Duni — Earnings Release 2023

Oct 24, 2023

Strong quarter in volatile market

July 1 – September 30

• Net sales amounted to SEK 1,935 m (1,834), corresponding to a 5.5% increase in sales. At fixed exchange rates, net sales decreased by 2.2%.
• The gross profit amounted to SEK 492 m (364), an increase of 35% in absolute terms compared with the same period last year, and the gross margin is once more at the same level as before the pandemic.
• Operating income amounted to SEK 225 m (154), corresponding to an increase of 46.3% compared with the same period last year.
• Good cost control and a decreasing rate of inflation are the main reasons for the improvement in income.
• Strong cash flow and lower net debt provides increased room for maneuver.

Quarter LTM -150 -50 50 150 250 Q3 -23 Q2 -23 Q1 -23 Q4 -22 Q3 -22 Q2 -22 Q1 -22 Q4 -21 Q3 -21 Q2 -21 Q1 -21 Q4 -20 Q3 -20 -100 100 300 500 700

Key financials

	3 months	3 months	9 months	9 months	12 months	12 months
SEK m	Jul-Sep 2023	Jul-Sep 2022	Jan-Sep 2023	Jan-Sep 2022	Oct-Sep 22/23	Jan-Dec 2022
Net sales	1,935	1,834	5,747	5,002	7,721	6,976
Organic growth 1)	-2.2%	19.2%	8.5%	36.2%	11.1%	30.9%
Operating income 1)	225	154	525	296	678	450
Operating margin 1)	11.6%	8.4%	9.1 %	5.9%	8.8%	6.4%
EBIT	211	132	476	226	577	326
EBIT margin	10.9 %	7.2%	8.3%	4.5%	7.5%	4.7%
Income after financial items	191	120	428	192	520	283
Income after tax	150	87	360	142	419	201
Earnings per share attributable to equity holders of the Parent Com pany	2.80	1.84	6.65	2.97	7.93	4.25
Return on capital employed, excluding goodwill	26.8%	16.1%	26.8%	16.1%	26.8%	16.6%

1) For reconciliation of alternative key financials, definition of key financials and glossary, see page 28.

1

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 21 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 provided, through the contact person, for publication on October 24, 2023 at 07:45 CET.

"The third quarter shows strong financial figures for the Duni Group, even though we saw a slowdown in demand towards the end of the quarter."

Good demand in the market

The third quarter of the year showed consistently strong financial figures for the Group's sales, margins and income. We believe that demand in the market continues to be good, even though we saw a slowdown towards the end of the quarter. This is being counteracted at the same time by the basic needs that people have to meet and socialize, preferably in connection with food. Group sales during the quarter amounted to SEK 1,935 m (1,834), corresponding to a sales increase of 5.5%. The quarter is a record-breaking one in terms of sales, and in absolute terms the best quarter in the Group's history. At the same time, we saw a slightly decrease in volumes compared with the previous year. Compensatory measures implemented for inflation-based cost increases as well as foreign exchange effects continued to have a significant positive effect on net sales.

High activity in the business areas

The Duni business area, which focuses on solutions for the set table, grew its sales during the quarter by SEK 146 m to SEK 1,189 m (1,043) compared with the same period of the previous year. Sustainable table covers were launched within the Bio Dunicel® range during the quarter in several new formats, colors and designs. In addition to maintaining quality, Bio Dunicel® also reduces CO2 emissions by 28% compared with the previous standard Dunicel® version. During the quarter, we initiated an upgrade of the drying unit in our paper mill with a new cylinder and a new cover. This enables energy efficiency improvements in production and will further reduce the Group's CO2 emissions.

The BioPak business area, which focuses on food packaging, reduced its sales by SEK 46 m to SEK 746 m (791) compared with the same period of the previous year. This is mainly due to unusually high comparative figures, with high demand for take-away during the pandemic and with most new contracts during the third quarter last year. During the third quarter of the year, the Group began its launch of a reusable range of mugs, plates and cutlery that will comply with the legislation being introduced in Sweden on January 1, 2024, but also in

certain other countries in Europe. This requires larger restaurants and restaurant chains to offer reusable serving items for seated customers instead of single-use products.

New, sustainable transport solutions were introduced during the quarter in Switzerland and Austria. With rail transport and hydrogen-based fuel, the aim is to further reduce CO2 emissions. These competitive improvements benefit distribution for both business areas.

Trend shift for the margin

The operating margin increased to 11.6% (8.4%), which is a change of trend after several quarters below 10%. As a percentage, the operating margin has recovered in recent quarters, while still being below historical levels. Although the cost profile for input products and energy remains significantly higher than before the pandemic, inflationary pressure in recent quarters has eased and, for certain raw materials, has even started to decline. Profitability is also being improved by the ongoing cost efficiency improvements being implemented in production, primarily at our conversion plants in the Duni business area, but also on the basis of reduced inventories within the BioPak business area. This gives us operating income of SEK 225 m (154) and is a significant improvement compared with the same period of the previous year – which was also a strong quarter historically. Furthermore, the Group's strong cash flow and lower net debt provides room for maneuver.

All in all, I am proud of the Group's sustainability work, as well as the company's ability to manage a volatile market, while at the same time increasing both efficiency and trend sensitivity towards customers.

Robert Dackeskog,

President and CEO, Duni Group

This is Duni Group

Duni Group is a leading supplier of inspiring tabletop concepts and attractive, creative and environmentally smart single-use items for food and beverages. Our offering includes high-quality products, such as napkins, table covers, candles and other tabletop accessories, along with packaging products and systems for the growing take-away market.

All of the company's concepts should contribute to creating an elevated experience where people come together to enjoy food and drink. And they should be able to do so with a clear conscience – environmental sustainability and circular options are a matter of course.

Complementary business areas

The business is divided into two business areas: Duni, which focuses on solutions for the set table, and BioPak, which focuses on food packaging. Each business area has full responsibility for its respective value chain. Products are sold through a joint sales force, with the regions supporting the business areas. The business areas are responsible for their respective brand strategies as well as their own marketing communications, product development and innovation. Duni Group currently sells its solutions primarily under the brands Duni, BioPak and Paper+Design.

Net sales per product group

Napkins Table covers Candles Packaging solutions Serving products Other

Net sales per region Financial targets - outcome Rolling 12 months, Oct-Sep 2022/2023

Net sales

SEK 7,721 m

Sales growth

11.1%

Duni Group's target is to achieve average organic growth in sales in excess of 5% per year over a business cycle. In addition, the Group continuously evaluates acquisition opportunities to reach new emerging markets or strengthen its position in existing markets.

2,332

The Group has 2,332 employees in 21 countries. The head office is located in Malmö. Tissue for napkins and table covers is manufactured in Sweden, while conversion to finished products takes place in Germany, Poland, Thailand and New Zealand. The Group has sales offices in Australia, Finland, France, United Arab Emirates, Netherlands, New Zealand, Poland, Switzerland, Singapore, Spain, UK, Sweden, Thailand, Czech Republic, Germany, USA and Austria.

Production units Sales offices

Dividend 2022

SEK 3.00 (70%)

It is the Board of Directors' long-term intention for dividends to amount to at least 40% of income after tax.

Operating margin

8.8%

The target is for the Group's operating margin to be at least 10%. Profitability is to be increased through sales growth, continued focus on premium products and continued improvements within purchasing and production.

