Full year operating margin in excess of 11%
1 October – 31 December 2014
· Net sales amounted to SEK 1,211 m (1,102). Adjusted for exchange rate
changes, net sales increased by 5.8 %.
· Earnings per share, after dilution amounted to SEK 2.31 (2.25).
· Operating income improved within all business areas except New Markets,
which was negatively affected by Russia.
· Continued positive cash flow contributes to a strengthened balance sheet.
1 January – 31 December 2014
· Net sales amounted to SEK 4,249 m (3,803). Adjusted for exchange rate
changes, net sales increased by 7.5 %.
· Organic growth in core business, currency-adjusted net sales excluding
acquisitions and hygiene product operations increase by 3.9%.
· Operating margin exceeds 11% for the first time.
· Earnings per share, after dilution amounted to SEK 6.80 (5.68).
· Acquisition of Paper+Design, which is reported within the Consumer business
area as from the middle of June.
· The Board proposes a dividend of SEK 4.50 (4.00) per share.
Key financials
SEK m 3 months 3 months 12 months 12 months
October- October- January- January-
December December December December
2014 2013 2014 2013
Net sales 1 211 1 102 4 249 3 803
Operating income1) 169 152 475 385
Operating margin1) 14.0 % 13.8 % 11.2 % 10.1 %
Income after financial items 152 138 437 350
Net income 109 106 319 267
1) For bridge to EBIT, see the section entitled “Operating income - Non
-recurring items”.
CEO’s comments
“The concluding quarter of the year follows the trend from earlier quarters,
with growth and higher earnings compared with last year. The increase in sales
totaling SEK 109 m was positively affected by currency movements and
acquisitions, but should also be viewed in light of growing uncertainty in the
world around us. Net invoicing for the period was SEK 1,211 m (1,102) and
operating profit increased to SEK 169 m (152). The operating margin strengthened
to 14.0% (13.8%).
For the year as a whole, sales increased by 7.5% in comparable currencies. Net
sales amounted to SEK 4,249 m (3,803) and the operating margin strengthened to
11.2% (10.1%). Excluding currency and structuring effects, organic growth was
approximately 4%. The fourth quarter began somewhat weaker in terms of sales,
but ended with growth well in line with previous quarters. During the past two
quarters, we have witnessed increased uncertainty in the world around us. The
turbulence in and around Russia has a direct impact on our Russian operations,
and also had a tempering effect on other markets. In addition, delivery
capability to customers has stabilized and, during the quarter, we reached a
satisfactory level on all markets. The logistics disruptions reported previously
have now been completely resolved.
The Table Top business area increased sales to SEK 604 m (576), with an
operating income of SEK 126 m (116). Following a weak start, the quarter ended
significantly stronger thanks, among other things, to an attractive Christmas
collection. All in all, the business area grew by 0.3% at fixed exchange rates.
Southern Europe and the UK demonstrated strong local growth, while Eastern and
Central Europe showed a slight downturn.
Meal Service’s growth is continuing to outstrip the market. During the quarter,
sales increased to SEK 144 m (132) and operating income increased to SEK 6 m
(4). Meal Service is benefiting from an expanding catering and take-away market,
with successful investments in concept and product development leading to
increases in our market shares.
The Consumer business area grew by 39% in the quarter, with the growth mainly
generated by the acquisition of Paper+Design. Sales increased to SEK 322 m (220)
and the operating income was SEK 32 m (27). The takeover of Paper+Design is now
fully completed and focus is now being placed on further efficiency improvements
in the cooperation between the companies. During the second half of 2014, a
synergy program was initiated affecting, among other things, purchasing, product
range and administration.
New Markets was affected by the turbulence in Russia, with the weakened ruble
leading, among other things, to a sharp increase in the Russian company’s
purchasing costs. The market situation is being assessed regularly and further
measures ― in addition to the price increases to customers already initiated ―
cannot be ruled out. The business area’s sales amounted to SEK 54 m (56) and
operating income declined to SEK 0 m (3).
Within Materials & Services, we are following the previously announced phase out
plan. Manufacture of hygiene products will be discontinued after the first
quarter of 2015, and production in Dals Långed will thereafter be transferred to
the unit in Skåpafors. The business area’s sales in the quarter fell to SEK 87 m
(118), at the same time as operating income increased to SEK 6 m (2).
During 2014, we have implemented a series of important changes which make us
well prepared for 2015. At the same time, we are witnessing increased
instability in the world around us, which can affect both purchasing power and
the desire to consume,” 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, +46 734 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 Stockholm under the ticker name
“DUNI”. ISIN-code is SE 0000616716.
www.duni.com
Year - End Report for Duni AB (publ) 1 January – 31 December 2014
| Source: DUNI AB
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