Duni — Interim / Quarterly Report 2017

Jul 14, 2017

Interim Report for Duni AB (publ) 1 January – 30 June 2017

(compared to the same period previous year)

14 July 2017

Strong growth and acquisition in New Zealand

1 April – 30 June

• Net sales amounted to SEK 1,101 m (1,013). Adjusted for exchange rate movements, net sales increased by 5.3%.
• Earnings per share after dilution amounted to SEK 1.54 (1.54).
• Duni strengthened its presence in Asia and Oceania by acquiring Sharp Serviettes in New Zealand on 3 May.
• Solid growth in Table Top business area.

1 January – 30 June

• Net sales amounted to SEK 2,106 m (1,973). Adjusted for exchange rate movements, net sales increased by 4.3%.
• Earnings per share after dilution amounted to SEK 2.75 (2.69).
• Raw material prices remained at high levels, putting pressure on the gross margin.
• Income improved as a result of increased volumes and high capacity utilization.
• SEK 55 m investment in a logistics property in Germany.

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1

Key financials

	3 months	3 months	6 months	6 months	12 months	12 months
	April	April	January	January	July	January
	June	June	June	June	June	December
SEK m	2017	2016	2017	2016	2016/2017	2016
Net sales	1,101	1,013	2,106	1,973	4,404	4,271
Operating income 1)	110	108	199	194	507	502
Operating margin 1)	10.0%	10.6%	9.4%	9.8%	11.5%	11.8%
Income after financial items	98	94	176	167	450	441
Net income	73	72	132	127	339	334

1) For bridge to EBIT, see the section entitled "Operating income".

CEO's comments

"Sales for the quarter increased by SEK 88 m, corresponding to 8.7% in comparison to last year. Adjusted for exchange rate movements, sales for the quarter increased by 5.3%. The growth was mainly generated from the higher organic growth in Table Top, the acquisitions in New Markets and continuing market share gains in the take-away segment within Meal Service.

Net sales for the quarter amounted to SEK 1,101 m (1,013) and organic growth, adjusted for currency and acquisition effects, strengthened to 2.6%. The operating income increased to SEK 110 m (108). However, in line with the information disclosed in the previous interim report, the gross margin for the quarter was weighed down by the raw material price increases. These cost increases will largely be compensated in the market during the third quarter. Operating cash flow for the period was SEK 95 m (39) and, in addition to normal maintenance investments, the cash flow for the period and net debt were impacted by the acquisition of Sharp Serviettes in New Zealand. Net debt at the end of the period amounted to SEK 1,109 m (920).

Sharp Serviettes commands a leading position as a manufacturer and distributor of table setting products in the New Zealand market. The company reported sales of approximately SEK 60 m last year and exhibited strong sales growth over the past years. The acquisition of Sharp Serviettes makes Duni a market leader in New Zealand while strengthening our presence in the highly prioritized markets in Asia and Oceania. Sharp Serviettes, along with Terinex Siam and Duni Song Seng, form a strong platform for a greater presence in Australia as well.

The Table Top business area grew by 6.9% in the quarter, and we see a strong trend in many major sales regions. The trend in Southern Europe remains strong while demand in central Europe has stabilized. Net sales increased to SEK 605 m (566), and the sales activities initiated as a result of the weak sales trend early in 2016 are now contributing to better performance. Operating income increased to SEK 95 m (87) and the operating margin strengthened to 15.7% (15.4%).

The Meal Service business area continues to grow faster than the market, reaching a growth rate of 7.5% in the quarter in relation to last year. Investments in expanded sales resources are proceeding, and the transition of the business area's assortment to more environmentally conscious products is fully in line with customer demands. Net sales reached SEK 194 m (180) and operating income was SEK 15 m (19). Income was impacted negatively by increased purchase prices for plastic-based products.

The Consumer business area's net sales amounted to SEK 211 m (213) and operating income decreased to SEK -6 m (-1). Lower sales and a more disadvantageous product mix in Germany played a part in the decrease in income. The European consumer market is volatile and a relatively high share of the sales volume is linked to contract production. We are now looking into ways to strengthen our offering in order to raise efficiency and better adapt to customer demands.

The New Markets business area increased its net sales to SEK 78 m (42) and operating income to SEK 5 m (2). The business area's performance is mainly driven by acquisitions but we also see a better sales trend in our export markets. Terinex Siam and Sharp Serviettes, which primarily engaged in domestic distribution, are now being integrated into Duni's Asian sales and distribution structure. We therefore see favorable conditions for expanding exports to nearby markets.

The quarter's overall growth is satisfactory and we succeeded in balancing the raw material price challenge. The cost increase will be compensated in the third quarter, and, in light of the improved sales trend over the past months, we head into the more intense fall season with a certain degree of confidence," says Thomas Gustafsson, President and CEO, Duni.

Net sales for the quarter of SEK 1,101 m

1 April – 30 June

Compared to the same period last year, net sales increased by SEK 88 m to SEK 1,101 m (1,013). Adjusted for exchange rate movements, net sales increased by SEK 54 m or 5.3%. Adjusted for currency and structural effects, Duni's organic growth for the past 12 months reached 1.7%. Organic growth in the quarter was strong, especially considering that the quarter had three less billing days than the previous year. The increase in comparison to previous quarters is attributable to the Table Top business area, where almost every market exhibited growth. The improvement in Germany is particularly striking, as Germany benefited from many successful campaigns. The Meal Service business area fell slightly short of the rate of increase of the previous quarter, but remains above average for Duni as a whole. The acquisitions of Sharp Serviettes during the quarter and of Terinex Siam in the third quarter of 2016 made a positive contribution to growth for the New Markets business area and serve as the main reason for this growth.

1 January – 30 June

Compared to the same period last year, net sales increased by SEK 133 m to SEK 2,106 m (1,973). Adjusted for exchange rate movements, net sales increased by SEK 85 m or 4.3%. Despite a slow start of the year, sales have gradually improved. Several campaigns have driven sales, with the improvement in Germany in the Table Top business area clearly related to most of these successful campaigns. Premium napkins and take-away packages continue to be the single largest drivers of the sales increase, while table coverings experienced a slight decrease. Raw material prices continued to increase over the first half of the year, prompting initiatives to increase prices to customers. The positive effect of these initiatives was marginal as of late in the second quarter, but, with a few exceptions, they are estimated to be fully implemented by the end of the next quarter.