Three sustainability goals by 2030

Becoming circular at scale Going net zero Living the change

Goal 2030:

• Fully circular operations
• environmentally friendly materials and suppliers
• efficient operation
• relevant solutions for reuse, recycling and composting
• no virgin plastic for single-use products

Interim targets 2025:

• reduction of virgin fossil-based plastics in single-use products by 50% compared with 2019 as a base year
• a large number of end-of-life solutions
• FSC®-certified products: 100% for Duni and 75% for BioPak Europe

Activities during the quarter:

• Pilot tests of the Idun circular
• Participation in "World Cleanup Day"
• Idun.co website launched

Use of virgin fossil plastic for single-use items*

KPI: reduction by 50% by 2025 compared with 2019 as base year

Status: fossil plastic use index for Q3 2023: 71 (29% reduction) and index for Jan-Sep 2023: 69 (31% reduction)

*Excluding BioPak Group, Duni Thailand, Sharp Serviettes and Paper+Design, with assessed

Goal 2030:

Zero vision for greenhouse gases according to the GHG protocol Scope 1 and Scope 2, and a significant reduction for Scope 3

• science-based targets that are approved, measured and communicated annually, including the GHG protocol Scope 3
• we will measure climate impact across our value chain • quarterly reporting of results for Scope 1 and 2

Interim targets 2025:

• activities in accordance with the approved science-based targets of the international collaboration Science Based Targets initiative, SBTi
• 60% reduction in carbon intensity with 2019 as base year

Activities during the quarter:

• New lighting system in Poznan • Initial upgrade of drying unit enables energy efficiency
• Start of approval of Science Based Targets

Scope 1+2* carbon intensity

KPI: index 37 for 2023 with 2019 as base year (100)

Status: carbon intensity for Jan–Sep 2023: 37

*The climate calculation methodology has been adjusted with other calculations in Duni uniformly throughout the company.

Goal 2030:

• A reliable sustainability leader • we will be a committed partner for our key stakeholders
• we will be the trusted expert with the best recognized ecosmart solutions
• our communications will have a high degree of transparency, integrity and openness

Interim targets 2025:

• key stakeholders see us as a leading sustainability company
• achieve 75 points in the EcoVadis system
• all employees trained in sustainability

Activities during the quarter:

• Local "Green Teams" created

EcoVadis score

KPI: EcoVadis platinum level for 2025 (full-year result)

Status: EcoVadis score 73 for 2022 (gold level)

Net sales

1 July – 30 September

Compared with the same period of the previous year, net sales increased by SEK 100 m to SEK 1,935 m (1,834). At fixed exchange rates, this corresponds to a 2.2% decrease. The quarter was a record-breaking one in terms of sales, and in absolute terms the highest third quarter in the Group's history. Despite this, growth at fixed rates was negative, after nine quarters of growth. Thanks to a recovering market, strong growth outside Europe and inflation-compensating price adjustments, net sales have increased for more than two consecutive years, but are now encountering particularly high comparative figures, as the same period last year grew by 19.2%.

Volumes were lower for both business areas in the quarter compared with the previous year. For the Duni business area, sales to the hotel and restaurant industry were in line with the previous year, while sales through the retail sector fell slightly. For the BioPak business area, volumes declined in most of the product portfolios in Europe. From a longer perspective, BioPak's strategic product areas in the field of fiber or bagasse are growing, while simpler single-use products, in particular in plastic, are declining.

A continued weak Swedish krona and inflation-compensating price adjustments implemented primarily during the first quarter had a positive effect on net sales, especially for the Duni business area. The price adjustment effect is decreasing compared with the previous quarter, and price reductions were implemented during the quarter in order to face competition on certain contracts and volume transactions.

January 1 – September 30

Compared with the same period of the previous year, net sales increased by SEK 746 m to SEK 5,747 m (5,002). At fixed exchange rates, this corresponds to an 8.5% increase. Demand for seated serving products has recovered strongly since the first quarter of 2022, when pandemic restrictions eased across Europe. Facing inflationary pressure and staff shortages, the restaurant industry has not fully reached historical volumes. Despite this, the Group's total volumes are increasing compared with pre-pandemic levels, as sales through the retail trade and take-away outside Europe have shown a particularly positive trend. As in the third quarter, currency effects and the cost-compensating price adjustments that were implemented had a strong positive impact on net sales during the year.

The Group's innovation projects continued to develop during the quarter. The Idun reuse system gained new customers in the light of new legislation being introduced in Sweden on January 1, 2024, as well as in some other countries in Europe. It requires larger restaurants and restaurant chains to offer reusable serving items as an alternative to single-use products. Unmo, a digital community, also expanded its user base of both job seekers and restaurant owners with the aim of creating a sustainable restaurant industry.

Net sales

Duni Group	1,935	1,834	-2.2%	5,747	5,002	8.5%	7,721	6,976
BioPak	746	791	-9.4%	2,280	2,185	1.2%	3,068	2,972
Duni	1,189	1,043	3.2%	3,467	2,817	14.2%	4,654	4,004
SEK m	2023	2022	rates	2023	2022	rates	22/23	2022
	3 months Jul-Sep	3 months Jul-Sep	% fixed exchange	9 months Jan-Sep	9 months Jan-Sep	% fixed exchange	12 months Oct-Sep	12 months Jan-Dec

Income

July 1 – September 30

Operating income amounted to SEK 225 m (154), with an operating margin of 11.6% (8.4%). The gross margin was 25.5% (19.8%). Like the second quarter of the year, operating income for the third quarter improved significantly compared with the previous year, and this is also a historically very strong quarter. As a percentage, the operating margin has recovered in recent quarters, but has still been below historical levels, a trend that was reversed in the quarter.

The recovery in profitability can be attributed in part to a better balance between cost increases and price compensation measures, and in part to efficiency improvements in purchasing, production and logistics. Continuous efficiency improvement measures are under way within the Duni business area, especially in the conversion plants, which, combined with strategic purchasing agreements, have had a major positive impact on income, especially now that volumes have partly normalized. The BioPak business area has continued to successfully lower its inventory levels, which were built up during the pandemic, and as a consequence continues its positive trend of falling inventory costs.

Although the cost profile remains significantly higher than before the pandemic, the inflationary pressure in recent quarters has slowed down, and for some raw materials has even dropped. Furthermore, energy prices were favorable during the quarter, which, combined with price adjustments implemented during the first half of the year, led to the improved balance. General inflation including wage increases is, however, continuing at historically high levels. At the same time, it is important to balance these cost increases with a sustained commitment to sustainable and circular investments, in order to ultimately create an attractive offering for customers and consumers.

Income after financial items amounted to SEK 191 m (120). Income after tax was SEK 150 m (87).

January 1 – September 30

Operating income amounted to SEK 525 m (296), with an operating margin of 9.1% (5.9%). The gross margin was 23.0% (18.3%). In line with the third quarter, income for the first nine months has improved significantly. The driving factors remain unchanged, with a gradually improved balance between cost increases and compensation through price adjustments, combined with production improvements and falling inventory costs.

Income after financial items amounted to SEK 428 m (192). Income after tax was SEK 360 m (142).

Operating income

SEK m	3 months Jul-Sep 2023	3 months Jul-Sep 20231)	3 months Jul-Sep 2022	9 months Jan-Sep 2023	9 months Jan-Sep 20231)	9 months Jan-Sep 2022	12 months Oct-Sep 22/23	12 months Jan-Dec 2022
Duni	170	149	115	425	383	206	552	333
BioPak	55	56	39	100	101	90	127	117
Duni Group	225	204	154	525	484	296	678	450

1) Reported operating income 2023 recalculated at 2022 exchange rates.

