Slide 1: Q1 Presentation 2017
25 April 2017 Q1 Presentation 2017 Eng US
Slide 2: Disclaimer
Disclaimer • This presentation has been prepared by Duni AB (the “Company”) solely for use at this investor presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. By attending the meeting where this prese
Slide 3: 2017 Q1 Highlights
2017 Q1 Highlights • After a weak start of the year, the quarter ended with increased sales. • Net sales SEK 1,004 m • Operating Income strengthened despite (959) continued headwind on FX rates and • Operating income SEK 89 m higher raw material costs. (87) • Table Top improved from previous year •
Slide 4: LTM operating income development
LTM operating income development 550 525 500 475 450 425 400 375 350 325 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014
Slide 5: Market Outlook
Market Outlook
Slide 6: Market Outlook
Market Outlook • HoReCa market long-term growing in line with or slightly above GDP. − Duni LTM sales on almost 2% which is close to the expected average weighted real GDP for Europe 2017. − Real GDP has grown for 15 consecutive quarters and unemployment continue to fall which creates healthy prereq
Slide 7: Business Areas
Business Areas Eng US
Slide 8: Table Top
Table Top Strengthened profit margin
Slide 9: Table Top Q1, 2017
Q1, 2017 Table Top • Majority of the markets with growth in the quarter. S A L E S & O P E R AT I N G M A R G I N 1) • Increased corporation with main accounts to better NET SALES, SEK m predict end-customer 2 320 2 300 2 293 2 301 demand and capture 2 280 2 266 additional needs from 2 260 market. 2
Slide 10: Meal Service
Meal Service Sustained efforts to build stronger sales and sourcing organizations 10
Slide 11: Meal Service Q1, 2017
Meal Service Q1, 2017 • Growth close to 10% in the S A L E S & O P E R AT I N G M A R G I N 1) quarter, but still some NET SALES, SEK m sluggishness in parts of 680 Nordic Region. 700 666 616 • All time high levels on key 600 raw materials like 500 polystyrene. 2015 2016 LTM 2017 • Price and sourcin
Slide 12: Consumer
Consumer Stable development though sharp competitive environment
Slide 13: Consumer Q1, 2017
Consumer Q1, 2017 • Lower purchase from one S A L E S & O P E R AT I N G M A R G I N 1) large customer had a NET SALES, SEK m negative influence on sales. 1 080 • Easter collection well 1 060 1 063 received, lower importance 1 040 1 039 1 039 over time. 1 020 • Good performance in Central Europe. 20
Slide 14: New Markets
New Markets Strengthened position in South East Asia 14
Slide 15: New Markets Q1, 2017
New Markets S A L E S & O P E R AT I N G M A R G I N 1) • Improvement in several markets/regions NET SALES, SEK m like Russia, Thailand and South America. 250 200 243 220 • Focus on developing Asia and Oceania 150 207 continues with positive response on Duni 100 50 brand (premium assortment). 0 2015
Slide 16: Financials
Financials Eng US
Slide 17: Net income improvement
Net income improvement SEK m Q1 2017 Q1 2016 LTM FY 2016 2016/2017 Net sales 1 004 959 4 316 4 271 Gross profit 286 273 1 244 1 231 Gross margin 28.4% 28.4% 28.8 % 28.8% Selling expenses -130 -126 -487 -483 Administrative expenses -61 -57 -249 -245 R & D expenses -2 -2 -8 -8 Other operating net -11
Slide 18: Improved income in Table Top
Improved income in Table Top SEK m Q1 2017 Q1 2016 LTM FY 2016 2016/2017 Table Top Net Sales 511 503 2 301 2 293 Operating income 1) 64 60 372 369 Operating margin 12.4% 12.0% 16.2% 16.1% Meal Service Net Sales 162 148 680 666 Operating income 1) 2 3 40 41 Operating margin 0.9% 1.8% 5.8% 6.1% Consum
Slide 19: Cash flow impacted from capex and increased inventory
Cash flow impacted from capex and increased inventory SEK m Q1 2017 Q1 2016 LTM FY 2016 2016/2017 EBITDA1) 123 118 637 632 Capital expenditure -89 -33 -232 -176 Change in; Inventory -74 -34 -58 -18 Accounts receivable 28 51 -65 -42 Accounts payable -48 -54 15 9 Other operating working capital -28 -3
Slide 20: Financial position
Financial position SEK m March 2017 December 2016 March 2016 Goodwill 1 580 1 577 1 459 Tangible and intangible fixed assets 1 308 1 255 1 135 Net financial assets 1) -69 -72 -29 Inventories 622 548 538 Accounts receivable 703 730 612 Accounts payable -326 -373 -301 Other operating assets and liabil
Slide 21: Sales growth, operating margin, dividend payout ratio targets
Sales growth Organic growth of 5% over a LTM business cycle > 5% Consider acquisitions to reach new markets or to strengthen 1.7% current market positions at fixed exchange rates, excluding hygiene business1) Operating margin LTM Top line growth – premium focus > 10% Improvements in 11.7% manufactur
Slide 22: Thank you!
Thank you!