Duni (DUNI) Q2 2026 earnings summary

Executive summary

• Q2 2026 was significantly impacted by a major logistics transition, moving from multiple warehouses to a single outsourced distribution center in Meppen, causing delivery disruptions, increased costs, and a decline in sales and operating income.

• Stabilization measures included postponing the German warehouse transition, which helped maintain stable sales in Germany, while Australia saw slight organic growth.

• Strategic initiatives advanced, including the acquisition of Solserv, new product launches such as Duni Lighting Solutions, and sustainability milestones like PFAS phase-out and a carbon footprint calculator.

• Market conditions remained challenging, with fewer restaurant and hotel visits than anticipated, weak consumer demand, and ongoing geopolitical uncertainties, especially in the Middle East.

• Delivery disruptions were most acute in Europe, while stabilization and innovation efforts continued.

Financial highlights

• Net sales for Q2 2026 were SEK 1,823 million, down 3.2% year-over-year (2% in fixed currencies), with organic growth at -3%.

• Operating income dropped to SEK 65 million from SEK 121 million, with an operating margin of 3.6% (6.4% last year).

• Gross margin declined to 20.9% from 23.1% year-over-year.

• Net income for the quarter was SEK -15 million, with EPS at SEK -0.44 versus SEK 1.25 last year.

• Reported EBITDA was SEK 70 million, including SEK 33 million in restructuring costs.

Outlook and guidance

• Logistics disruptions are expected to have a significantly reduced impact in Q3 2026, with normalization anticipated by Q4 if the German transition completes as planned.

• Cost-saving measures in Europe are expected to yield annual savings of SEK 30 million from Q4 2026.

• Recovery in operating margins and cash flow is expected as logistics stabilize and market demand improves, though macroeconomic climate and consumer demand remain obstacles.

• Market conditions remain weak, with growth driven by price rather than volume.