Duni releases interim report from 1 January – 31 March 2013
Highlights -Net sales amounted to SEK 852 m (856). Adjusted for exchange rate changes, net sales increased by 2.5%. -Increase in sales adjusted for currency exchange rates and invoicing days. -Strong Swedish krona has declined operating income. -Earnings per share, after dilution, amounted to SEK 0.77 (0.78).
Net sales amounted to SEK 852 m
Net sales declined by SEK 4 m compared with the same period last year, to SEK 852 m (856). However, when adjusted for exchange rate changes net sales increased by 2.5% − which should be viewed in light of the fact that there were three fewer invoicing days. When adjusted also for this factor, Duni recorded growth during the quarter. General demand remained weak and reflects a cautious approach by end customers and consumers. Growth can primarily be traced to new contracts within the Consumer business area and an increase in sales within the Tissue business area. The increase within Tissue is a one off increase since it is due to the special circumstances which arose following announcement of the closure of the hygiene products business.
Operating margin of 6.4%
Operating income (EBIT) adjusted for non-recurring items amounted to SEK 55 m (60). The gross margin was 25.7% (26.5%) and the underlying operating margin for the Group was 6.4% (7.0%). Adjusted for exchange rate changes, operating income declined by SEK 2 m compared with last year. During the quarter, the strong Swedish krona had a significant detrimental impact on income, since a large percentage of revenues are in EUR. Input materials for traded goods continue to be at historically high price levels, which have not yet been compensated for in full vis-à-vis customers. Nevertheless, thanks to a focus on increased efficiency and selected cost saving measures, a lower level of indirect costs has been achieved and, consequently, the operating margin has been maintained at almost the same level as last year.
