Interim Report for Duni AB (publ) 1 January – 30 June 2014

Historically strong second quarter and strategically important acquisition of
Paper+Design Group
1 April – 30 June 2014

  · Net sales amounted to SEK 1 017 m (914). Adjusted for exchange rate changes,
net sales increased by 7.1%.
  · Earnings per share, after dilution, amounted to SEK 1.54 (1.41).
  · Growth in all prioritized business areas.
  · As from the middle of June, the acquisition of Paper+Design is reported
within the Consumer business area.

1 January – 30 June 2014

  · Net sales amounted to SEK 1 937 m (1 766). Adjusted for exchange rate
changes, net sales increased by 6.2%.
  · Earnings per share, after dilution, amounted to SEK 2.64 (2.18).
  · Demand strengthened somewhat in pace with an improved economic climate.

Key financials

SEK   m    3 month  3 month  6 months  6 months  12 months  12 months
           s        s                            July-      January-December
           April-   April-   January   January   June       2013
           June     June     -         -         13/14
           2014     2013     June      June
                             2014      2013
Net        1 017    914      1 937     1 766     3 975      3 803
sales
Operating  101      91       174       146       414        385

income 1)
Operating  10.0%    10.0%    9.0%      8.3%      10.4%      10.1%

margin 1)
Income     99       88       168       137       381        350
after
financial
items
Net        73       66       124       103       288        267
income

1)        For bridge to EBIT, see the section entitled “Operating income - Non
-recurring items”.

CEO’s comments

“Growth of 11% was recorded in the quarter, with all business areas except
Materials & Services increasing their sales compared with last year. Net
invoicing, amounting to SEK 1,017 m (914), was driven by increased market
shares, a weaker Swedish krona and, to a certain extent, also by the acquisition
of Paper+Design. It is worth noting that, excluding acquisitions and the hygiene
products business (which is being phased out), we are achieving the growth
target of 5% at fixed exchange rates.

Operating income amounts to SEK 101 m (91) with an unchanged operating margin of
10.0%. Internal efficiency measures are continuing to contribute to a stronger
EBIT. However, during the quarter non-recurring acquisition and marketing costs
were incurred, and somewhat decreased efficiency was experienced within
logistics due to the fact that full productivity has not yet been reached
following the systems and structural changes of the past year. Net debt
increased to SEK 1,164 m (793). The increase in indebtedness is entirely due to
the acquisition of Paper+Design.

On 11 June 2014, Duni acquired all of the shares in Paper+Design. The company's
operations are located in Wolkenstein in eastern Germany and the company is a
leader within design-printed napkins, focused on the specialty goods trade. This
market position well complements Duni’s strong presence within the retail
grocery trade. Thus, a consolidation creates conditions for both product and
efficiency initiatives in which the companies focus on two separate distribution
channels. Paper+Design has sales in some 80 countries and approximately half of
total sales are within central Europe. Last year, external sales amounted to EUR
38 m, with an operating margin of approximately 20%.

The trend in our largest business area, Table Top, gradually improved. The
market for full-service restaurants has experienced weaker growth than the
market in general, and consequently the 7% increase in sales during the quarter
was generated by currency effects and also increased market shares. Due to
certain disruptions in delivery capability and costs for growth initiative
projects, profitability will not fully match that of last year.

The Meal Service business area operates in a more positive market climate.
Growth amounts to 8% and we believe that the increase is well in line with the
market as a whole. Meal Service is enjoying strong growth in Central Europe, but
facing a tough challenge on the Nordic domestic market.

The Consumer business area has strengthened its positions significantly since
2012. During the past two years, several important contracts have been won and
the change in strategy has resulted in a more attractive market offering. Among
other things, the “Designs for Duni”® initiative has come to play an
increasingly important role and it is pleasing that the concept is continuing to
grow with strong profitability. Consumer increased its revenues during the
quarter by 36% compared with last year. Paper+Design accounts for approximately
one third of the growth. Profitability in the quarter is slightly stronger than
last year.

As a consequence of last year's acquisition of Duni Song Seng, New Markets is
continuing to grow at a very fast rate. Sales increased by 85% during the
quarter. Excluding Russia and Singapore, other export markets have a growth of
approximately 10%. We are continuing to face challenges on the Russian market,
where domestic demand has fallen due to a sharp devaluation of the currency
combined with the political climate. We are witnessing stable growth in other
prioritized areas.

Materials & Services is experiencing a slowdown in sales but with more stable
profitability. The trend is entirely in line with the phase-out model decided
upon for the hygiene products business.

Duni's overarching ambition is to grow with profitability on prioritized
markets. Growth will take place organically through gradually improved
efficiency and market offerings, complemented by acquisitions. An additional
acquisition was carried out during 2014, at the same time as initiatives vis-à
-vis the market were intensified. Improved customer service, enhanced brand
attractiveness and improved cooperation between market, logistics and sales are
very highly prioritized in the work going forward.

As we now enter the second half of the year, we are doing so supported by
underlying growth and the acquisition of Paper+Design. This is, of course, very
gratifying, and top priority is now being given to implementing efficient, value
-driving integration work,” 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
Tina Andersson, Corporate Marketing & Communication Director, 0734-19 62 24

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 OMX Stockholm under the ticker name
“DUNI”. ISIN-code is SE 0000616716.