SEK m	3 months April June 2017	3 months April June 20171) recalculated	3 months April June 2016	Change In fixed exchange rates	6 months January- June 2017	6 months January June 20171) recalculated	6 months January- June 2016	Change in fixed exchange rates
Table Top	605	587	566	3.8%	1,116	1,094	1,069	2.3%
Meal Service	194	189	180	5.0%	356	349	328	6.5%
Consumer	211	204	213	-4.0%	458	449	461	-2.5%
New Markets	78	72	42	73.0%	148	138	88	55.8%
Other	14	14	13	9.1%	28	28	26	4.6%
Total	1,101	1,067	1,013	5.3%	2,106	2,058	1,973	4.3%

Net sales, currency effect

1) Reported net sales for 2017 recalculated at 2016 exchange rates.

Operating margin in the quarter of 10.0%

1 April – 30 June

Operating income amounted to SEK 110 m (108) with a gross margin of 27.4% (28.2%). The operating margin was 10.0% (10.6%). Adjusted for translation effects due to exchange rate movements, operating income was SEK 3 m lower than last year. Other currency effects, besides translation effects, that had a negative impact in recent quarters, remained negative this quarter, but to a slightly lesser extent than before. Improved volumes with positive absorption effects had a positive impact on the quarter. The acquisitions of Sharp Serviettes in New Zealand and

Terinex Siam in Thailand, which are both part of the New Markets business area, made a positive contribution as well. The greatest challenge is the continuing high raw material costs, with the price of pulp continuing to increase.

Income after financial items amounted to SEK 98 m (94). Income after tax was SEK 73 m (72).

1 January – 30 June

Operating income amounted to SEK 199 m (194) with a gross margin of 27.9% (28.3%). The operating margin was 9.4% (9.8%). Adjusted for translation effects due to exchange rate movements, operating income was SEK 2 m lower than last year. The business area's performance is on a positive trend in comparison to last year, with improved volumes serving as the single most important component. In spite of gradual improvement in sales during the year, the gross margins were pressed down by increased raw material costs and relatively higher logistics expenses. A number of initiatives have been taken to secure high delivery performance with greater cost efficiency in the long term. Furthermore, the aim is to reduce complexity, given that complexity drives costs and increases inventories of finished goods. Several investments were made during the year to build up new markets outside of Europe, but this has not contributed to sales and income yet.

Income after financial items amounted to SEK 176 m (167). Income after tax was SEK 132 m (127).

	3 months April June	3 months April June	3 months April June	6 months January- June	6 months January June	6 months January- June
SEK m	2017	20171) recalculated	2016	2017	20171) recalculated	2016
Table Top	95	91	87	158	152	148
Meal Service	15	14	19	16	16	21
Consumer	-6	-6	-1	11	11	18
New Markets	5	5	2	12	11	6
Other	1	1	1	2	2	1
Total	110	105	108	199	192	194

Operating income, currency effect translation effects

1) Operating income for 2017 recalculated at 2016 exchange rates.

Operating income

Duni manages its operations based on what Duni refers to as operating income. 'Operating income' means operating income before restructuring costs, fair value allocations and amortization of intangible assets identified in connection with business acquisitions. Duni has chosen to analyze operating income, since it is subject to fewer nonrecurring items than the reported income. See the table below.

Restructuring costs after the first half of the year were positive, amounting to SEK 1 m (0). Restructuring costs were incurred for efficiency improvements in marketing and sales, but revenue was also recognized for damages relating to the period before Duni was listed. Restructuring costs totaling SEK 10 m were incurred in the latter part of 2016. These costs mainly involved organizational changes and efficiency improvements in production in Germany and in sales in the Nordic region. For details of restructuring costs, see Note 6.

Bridge between operating income and EBIT

	3 months	3 months	6 months	6 months	12 months	12 months
	April	April	January	January	July	January
	June	June	June	June	June	December
SEK m	2017	2016	2017	2016	2016/2017	2016
Operating income	110	108	199	194	507	502
Restructuring costs	1	0	1	0	-9	-10
Amortization of intangible assets identified in connection with business acquisitions	-8	-7	-16	-13	-30	-27
Fair value allocation in connection with acquisitions	0	-	0	-	-1	-1
EBIT	102	101	183	181	466	463

Reporting of operating segments

Duni's operations are divided into four operating segments, which are referred to by Duni as business areas.

The Table Top business area offers Duni's concepts and products primarily to hotels, restaurants, catering, and health and care. Table Top primarily markets napkins, table coverings and candles for the set table. Duni is the market leader within the premium segment in Europe. The business area accounted for approximately 53% (54%) of Duni's net sales during the period 1 January – 30 June 2017.

The Meal Service business area offers concepts for meal packaging and service for take-away, ready-to-eat meals, and catering. The business area's customers are mainly take-away-driven restaurants, food retailers, and health and care. As a niche player, Duni enjoys a leading position within this area in the Nordic region and has a clear growth agenda on identified markets in Europe. The business area accounted for approximately 17% (17%) of Duni's net sales during the period.

The Consumer business area offers consumer products primarily to the retail sector in Europe. The business area's customers mainly comprise of grocery retail chains, but also other channels such as specialty stores, including garden centers, home furnishing stores, and DIY stores. The business area accounted for approximately 22% (23%) of Duni's net sales during the period.

The New Markets business area offers Duni's attractive quality product concepts, table top concepts and packaging to markets outside of Europe. In addition to customer segments such as hotels, restaurants and catering, the business area also aims its offering at the retail sector. The business area accounted for approximately 7% (5%) of Duni's net sales during the period. Terinex Siam has been included in the business area since August 2016 and Sharp Serviettes, with legal trade name United Corporation Limited, has been included in the business area since May 2017.

These business areas largely have a joint product assortment. However, design and packaging solutions are adapted to suit the different sales channels. Production and support functions are largely shared by these business areas. Group management, which is the highest executive and decision-making body in Duni, decides on the allocation of resources within Duni and evaluates the results of the operations. The business areas are directed based on operating income after shared costs have been allocated between them. For further information, see Note 4.

Operations were divided between five operating segments through 2016. Starting in 2017, Duni has chosen to no longer track the Materials & Services business area and will instead report it under Other. This is a natural step given that the former hygiene operations, which were discontinued in March 2015, were included in Materials & Services.

