Duni (DUNI) Q2 2024 earnings summary

Executive summary

• Achieved the second-best Q2 in company history, with net sales of SEK 1,875m, despite a soft and volatile market and lower sales compared to last year's record quarter.

• Maintained a strong financial position, supported by resilience in two business areas, low net debt, and recent acquisitions contributing positively.

Financial highlights

• Q2 2024 net sales were SEK 1,875m, down 3.1% year-over-year; operating income was SEK 135m (7.2% margin), a decrease from SEK 170m (8.8%) last year.

• Gross margin improved to 24.1% from 22.7% year-over-year.

• Net income for Q2 was SEK 84m (SEK 1.72 per share), down from SEK 120m (SEK 2.20 per share) last year.

• Interest-bearing net debt decreased to SEK 1,058m (SEK 1,274m last year); net debt/EBITDA at 1.18.

Outlook and guidance

• Expecting a stable recovery as consumer confidence improves and inflation/interest rates decline, but short-term volatility and mixed signals remain.

• Price and cost volatility, especially in raw materials and freight, will continue to impact results, with price adjustments lagging 3-6 months.

• Food packaging segment expected to grow 5-10% annually in normalized markets.