Duni (DUNI) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were SEK 1,910 million, down 1.3% year-over-year, reflecting high comparison figures and weaker demand in Europe, especially in the HoReCa sector; acquisitions (Seti, Decent Packaging, Huskee, Relevo) and logistics investments strengthened market leadership and sustainability profile.

• Operating income was SEK 151 million (7.9% margin), down from SEK 225 million, mainly due to lower volumes, higher raw material and freight costs, and price decreases.

• Maintained a strong financial position with low net debt (SEK 946 million), positive cash flow, and continued investments in sustainability and logistics.

• Investment in a new logistics facility in Germany and partnership with CEVA Logistics support long-term competitiveness, efficiency, and net zero goals.

• Achieved the second best third quarter in company history despite challenging market conditions.

Financial highlights

• Net sales Q3: SEK 1,910 million, down 1.3% year-over-year; organic growth -5.0%; acquisitions contributed SEK 73 million.

• Operating income Q3: SEK 151 million (7.9% margin), down from SEK 225 million (11.6% margin); EBIT Q3: SEK 10 million, impacted by SEK 125 million restructuring costs.

• Gross margin Q3: 17.1% (25.5% in Q3 2023); adjusted gross margin (excluding restructuring) 23.7%.

• Net income Q3: SEK 3 million (SEK 150 million in Q3 2023); EPS -0.04 (2.80).

• Operating cash flow year-to-date was SEK 238 million; net debt/EBITDA at 1.16.

Outlook and guidance

• HoReCa market expected to recover gradually mid-term and stabilize long-term, but near-term volatility and weak demand, especially in Germany, persist.

• Selective price increases announced for Q4 to support margins; restructuring and logistics investments expected to enhance capacity and sustainability over 2–3 years.

• Continued focus on sustainability, innovation, and strengthening the product portfolio.

• The group’s strong financial position enables pursuit of profitable long-term growth opportunities.