The business area accounted for 13% of Duni's total net sales at that time. Once the hygiene operations were discontinued, they were recognized as discontinued operations and were therefore no longer included in Materials & Services. The business area accounted for only slightly more than 1% of Duni's net sales in 2016. For further information, see Note 3. External sales of tissue and airlaid materials from the Skåpafors factory and external sales of finance and accounting services from the European Finance Function (EFF) in Poznan are also included in Other.

Table Top business area

1 April – 30 June

Net sales amounted to SEK 605 m (566). At fixed exchange rates, this corresponds to an increase in sales of 3.8%. Almost every market exhibited growth in the quarter. Germany was the focus of the activities that dominated the business area. Several successful campaigns resulted in an increase in sales. Private label napkins experienced a strong trend, and napkins in various premium materials accounted for the greatest increase. Price increases to compensate for the increase in the cost of pulp had a slightly positive impact late in the quarter and will continue into the next quarter. The tourist season started strong in southern Europe, resulting in a positive effect on the quarter. However, there is greater competition from new low-price materials in this area.

Operating income was SEK 95 m (87) and the operating margin was 15.7% (15.4%). The improvement in the quarter is strongly related to the improved market situation, with new volumes and high capacity utilization making a positive impact. Logistics expenses remain higher than last year, but have been gradually reduced as the delivery situation has improved. Increasing costs, especially for pulp, serve as a challenge for the quarter and into the future.

1 January – 30 June

Net sales amounted to SEK 1,116 m (1,069). At fixed exchange rates, this corresponds to an increase in sales of 2.3%. Since March, almost every country has exhibited growth in comparison to last year, especially Germany, parts of the Nordic region and southern Europe. The challenge Duni continuously faces is creating greater end customer demand in collaboration with the distributor in order to reduce volatility between months, but above all to secure satisfactory long-term growth. During the year, increased transparency and contact with wholesalers gave a better understanding of the market and raised the quality of our campaigns.

Operating income was SEK 158 m (148) and the operating margin was 14.1% (13.8%). In spite of headwinds due to unfavorable exchange rates and increasing raw material costs, both the income and profit margin strengthened during the year. Increased volumes in particular along with excellent cost controls and solid capacity utilization were the drivers of the margin increase. Securing delivery capacity in the second half of the year has also been a strong focus, given that the second half of the year is dominated by the important Christmas sales.

	3 months April June 2017	3 months April June 20171)	3 months April June 2016	6 months January June 2017	6 months January June 20171)	6 months January June 2016	12 months July June 2016/2017	12 months January December 2016
SEK m		recalculated			recalculated
Nordic region	88	88	84	166	166	156	353	344
Central Europe	394	382	372	743	727	721	1,567	1,545
South & East Europe	122	117	109	207	200	190	417	401
Rest of the World	1	1	1	1	1	1	3	3
Total	605	587	566	1,116	1,094	1,069	2,340	2,293

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Net sales, Table Top

1) Reported net sales for 2017 recalculated at 2016 exchange rates.

Meal Service business area

1 April – 30 June

Net sales amounted to SEK 194 m (180). At fixed exchange rates, this corresponds to an increase in sales of 5.0%. This is slightly below the average of the previous years. During the quarter, the business area lost some of its standard product sales where price pressure is heavy. On the other hand, sales of environmentally conscious products and more customer unique products continue to gain market shares and account for an increasingly large share of sales.

Operating income was SEK 15 m (19) and the operating margin was 7.7% (10.3%). Income was lower than last year although it continued to exhibit healthy growth. The second quarter was impacted negatively by historically high raw material prices for plastic. In spite of efforts to increase the share of other materials, the business area is highly dependent on plastic. The gross margin was therefore pressed down and the price compensation has had a gradual effect as of late in the quarter, but was not enough to retain the gross margin for the quarter.

1 January – 30 June

Net sales amounted to SEK 356 m (328). At fixed exchange rates, this corresponds to an increase in sales of 6.5%. Almost every product group within Meal Service is reporting growth this year. It's especially striking that packaging machine sales saw an increase of more than 50%. The challenge this year, which has appeared slightly more pronounced than before, is price pressure on some standard products in regions such as the Nordicsand parts of Eastern Europe. Efforts to develop more environmentally conscious alternatives, where plastic-based products are replaced with renewable materials, is continuing.

Operating income was SEK 16 m (21) and the operating margin was 4.6% (6.5%). Since late last year, Meal Service has invested in expanding its sales and purchasing organization, which has impacted income in the short term. The strength of Meal Service's business model lies in being better than the competitors in terms of service and understanding customer needs, which is why these activities are of the utmost importance. The return on this investment is expected in the coming quarters.

Total	194	189	180	356	349	328	693	666
Rest of the World	0	0	0	0	0	0	1	1
South & East Europe	40	38	33	72	70	60	138	127
Central Europe	67	64	63	125	121	117	246	238
Nordic region	86	86	84	158	158	150	308	300
SEK m		recalculated			recalculated
	2017	20171)	2016	2017	20171)	2016	2016/2017	2016
	June	June	June	June	June	June	June	December
	April	April	April	January	January	January	July	January
	3 months	3 months	3 months	6 months	6 months	6 months	12 months	12 months

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Net sales, Meal Service

1) Reported net sales for 2017 recalculated at 2016 exchange rates.

Consumer business area

1 April – 30 June

Net sales amounted to SEK 211 m (213). At fixed exchange rates, this corresponds to a decrease in sales of 4.0%. Consumer lost ground in comparison to last year in a seasonally weak quarter. Positive exceptions were increased sales in most Nordic markets and small, but stable growth in Germany. The summer season assortment has been well received with a strong start in the second quarter. However, there were fewer general campaigns and their outcomes fell short compared to last year.

Operating income was SEK -6 m (-1) and the operating margin was -2.8% (-0.5%). Income failed to benefit from increased volumes. Instead, income was impacted by higher raw material costs and continuing low margins in the crucial UK market. Given that the second quarter is the weakest seasonally, it is also more vulnerable to lower capacity utilization, which was also the case in the quarter.

1 January – 30 June

Net sales amounted to SEK 458 m (461). At fixed exchange rates, this corresponds to a decrease in sales of 2.5%. The assortment for Easter and summer generally had a positive impact on sales, while year-round campaigns were less successful. Several channels in Germany, the single largest market, are performing very well, while some niche segments such as design and furniture stores are losing ground.

