The Year in Brief

Net sales and operating income

 Net sales for the financial year January 1– December 31, 2009 increased by 3.0% compared with 2008, to SEK 4,220 m (4,099). The underlying operating income* for the financial year increased by 5.3% to SEK 436 m (414).

Had exchange rates been unchanged, net sales for the period would have been SEK 230 m lower, entailing a decline in sales of 2.7%. At fixed exchange rates, the underlying operating income would have been SEK 54 m lower.

The underlying gross margin improved by 27.6% (26.8%), which was mainly due to the weak Swedish krona. The gross margin was also affected by lower costs for input materials together with general cost savings.

Duni's core markets have withstood the recession relatively well. This is particularly true for the Professional business area and the German market. Income within Retail also improved, at the same time as Tissue experienced a turnaround during the second half of the year.

During the year, an improved cash flow and efficient follow-up of customer credits had significant positive effects on working capital. This, combined with the positive operating income, resulted in a strong cash flow which led to a significant decline in net debt, by SEK 469 m.

 A gradual recovery in the general economic situation can be expected during 2010. Despite this, prices for important raw materials have recently been increasing at a fast rate, which represents a challenge since demand is still at a low level.

 *The underlying operating result excludes an unrealized valuation effect of derivative instruments of SEK 54 (-48) due to the non-application of hedge accounting and restructuring costs of SEK 2 m (41).

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