Interim Report for Duni AB (publ) 1 January – 30 June 2015

Continued improved earnings
1 April – 30 June 2015

  · Net sales amounted to SEK 1 002 m (922). Adjusted for exchange rate changes,
net sales increased by 4.2%.
  · Earnings per share, for continuing operations, after dilution amounted to
SEK 1.44 (1.40).
  · Table Top reported earnings in parity with 2014, other operating business
areas improved over the previous year.
  · Decision to invest SEK 110 m in upgrading two paper machines in Skåpafors
for increased capacity.
  · Hygiene production in Skåpafors is now closed, and hygiene business and
changeover work in the Materials & Services business area are reported as
discontinued operations as from the second quarter 2015. This is reported on a
line in the income statement before "Net income". The consolidated income
statement has been recalculated from 2013 and reports only continuing
operations.

1 January – 30 June 2015

  · Net sales amounted to SEK 1 987 m (1 739). Adjusted for exchange rate
changes, net sales increased by 8.5%.
  · Earnings per share, for continuing operations, after dilution amounted to
SEK 2.94 (2.39).
  · Net debt amounted to SEK 916 m, compared with SEK 1,164 m for the same
period last year.

Key financials 1)

SEK m         3 months  3 months  6 months  6 months  12 months  12 months
              April-    April-    January-  January-  July-      January-
              June      June      June      June      June       December
              2015      2014      2015      2014      2014/2015  2014
Net sales     1 002     922       1 987     1 739     4 118      3 870
Operating     104       93        211       159       504        452
income 2)
Operating     10.3%     10.1%     10.6%     9.2%      12.2%      11.7%
margin 2)
Income after  90        90        185       154       446        414
financial
items
Net income    68        66        138       112       327        302

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

CEO’s comments

“Despite a late and cold spring, with an unfavorable calendar effect, quarterly
earnings improved by SEK 11 m as compared with last year.

Hygiene production has now been completely closed and the previously announced
production move from Dals Långed to Skåpafors is continuing according to plan.
The project will be fully completed during the fourth quarter of 2015. In order
to clarify the effects from the discontinued hygiene business, the accounts and
reporting will from now distinguish between "continuing operations" and
"discontinued operations".

The Group’s overall structural effects in the second quarter are largely neutral
due that the hygiene production is completed and Paper+Design, which was
acquired on 11 June 2014, entails relatively small effects on earnings as the
second quarter is the year’s weakest.

Net invoicing for the second quarter amounted to SEK 1,002 m (922),
corresponding to growth of 8.7% as compared with last year. Operating income for
continuing operations is SEK 104 m (93) and the operating margin was
strengthened to 10.3% (10.1%). Net debt at the end of the quarter amounted to
SEK 916 m (1,164).

Organic growth during the quarter is lower than the previous quarter. A
disadvantageous calendar effect with an early Easter, together with a late and
cold spring in central and northern Europe, led to demand during the period
which was weaker than expected. A consequence of this is a lower leverage effect
in terms of earnings within the supply of goods.

During the quarter, the decision was taken to invest SEK 110 m in the paper mill
in Skåpafors. The investment, with installation anticipated to be fully
completed during the second quarter of 2016, yields an increase in capacity of
approximately 15% and, in addition, creates a new platform for product
development, not the least in the area of environmentally-adapted material.

The Table Top business area increased net invoicing to SEK 563 m (552) during
the quarter; adjusting for currency sales for the business area fell by 2.6%.
The decline is explained by calendar effects and worse spring weather in several
of our main markets. Western and Southern Europe report continued good growth
but this does not compensate for the decline in our more important business
regions. The operating income for the quarter were SEK 87m (87) and the
operating margin was 15.5% (15.7%).

The Meal Service business area continues to grow at a stronger rate than the
market. Net invoicing for the quarter increased to SEK 163 m (148) and the
operating income increased to SEK 13 m (7). The business area reports positive
growth throughout all markets and the consistent investment in innovation and
environmentally-adapted concepts continues 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 result of the acquisition of Paper+Design. Net invoicing for the
quarter increased to SEK 212 m (161) and the operating income improved to
SEK -1 m (-5). The operating margin was strengthened to -0.3% (-3.2%).
Seasonally, the second quarter is weak for this business area; few holidays and
a mix of relatively simple products has resulted in the second quarter having
the lowest percentage over the year in terms of earnings.

In the New Markets business area, we are seeing a more stable currency situation
in Russia while, at the same time, demand in the restaurant and hotel sector has
declined heavily. We see satisfactory growth in other markets. Net invoicing
during the quarter amounted to SEK 55 m (48) and the operating income increased
to SEK 4 m (3).

In the Materials & Service business area, hygiene business has been discontinued
and are reported for the quarter as "discontinued operations" outside of
Materials & Services. Net sales for the business area, i.e. "continuing
operations" for the quarter amount to SEK 10 m (13), with an operating income of
SEK 0 m (1).

Although the weather was working against us, we experienced positive growth on
most of our markets and our on-going projects continue to contribute to better
profitability in the continuing operations”, 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 AB (publ)
Box 237
201 22 Malmö

Tel.: +46 40 10 62 00

www.duni.com

Registration no: 556536-7488
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