Operating income was SEK 11 m (18) and the operating margin was 2.4% (3.9%). The product mix experienced a negative trend during the year with less of Duni's premium products and more contract production, which is under heavy price pressure. Without compromising on Duni's strength, high quality in design and printing, the challenge is to achieve even greater cost efficiency in the standard assortment to pave the way for attractive offerings in both channels.

	3 months April June 2017	3 months April June 20171)	3 months April June 2016	6 months January June 2017	6 months January June 20171)	6 months January June 2016	12 months July June 2016/2017	12 months January December 2016
SEK m		recalculated			recalculated
Nordic region	37	36	33	73	71	67	151	146
Central Europe	145	141	150	323	318	332	743	752
South & East Europe	12	11	12	30	29	29	78	77
Rest of the World	17	16	18	33	32	33	65	65
Total	211	204	213	458	449	461	1,037	1,039

Net sales, Consumer

1) Reported net sales for 2017 recalculated at 2016 exchange rates.

New Markets business area

1 April – 30 June

Net sales amounted to SEK 78 m (42). At fixed exchange rates, this corresponds to an increase in sales of 73.0%. The business area was impacted positively by two acquisitions. One is Sharp Serviettes, a leading tissue manufacturer in New Zealand, which was acquired on 3 May. The other is Terinex Siam, which was acquired in the third quarter of last year and is still contributing structurally. These acquisitions further strengthen Duni's position in Asia and Oceania. Apart from this region, South America is exhibiting relatively strong growth, while the Middle East is on the decline.

Operating income was SEK 5 m (2) and the operating margin was 6.5% (4.7%). The acquired companies are the main reason for the improvement in the quarter. Investments to strengthen the sales organization and open up new markets led to an increase in indirect costs. Duni's solutions and products in the premium segment are practically undeveloped outside of Europe and Duni therefore needs to consolidate its presence and market this product segment. The advantage is that customers are highly loyal over time once they start buying Duni's products, and it is therefore profitable to incur higher costs initially, such as in the form of various sales activities.

1 January – 30 June

Net sales amounted to SEK 148 m (88). At fixed exchange rates, this corresponds to an increase in sales of 55.8%. The majority of the markets are growing more than the average in Europe, with the exception of a few regions such as the Middle East. Duni's increased presence in Asia and Oceania, with production in Thailand and New Zealand, has created greater opportunities to offer customers both more basic standard products as well as premium products. Premium napkins and table coverings are still produced and shipped from Europe, while standard products can now be offered regionally at a lower cost. Development and coordination of assortments and product supplies remain high priorities in our strategic efforts and have also been crucial in the first half of 2017.

Operating income was SEK 12 m (6) and the operating margin was 7.9% (7.0%). Although high volumes and acquisitions had a positive impact on income, the margin came under pressure due to the investments in new markets and segments. Duni continuously evaluates initiatives and their outcomes in order to take advantage of cultural differences and adapt its assortments and offers to them.

Cash flow

The Group's operating cash flow for the period 1 January – 30 June was SEK 95 m (39). Accounts receivables amounted to SEK 767 m (680), accounts payables to SEK 348 m (290) and inventory was valued at SEK 619 m (531). Inventories initially impacted cash flow during the year as a result of increased levels, but decreased in the second quarter slightly, although remaining at high levels.

Cash flow including investing activities amounted to SEK -87 m (-45). Net investments for the period amounted to SEK 122 m (84). An SEK 55 m investment was made in a logistics property in Germany in the first quarter. Amortization/depreciation for the period was SEK 85 m (76). The acquisition of Sharp Serviettes in the second quarter had a negative impact on cash flow of SEK 59 m.

The Group's interest-bearing net debt as of 30 June 2017 was SEK 1,109 m, compared with SEK 920 m on 30 June 2016.

Financial net

The financial net for the period 1 January – 30 June was SEK -7 m (-14). The translation effects were slightly positive in the period in comparison to substantially negative last year.

Taxes

The total reported tax expense for the period 1 January – 30 June amounted to SEK 45 m (41), yielding an effective tax rate of 25.3% (24.3%). The tax expense for the year includes adjustments and non-recurring effects from the previous year of SEK 0.5 m (2.9). The deferred tax asset relating to loss carryforwards was utilized in the amount of SEK 19 m (13).

Earnings per share

The earnings per share before and after dilution amounted to SEK 2.75 (2.69).

Duni's share

At 30 June 2017, the share capital amounted to SEK 58,748,790 divided into 46,999,032 outstanding ordinary shares. The quotient value of the shares was SEK 1.25 per share.

Shareholders

Duni is listed on NASDAQ Stockholm under the ticker name "DUNI". Duni's three largest shareholders are Mellby Gård Investerings AB (29.99%), Swedbank Robur fonder (9.14%) and Carnegie fonder (8.51%).

Personnel

On 30 June 2017 there were 2,344 (2,086) employees. 1,037 (901) of the employees were engaged in production. Duni's production units are located in Bramsche and Wolkenstein in Germany, Poznan in Poland, Bengtsfors in Sweden, Bangkok in Thailand and Auckland in New Zealand.

Acquisitions

On 3 May 2017, Duni acquired a total of 80% of the shares of New Zealand company United Corporations Limited, which is traded under the name Sharp Serviettes. Sharp Serviettes is a leading manufacturer and supplier of napkins as well as hygiene and food service products in New Zealand. The company is consolidated in the New Markets business area as of May.

Sharp Serviettes has 45 employees and has its production unit in western Auckland with distribution across New Zealand. The company is a leading supplier of table setting products in New Zealand and is also a Duni product distributor. Sharp Serviettes is a well-reputed partner in the HoReCa industry and retail sector in New Zealand. The company offers a wide range of quality products that can be adapted to customer requirements. Sharp Serviettes values short lead times and manufactures to order to maintain high delivery performance.

The purchase price of SEK 59 m was paid in cash in connection with the takeover, and SEK 47 m of the purchase price was for the shares in the company, while SEK 12 m was to redeem loans. The purchase impacted Duni's net debt in the amount of SEK 59 m, which is accommodated within current loan facility. The acquisition costs affect income for the year under the item "Other operating expenses" and amount to SEK 1.7 m. In accordance with RFR2, the parent company reports these expenses as financial assets.

Duni has an obligation to acquire the remaining 20% of the shares. The minority owners of United Corporations Limited have a put option in the period April – June 2019 to 2021 where the redemption price is determined by future income. As a result of the option, Duni recognizes the acquisition of the shares in Sharp Serviettes as if they were fully consolidated, and recognizes a liability amounting to the discounted expected redemption price of the options. The difference between the liability for the option and the non-controlling interest to which the option is related will be recognized directly against equity. For more information regarding accounting principles, see Note 1.

