Interim Report for Duni AB (publ) January 1 - June 30, 2020
Interim Report for Duni AB (publ) January 1 - June 30, 2020 |
[15-July-2020] |
BOX, Sweden, July 15, 2020 /PRNewswire/ -- Substantial initial volume decrease followed by gradual recovery April 1-June 30
January 1-June 30
KEY FINANCIALS
1) Currency-adjusted growth including acquisitions, which are compared with the previous year's pro forma figures. CEO's comment COVID-19 restrictions significantly decreased activity in the restaurant and hotel sector. This caused our sales to decrease by 39%, resulting in a loss for the quarter. As restrictions were eased and the impact of our cost-cutting program kicked in, we saw a gradual improvement in the quarter. COVID-19 impact on the market At the start of the second quarter, most countries had very strict COVID-19 restrictions in place, which significantly reduced activity in our key customer segments - hotels and restaurants. At the end of May and in June, the restrictions were gradually eased, and restaurants were allowed to open subject to restrictions such as social distancing and more extensive hygiene practices. The Duni Group's product categories in retail grocery were also impacted negatively for reasons such as fewer social events but not to the same extent. On the positive side, many restaurants have transitioned to also offering take-away solutions, which caused this market to increase during the quarter. Gradually improved sales performance in the quarter Sales improved gradually, from a 54% decrease in April to an 18% decrease in June, largely performing at par with the market as a whole. At the start of the quarter, we saw a major drop in sales in the Duni segment's hotel and restaurant sector, which gradually improved as restrictions were eased. Duni's retail sector sales decreased while BioPak segment sales were stable, increasing in take-away but decreasing in eating & drinking. Despite volatile volumes, we succeeded in maintaining satisfactory delivery capacity and customer service. We also transitioned to digital customer communications and processes to strengthen our market position in spite of travel and meeting restrictions in many countries. Finally, we have an offering that restaurant customers may like even more now. We have focused on the need to create a more hygienic restaurant experience with our various table cover and napkin solutions, and we are also strengthening restaurant offerings with solid take-away product concepts.From an overall perspective, we indicated in our Q1 reports that our Q2 sales were at risk of decreasing by more than half. Thanks to the easing of restrictions and our efforts to drive sales, we slightly outperformed that forecast with a 39% sales decrease at fixed exchange rates. Cost-cutting program has had a direct effect Operating income amounted to SEK -92 m (111) and improved gradually during the quarter, reaching break-even in June. A cost-cutting program was introduced in March to adapt production capacity and spending to lower demand. The program had an immediate impact, cutting costs by SEK 157 m in the second quarter (including government support). As restrictions were eased and our sales and production increased, we began reducing the extent of the cost-cutting program. Our efforts to ensure good hygiene practices within the company were very effective in the quarter as we did not have any confirmed COVID-19 cases in our organization, which is very good news. Expected improvement as restrictions continue to be eased There is great uncertainty concerning the continuing development of the COVID-19 situation and what impact this pandemic will have in both the short and long-term. We are looking ahead with various scenarios and plans, but today we can only hope that the spread of COVID-19 will begin to decline. The Duni Group's financial position and liquidity remain sound. Together with a strong organization and an offering well aligned with market needs, I look to the period ahead with confidence. www.duni.com Duni Group is a leading supplier of attractive and functional products for table setting and takeaway. The Duni brand name is sold in more than 40 markets and enjoys a number one position in Central and Northern Europe. Duni Group has around 2,400 employees in 24 countries, its headquarters in Malmö and production units in Sweden, Germany, Poland, New Zealand and Thailand. Duni Group is listed on the NASDAQ Stockholm under the ticker name "DUNI". Its ISIN code is SE0000616716. This information is information that Duni AB is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:45 am CET on July 15, 2020. For more information, please contact: Johan Sundelin Duni AB (publ) This information was brought to you by Cision http://news.cision.com The following files are available for download:
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Company Codes: Berlin:2DU, OTC-PINK:DUNIY, Bloomberg:DUNI@SS, ISIN:SE0000616716, LSE:0HR3, RICS:DUNI.ST, Stockholm:DUNI, Frankfurt:2DU |
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