Duni (DUNI) Q2 2025 earnings summary

Executive summary

• Subdued economic conditions and weak demand led to lower volumes, but acquisitions such as Poppies and LinePack Oy supported sales and profit, offsetting some organic declines.

• Sales and marketing staff reduced by about 10% through restructuring, with expected annual savings of SEK 30 million from Q4 2025.

• Operational cash flow improved due to lower inventory levels, especially in BioPak Group.

• Strategic acquisitions and new product launches, such as the "Vista" range, strengthened the market position.

Financial highlights

• Net sales for Q2 2025 were SEK 1,884m (up from SEK 1,875m), with 5.2% growth at fixed exchange rates, mainly from acquisitions.

• Operating income declined to SEK 121m (135), with an operating margin of 6.4% (7.2%).

• Earnings per share for Q2 were SEK 1.25 (1.72); net income was SEK 62m (84).

• Gross margin for Q2 was 23.1% (24.1%).

• Dividend of SEK 5 per share approved, representing 66% of adjusted net income.

Outlook and guidance

• Market conditions remain weak with persistent inflation, low consumer confidence, and no structural recovery in Germany; HoReCa visits down 4.8% in Q1.

• Price increases implemented to balance inflationary effects, but not fully offsetting volume declines.

• Full synergy realization from recent acquisitions expected by 2026.

• Cost savings from restructuring to impact earnings from Q4 2025, with a full-year effect of SEK 30m.

• Continued focus on efficiency improvements and operational leverage for future volume recovery.