Interim Report for Duni AB (publ) 1 January – 30 June 2016

Organic growth and stronger earnings in the second quarter
1 April – 30 June

  · Net sales for continuing operations amounted to SEK 1,013 m (1,002).
Adjusted for exchange rate changes, net sales increased by 2.8%.
  · Earnings per share, for continuing operations, after dilution amounted to
SEK 1.54 (1.44)
  · Increase in earnings driven primarily by Meal Service business area.
  · On 4 July, Duni signed an agreement to acquire 60% of the shares in Terinex
Siam, Thailand.

1 January – 30 June 2016

  · Net sales amounted to SEK 1,973 m (1,987). Adjusted for exchange rate
changes, net sales increased by 0.6%.
  · Earnings per share, for continuing operations, after dilution amounted to
SEK 2.69 (2.94).

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
              2016      2015      2016      2015      2015/2016  2015
Net sales     1 013     1 002     1 973     1 987     4 186      4 200
Operating     108       104       194       211       511        528
income 2)
Operating     10.6%     10.3%     9.8%      10.6%     12.2%      12.6%
margin 2)
Income after  94        90        167       185       441        459
financial
items
Net income    72        68        127       138       335        346

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

CEO’s comments

 “Organic growth and stronger earnings were achieved in the second quarter
compared to last year. Sales and earnings were negatively impacted by currency
effects, but conversely also by a somewhat more advantageous calendar effect.
Organic growth strengthened and reached 3%, among other things, thanks to an
improved trend in Central Europe. Net sales in continuing operations increased
to SEK 1,013 m (1,002) and operating income increased to SEK 108 m (104).

During the second quarter, negotiations were completed to acquire the converting
company, Terinex Siam, in Bangkok. The transaction was communicated to the
market on July 4th and amounts to approximately SEK 110 m. The takeover of 60%
of the shares will take place during the middle of August. Terinex is one of
Thailand’s leading producers of Table Top products. The acquisition constitutes
an important element in New Market’s growth strategy and, through Terinex, we
are expanding our customer offering and strengthening our competitiveness
through local production in the prioritized Southeast Asia market.

The previously announced investment in production capacity in Rexcell is now
complete. Both of the tissue lines have been upgraded and the work was carried
out without any significant disruptions in production. The increase in capacity
will be implemented gradually during the coming quarters.

The Table Top business area increased its sales in the quarter by 1%. Central
Europe and the Nordic region have stabilized compared with previous quarters,
while Southern and Western Europe retain their stable growth. Net sales
increased to SEK 566 m (563) and operating income reached SEK 87 m (87).

The Meal Service business area continues to grow stronger than the market, and
recorded growth of 11% during the quarter. Central Europe (Germany in
particular) made the largest contribution to the increase in sales, but all
regions contributed to growth. Net sales amounted to SEK 180 m (163) and
operating income was SEK 19 m (13).

The Consumer business area achieved sales in line with last year. The negative
impact of the termination of contracts in 2015 has now tapered off. Sales
revenues amounted to SEK 213 m (212) and operating income was SEK -1 m (-1).

Within New Markets, sales in a couple of prioritized regions were weak during
the quarter and, in some cases, declined. Among other things, we are witnessing
reduced demand in the Middle East and from certain markets in South America.
Russia has stabilized and we are seeing a tendency towards an improvement in
both sales and earnings. Net sales for the quarter amounted to SEK 42 m (55) and
operating income was SEK 2 m (4).

Following a weak start to the year, the second quarter shows more stable growth
on our main markets. It is also pleasing that we have concluded an agreement
regarding the acquisition of Terinex Siam, which will strengthen our
competitiveness in the prioritized Asian market”, 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
Helena Haglund, Group Accounting Manager, +46 734 19 63 04
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.