Duni (DUNI) Q3 2025 earnings summary

Executive summary

• Operating profit improved by over 10% year-over-year in Q3 2025, reaching SEK 168 million, despite challenging market conditions and weak demand in the European HoReCa sector.

• Net sales increased by 7.9% in fixed currencies and 3.3% in reported terms to SEK 1,972 million, mainly driven by acquisitions and price adjustments.

• The company is halfway through its Decade of Action, updating 2030 sustainability and financial targets.

• Cost-saving initiatives and efficiency improvements contributed to margin gains, with further effects expected in Q4.

Financial highlights

• Q3 net sales: SEK 1,972 million (up from SEK 1,910 million); operating income: SEK 168 million (up from SEK 151 million); operating margin: 8.5% (7.9%).

• Gross margin improved to 25.2% from 17.1% year-over-year; adjusted for prior year restructuring, 23.7%.

• Earnings per share rose to SEK 2.23 from -0.04 year-over-year.

• Cash flow from operations (9M): SEK 260 million (131 million prior year); interest-bearing net debt: SEK 1,458 million (946 million prior year).

• Dividend of SEK 5 per share approved, corresponding to 66% of net income (adjusted for restructuring costs), paid in two installments.

Outlook and guidance

• Growth outlook remains muted with slow and uneven recovery expected in the European food service sector, especially HoReCa.

• Updated 2026 financial targets: at least 6% total annual sales growth (including acquisitions), minimum 10% operating margin, and over 50% dividend payout.

• Broadened sustainability targets: net zero by 2050, circular input materials ≥90% by 2030, and improved workplace safety.

• Cost-saving measures and efficiency improvements expected to further support margins in Q4.