The fair value of 100% of the net assets amounts to SEK 59 m. Intangible fixed assets primarily comprise customer contracts. Goodwill corresponds to the synergy effects in purchasing and access to another production unit and thus a stronger platform for Duni in Asia and Oceania. No part of the reported goodwill or intangible fixed assets is expected to be deductible in conjunction with income taxation. The acquisition analysis is still preliminary. Final calculation and allocation of the purchase price is underway and is expected to be completed during the third quarter of 2017.

Acquired net assets	TSEK, Fair value
Intangible fixed assets	19,872
Tangible fixed assets	6,816
Inventory	11,919
Accounts receivable	5,665
Cash	1,152
Long-term loans	-12,878
Accounts payable	-3,040
Deferred tax asset/liability, net	-6,840
Other current liabilities	-406
Other liabilities	-456
Acquired identifiable net assets	21,804
Non-controlling interests	-11,702
Goodwill	36,703
Acquired net assets	46,806

New establishment

No new establishments were carried out during the period.

Risk factors for Duni

A number of risk factors may affect Duni's operations in terms of both operational and financial risks. Operational risks are normally handled by each operating unit and financial risks are managed by the Group's Treasury department, which is included as a unit within the Parent Company.

Operational risks

Duni is exposed to a number of operational risks that are important to manage. The development of attractive product ranges, particularly the Christmas collection, is very important in order for Duni to achieve good sales and income growth. Duni addresses this issue by constantly developing its ranges. Approximately 25% of the collection

is replaced each year in response to, and to create, new trends. A weaker economy over an extended period of time in Europe might lead to fewer restaurant visits. Reduced market demand and increased price competition, may affect volumes and gross margins partly through increased discounts and customer bonuses. Fluctuations in prices of raw materials and energy constitute an operational risk which may have a material impact on Duni's operating income.

Financial risks

Duni's finance management and its handling 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 and liquidity risks. These risks are controlled in an overall risk management policy that focuses on unforeseen events on the financial markets and endeavors to minimize potential adverse effects on the Group's financial results. The risks for the Group are in all essential respects also related to the Parent Company. Duni's management of financial risks is described in greater detail in the Annual Report for 31 December 2016.

The long-term financing agreement expires in April 2018. As a result, Duni's borrowings are reported as short term as of 30 June 2017. Duni will initiate a procurement procedure after the summer aiming to secure a long-term facility by the first quarter of 2018.

Duni's contingent liabilities have decreased since the start of the year by SEK 10 m to SEK 67 m (77).

Transactions with related parties

No significant transactions with related parties took place during the second quarter of 2017.

Major events since 30 June

On 13 July, it was announced in a press release that Johan Sundelin is appointed new President and CEO at Duni AB. Johan is currently Head of Division and MD for Santa Maria within Paulig Group and has previously held leading positions at Orkla and Unilever. Thomas Gustafsson will retain his position as President and CEO at Duni AB until Johan takes on the role, at the latest in January 2018.

Interim reports

Quarter III 20 October, 2017 Quarter IV 9 February, 2018

Duni's Board of Directors

The Annual General Meeting on 3 May re-elected Johan Andersson, Pauline Lindwall, Alex Myers, Pia Rudengren and Magnus Yngen. Magnus Yngen was elected Chairman of the Board.

Parent Company

Net sales for the period 1 January – 30 June amounted to SEK 560 m (548). Income after financial items amounted to SEK 55 m (1). Goodwill on acquisition in the parent company is fully amortized as of 2017 and amounted to SEK 50 m in the first half of 2016. The interest-bearing net debt was SEK -491 m (-578), of which a net asset of SEK 1,486 m (1,377) relates to subsidiaries. Net investments amounted to SEK 12 m (6).

Accounting principles

The interim report for the Group has been prepared in accordance with IAS 34 and the Swedish Annual Reports Act. The parent company's reporting is prepared in accordance with RFR 2, Reporting for Legal Entities, and the Swedish Annual Reports Act. Accounting principles have been applied as reported for the Annual Report for 31 December 2016.

____________________________________________________________________________________________________________________________________________

Information in the report

Duni AB (publ) publishes this information in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information will be provided for publication on 14 July at 07.45 am.

At 10 am on Friday, 14 July, the report will be presented at a telephone conference, which can also be followed on the web. To participate in the telephone conference, call +46 8 566 426 90. To follow the presentation on the web, please visit this link:

http://event.onlineseminarsolutions.com/r.htm?e=1447119&s=1&k=9EB57B727B6F7F81827A7F2FFBA61995

This report has been prepared in both a Swedish and an English version. In the event of any discrepancy between the two, the Swedish version shall apply. This report has not been the subject of an audit by the Company's auditors.

Report from Board of Directors and CEO

The Board of Directors and CEO affirm that this report provides a true and fair view of the group's financial position and performance and describes the substantial risks and uncertainties to which the group and the companies that are part of the group are subject.

Malmö, 13 July 2017

Magnus Yngen, Chairman of the Board

Johan Andersson, Director Pauline Lindwall, Director

Alex Myers, Director Pia Rudengren, Director

Per-Åke Halvordsson, Employee Representative PTK Tapio Nieminen, Employee Representative LO

Thomas Gustafsson, President and CEO

Additional information is provided by: Thomas Gustafsson, President and CEO, +46 40 10 62 00 Mats Lindroth, CFO, +46 40 10 62 00 Helena Haglund, Group Accounting Manager, +46 734 19 63 04

Duni AB (publ) Box 237 201 22 Malmö Tel.: +46 (0)40 10 62 00 www.duni.com Registration no: 556536-7488

