Interim Report for Duni AB (publ) 1 January – 31 March 2015

Strong first quarter
1 January – 31 March 2015

  · Net sales amounted to SEK 1,046 m (921). Adjusted for exchange rate changes,
net sales increased by 7.3 %.
  · Operating income increased by more than 50%, from SEK 73 m to SEK 112 m.
  · Earnings per share, after dilution amounted to SEK 1.57 (1.09).
  · Improvement within all business areas with the exception of Materials &
Services, where production of hygiene products was discontinued at the end of
the quarter.
  · The net debt continues to decline thanks to a positive cash flow.

Key financials

SEK m                         3 months  3 months  12 months  12 months
                              January-  January-  April-     January-
                              March     March     March      December
                              2015      2014      2014/2015  2014
Net sales                     1 046     921       4 374      4 249
Operating income1)            112       73        514        475
Operating margin1)            10.7 %    7.9 %     11.7 %     11.2 %
Income after financial items  99        69        467        437
Net income                    74        51        342        319

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

CEO’s comments

“The first quarter was strong and included a historic increase in net invoicing
and operating income. Growth was recorded of approximately 14%, with net
invoicing of SEK 1,046 m (921). Operating income for the quarter increased to
SEK 112 m (73) and the operating margin strengthened to 10.7% (7.9%). The net
debt at the end of the quarter was SEK 836 m.

Since the beginning of 2013, the Company has enjoyed a positive earnings and
sales trend. The improvement has been achieved through structural measures
(acquisitions and divestments) and greater internal efficiency. During the
period, we have also experienced a volatile currency situation, with a weaker
Swedish krona having a positive effect on earnings, while an ever stronger USD
has had a negative impact on our raw materials costs. With the closure of the
hygiene products business, the structural effects will diminish during the
second quarter of 2015. As from the third quarter, the structural effect will
become somewhat negative compared to last year; the acquired Paper+Design will
then have been part of Duni for more than 12 months, at the same time as the
hygiene product operations will be phased out entirely.

Delivery capability during the quarter was good and all business areas (with the
exception of Materials & Services) demonstrated growth and an improvement in
earnings compared to last year.

In the Table Top business area, net invoicing increased to SEK 513 m (477). The
quarter started relatively weak but followed up by a strong finish, among other
things with an increased share of premium sales contributing to an improved
product mix. Western Europe demonstrated solid growth, while sales in Central
Europe and the Nordic region were in line with last year. Operating income
increased to SEK 78 m (64) and the operating margin strengthened to 15.2%
(13.3%).

The Meal Service business area continues to grow faster than the overall market.
Net invoicing increased to SEK 136 m (123) and operating income increased to SEK
2 m (-1). Strong growth in Central Europe, together with a successful focus on
customized and environmentally adapted product concepts, has continued to have a
positive impact on both sales and earnings.

The Consumer business area continues to contribute to a significant increase in
sales as a consequence of the acquisition of Paper+Design. Net invoicing for the
quarter increased to SEK 276 m (157), while operating income improved to SEK 24
m (6). The operating margin strengthened to 8.6% (3.6%). Parallel with the
acquisition, we are witnessing strong growth in Duni’s consumer operations. For
example, certain important markets such as the Nordic region and Germany are
demonstrating growth in excess of 10%, at the same time as our design
initiatives are generally developing extremely positively.

Within New Markets, Russia remains challenging, although a degree of stability
was achieved during the quarter. Sales were initially weak, but the quarter
closed with sales measured in local currency ending on the same level as last
year. Sales for the business area as a whole amounted to SEK 47 m (43) and
operating income increased to SEK 3 m (-3).

Within Materials & Services, the manufacture of hygiene products ceased at the
end of March and the coming quarter will include only very limited final
invoicing. The process of consolidating continued production in Skåpafors is
proceeding and the transition is to be completed in full during the fourth
quarter of the year. Net invoicing for the quarter fell to SEK 74 m (120) and
operating income to SEK 4 m (7).

All in all, the quarter includes a series of improvements and the strong start
to the year gives us good reasons to continue to invest in growth,
attractiveness and efficiency” 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