Duni (DUNI) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were SEK 1,764m, down 5.3% year-over-year, but nearly flat at constant currency, reflecting stabilization in a challenging and volatile HoReCa market.

• Organic sales trend improved from -7% in Q4 to -1.2% in Q1, though still slightly negative, with demand shifting toward lower-priced products.

• Profitability was impacted by a negative sales mix and higher costs, especially in Dining Solutions, but efficiency improvements and cost reduction initiatives provided some offset.

• Food Packaging Solutions supported group performance with improved margins and positive contributions from recent acquisitions.

• The business remains focused on premium and sustainable product sales, adapting to changing customer behaviors, and launching new mid-segment offerings.

Financial highlights

• Net sales: SEK 1,764m (1,863m), -5.3% year-over-year; flat at constant currency.

• Operating income: SEK 100m (110m); operating margin: 5.7% (5.9%).

• Net income: SEK 34m (63m); EPS: SEK 0.73 (1.35); adjusted EPS: SEK 0.92 (1.35).

• Gross margin increased to 23.8% from 23.2%.

• Interest-bearing net debt increased to SEK 2,391m (1,586m), mainly due to a new lease liability for the Meppen warehouse.

Outlook and guidance

• Market conditions remain subdued, especially in Germany and the HoReCa sector, with no clear recovery in sight and a structurally lower baseline than pre-COVID.

• Cost and inflation pressures remain high, particularly in labor and energy, and nominal growth is insufficient to offset real demand declines.

• The company targets total growth above 6% in comparable currencies, but current performance is below this due to weak demand.

• Annual savings of SEK 35–45m expected from warehouse reallocation by end of 2026.

• Dividend proposal of SEK 5 per share, unchanged from last year, with a payout ratio of 75%.