,” says Thomas Gustafsson, President and
CEO, Duni.
Additional information is provided by:
Thomas Gustafsson, 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
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 1,900
employees in 18 countries, headquarters in Malmö and production units in Sweden,
Germany and Poland. Duni is listed on NASDAQ OMX Stockholm under the ticker name
“DUNI”. ISIN-code is SE 0000616716.