Consolidated Income Statements

	3 months April	3 months April	6 months January	6 months January	12 months July	12 months January
SEK m (Note 1)	June 2017	June 2016	June 2017	June 2016	June 2016/2017	December 2016
Net sales	1,101	1,013	2,106	1,973	4,404	4,271
Cost of goods sold	-800	-728	-1,518	-1,415	-3,143	-3,039
Gross profit	302	285	587	558	1,261	1,231
Selling expenses	-128	-115	-258	-241	-499	-483
Administrative expenses	-66	-61	-127	-118	-254	-245
Research and development expenses	-2	-2	-4	-4	-8	-8
Other operating incomes	9	4	9	6	12	10
Other operating expenses	-13	-10	-24	-20	-46	-43
EBIT (Note 6)	102	101	183	181	466	463
Financial income	0	0	0	1	1	1
Financial expenses	-4	-8	-7	-14	-16	-23
Net financial items	-4	-7	-7	-14	-15	-22
Income after financial items	98	94	176	167	450	441
Income tax	-25	-21	-45	-41	-111	-107
Net income	73	72	132	127	339	334
Net income attributable to:
- Equity holders of the Parent Company	72	72	130	127	335	332
- Non-controlling interests	1	-	2	-	4	2
Earnings per share attributable to equity holders of the Parent Company
Before and after dilution (SEK)	1.54	1.54	2.75	2.69	7.12	7.06
Average number of shares before and after dilution ('000)	46,999	46,999	46,999	46,999	46,999	46,999

Statement of Comprehensive Income

SEK m	3 months April June 2017	3 months April June 2016	6 months January June 2017	6 months January June 2016	12 months July June 2016/2017	12 months January December 2016
Net income	73	72	132	127	339	334
Other comprehensive incomes: Items that will not be reclassified to profit or loss:
Actuarial loss on post-employment benefit obligations	-4	-16	-5	-18	-17	-30
Total	-4	-16	-5	-18	-17	-30
Items that may be reclassified subsequently to profit or loss:
Exchange rate differences – translation of subsidiaries	-8	-4	1	-9	7	-3
Cash flow hedge	1	-1	1	-3	3	-1
Total	-8	-5	3	-11	10	-4
Other comprehensive income of the period, net after tax:	-12	-20	-2	-29	-7	-34
Sum of comprehensive income of the period	61	52	129	97	332	300
- Of which non-controlling interests	-2	-	1	-	6	5

*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.

Q2 | 2017

Consolidated Quarterly Income Statements in brief

SEK m	2017			2016			2015
	Apr	Jan	Oct	Jul	Apr	Jan	Oct	Jul
Quarter	Jun	Mar	Dec	Sep	Jun	Mar	Dec	Sep
Net sales	1,101	1,004	1,234	1,064	1,013	959	1,170	1,043
Cost of goods sold	-800	-719	-874	-751	-728	-687	-812	-731
Gross profit	302	286	360	313	285	273	358	311
Selling expenses	-128	-130	-129	-112	-115	-126	-123	-112
Administrative expenses	-66	-61	-67	-60	-61	-57	-64	-59
Research and development expenses	-2	-2	-2	-2	-2	-2	-3	-2
Other operating incomes	9	1	1	1	4	2	1	9
Other operating expenses	-13	-12	-10	-11	-10	-10	-16	-9
EBIT	102	81	153	130	101	80	154	139
Financial income	0	0	0	0	0	0	0	0
Financial expenses	-4	-3	-5	-4	-8	-7	-9	-10
Net financial items	-4	-3	-5	-4	-7	-6	-9	-10
Income after financial items	98	78	148	126	94	74	144	130
Income tax	-25	-20	-34	-32	-21	-19	-35	-31
Net income continuing operations	73	58	113	94	72	54	109	99
Net income discontinued operations	-	-	-	-	-	-	-	0
Net income	73	58	113	94	72	54	109	99
Net income attributable to:
- Equity holders of the Parent Company	72	57	112	93	72	54	109	99
- Non-controlling interests	1	1	2	0	-	-	-	-

Consolidated Balance Sheet in brief

SEK m	30 June 2017	31 December 2016	30 June 2016
ASSETS
Goodwill	1,613	1,577	1,466
Other intangible fixed assets	309	304	270
Tangible fixed assets	1,024	951	891
Financial fixed assets	46	67	86
Total fixed assets	2,992	2,899	2,712
Inventory	619	548	531
Accounts receivable	767	730	680
Other operating receivables	125	124	109
Cash and cash equivalents	225	186	143
Total current assets	1,737	1,588	1,464
TOTAL ASSETS	4,729	4,487	4,176
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	2,381	2,486	2,208
Long-term loans	15	676	807
Other long-term liabilities	405	402	384
Total long-term liabilities	420	1,079	1,191
Accounts payable	348	373	290
Short-term loans	1,063	0	-
Other short-term liabilities	517	549	486
Total short-term liabilities	1,928	922	776
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	4,729	4,487	4,176

Change in the Group's shareholders' equity

				Attributable to equity holders of the Parent Company		Profit
						carried
						forward
		Other				incl. net	Non
	Share	injected		Cash flow	Fair value	income for	controlling	TOTAL
SEK m	capital	capital	Reserves	reserves	reserve1)	the period	interests	EQUITY
Opening balance
1 January 2016	59	1,681	59	-6	13	539	-	2,345
Sum of comprehensive income
of the period	-	-	-9	-3	-	109	-	97
Dividend paid to shareholders	-	-	-	-	-	-235	-	-235
Closing balance
30 June 2016	59	1,681	50	-9	13	413	-	2,208
Sum of comprehensive income
of the period
	-	-	3	2	-	193	5	203
Non-controlling interest arising
upon acquisition of subsidiaries	-	-	-	-	-	-	75	75
Closing balance
31 December 2016	59	1,681	53	-7	13	606	80	2,486
Sum of comprehensive income
of the period	-	-	3	1	-	125	1	129
Non-controlling interest arising
upon acquisition of subsidiaries	-	-	-	-	-	-	0	0
Dividend paid to shareholders	-	-	-	-	-	-235	-	-235
Closing balance
30 June 2017	59	1,681	56	-6	13	496	81	2,381

1) Fair value reserve means a reappraisal of land in accordance with earlier accounting principles. The reappraised value is adopted as the acquisition value in accordance with the transition rules in IFRS 1.

Consolidated Cash Flow Statement

	6 months 1 January – 30 June	6 months 1 January – 30 June
SEK m	2017	2016
Current operation
Operating income continuing operations	183	181
Adjusted for items not included in cash flow etc.	78	68
Paid interest and tax	-57	-93
Change in working capital	-114	-116
Cash flow from operations	90	39
Investments
Acquisitions of fixed assets continuing operations	-123	-84
Sales of fixed assets	0	0
Acquisition of subsidiaries	-59	-
Change in interest-bearing receivables	-	0
Cash flow from investments	-182	-84
Financing
Taken up loans1)	395	264
Amortization of debt1)	0	-47
Dividend paid to shareholders	-235	-235
Change in borrowing	-32	2
Cash flow from financing	128	-16
Cash flow from the period	36	-61
Liquid funds, operating balance	186	203
Exchange difference, cash and cash equivalents	3	1
Cash and cash equivalents, closing balance	225	143

1) Loans and amortizations, within the credit facility, are reported gross for durations above 3 months according to IAS 7.

