#Sustainability #Sweden #financial report #Malmö #Duni Group

Duni Group's Year-End Report Highlights Strength in Sales Amid Challenges

Duni Group recently released its year-end report for 2025, showcasing resilience in an increasingly competitive and unstable market environment. The company reported a full-year net sales total of SEK 7,685 million, reflecting a 1.4% increase compared to the previous year. This growth is particularly striking considering the broader industry context, which has been marked by a slowdown in demand and currency-related pressures.

Quarterly Performance Overview

In the fourth quarter specifically, Duni Group experienced a net sales decline to SEK 1,965 million, down 4.5% from SEK 2,057 million in the same quarter the prior year. Adjusted for currency fluctuations, sales actually increased by 1.5%, largely due to contributions from acquisitions. Operating income for this period stood at SEK 162 million, slightly down from SEK 178 million year-on-year.

Factors Influencing Sales

Several factors influenced Duni Group's sales performance over the year. The economic landscape, characterized by geopolitical uncertainties, has resulted in fluctuating demand across various sectors, particularly within the global restaurant industry, which saw a significant decline in customer traffic. These market conditions have led customers to gravitate towards simpler, cost-effective purchasing options, putting pressure on the Group's gross margins.

Conversely, acquired businesses, including Poppies, LinePack, and ByGreen, provided a robust foundation that contributed positively to overall sales and helped mitigate some losses. The Group's operations in both Dining Solutions and Food Packaging Solutions exhibited diverse performance outcomes. While Dining Solutions registered a slight decrease in net sales of 0.6%, it nonetheless benefited from acquisition-driven growth, showcasing an increase of up to 3.5% at fixed currency rates.

In contrast, Food Packaging Solutions faced challenges, decreasing its net sales to SEK 764 million but managed to improve operating income thanks to a favorable product mix and reduced logistics costs as inventory levels normalized.

Financial Highlights

Key financial metrics reveal:

• - Earnings per share attributable to equity holders was SEK 6.64, up from SEK 5.48 in the prior year, with adjusted earnings yielding SEK 6.87 from SEK 7.56.
• - Operating income for the entire year was recorded at SEK 560 million, down from SEK 604 million.
• - For Q4, the operating margin slightly decreased to 8.2% from 8.7% year-over-year.

Proposed Dividends and Future Ambitions

As part of its long-term strategy, Duni Group's Board of Directors has proposed maintaining a dividend of SEK 5.00 per share, divided into two payments, reflecting a commitment to shareholder value amid uncertain market conditions. Looking ahead, the Group has set new targets for 2026 that encompass growth, enhanced dividend distribution, and expanded sustainability initiatives aimed at further bolstering its market position.

CEO Robert Dackeskog noted in his summary that despite a challenging market climate in 2025, Duni Group has made significant strides in improving its operational capabilities and market presence through acquisitions. He conveyed a cautious optimism for 2026, mentioning potential benefits stemming from a recent VAT reduction for restaurants in Germany, which could spur growth in the dining sector.

Conclusion

Duni Group's year-end report for 2025 illustrates a strategic balancing act amidst economic challenges, showcasing not only resilience but also a committed approach towards sustainability and market growth. With acquisitions and operational optimizations enhancing its capabilities, Duni Group is well-prepared for the complex landscape ahead in 2026. By focusing on innovation and efficiency, the company aims to sustain its growth trajectory while navigating an uncertain market.

• ---

For more details, please refer to the report available on Duni Group's official website or reach out to their Investor Relations team.