Duni sales rise 3.1% to SEK 2,033 million despite third-quarter profit decline
Key Facts
Duni Group sales rose to SEK 2,033 million in the third quarter of 2026, compared with SEK 1,972 million in the same period last year, an increase of 3.1%, according to the company’s interim report. The group said organic growth was 1.7%, attributing a significant part of the sales improvement to performance in Australia and higher tissue volumes in Europe. The result followed a decline in sales in the second quarter, when they fell 3.2% to SEK 1,823 million. But the improvement in revenue did not translate into higher profitability, as income and profit measures declined compared with the third quarter of 2025. The CEO said: "We achieved growth of 3.1%, of which 1.7% was organic, driven mainly by good developments in Australia and higher tissue volumes in Europe."
Operating income fell to SEK 133 million from SEK 168 million a year earlier, while EBIT dropped to SEK 94 million from SEK 151 million, and its margin declined to 4.6% from 7.7%. Net income after tax also fell to SEK 32 million, compared with SEK 112 million in the year-earlier period, while earnings per share dropped to SEK 0.70 from SEK 2.23. The company attributed the decline in operating income to higher logistics and freight costs, as well as a less favorable product mix in Europe. It said higher fuel prices were a major reason for the weaker income performance. The comparison between revenue and profitability shows that higher sales did not prevent operating pressures from affecting the bottom line.
EBIT was also affected by restructuring costs of SEK 21 million during the quarter, most of which were related to the unused portion of the new warehouse in Meppen and the efficiency program in sales and administration. In its second-quarter report, the company had said its cost-cutting program in sales and administration in Europe targets annual savings of SEK 30 million, with the full effect expected from the fourth quarter. In the third quarter, freight and restructuring costs continued to weigh alongside the decline in the margin. Duni said the impact of freight costs is expected to ease gradually over the coming quarters. The CEO said delivery problems linked to the move to an external logistics partner had been resolved, and that the company was in a more stable position than when it summarized the second quarter.
Organic growth in the third quarter of 2025 was negative at 0.5%, before turning positive at 1.7% in the third quarter of 2026. In the second quarter of this year, the company said temporary limits on delivery capacity during the launch of the outsourced logistics system contributed to the sales decline. Despite the resolution of delivery problems, freight costs continue to weigh on income, according to the CEO. Duni aims to complete the transfer of volumes to the logistics partner during the fourth quarter, including the remaining German volumes before year-end. The company said completing this transfer will be among its priorities in the final months of 2026, alongside work to improve quality and efficiency and focus on transportation costs.
The priority the CEO set for the final months of the year is to complete the logistics transition in a disciplined manner, while continuing to improve quality and efficiency across the group’s operations and focusing on transportation costs. He said: "The main priority is to complete the logistics transition in a disciplined manner." The remaining German volumes are scheduled to be transferred in full before year-end, while the company expects the transfer of volumes to be completed during the fourth quarter. The interim report was presented via a web and telephone conference on 23 October 2026 at 10:00 a.m. Central European Time. This follows a quarter that combined sales growth with declining profits, while the company expects the effects of freight costs to ease gradually in the coming quarters.