Q2 | 2017

Key ratios in brief

	6 months 1 January – 30 June 2017	6 months 1 January – 30 June 2016
Net sales, SEK m	2,106	1,973
Gross profit, SEK m	587	558
Operating income, SEK m 1)	199	194
EBITDA, SEK m 1)	268	257
Net debt	1,109	920
Number of employees	2,344	2,086
Sales growth	6.7%	-0.7%
Gross margin	27.9%	28.3%
Operating margin 1)	9.4%	9.8%
EBITDA margin1)	12.7%	13.0%
Return on capital employed1) 2)	14.7%	16.8%
Net debt / equity ratio	46.6%	41.7%
Net debt / EBITDA1) 2)	1.73	1.44

1) Calculated based on operating income.

2) Calculated based on the last twelve months.

Parent Company Income Statements in brief

SEK m	3 months	3 months	6 months	6 months
(Note 1)	April - June 2017	April - June 2016	January - June 2017	January - June 2016
Net sales	291	289	560	548
Cost of goods sold	-259	-252	-508	-486
Gross profit	32	37	52	62
Selling expenses	-30	-31	-63	-63
Administrative expenses	-39	-40	-77	-77
Research and development expenses	-1	-1	-3	-3
Other operating incomes	68	58	125	113
Other operating expenses	-11	-39	-21	-77
EBIT	18	-16	12	-45
Revenue from participations in Group Companies	38	46	38	46
Financial income	6	6	11	13
Financial expenses	-2	-8	-7	-13
Net financial items	42	44	42	46
Income after financial items	60	28	55	1
Income tax	-5	-2	-4	-2
Net income	55	26	51	-1

Parent Company Statement of Comprehensive Income

SEK m	3 months April - June 2017	3 months April - June 2016	6 months January - June 2017	6 months January - June 2016
Net income	55	26	51	-1
Other comprehensive income1):
Items that may be reclassified subsequently to profit or loss:
Exchange rate differences – translation of subsidiaries	0	0	0	0
Cash flow hedge	1	-1	1	-3
Total	0	-1	1	-3
Other comprehensive income of the period. net after tax:	0	-1	1	-3
Sum of comprehensive income of the period	55	25	52	-4
Sum of comprehensive income of the period attributable to:
Equity holders of the Parent Company	55	25	52	-4

____________________________________________________________________________________________________________________________________________

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

Parent Company Balance Sheet in Brief

	30 June	31 December	30 June
SEK m	2017	2016	2016
ASSETS
Goodwill	0	0	50
Other intangible fixed assets	38	36	36
Total intangible fixed assets	38	36	86
Tangible fixed assets	26	24	24
Financial fixed assets	2,491	2,392	2,304
Total fixed assets	2,554	2,452	2,413
Inventory	98	96	79
Accounts receivable	123	103	116
Other operating receivables	197	214	167
Cash and bank	166	119	93
Total current assets	584	532	455
TOTAL ASSETS	3,138	2,983	2,869
SHAREHOLDERS' EQUITY AND LIABILITIES
Total restricted shareholders' equity	83	83	83
Total unrestricted shareholders' equity	1,477	1,660	1,480
Shareholders' equity	1,560	1,744	1,563
Provisions	99	100	102
Long-term loans	0	659	790
Other long-term liabilities	6	8	11
Total long-term liabilities	6	667	800
Accounts payable	57	64	49
Short-term loans	1,063	0	-
Other short-term liabilities	353	409	354
Total short-term liabilities	1,473	472	403
TOTAL SHAREHOLDERS' EQUITY, PROVISIONS AND LIABILITIES	3,138	2,983	2,869

Definitions

Capital employed: Non-interest bearing fixed assets and current assets, excluding deferred tax assets, less noninterest bearing liabilities.

Continuing operations: Duni excluding hygiene business, which were discontinued in early 2015. These operations were deducted from the comparative years and are instead reported under discontinued operations on a line after net income for continuing operations.

Cost of goods sold: Cost of goods sold including production and logistic costs.

Currency adjusted/currency impact translations effects: Figures adjusted for changes in exchange rates related to consolidation. Figures for 2017 are calculated at exchange rates for 2016. Effects of translation of balance sheet items are not included.

Earnings per share: Net income divided by the average number of shares.

EBIT: Reported operating income.

EBIT margin: EBIT as a percentage of net sales.

EBITA: Operating income before amortization of intangible assets.

EBITDA: Operating income before depreciation and impairment of fixed assets.

EBITDA margin: EBITDA as a percentage of net sales.

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

HoReCa: Abbreviation for hotels, restaurants and catering.

Net Interest-bearing debt: Interest-bearing liabilities and pensions less cash and cash equivalents and interestbearing receivables.

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

Operating income: operating income adjusted for restructuring costs, fair value allocations and amortization of intangible assets identified in connection with business acquisitions.

Operating margin: Operating income as a percentage of sales.

Organic growth: Acquired companies are included in organic growth when they have been a part of the Duni Group for eight quarters.

Private label: Products marketed under customer's own label.

Return on shareholders' equity: Net income as a percentage of shareholders' equity.

Return on capital employed: Operating income as a percentage of capital employed.

Source reference: HoReCa statistics refer to the European Commission website, Key Indicators for the Euro Area. DEHOGA refers to HoReCa statistics for Germany on DEHOGA Zahlenspiegel.

Notes

Note 1 • Accounting and valuation principles

Since January 1, 2005, Duni applies International Financial Reporting Standards (IFRS) as adopted by the European Union. For transition effects see notes 45 and 46 in the Annual Report of 30 June 2007.

This interim report has been prepared in accordance with IAS 34, Interim Reporting. The consolidated financial statements have been prepared in accordance with IFRS as adopted by the EU and with the related reference to Chapter 9 of the Annual Accounts Act. The parent company's financial statements are prepared in accordance with RFR 2, Reporting for Legal Entities, and the Annual Accounts Act. The accounting principles are the same as in the Annual Report for 31 December 2016.