Duni business area

The Duni business area stands for what the Group is traditionally associated with, such as innovative solutions for the set table, primarily napkins, table covers and candles. The business area's products and services are sold under the Duni brand. The customers are mainly hotels and restaurants, the so-called HoReCa market, where sales are largely made through wholesalers. Retail and various types of specialist trade are also important customer groups. The business area is a European market leader in the premium segment for napkins and table covers. It accounted for approximately 60% (56%) of the Group's net sales during the period from January 1 to September 30, 2023.

Business events during the quarter

• The Duni business area expanded its production capacity in Thailand with an extended factory facility to meet increased demand in the Asia-Pacific region
• The business area initiated an upgrade of the drying unit at the paper mill in Sweden with a new cylinder and cover, enabling energy efficiency improvements in production
• Several large contracts were negotiated in the napkin category for retail and hypermarket customers
• Sustainable table covers in the Bio Dunicel® range were launched in several new formats, colors and designs, reducing CO2 emissions by 28% compared with the previous standard Dunicel version®

July 1 – September 30
Operating income	Operating margin
SEK 170 m (115)	14.3% (11.0%)
January 1 – September 30
Operating income	Operating margin
SEK 425 m (206)	12.3% (7.3%)

Duni business area

Net sales

Net sales for the quarter increased by more than SEK 146 m and amounted to SEK 1,189 m (1,043). At fixed exchange rates, this corresponds to a sales increase of 3.2%. There has been a high level of volatility in the hotel and restaurant industry in recent years. Only at the beginning of the previous year, after two years of restrictions, did Europe move near to a completely restriction-free society, and from there the market has encountered new challenges in the form of high inflation, shrinking household budgets and staff shortages. Market data does, however, indicate some stabilization, with the consumption of meals outside the home during the last five quarters in Germany, for example, being around 10% lower than in 2019. For the Duni business area, this has resulted in an increasing volume in sales during the first quarter, followed by volumes in line with the previous year for the second and third quarters. Volumes that are, however, slightly lower than pre-pandemic levels.

For the grocery retail trade, sales rose during the pandemic, while the Duni business area won a number of large contracts, which resulted in an increase in volume compared with historical levels again this year. The volume did, however, decline compared with the previous year, especially in the third quarter of the year. During the past year, the product portfolio has followed the same pattern as in recent years, with increasing sales of napkins and a fall in volume and net sales of table covers sold. In the candles segment, where cost increases have been particularly noticeable and thus also subsequent price adjustments, sales are in line with historical levels in absolute terms, but with significantly reduced volumes.

The fully compostable and fossil-free BioDunisoft® napkin was launched earlier this year. In the third quarter, work continued to consolidate the business area's market position as a leader in sustainability, with the launch of a series of BioDunicel® table covers, a new material with a significantly lower CO2 footprint.

Income

Operating income in the quarter was SEK 170 m (115) and the operating margin was 14.3% (11.0%). Income increased strongly by SEK 55 m. The business area has been facing challenges for a long time, with tight margins, initially as a consequence of low volumes during the pandemic, followed by sustained high inflationary pressure with deferred price increases for customers. The main focus of the business area has been on continuous efficiency improvements and productivity improvements in production, in order to reduce the proportion of fixed costs and to secure strategic purchasing agreements, while at the same time working on the rollout of cost-compensating price adjustments in stages.

In the second half of last year, volumes returned to a large extent with eased restrictions, while inflationary pressure gradually began to decline in strength and the effect of price adjustments was realized. The positive trend continued during the year and the business area's income has recovered strongly. Some raw materials have seen declining market prices in recent quarters, albeit at continued high levels, while other raw material movements have been sideways. The volatile energy prices in recent years have been favorable, especially during the third quarter. With continued high inflation and a strong focus on investing in a portfolio with a lower CO2 footprint, it is of the utmost importance to balance the cost level with a competitive price level in the future.

Operating income

BioPak business area

The BioPak business area offers environmentally sound concepts for meal packaging and serving products for applications including take-away, ready-to-eat meals, and various types of catering. The business area's customers are various types of restaurants with take-away concepts and companies that are active in the health and patient care sectors. Stores and other food producers are also major customer groups. The business area's products and services are sold under both the Duni and BioPak brands. The business area has a market-leading position in Australia. It accounted for approximately 40% (44%) of the Group's net sales during the period from January 1 to September 30, 2023.

Business events during the quarter

• The BioPak business area expanded the customer segment in international restaurant chains with several large contracts
• The business area began its launch of a reusable range of mugs, plates and cutlery that will comply with the legislation coming to Sweden on January 1, 2024, as well as in some other countries in Europe
• The business area continued to expand in the category of sustainable events by introducing a circular solution for Western Australia's RAC Arena
• The Group's distribution network in Switzerland and Austria introduced new, sustainable transport solutions using rail transport and hydrogen-based fuel, in order to further reduce CO2 emissions, which benefits distribution in both business areas

	July 1 – September 30
Net sales	Operating income	Operating margin
SEK 746 m (791)	SEK 55 m (39)	7.4% (5.0%)
	1 January – 30 September
Net sales	Operating income	Operating margin
SEK 2,280 m (2,185)	SEK 100 m (90)	4.4% (4.1%)

BioPak business area

Net sales

Net sales for the quarter decreased by SEK 46 m and amounted to SEK 746 m (791). At fixed exchange rates, this corresponds to a decrease in sales of 9.4%. The business area's net sales increased during the first nine months of the year, albeit with lower sales in the third quarter. This is mainly due to the fact that comparative figures last year were particularly high, as sales last year increased by more than 20% compared with 2021 and about 60% compared with pre-pandemic levels. Growth outside Europe was strong during the first half of the year. However, the third quarter last year saw a particularly positive increase in sales when the business area secured and started to deliver on many new major contracts, which is one of the reasons for the high comparative figures.

In Europe, net sales are affected by declining demand for take-away due to a long period of high demand during the pandemic, which is now slowing down, as well as declining sales of simple plastic goods, especially in serving products. In recent years, the business area has been working on converting its product portfolio from plastic-based articles, while several EU and local legislation directed at selected single-use articles has been implemented. Together with increased consumer demand for environmentally-sound products, the industry is undergoing a shift in which demand for the business area's newer part of the product portfolio is rising sharply, while the older, more plastic-oriented part is falling.

Net sales are being strengthened by price increases implemented during the previous year and at the beginning of this year, although to a more limited extent in the third quarter than in previous quarters. Sales in the now discontinued sales unit in Singapore amounted to approximately SEK 25 m in the first half of the previous year.

Income

Operating income in the quarter was SEK 55 m (39) and the operating margin was 7.4% (5.0%). Income increased by SEK 16 m. Despite lower net sales in the third quarter and a limited increase in net sales for the first nine months of the year, operating income improved. The income trend is explained by the same mechanics as for the Duni business area and the Group as a whole. Volatile demand during and immediately after the pandemic, combined with disruption in the global value chain, resulted in far-reaching inflationary pressure, partly on many raw materials and partly on freight, not least on sea freight. For the BioPak business area, the volatile demand for take-away also led to a difficult but temporary challenge in Europe, where work to ensure high delivery precision resulted in high inventory levels, which were largely delivered at extremely high container prices. From that situation, inflationary pressure has eased and sea freight prices have normalized, albeit with a delay due to inventory lead times, while compensatory price increases have been implemented. This, combined with successful efforts to reduce inventory levels, has gradually normalized the margin, even though the value of inventory for parts of the range was written down in the second quarter, with a negative impact on income of just over SEK 20 m.

