Duni (DUNI) Q1 2025 earnings summary

Executive summary

• Net sales increased by 7.4% to SEK 1,863 million in Q1 2025, with organic growth of 1.5% and strong contributions from acquisitions, despite subdued European demand and negative currency effects.

• Operating income declined to SEK 110 million from SEK 140 million year-over-year, mainly due to SEK 15–50 million negative currency revaluation effects and higher costs in Food Packaging Solutions.

• EPS was SEK 1.35 (down from 1.66), reflecting lower margins and higher costs.

• Maintained a strong financial position post-acquisition of Poppies, with ongoing transformation of sales and marketing to improve efficiency.

• Acquisition of Poppies Europe, consolidated from February 2025, strengthens the Dining Solutions segment and UK presence.

Financial highlights

• Net sales: SEK 1,863 million (up 7.4% YoY); organic growth 1.5%; acquired companies contributed SEK 107 million.

• Operating margin dropped to 5.9% from 8.1% last year, mainly due to currency effects and higher inventory costs.

• Net income declined from SEK 83 million to SEK 63 million, reflected in lower EPS.

• Gross margin at 23.2% (down from 25.1% YoY).

• Net debt increased to SEK 1,586 million (from SEK 921 million YoY), mainly due to acquisitions.

Outlook and guidance

• Market remains soft with weak consumer spending, especially in the HoReCa sector; recovery depends on lower interest rates, higher disposable income, and geopolitical stability.

• Cost reduction expected as inventory levels are brought down; positive trends already visible late in the quarter.

• Long-term growth expected from sustainability trends and the plastic-to-fiber shift.

• Company targets over 5% organic growth and over 10% operating margin over the business cycle.

• Regulatory changes (PFAS ban, EUDR) and trade policy shifts require flexibility.