Interim Report for Duni AB (publ) 1 January - 31 December 2010
Improved operating margin of 14.8% for the quarter
1 January - 31 December 2010
· Net sales amounted to SEK 3,971 m (4,220). Adjusted for exchange
rate changes, net sales increased by 0.3%.
· Earnings per share amounted, after dilution, to SEK 6.52 (7.15).
· The Board proposes a dividend of SEK 3.50 (2.50) per share.
1 October - 31 December 2010
· Net sales amounted to SEK 1,097 m (1,157). Adjusted for exchange
rate changes, net sales increased by 1.6%.
· Earnings per share amounted, after dilution, to SEK 2.49 (2.79).
· The operating margin strengthened compared with the preceding year
thanks to sound cost control and lower logistics expenses. Increased
prices to compensate for higher raw materials costs have also made a
positive contribution.
Key financials
12 months 12 months 3
months October - December 3 months October - December
January-December January-December
SEK m 2010 2009 2010
2009
Net sales 3 971 4 220 1 097
1 157
Operating income 1) 435 436 163
167
Operating margin 1) 10.9% 10.3% 14.8%
14.4%
Income after financial items 418 444 163
166
Net income 306 336 117
131
1) Underlying operating income; for link to reported operating
income, see the section entitled "Non-recurring items".
CEO's comments
“Duni ended the year with a strong quarter. Operating income for the
final quarter was SEK 163 m, which at fixed exchange rates represents an
improvement compared with last year. The operating margin for the
quarter reached 14.8%, compared with 14.4% last year.
It is pleasing to note a significant improvement in earnings during the
fourth quarter within the Retail business area. The Christmas season,
which is absolutely crucial for the business area, went well. Combined
with implemented price increases and sound cost control, an operating
income of SEK 33 m (26) was achieved. Retail reports a definitely better
operating margin for the full year of 4.6%, which signifies that we
almost reached our target of 5%.
Within the Professional business area, volume growth increased during
the quarter and reached just over 3%. The growth was generated primarily
from Southern and Eastern Europe as well as the UK, where we gain market
shares. We are currently increasing our marketing investments in
Southern and, to a certain extent, Eastern Europe with the aim to
further increase the rate of growth on those markets. Operating income
for Professional declined somewhat from SEK 137 m to SEK 124 m, mainly
explained by the stronger Swedish krona and higher costs for input
materials than previous year.
The Tissue business area has had yet another tough quarter. Sales fell
to SEK 109 m (134). The downturn is due primarily to weaker demand from
the hygiene products sector and, to a minor extent, due to not
completely resumed deliveries following the fire in June at a production
plant in Skåpafors, Sweden. Intensified efforts are now made on the
sales side and activities have also been put in place to improve
productivity and create stability in the processes after the fire.
Operating income improved somewhat to SEK 6 m (4). This is partly
attributable to insurance compensation relating to the damage from the
fire.
Duni improved its operating margin for the full year, from 10.3% to
10.9% despite the significantly higher prices for input materials and a
stronger Swedish krona.
Even if there are some clouds on the horizon regarding economic
stability in Europe, our assessment is that Duni's main markets will
continue to grow in 2011," says Fredrik von Oelreich, President and CEO,
Duni.
Additional information is provided by:
Fredrik von Oelreich, President and CEO, +46 40 10 62 00
Mats Lindroth, CFO, +46 40 10 62 00
Fredrik Wahrolén, Marketing and Communications Manager, +46 734 19 62 07
Interim Report for Duni AB (publ) 1 January - 31 December 2010
| Source: DUNI AB
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