Duni Ab · OMXSTO:DUNI
Duni Ab — Q2 2014 Earnings Presentation
24 slides from Duni Ab's earnings presentation, Jul 11, 2014
Slide 1: Q2 Presentation 2014
Q2 Presentation 2014 11 July, 2014
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: 2014 Q2 Highlights
2014 Q2 Highlights • Paper+Design Group acquired mid June. • Table Top – Modest growth, but with limited effect on results due to temporary marketing cost. Further on, high cost within logistics derived from unsatisfactory • Net sales SEK 1 017 m delivery performance. (914) • Meal Service – Continuo
Slide 4: Market Outlook
Market Outlook
Slide 5: Market Outlook
Market Outlook • HORECA market long-term growing in line or slightly above GDP. – Higher growth in take-away, catering and fast food restaurants. – South improving due to stronger tourism season. • Macro climate indicate modest growth for EU. – Inflation very low, implicating challenging environment
Slide 6: HoReCa Sales Development
HoReCa Sales Development • Northern Europe: – Sweden continue to show strong figures for restaurants; still benefitting from VAT reduction in restaurant sector which mainly generated growth in café and bakery sector. • Central Europe: – Germany indicate unchanged growth figures (real) in HoReCa sect
Slide 7: Business Areas
Business Areas
Slide 8: Table Top: Improvement in sales and profit
Table Top Improvement in sales and profit
Slide 9: Table Top Sales and Operating margin Q2 2014
Table Top Sales and Operating margin 1) Q2 2014 • Napkins continue to be the dominating Net sales (SEKm) 3 000 2 000 product group within Table Top and 2 040 strengthening its share within the 2 096 2 1 03 1 000 0 quarter. 2012 2013 LTM • In comparable exchange rates, sales increased by 1.8% to a la
Slide 10: Meal Service: Healthy sales development in seasonally weak quarter
Meal Service Healthy sales development in seasonally weak quarter
Slide 11: Meal Service Sales and Operating margin Q2 2014
Meal Service Sales and Operating margin 1) Q2 2014 • Overall satisfactory growth levels, but Net sales (SEKm) 800 600 400 continuously challenging market in 509 Sweden with fierce competition. 493 529 200 0 2012 2013 LTM • Second quarter in 2013 was positively influenced by some temporary effects fr
Slide 12: Consumer: Growth within all major regions
Consumer Growth within all major regions
Slide 13: Consumer Sales and Operating margin Q2 2014
Consumer Sales and Operating margin 1) Q2 2014 1 000 • Paper+Design acquired mid June 800 and will contribute fully from third Net sales (SEKm) 600 400 quarter. Costs connected to 550 603 662 200 0 acquisition resulted in limited 2012 2013 LTM effects in operating income. 15% • Growth level indicate
Slide 14: Paper+Design Group within Consumer
Paper+Design Group within Consumer • Solid Business Model and new segment for Consumer – World Class performance within design, color and flexibility/speed. – Successful sales model in view of pricing and distributors. – Additional business segment “Specialty Trade”. – Expansion of current offer to
Slide 15: New Markets: Russian challenge, but positive development outside Europe
New Markets Russian challenge, but positive development outside Europe
Slide 16: New Markets Sales and Operating margin
New Markets • Song Seng, a Singapore based Sales and Operating margin1) company acquired July 1st 2013, is the main explanation for doubling of sales. Net sales (SEKm) 200 • Political turmoil related to Ukraine 150 has caused negative effects in 100 150 194 50 89 demand. Weak Russian ruble puts 0 20
Slide 17: Materials & Services: Hygiene business follows plan
Materials & Services Hygiene business follows plan
Slide 18: Financials
Financials 18
Slide 19: Q2 Operating income > 100 MSEK
Q2 Operating income > 100 MSEK LTM SEK m Q2 2014 Q2 2013 YTD 2014 YTD 2013 FY 2013 2013/2014 Net sales 1 017 914 1 937 1 766 3 975 3 803 Gross profit 262 239 502 458 1 049 1 005 Gross margin 25.7% 26.1% 25.9% 25.9% 26.4% 26.4% Selling expenses 112 102 225 216 446 437 Administrative expenses 5
Slide 20: Strong development in Consumer
Strong development in Consumer LTM YTD YTD SEK m Q2 2014 Q2 2013 2013/20 FY 2013 2014 2013 14 Table Top Net sales 552 517 1 030 967 2 103 2 040 Operating income1) 87 90 150 146 344 339 Operating margin 15.7% 17.4% 14.6% 15.1% 16.4% 16.6% Meal Net sales 148 137 271 251 529 509 Service Operating incom
Slide 21: Continued improvement in operating cash flow
Continued improvement in operating cash flow Q2 Q2 LTM YTD YTD SEK m 2013/ FY 2013 2014 2013 2014 2013 2014 EBITDA1) 129 120 230 205 529 503 Capital expenditure 22 15 32 30 84 82 Change in; Inventory 12 7 32 60 7 35 Accounts receivable 71 52 33 41 4 4 Accounts payable 10 32 38 39
Slide 22: Acquisition impacting balance sheet
Acquisition impacting balance sheet SEK m June 2014 December 2013 June 2013 Goodwill 1 493 1 249 1 199 Tangible and intangible fixed assets 1 107 802 768 Net financial assets1) 64 166 200 Inventories 531 434 450 Accounts receivable 748 658 669 Accounts payable 330 348 261 Other operating assets a
Slide 23: Sales growth, Operating margin, Dividend payout ratio targets
Sales growth Organic growth of 5% over a LTM business cycle > 5% Consider acquisitions to reach 4.0% new markets or to strengthen (at fixed exchange rates) current market positions Operating margin LTM Top line growth – premium focus > 10% Improvements in manufacturing, sourcing and logistics 10.4%
Slide 24: Thank you!
Thank you! 24