Duni AB: Year-End Report January 1 - December 31, 2023

Good profitability in a more stable market

October 1 - December 31

• Net sales amounted to SEK 1,971 m (1,974), corresponding to a 0.2% decrease in sales. At fixed exchange rates, net sales decrea- sed by 4.9%.
• The gross profit amounted to SEK 523 m (401), an increase of 31% in absolute terms compared with the same period last year.
• Operating income amounted to SEK 191 m (153), corresponding to an increase of 24.7% compared with the same period last year.
• One-off effects of approximately SEK 20 m linked to product launches and acquisition costs result in higher indirect costs.
• The business areas have been given descriptive names to avoid confusion with the Group's brand names. The business area Duni has been renamed Dining solutions and the business area BioPak has been renamed Food packaging solutions.

January 1 - December 31

• Net sales amounted to SEK 7,718 m (6,976), corresponding to a 10.6% increase in sales. At fixed exchange rates, net sales increased by 5.2%.
• The gross margin amounted to 23.9% (18.9%) and the operating profit amounted to SEK 716 m (450), with an operating margin of 9.3% (6.4%).
• The Board of Directors proposes a dividend of SEK 5.00 (3.00) per share to be divided into two partial payments.

Key financials SEK m	3 months Oct-Dec 2023	3 months Oct-Dec 2022	12 months Jan-Dec 2023	12 months Jan-Dec 2022
Net sales	1,971	1,974	7,718	6,976
Organic growth1)	-4.9%	19.1%	5.2%	30.9%
Operating income1)	191	153	716	450
Operating margin1)	9.7%	7.8%	9.3%	6.4%
EBIT	172	100	648	326
EBIT margin	8.7%	5.1%	8.4%	4.7%
Income after financial items	164	91	593	283
Income after tax	83	59	443	201
Earnings per share attributable to equity holders of the Parent Company	1.65	1.28	8.30	4.25
Return on capital employed, excluding goodwill	31.5%	16.6%	31.5%	16.6%

¹⁾ For reconciliation of alternative key financials, definition of key financials and glossary, see page 26-27.

CEO's comment

Growth and increased profitability during the year
The year has been characterized by a more stable market, resulting in increased growth and profitability. The focus has been on managing the relationship between price and costs in an environment of rising and then partially falling inflation. At the same time, the level of activity has been high, with many new product launches and continued sustainability investments, especially in production and logistics.

Despite a turbulent environment, which has resulted in tigh- ter household finances for many consumers, people have continued to eat out. This behavior also reflects the long- term trend of changing consumption patterns that have developed, especially in urban environments. However, growth has now slowed down in relation to the previous two years, due to the sharp increase in demand that arose in con- nection with the pandemic.

Stable fourth quarter
The Group's sales in the fourth quarter were in line with the same period last year, amounting to SEK 1,971 m (1,974). Demand in the quarter remained somewhat subdued, with marginally declining volumes in the grocery retail trade in par- ticular. The important Christmas sales to the HoReCa market have not yet recovered to pre-pandemic levels. The operating margin during the fourth quarter amounted to 9.7% (7.8%) and is approaching the company's financial targets and pre-pandemic levels. The operating profit amounted to SEK 191 m (153) and increased by 25%, despite some non-recur- ring items being charged to the quarter.

Profitability and expansion in the business areas
The ongoing efficiency improvements in the vertically inte- grated production chain in the Business area Dining solutions has resulted in increased profitability as volumes have retur- ned after the pandemic. Combined with cost-compensating price adjustments, this has resulted in a record year. The ope- rating profit was strengthened in all quarters compared with the same period last year, which also comprises historically strong quarters.

The Business area Food packaging solutions' sales and operating profit for the full year were in line with the previous year. Looking ahead, we see the packaging market actively deve- loping with new, innovative materials and circular solutions. As more and more countries demand reusable serving items in restaurants, Duni Group is involved in designing these solu- tions. This includes our proprietary system, Idun, and our minority holdings in the German company Relevo and Spa- nish company Bumerang, both of which focus on reuse. We are now also accelerating expansion in the Asia-Pacific region, with activities including the BioPak Group's acquisition of New Zealand-based Decent Packaging.* The acquisition have clear synergies in the offering for innovative and sustainable packa- ging solutions. Decent Packaging generates net sales of app- roximately SEK 150 m, with profitability in line with Duni Group. It is satisfying to see the Group continuing to expand in the field of sustainable packaging solutions, now also with a new sales office in Hong Kong. Sustainable packaging solu- tions is a market that is expected to grow globally by 5-15% annually as our food supply makes the transition over the next decade.

Strong financial position
Duni Group also has a strong financial position after the acquisition of Decent Packaging. A low debt level and strong cash flow provide increased room for maneuver. In this context, it is worth noting the Board's proposal for a dividend of SEK 5.00 per share.

Despite continued geopolitical instability and economic chal- lenges for many consumers, we look forward to 2024 with confidence.

Robert Dackeskog,
President and CEO, Duni Group

For additional information please contact
Magnus Carlsson, EVP Finance/CFO
[phone]
[e-mail]

Katja Margell, IR and Communications Director,
[phone]
[e-mail]

Duni AB (publ)
Box 237
SE-201 22 Malmö

Phone: [phone]
www.dunigroup.com
Company registration number: 556536-7488

The Duni Group is a market leader in sustainable solutions for table setting and food packaging for the restaurant market. The Group markets and sells its products under the brands Duni, BioPak and Paper+Design, which are represented in more than 40 markets. The Duni Group has around 2,300 employees in 22 countries, with its headquarters in Malmö and production units in Sweden, Germany, Poland, New Zealand and Thailand. The Duni Group is listed on NASDAQ Stockholm under the ticker name "DUNI". Its ISIN code is SE0000616716. Dunigroup.com. 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, at 07.45 CET on February 9, 2024.