Interim Report for Duni AB (publ) 1 January – 31 March 2016

Currency and calendar effects impact profit
1 January – 31 March

  · Net sales for continuing operations amounted to SEK 959 m (985). Adjusted
for exchange rate changes, net sales decreased by 1.6%.
  · Accelerated rate of growth within the Meal Service business area, whereas
Table Top and Consumer experienced weak growth in Central Europe.
  · Earnings per share, for continuing operations, after dilution amounted to
SEK 1.16 (1.50).

Key financials
1)

SEK m                         3 months  3 months  12 months  12 months
                              January-  January-  April-     January-
                              March     March     March      December
                              2016      2015      2015/2016  2015
Net sales                     959       985       4 174      4 200
Operating income 2)           87        107       507        528
Operating margin 2)           9.0%      10.9%     12.1%      12.6%
Income after financial items  74        95        438        459
Net income                    54        70        330        346

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

CEO’s comments

 “Sales for the quarter were lower than last year, primarily due to an
unfavorable calendar effect, negative currency effects as well as lower sales
within the Consumer business area. Sales in other business areas were on par
with, or exceeded, last year. Compared with the first quarter of 2015, income
was adversely affected by under-absorption at our plants due to, amongst other
things, ongoing investment in production capacity at the paper mill, which
resulted in an additional couple of days’ downtime. Sales for the period
amounted to SEK 959 m (985) and operating income declined to SEK 87 m (107).

Sales for the quarter in the Table Top business area were 1.9% lower relative to
last year. Taking into account the calendar effect and the somewhat stronger
Swedish krona, income reached the same level as last year. The strong sales
trend in Southern and Eastern Europe is continuing, at the same time as we are
witnessing somewhat lower sales of table covering products in Central Europe.
Sales in the quarter declined to SEK 503 m (513) and operating income was SEK 60
m (78).

The Meal Service business area continues to outperform the market in terms of
growth and we are currently witnessing relatively high growth in Central Europe,
particularly in Germany. Growth in the business area is based on a consistent
focus on customized and environmentally conscious product solutions. Sales in
the quarter reached SEK 148 m (136) and operating income was SEK 3 m (2).

In the Consumer business area, the quarter was adversely affected by the expiry
of several major contracts in 2015. At the same time, sales promotion activities
have expanded in new, more profitable channels which we believe will bear fruit
during the remainder of the year. Sales amounted to SEK 248 m (276) and
operating income was SEK 19 m (24).

The New Markets business area continues to grow on all markets except Russia.
Growth on prioritized markets continues to exceed 10% and interest in Duni’s
products is increasing in South-East Asia, the Middle East and South America.
Sales for the quarter amounted to SEK 47 m (47) and operating income was SEK 4 m
(3).

Following a series of quarters of year-on-year higher earnings, such improvement
has not been attained during Q1 2016. Nevertheless, it should be kept in mind
that earnings for Q1 2016 are still second strongest relative to all first
quarters since Duni’s IPO in autumn 2007. Since the weaker result is largely
attributable to currency movements and calendar effects in production and sales,
we remain convinced that 2016 will be an exciting and successful 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
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.
Duni.com  (http://www.duni.com)