Operating income

Financial overview

Cash flow and funding

The Group's cash flow from operating activities was SEK 729 m (-183) for the period from January 1 to September 30. Accounts receivable amounted to SEK 1,234 m (1,162) and accounts payable to SEK 577 m (668), while inventory was valued at SEK 1,337 m (1,669).

Cash flow including investing activities amounted to SEK 611 m (-274). The clear improvement in income, combined with reductions in inventory in the BioPak business area, are the main reasons for the strong return in the operating cash flow. Investments are on their way up to normal levels again, following restraint during the pandemic. Net investments for the period amounted to SEK 104 m (67). Depreciation for the period amounted to SEK 206 m (212), of which depreciation of right-of-use assets amounted to SEK 44 m (59).

The Group's interest-bearing net debt as of September 30, 2023 was SEK 959 m. The Group's interest-bearing net debt as of September 30, 2022 was SEK 1,745 m. The lower net debt provides increased room for maneuver.

Net financial items

Net financial items for the period from January 1 to September 30 amounted to SEK -48 m (-33). Higher interest rates are driving up borrowing costs, although this is offset to a certain extent by a lower debt and positive effects from interest rate hedging.

Income from participations in associated companies amounted to SEK -5.0 m (-4.4).

Taxes

The total reported tax expense for the period from January 1 to September 30 was SEK 68 m (50), equivalent to an effective tax rate of 15.9% (26.0%). The tax for the year includes adjustments and non-recurring effects from the previous year of SEK 14.2 m (-2.1).

Earnings per share

This year's earnings per share, attributable to the Parent Company's owners, before and after dilution amounted to SEK 6.65 (2.97).

The share

As of September 30, 2023, the share capital amounted to SEK 58,748,790 and consisted of 46,999,032 outstanding ordinary shares. The quotient value of the shares is SEK 1.25 per share.

Shareholders

Duni AB (publ) is listed on NASDAQ Stockholm under the ticker name "DUNI". The three largest shareholders at the end of the period were Mellby Gård AB (30.00%), Nordea Investment Funds (10.99%) and Polaris Capital Management LLC (9.80%).

Personnel

On September 30, 2023, there were 2,332 (2,252) employees. 880 (874) of the employees were engaged in production.

Duni Group's production plants are located in Bramsche and Wolkenstein, Germany, in Poznan, Poland, in Bengtsfors, Sweden, in Bangkok, Thailand and in Auckland, New Zealand.

Acquisitions

In the first quarter of the year, the holding in associated company Bumerang Takeaway S.L, Spain, was increased after a round of financing took place, and new stakeholders joined the company. Duni AB paid EUR 150,000 and went from 22.36% to 23.23% in ownership.

In the third quarter of the year, the holding in associated company Relevo GmbH, Germany, was increased after a round of financing took place, and new stakeholders joined the company. Duni AB paid EUR 990,000 and went from 20.00% to 24.51% in ownership.

New establishment

No new establishment was carried out during the period.

Risk factors for the Duni Group

There are a number of risk factors that can affect the Group's operations, linked to both commercial and financial risks.

Business risks

The business risks are divided into strategic and environmental risks, operational risks and sustainability risks. These risks affect, among other things, the company's business model and long-term strategic planning. They may have a negative impact on the Group's results or reputation.

Strategic and environmental risks refer to risks and external factors that have an impact on the company's business and market position. The Board and management develop strategies to manage these risks, which is done through strategy meetings. This includes risks related to acquisitions, suppliers, regulations and laws. External factors that may also affect operations include raw material prices, transport costs, local restrictions due to a pandemic, a worsening economy, and changes in market demand and taxes. Events that could lead to fewer restaurant visits, reduced demand and increased price competition, affect volumes and gross margins, among other things through increased discounts and customer bonuses. The development of a varied and attractive range is important for the Group to achieve good sales and earnings development.

Russia's invasion of Ukraine brought about a worsening geopolitical situation. Duni Group divested its sales office in Moscow immediately after the invasion, in April 2022, and since then has no sales in Russia. The Group monitors developments and follows all imposed sanctions. Recent developments with conflicts also in other regions where Duni Group operates, such as in the Middle East, create a general uncertainty with effects that are difficult to overview. Risks associated with conflicts in our markets are continuously evaluated with corrective measures if necessary.

Operational risks are normally handled by the respective operating unit and may refer to production interruptions, IT breakdowns, fire or other risks due to insufficient processes or handling errors. In many cases, the company can control this type of risk itself.

Sustainability risks include environmental risks, human rights and anti-corruption. This also includes risks such as not being able to keep up with external requirements regarding material development and reporting or legal requirements. These risks are managed through active prevention measures. The company also has activities and control mechanisms to counter them, for example through audits of suppliers under our Code of Business Conduct. To read more about our extensive sustainability work, see the Annual Report and Sustainability Report 2022.

Financial risks

The Group's financial management and its management of financial risks are regulated by a finance policy adopted by the Board of Directors. The Group divides its financial risks between currency risks, interest rate risks, credit risks, financing risks and liquidity risks. These risks are controlled in an overall risk management policy that focuses on unforeseen events in the financial markets and endeavors to minimize potential adverse effects on the Group's financial results. The risks for the Group are also related to the Parent Company in all essential respects. The Group's management of financial risks is described in more detail in the Annual Report and Sustainability Report 2022.

The Group's contingent liabilities have risen since the start of the year by SEK 58 m to SEK 126 m (67). This increase is due to extended Parent Company guarantees and currency effects.

Transactions with related parties

No significant transactions with related parties took place during the third quarter of 2023.

Significant events during the period and after the balance sheet date

During the period, Mellby Gård AB published a mandatory bid offer to the shareholders of Duni AB, after having acquired an additional 6,000 shares in Duni AB (publ) and the company's holding thereafter amounted to 30.00% of the number of shares and votes in Duni AB. In a press release during the period, the independent bid committee for Duni AB unanimously advised the shareholders of Duni AB not to accept the bid.

After the end of the period, the mandatory bid period has expired, and Mellby Gård AB announced on October 11, 2023 the final outcome of the mandatory bid offer. The offer was accepted by shareholders corresponding to 10.14%, which means that Mellby Gård AB will control approximately 40.14% of the total number of outstanding shares and votes in Duni AB.

No other significant events have taken place during the period or since the balance sheet date.

Interim reports

Q4	February 9, 2024
Q1	April 23, 2024

2024 Annual General Meeting

The Annual General Meeting of Duni AB will be held in Malmö at 3 PM on May 21, 2024. More information will be available on Duni's website shortly.

Parent Company

Net sales for the period from January 1 to September 30 amounted to SEK 1,183 m (1,087). Income after financial items amounted to SEK -81 m (-32). The interest-bearing net asset was SEK 907 m (287), of which a net asset of SEK 1,712 m (1,930) relates to subsidiaries. Net investments amounted to SEK 13 m (13) and depreciation and amortization amounted to SEK 15 m (16).

Accounting principles

The interim report for the Group has been prepared in accordance with IAS 34 and the Swedish Annual Accounts Act. The Parent Company's financial statements have been prepared in accordance with RFR 2, Accounting for Legal Entities, and the Swedish Annual Accounts Act. Accounting principles have been applied as reported in the Annual Report for the year ended on December 31, 2022.

Information in the report

Duni AB (publ) publishes this information in accordance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information will be submitted for publication on October 24 at 07:45 AM.

At 10:00 AM on Tuesday, October 24, the report will be presented at a telephone conference, which can also be followed online.

To access the audio conference call, please visit this link: https://register.vevent.com/register/BId5c3a764d-0b842358ab7f656cf211436

This link allows participants to register to obtain a personal code for the audio conference.