Duni reports non-controlling interests in an acquired company either at fair value or at the holding's proportionate share of the identifiable net assets of the acquired company. This choice of principle is made for each individual business acquisition. In respect of non-controlling interests in Sharp Serviettes, Duni has chosen to report noncontrolling interests at fair value.

IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers have both been adopted by the EU and are effective for financial years beginning on or after 1 January 2018. Duni does not plan for early application of them. Work to evaluate the consequences of these standards is proceeding according to plan. Based on a preliminary analysis, the company currently estimates that IFRS 15 will not have a material impact on Duni's financial statements. IFRS 16 Leases has not yet been adopted by the EU, but is expected to be applicable to financial years beginning on or after 1 January 2019. Duni does not plan for early application of IFRS 16. Work to evaluate the consequences of these standards has been initiated. Duni's financial statements and key ratios will be affected by this standard, but it is still too early to assess the amounts. For more information, see Note 2 in the annual report for 31 December 2016.

Note 2 • Financial assets and liabilities

Duni has derivative instruments valued at fair value and held for hedging purposes; all derivative instruments are classified on level 2. Level 2 derivative instruments consist of currency forward contracts and interest rate swaps, which are used for hedging purposes. Valuation of currency forward contracts at fair value is based on published futures prices on an active market. The valuation of interest rate swaps is based on futures interest rates produced based on observable yield curves. The discounting has no material impact on the valuation of derivative instruments on level 2. No financial assets or liabilities have been moved between the valuation categories. The valuation techniques are unchanged during the year.

As described in greater detail in the Annual Report for 31 December 2016, the financial assets and liabilities comprise items with short terms to maturity. Thus, the fair value is considered in all essential respects to correspond to the book value.

Note 3 • Discontinued operations

On 28 March 2015, production of hygiene products in Skåpafors ceased. The hygiene business which was previously reported in the Materials & Services business area are reported as from the second quarter of 2015 as discontinued operations. This affects only the income statement which has been recalculated to show continuing operations. Discontinued operations are reported on a separate line following net income for continuing operations.

____________________________________________________________________________________________________________________________________________

Bridge continuing – discontinued operations

Net sales	Q2	Q1		Q4	Q3	Q2	Q1		Q4	Q3
SEK m	2017	2017	2016	2016	2016	2016	2016	2015	2015	2015
Continuing operations	1,101	1,004	4,271	1,234	1,064	1,013	959	4,200	1,170	1,043
- Discontinued operations	-	-	-	-	-	-	-	83	-	2
Duni Total	1,101	1,004	4,271	1,234	1,064	1,013	959	4,283	1,170	1,045

Operating income SEK m	Q2 2017	Q1 2017	2016	Q4 2016	Q3 2016	Q2 2016	Q1 2016	2015	Q4 2015	Q3 2015
Continuing operations	110	89	502	171	136	108	87	528	171	146
- Discontinued operations	-	-	-	-	-	-	-	5	-	0
Duni Total	110	89	502	171	136	108	87	533	171	146

Note 4 • Segment reporting, SEK m

April – June

April – June 2017	Table Top	Meal Service	Consumer	New Markets	Other	Total
Total net sales	605	193	215	78	14	1,106
Net sales from other segments	0	0	4	-	-	4
Net sales from external customers	605	194	211	78	14	1,101
Operating income	95	15	-6	5	1	110
EBIT						102
Net financial items						-4
Income after financial items						98

The assets of Sharp Serviettes will be allocated to the New Markets business area.

April – June 2016	Table Top	Meal Service	Consumer	New Markets	Other	Total
Total net sales	566	180	217	42	13	1,017
Net sales from other segments	-	-	4	-	-	4
Net sales from external customers	566	180	213	42	13	1,013
Operating income	87	19	-1	2	1	108
EBIT						101
Net financial items						-7
Income after financial items						94

January – June

January – June 2017	Table Top	Meal Service	Consumer	New Markets	Other	Total
Total net sales	1,116	356	472	148	28	2,120
Net sales from other segments	0	0	14	-	-	14
Net sales from external customers	1,116	356	458	148	28	2,106
Operating income	158	16	11	12	2	199
EBIT						183
Net financial items						-7
Income after financial items						176

January – June 2016	Table Top	Meal Service Consumer New Markets		Other	Total
Total net sales	1,069	328	468	88	26	1,980
Net sales from other segments	-	-	7	-	-	7
Net sales from external customers	1,069	328	461	88	26	1,973
Operating income	148	21	18	6	1	194
EBIT						181
Net financial items						-14
Income after financial items						167

Quarterly overview, by segment:

Note 5 • Organic sales development, currency adjusted, LTM

Net sales
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
SEK m	2017	2017	2016	2016	2016	2016	2015	2015
Table Top	605	511	645	579	566	503	612	578
Meal Service	194	162	171	167	180	148	162	155
Consumer	211	247	331	247	213	248	330	245
New Markets	78	70	73	59	42	47	52	53
Other	14	14	14	12	13	14	14	11
Continuing operations	1,101	1,004	1,234	1,064	1,013	959	1,170	1,043
Discontinued operations	-	-	-	-	-	-	-	2
Duni Total	1,101	1,004	1,234	1,064	1,013	959	1,170	1,045
Operating income
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
SEK m	2017	2017	2016	2016	2016	2016	2015	2015
Table Top	95	64	125	97	87	60	118	109
Meal Service	15	2	6	13	19	3	8	10
Consumer	-6	16	28	18	-1	19	40	21
New Markets	5	7	10	7	2	4	4	4
Other	1	1	1	1	1	1	1	2
Continuing operations	110	89	171	136	108	87	171	146
Discontinued operations	-	-	-	-	-	-	-	0
Duni Total	110	89	171	136	108	87	171	146

From the 3rd quarter 2015, Duni Song Seng is included in the organic growth. From the 2nd quarter 2016, Paper + Design is included in the organic growth.

Note 6 • Reporting of restructuring costs

Presented below is a specification of the lines on which restructuring costs are reported in the income statement.

Restructuring costs	3 months April	3 months April	6 months January	6 months January	12 months July	12 months January
	June	June	June	June	June	December
SEK m	2017	2016	2017	2016	2016/2017	2016
Cost of goods sold	0	-	0	-	-2	-3
Selling expenses	-4	-	-4	0	-5	-1
Administrative expenses	-3	-	-3	-	-9	-7
Other operating expenses/income	7	-	7	-	7	-
Total	1	-	1	0	-9	-10