Duni releases interim report for the period 1 January – 30 September 2013.
Highlights: 1 July – 30 September 2013
- Net sales amounted to SEK 936 m (849).
- Adjusted for exchange rate changes, net sales increased by 9.1%.
- Earnings per share, after dilution, amounted to SEK 1.25 (1.01).
- Higher earnings within all business areas.
- Continued strong cash flow and a low net debt.
Highlights: 1 January – 30 September 2013
- Net sales amounted to SEK 2,701 m (2,638).
- Adjusted for exchange rate changes, net sales increased by 4.1%.
- Earnings per share, after dilution, amounted to SEK 3.43 (2.98).
- Growth within all business areas.
CEO’s comment regarding the quarter
“The third quarter of the year shows growth and improved profitability in all business areas. Sales in the quarter amounted to SEK 936 m (849), corresponding to an increase of 9.1% at fixed exchange rates. Operating income, before structural costs, improved to SEK 88 m (63). Cash flow for the period is strong and, at the end of the quarter, net debt (including also acquisition expenditures of SEK 57 m) amounted to SEK 673 m (819).
Demand remains weak on the European HoReCa market and follows the same pattern as in the previous quarter. The trend is continuing whereby more easily available concepts (such as take-away and fast food) are growing at the expense of the traditional market.
This trend benefits our Meal Service product category within Professional, where we are witnessing somewhat improved growth, but also results in challenges to the traditional restaurant and hotel market.
In total, the business area increased its sales during the quarter to SEK 671 m (635), an increase (excluding exchange rate effects) of 4%. Growth as a whole is driven by the fact that the acquired Song Seng business in Singapore is now included in the business area. European sales follow the market and ended on a par with last year.
Sales on our export markets are continuing to grow by double figures. A great deal of focus has been placed on the takeover of Song Seng, where the administrative part of the acquisition has been completed. The next step is to commence launch of Duni’s premium range, and our ambition is to develop the market in the same way as we have previously done in Europe.
During the year, the Consumer business area has carried out a number of measures which, among other things, have resulted in successful product launches and sales successes among both existing as well as new customers.
The market, which is not growing in volume, is being driven to an ever increasing degree by relatively short term contracts. Several customer contracts have been secured during 2012 and 2013, and thus we are witnessing an improved sales trend. Sales during the quarter increased to SEK 123 m (101), representing an increase of 21% in comparable currency. Operating income improved to SEK -3 m (-12).