To follow the webcast, please visit this link:

https://onlinexperiences.com/Launch/QReg/ ShowUUID=83AEF5FC-DD71-4956-BF48-8888A131FE09

This link gives participants access to the live event.

Both a Swedish and an English version of this report have been prepared. In the event of any discrepancy between the two, the Swedish version will apply.

Malmö, October 23, 2023

Robert Dackeskog, President and CEO

For additional information please contact:

Magnus Carlsson, EVP Finance/CFO +46 (0)40-10 62 00 magnus.carlsson@duni.com

Katja Margell, IR and Communications Director +46 (0)76-819 83 26 katja.margell@duni.com

Duni AB (publ) Box 237 SE-201 22 Malmö Phone: +46 (0)40–10 62 00 www.dunigroup.com Company registration number: 556536-7488

Auditor's report

Duni AB reg. no. 556536-7488

Introduction

We have reviewed the condensed interim financial information (interim report) of Duni AB as of 30 September 2023 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, October 23, 2023

PricewaterhouseCoopers AB

Carl Fogelberg Authorized Public Accountant

Financial reports

Consolidated Income Statements

	3 months Jul-Sep	3 months Jul-Sep	9 months Jan-Sep	9 months Jan-Sep	12 months Oct-Sep	12 months Jan-Dec
SEK m (note 1)	2023	2022	2023	2022	22/23	2022
Net sales (note 3, 5)	1,935	1,834	5,747	5,002	7,721	6,976
Cost of goods sold	-1,442	-1,471	-4,424	-4,084	-5,998	-5,657
Gross profit	492	364	1,323	918	1,724	1,318
Selling expenses	-177	-147	-509	-441	-677	-609
Administrative expenses	-89	-78	-303	-252	-432	-381
Research and development expenses	-9	-1	-24	-1	-27	-4
Other operating income	15	14	52	61	72	80
Other operating expenses	-21	-20	-63	-59	-83	-79
EBIT (note 4, 5)	211	132	476	226	577	326
Financial income	7	4	17	14	22	19
Financial expenses	-25	-14	-60	-43	-73	-56
Income from participation in associated companies	-2	-2	-5	-4	-7	-6
Net financial items	-20	-12	-48	-33	-57	-43
Income after financial items	191	120	428	192	520	283
Income tax	-41	-33	-68	-50	-100	-82
Net income	150	87	360	142	419	201
Net income for the period attributable to:
Equity holders of the Parent Company	131	86	313	140	373	200
Non-controlling interests	18	1	47	2	47	2
Earnings per share attributable to equity holders of the
Parent Company:
Before and after dilution (SEK)	2.80	1.84	6.65	2.97	7.93	4.25
Average number of shares before and after dilution ('000)	46,999	46,999	46,999	46,999	46,999	46,999

Consolidated Statement of Comprehensive Income

SEK m (note 1)	3 months Jul-Sep 2023	3 months Jul-Sep 2022	9 months Jan-Sep 2023	9 months Jan-Sep 2022	12 months Oct-Sep 22/23	12 months Jan-Dec 2022
Net income	150	87	360	142	419	201
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of net pension obligation*	-8	22	4	79	-58	16
Total	-8	22	4	79	-58	16
Items that may be reclassified subsequently to profit or loss:
Translation differences for the period when
translating foreign operations	-45	-28	0	20	11	32
Cash flow hedging	-4	14	-3	30	2	35
Total	-48	-14	-3	50	13	67
Other comprehensive income for the period, net of tax	-56	8	1	129	-45	83
Sum of comprehensive income for the period	93	96	361	271	374	284
- Of which non-controlling interests	4	2	42	8	40	6

* Post-employment benefit obligations are recalculated each quarter since interest rates vary depending on market circumstances; a lower rate of interest gives rise to a higher cost in comprehensive income and a higher pension debt, while a higher rate of interest gives rise to a lower cost in comprehensive income and a lower pension debt than in the preceding quarter.

Condensed Consolidated Quarterly Income Statements

SEK m		2023		2022				2021
Quarter	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec
Income	1,935	1,936	1,877	1,974	1,834	1,724	1,443	1,552
Cost of goods sold	-1,442	-1,496	-1,486	-1,574	-1,471	-1,441	-1,172	-1,258
Gross profit	492	440	391	401	364	283	271	294
Selling expenses	-177	-171	-161	-168	-147	-145	-148	-136
Administrative expenses	-89	-119	-95	-129	-78	-97	-78	-80
Research and development expenses	-9	-9	-6	-3	-1	0	0	-1
Other operating income	15	32	5	20	14	43	4	28
Other operating expenses	-21	-20	-22	-20	-20	-17	-22	-54
EBIT	211	154	111	100	132	67	26	51
Financial income	7	6	5	5	4	9	1	1
Financial expenses	-25	-14	-21	-13	-14	-14	-15	-7
Income from participation in associated
companies	-2	-1	-2	-2	-2	-2	-1	-1
Net financial items	-20	-10	-18	-9	-12	-7	-14	-8
Income after financial items	191	144	93	91	120	60	12	43
Income tax	-41	-24	-3	-32	-33	-11	-6	-34
Net income	150	120	90	59	87	49	6	9
Income attributable to:
- Equity holders of the Parent Company	131	104	78	60	86	48	5	9
- Non-controlling interests	18	17	12	-1	1	1	1	0

Condensed Consolidated Balance Sheets

SEK m (note 2)	Sep 30 2023	Dec 31 2022	Sep 30 2022
ASSETS
Fixed assets
Goodwill	2,137	2,136	2,080
Other intangible assets	253	305	319
Tangible assets	1,240	1,147	1,098
Financial assets	323	294	210
Total fixed assets	3,954	3,881	3,708
Current assets
Inventory	1,337	1,727	1,669
Accounts receivable	1,234	1,137	1,162
Other receivables	341	222	330
Cash and cash equivalents	345	372	295
Total current assets	3,257	3,458	3,457
TOTAL ASSETS	7,211	7,339	7,165
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity
Shareholders' equity attributable to equity holders of the Parent Company	3,390	3,211	2,892
Non-controlling interests	572	530	93
Total equity	3,962	3,742	2,985
Long-term liabilities
Long-term financial liabilities	832	1,173	1,584
Other long-term liabilities	318	348	583
Total long-term liabilities	1,151	1,521	2,167
Short-term liabilities
Accounts payable	577	840	668
Short-term financial liabilities	353	393	407
Other short-term liabilities	1,169	844	936
Total short-term liabilities	2,099	2,076	2,012
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	7,211	7,339	7,165

Consolidated Statement of Changes in Equity

Attributable to equity holders of the Parent Company
				Retained	Total equity,
				earnings	equity hol
		Other		including	ders of the	Non-control	Total share
		injected		net	Parent Com	ling	holders'
SEK m	Share capital	capital	Reserves1)	income	pany	interests	equity
Opening balance January 1, 2022	59	1,681	103	786	2,630	85	2,714
Net income	-	-	-	140	140	2	142
Other comprehensive income for the period,
net after tax	-	-	44	79	123	6	129
Sum of comprehensive income for
the period	-	-	44	218	263	8	271
Remeasurement of liability to mino rity shareholders	-	-	-	-	-	-	-
Opening balance October 1, 2022	59	1,681	148	1,005	2,892	93	2,985
Net income	-	-	-	60	60	-1	59
Other comprehensive income for the period,
net after tax	-	-	17	-62	-45	-1	-46
Sum of comprehensive income for the period	-	-	17	-2	15	-2	13
Remeasurement of liability to mino rity shareholders	-	-	-	-	-	-	-
Transactions with minority interests	-	-	-	304	304	439	743
Opening balance January 1, 2023	59	1,681	165	1,306	3,211	530	3,742
Net income	-	-	-	313	313	47	360
Other comprehensive income for the period,
net after tax	-	-	3	4	7	-6	1
Sum of comprehensive income for
the period	-	-	3	317	319	42	361
Dividend paid to shareholders	-	-	-	-141	-141	-	-141
Closing balance September 30, 2023	59	1,681	168	1,482	3,390	572	3,962

1) Of the total reserves, SEK 13 m relates to a fair value reserve and consists of revaluation of land according to previous accounting principles. The revalued amount was adopted as acquisition value in accordance with the transitional rules in IFRS 1 and has not changed since.

Condensed Consolidated Cash Flow Statement

	9 months Jan-Sep	9 months Jan-Sep
SEK m	2023	2022
Operating activities
Reported EBIT	476	226
Adjusted for items not included in cash flow, etc.	200	196
Paid interest and tax	-137	-85
Change in working capital	190	-520
Cash flow from operating activities	729	-183
Investments
Acquisitions of fixed assets	-106	-67
Sales of fixed assets	2	0
Acquisition of subsidiaries	-	-25
Acquisition of associated companies	-14	-
Cash flow from investments	-118	-91
Financing
Loans raised1)	101	139
Amortization of debt1)	-570	-16
Dividend paid to shareholders	-70	-
Net change, overdraft facilities and other financial liabilities	-49	101
Net change in lease liability	-45	-61
Cash flow from financing	-634	163
Cash flow for the period	-22	-111
Cash and cash equivalents, opening balance	372	396
Exchange difference, cash and cash equivalents	-5	10
Cash and cash equivalents, closing balance	345	295

1) Loans and amortizations within the adopted credit facility are reported gross for durations exceeding 3 months, in accordance with IAS 7.

Key financials in summary

	3 months Jul-Sep 2023	3 months Jul-Sep 2022	9 months Jan-Sep 2023	9 months Jan-Sep 2022	12 months Oct-Sep 22/23	12 months Jan-Dec 2022
Net sales, SEK m	1,935	1,834	5,747	5,002	7,721	6,976
Gross profit, SEK m	492	364	1,323	918	1,724	1,318
Operating income, SEK m	225	154	525	296	678	450
Operating EBITDA, SEK m	278	209	682	461	885	664
Operating profit, EBIT, SEK m	211	132	476	226	577	326
EBITDA, SEK m	281	204	682	437	849	603
Interest-bearing net debt, SEK m	959	1,745	959	1,745	959	1,317
Number of employees	2,332	2,252	2,332	2,252	2,332	2,231
Sales growth	5.5%	63.2%	14.9%	42.5%	17.8%	37.8%
Organic growth	-2.2%	19.2%	8.5%	36.2%	11.1%	30.9%
Gross margin	25.5%	19.8%	23.0%	18.3%	22.3%	18.9%
Operating margin	11.6%	8.4%	9.1 %	5.9%	8.8%	6.4%
Operating EBITDA margin	14.4%	11.4%	11.9%	9.2%	11.5%	9.5%
EBIT margin	10.9 %	7.2%	8.3%	4.5%	7.5%	4.7%
EBITDA margin	14.5%	11.1%	11.9%	8.7%	11.0%	8.6%
Return on shareholders' equity	3.8%	2.9%	9.1 %	4.8%	10.6%	5.4%
Return on capital employed1)	14.5%	8.8%	14.5%	8.8%	14.5%	9.3%
Return on capital employed, excluding goodwill1)	26.8%	16.1%	26.8%	16.1%	26.8%	16.6%
Interest-bearing net debt/equity	24.2%	58.5%	24.2%	58.5%	24.2%	35.2%
Interest-bearing net debt/EBITDA1)	1.08	2.81	1.08	2.81	1.08	1.98

1) Calculated on the basis of the last twelve months and operating income.

Alternative key financials are described in definitions. For reconciliation of these, see note 5.

Condensed Parent Company Income Statements

SEK m (note 1)	3 months Jul-Sep 2023	3 months Jul-Sep 2022	9 months Jan-Sep 2023	9 months Jan-Sep 2022
Income	393	386	1,183	1,087
Cost of goods sold	-396	-364	-1,183	-1,048
Gross profit	-3	22	0	39
Selling expenses	-28	-29	-84	-85
Administrative expenses	-67	-51	-207	-175
Research and development expenses	-8	-1	-22	-2
Other operating income	91	78	254	221
Other operating expenses	-13	-11	-40	-31
EBIT	-29	8	-100	-34
Revenue from participation in Group companies	106	-	156	12
Financial income	46	16	123	39
Financial expenses	-32	-17	-98	-49
Net financial items	120	-1	181	2
Income after financial items	91	6	81	-32
Income tax	2	-2	13	5
Net income	94	5	94	-27

Parent Company Statement of Comprehensive Income

SEK m (note 1)	3 months Jul-Sep 2023	3 months Jul-Sep 2022	9 months Jan-Sep 2023	9 months Jan-Sep 2022
Net income	94	5	94	-27
Other comprehensive income1)
Items that may be reclassified subsequently to profit or loss:
Cash flow hedging	-4	10	3	16
Total	-4	10	3	16
Other comprehensive income for the period, net of tax	-4	10	3	16
Sum of comprehensive income for the period	90	15	97	-11
- Attributable to equity holders of the Parent Company	90	15	97	-11

1) The Parent Company does not have any items that "will not be reclassified to profit or loss".

Condensed Parent Company Balance Sheet

TOTAL EQUITY, PROVISIONS AND LIABILITIES	4,952	4,890	4,936
Total short-term liabilities	1,817	1,297	1,380
Other short-term liabilities	1,469	939	1,032
Short-term financial liabilities	296	287	281
Accounts payable	51	71	67
Short-term liabilities
Total long-term liabilities	648	1,066	1,444
Other long-term liabilities	-	0	-
Long-term financial liabilities	648	1,066	1,444
Long-term liabilities
Provisions	113	109	111
Total equity	2,375	2,419	2,002
Unrestricted equity	2,287	2,331	1,919
Restricted equity	87	87	83
Equity
EQUITY, PROVISIONS AND LIABILITIES
TOTAL ASSETS	4,952	4,890	4,936
Total current assets	1,304	892	1,131
Cash and bank balances	229	204	158
Other receivables	819	418	667
Accounts receivable	160	143	163
Inventory	97	127	144
Current assets
Total fixed assets	3,648	3,998	3,805
Financial assets	3,571	3,918	3,730
Tangible assets	24	25	24
Intangible assets	54	55	51
Fixed assets
ASSETS
SEK m	Sep 30 2023	Dec 31 2022	Sep 30 2022

Notes

Note 1 • Accounting and valuation principles

As of January 1, 2005, Duni applies the International Financial Reporting Standards (IFRS) as adopted by the European Union. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The consolidated financial statements have been prepared in accordance with the IFRS as adopted by the EU and with the related reference to Chapter 9 of the Swedish Annual Accounts Act. The Parent Company's financial statements are prepared in accordance with RFR 2, Accounting for Legal Entities, and the Swedish Annual Accounts Act. The accounting policies are the same as in the Annual Report for the year ended on December 31, 2022, with the addition that participations in associated companies are reported in accordance with the cost method in the Parent Company. The Group has received government support in respect of short-time work and support for fixed costs. This assistance has been recognized as revenue under the Other operating income line item.

Note 2 • Financial assets and liabilities

The Group has derivative instruments measured at fair value and held for hedging purposes that are classified at level 2. Level 2 derivative instruments consist of currency forward contracts and interest rate swaps, and are used for hedging purposes. Measurement of currency forward contracts at fair value is based on published forward prices on an active market. The measurement of interest rate swaps is based on forward interest rates produced from observable yield curves. The discounting has no material impact on the measurement of level 2 derivative instruments. The valuation techniques are unchanged during the year. As described in greater detail in the Annual Report for the year ended on December 31, 2022, the financial assets and liabilities comprise items with short terms to maturity. The fair value is therefore in all essential respects considered to correspond to the carrying amount.

Note 3 • Segment reporting

Group management, which is the highest executive and decision-making body, decides on the allocation of resources within the Group and evaluates the results of operations. Group Management manages the performance of the business through the business areas on the basis of sales and operating income. The Group's operations are divided into two business areas, Duni and BioPak. Each business area has full responsibility for its respective value chain. Products are sold via a consolidated commercial organization divided into six regions. Each region is responsible for local sales and marketing of both brands, Duni and BioPak, to all customers. The regions are:

• NorthEast: Northern and Eastern Europe
• Central: Germany, Austria and Switzerland
• West: The Netherlands, Belgium, Luxembourg, the UK and Ireland
• South: France, Spain and Italy
• Rest of World: All sales outside Europe, where Australia accounts for just over 70%, New Zealand just over 10% and the remaining share mainly Thailand, Singapore, the USA and the United Arab Emirates, of about 2-5% each.
• Other Sales: External sales of tissue and airlaid materials from the Skåpafors factory and external sales of finance and accounting services from the finance function in Poznan are included in the Duni segment.

The Group also has a central marketing department responsible for branding strategy, marketing communications, product development and innovation. Group-wide functions such as accounting, people&culture, communications, sustainability, and IT are largely shared by the business areas, and the expenses for these are allocated by the percentage of sales of each business area, Duni and BioPak. The Duni business area has a vertically integrated business model for small paper-based products such as napkins and table covers. This means that the entire production and delivery chain is owned and controlled by the business area, from material manufacture and concept development to conversion and distribution. The BioPak business area does not have in-house production. There is a large procurement organization here, and it is a major part of the business.

Operating segments, Group

		Jul-Sep 2023		Jul-Sep 2022
SEK m	Duni	BioPak	Duni Group	Duni	BioPak	Duni Group
Total net sales	1,192	746	1,937	1,048	792	1,839
Revenue from other segments	3	0	3	5	0	5
Net sales from external customers	1,189	746	1,935	1,043	791	1,834
Operating income	170	55	225	115	39	154
EBIT			211			132
Net financial items			-20			-12
Income after financial items			191			120

		Jan-Sep 2023		Jan-Sep 2022
SEK m	Duni	BioPak	Duni Group	Duni	BioPak	Duni Group
Total net sales	3,474	2,281	5,755	2,835	2,185	5,020
Revenue from other segments	7	0	7	18	1	18
Net sales from external customers	3,467	2,280	5,747	2,817	2,185	5,002
Operating income	425	100	525	206	90	296
EBIT			476			226
Net financial items			-48			-33
Income after financial items			428			192

Quarterly overview per segment

Net sales		2023			2022			2021
SEK m	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec
Duni	1,189	1,148	1,130	1,187	1,043	973	801	896
BioPak	746	788	747	787	791	751	642	656
Duni Group	1,935	1,936	1,877	1,974	1,834	1,724	1,443	1,552
Operating income
SEK m	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul- Sep	Apr-Jun	Jan-Mar	Oct-Dec
Duni	170	134	122	127	115	71	21	84
BioPak	55	36	8	27	39	20	31	26
Duni Group	225	170	130	153	154	91	51	110

Net sales per region, the Group

	3 months Jul-Sep	3 months Jul-Sep	3 months Jul-Sep	9 months Jan-Sep	9 months Jan-Sep	9 months Jan-Sep	12 months Oct-Sep	12 months Jan-Dec
SEK m	2023	20231)	2022	2023	20231)	2022	22/23	2022
NorthEast	337	325	308	990	966	887	1,326	1,222
Central	556	491	518	1,653	1,506	1,378	2,207	1,932
West	285	256	265	845	784	737	1,155	1,047
South	205	184	185	601	552	517	768	683
Rest of World	517	504	519	1,547	1,512	1,349	2,096	1,899
Other sales	35	34	40	111	109	134	170	192
Duni Group	1,935	1,794	1,834	5,747	5,429	5,002	7,721	6,976
Time of revenue recognition
Goods/services transferred at once	1,935	1,794	1,834	5,747	5,429	5,002	7,721	6,976
Goods/services transferred over time	-	-	-	-	-	-	-	-
Total	1,935	1,794	1,834	5,747	5,429	5,002	7,721	6,976

1) Reported net sales for 2023 recalculated at 2022 exchange rates.

Net sales per region, Duni business area

	3 months Jul-Sep	3 months Jul-Sep	3 months Jul-Sep	9 months Jan-Sep	9 months Jan-Sep	9 months Jan-Sep	12 months Oct-Sep	12 months Jan-Dec
SEK m	2023	20231)	2022	2023	20231)	2022	22/23	2022
NorthEast	208	199	166	585	564	469	787	671
Central	487	430	439	1,441	1,313	1,147	1,922	1,629
West	208	187	181	606	562	487	840	721
South	165	148	136	472	433	364	599	491
Rest of World	86	79	81	253	236	216	336	299
Other sales	35	34	40	111	109	134	170	192
Duni Group	1,189	1,076	1,043	3,467	3,217	2,817	4,654	4,004

1) Reported net sales for 2023 recalculated at 2022 exchange rates.

Net sales per region, BioPak business area

	3 months	3 months	3 months	9 months	9 months	9 months	12 months	12 months
	Jul-Sep	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Sep	Oct-Sep	Jan-Dec
SEK m	2023	20231)	2022	2023	20231)	2022	22/23	2022
NorthEast	129	127	142	406	401	418	539	551
Central	69	61	79	212	193	231	285	303
West	77	69	84	239	222	250	315	326
South	40	36	49	129	119	152	169	192
Rest of World	431	425	438	1,294	1,276	1,134	1,761	1,600
Other Sales	-	-	-	-	-	-	-	-
Duni Group	746	717	791	2,280	2,212	2,185	3,068	2,972

1) Reported net sales for 2023 recalculated at 2022 exchange rates.

Net sales per product group

	Jan-Sep 2023
SEK m	Duni	BioPak	Duni Group
Napkins	2,539	63	2,602
Table covers	556	-	556
Candles	140	-	140
Packaging solutions	-	920	920
Serving products	0	1,210	1,210
Other	231	87	318
Total	3,467	2,280	5,747

Note 4 • Reporting and disclosures on restructuring costs

SEK m	3 months Jul-Sep 2023	3 months Jul-Sep 2022	9 months Jan-Sep 2023	9 months Jan-Sep 2022	12 months Oct-Sep 22/23	12 months Jan-Dec 2022
Cost of goods sold	-	-	-	-1	-	-1
Selling expenses	-	-	0	-7	0	-7
Administrative expenses	3	-5	-2	-15	-36	-48
Other operating expenses/income	-	0	-	0	-	0
Total	3	-5	-2	-23	-36	-57

Restructuring expenses amount to SEK 2 m (23) and consist of costs related to the sale of shares in BioPak. The cost for the comparative period consists of SEK 9 m for the closure of the Russian sales office and SEK 14 m for the sale of the shares in BioPak. In the full year 2022, non-recurring costs of SEK 48 m were reported in respect of advisory services, auditing services and legal expenses in connection with the divestment of shares in BioPak Pty Ltd, as well as preliminary work in the form of evaluation of strategic alternatives, in order to optimize the long-term value of BioPak Pty Ltd in Australia. The restructuring cost for the year of SEK 2 m also belongs to this project.

Note 5 • Alternative key financials

Bridge between operating income and EBIT

SEK m	3 months Jul-Sep 2023	3 months Jul-Sep 2022	9 months Jan-Sep 2023	9 months Jan-Sep 2022	12 months Oct-Sep 22/23	12 months Jan-Dec 2022
Operating income excluding IFRS 16 Leases	222	153	518	293	666	441
Effects of IFRS 16 Leases	3	1	7	3	13	9
Operating income	225	154	525	296	678	450
Restructuring costs	3	-5	-2	-23	-36	-57
Unrealized value changes of derivative instruments	-	-	3	-	0	-3
Amortization of intangible assets identified in business combinations	-17	-16	-50	-47	-66	-63
Fair value allocation in connection with acquisitions	0	0	0	0	0	0
EBIT	211	132	476	226	577	326

Bridge between operating EBITDA, EBITDA and EBIT

SEK m	3 months Jul-Sep 2023	3 months July-Sep 2022	9 months Jan-Sep 2023	9 months Jan-Sep 2022	12 months Oct-Sep 22/23	12 months Jan-Dec 2022
Operating EBITDA excluding IFRS 16 Leases	259	188	630	399	813	581
Effects of IFRS 16 Leases	19	22	51	62	72	82
Operating EBITDA	278	209	682	461	885	664
Restructuring costs	3	-5	-2	-23	-36	-57
Unrealized value changes. derivative instruments	-	-	3	-	0	-3
Fair value allocation in connection with acquisitions	0	0	0	0	0	0
EBITDA	281	204	682	437	849	603
Amortization of intangible assets identified in business combinations	-17	-16	-50	-47	-66	-63
Amortization of right-of-use assets	-16	-21	-44	-59	-59	-73
Other amortization included in EBIT	-37	-35	-112	-106	-147	-141
EBIT	211	132	476	226	577	326

Bridge between reported net sales and organic growth

SEK m	3 months Jul-Sep 2023	3 months Jul-Sep 2022	9 months Jan-Sep 2023	9 months Jan-Sep 2022	12 months Oct-Sep 22/23	12 months Jan-Dec 2022
Net sales	1,935	1,834	5,747	5,002	7,721	6,976
Currency effect1)	-141	-103	-318	-222	-361	-349
Currency-adjusted net sales	1,794	1,732	5,429	4,779	7,360	6,627
Less acquisitions	-	-	-	-	-	-
Net sales for organic growth	1,794	1,732	5,429	4,779	7,360	6,627
Organic growth	-2.2%	19.2%	8.5%	36.2%	11.1%	30.9%

1) Reported net sales for 2023 recalculated at 2022 exchange rates.

Definitions of key financials

The Group uses financial metrics that are not defined by the IFRS in some cases but instead are alternative key financials. The purpose is to give the reader further information, which contributes to a better and more specific comparison of the company's performance from year to year. One alternative key financial used is Operating income. The management team manages its activities and the business areas are measured using this metric. For reconciliation of alternative key financials, see note 5. The key financials are defined as follows:

Capital employed:

Non-interest-bearing fixed and current assets, excluding deferred tax assets, less non-interest-bearing liabilities.

Cost of goods sold:

Cost of goods sold, including production and logistics costs.

Earnings per share:

Net income divided by the average number of shares.

EBIT:

Earnings before interest and taxes.

EBIT margin:

EBIT as a percentage of net sales.

EBITA:

Earnings before interest, taxes and amortization.

EBITDA:

Earnings before interest, taxes, depreciation and

Glossary

Airlaid:

A material known for its wetness allocation, absorption capability and softness. The process is based on using air to divide the fibers in the material, instead of water as in traditional tissue production. Airlaid is used for table covers, placemats and napkins.

Bagasse:

Bagasse is a waste product from cane sugar processing after the sugar has been extracted. The material is 100% biodegradable. Bagasse is used primarily in the BioPak business area's meal packaging solutions and serving products such as plates, bowls and take-away boxes.

BioDunicel®:

Sustainable premium table covers and placemats made from potato starch, produced by Duni's team in Germany.

BioDunisoft®:

Sustainable premium napkins made with groundbreaking BioBinder™ based on food leftovers.

Circularity:

An integrated holistic approach to the sustainability-related challenges faced by the Group. It encompasses the whole life cycle – from material selection and impact on the life cycle, to ultimate solutions.

Conversion:

The production phase in which tissue and airlaid in large rolls are cut, pressed, embossed and folded into finished napkins and table covers.

amortization (including impairment).

EBITDA margin:

EBITDA as a percentage of net sales.

Gross margin: Gross profit as a percentage of net sales.

Interest-bearing net debt:

Interest-bearing liabilities and pensions less

receivables. Number of employees: The number of active full-time employees at

cash and cash equivalents and interest-bearing

end of period.

Operating EBITDA:

EBITDA less restructuring costs and fair value allocations.

Operating EBITDA margin:

Operating EBITDA as a percentage of net sales.

Operating income:

EBIT less restructuring costs, fair value allocations and amortization of intangible assets identified in connection with business acquisitions.

Operating margin:

Operating income as a percentage of net sales.

Organic growth:

Sales growth adjusted for currencies and acquisitions. Acquired companies are included in organic growth when they have comparable quarters.

Return on capital employed:

Operating profit as a percentage of capital employed.

Return on equity:

Net income as a percentage of equity.

Currency adjusted/currency impact translation effects:

Figures adjusted for changes in exchange rates related to consolidation. Figures for 2023 are calculated at exchange rates for 2022. Effects of translation of balance sheet items are not included.

EcoVadis:

A world-leading independent company that analyzes and evaluates work on sustainability by other companies annually. The assessment is based on criteria in four different areas: The environment, fair working conditions, business ethics and the supply chain.

Goodfoodmood®:

The Duni business area's brand platform - to create a pleasant atmosphere and positive mood at all times when food and drink are prepared and served - a Goodfoodmood.

Our Decade of Action:

Duni Group's updated strategy with a long-term vision, a higher purpose and a clear sustainability agenda based on UN Agenda 2030. With our "Decade of Action" we want to lead the way in sustainability.

Private label:

Products marketed under the customer's own brand.

Science Based Targets (SBT):

A method for companies to set scientifically based climate targets in line with the Paris Agreement. The company inventories its emissions throughout its value chain and links its targets

to investments in which economy, feasibility and other effects are closely investigated.

SUP:

The EU's Single Use Plastics Directive, which aims to implement a series of measures for Member States to address the negative environmental impacts of certain plastic products.

The GHG Protocol:

The leading standard for business to measure, manage and report greenhouse gas emissions.

UNGC:

The UN Global Compact (UNGC) is the world's largest initiative to unite the business community around corporate sustainability, no matter how large or complex a company is or where it is located.

Vertical integration:

Vertical integration means that the Group, through the Duni business area, owns virtually the entire value chain for table covers and napkins (tissue and airlaid).

Dunigroup.com Duni AB (publ) • Box 237 • SE-201 22 Malmö • Sweden • Visiting address Hallenborgs gata 1 A • Tel +46 (0)40-10 62 00 • www.dunigroup.com Company registration number: 556536-7488