Business area Professional

New, innovative products and concepts create growth within our largest business area

Business area Professional   offers a wide range of tabletop products, primarily for use within restaurants, hotels and catering. The products are produced as concepts and consist of napkins, tablecoverings and other products in matching colors and designs .

Around 90% of Duni products are sold through wholesalers and cash-and-carries. The number of end customers, comprising restaurants, hotels and catering firms, is estimated at around 200,000. Duni also offers packaging solutions for restaurants, the grocery retail trade, industrial kitchens, the public sector, and catering firms. Both customized and standardized meal packaging solutions are available in different models and sizes for different types of take-away food. Duni also supplies packaging machinery for sealing food boxes within the DuniForm^® concept.

Development in 2011

Within Professional, net sales amounted to SEK 2,766 (2,783) m. At fixed exchange rates, this entails an increase of 3.1%. Operating income was SEK 357 (384) m, entailing an operating margin of 12.9% (13.8%). The reduction is largely attributable to the investments for future growth that took place during the year.

During the third quarter, Duni implemented price increases on all markets in order to compensate for higher costs for input materials. Total volumes increased marginally during the year. Growth within the fast-food and take-away segment remained positive on most markets.

Sales during the year were stable on most core markets, at the same time as investments for growth in the Southern and Eastern Europe yielded positive results. In Central Europe, Duni's largest market, a particularly positive trend was seen in Germany and Austria. Sales on the Swiss market remained at the same level as last year, which to a certain extent reflects that country's strong currency.

The ongoing structural change in the restaurant industry, from individual private restaurants to branded restaurants, has continued. The branded chains are growing at a faster rate than the average for individual restaurants, a factor which is contributing to the positive trend within packaging solutions, primarily on the German market. The ongoing and extremely positive growth in sales of the ”to-go” and ”take-away” range is also contributing to the positive trend in Germany.

Duni also delivered solid sales growth in Sweden and Finland, where strong economic growth was a contributory factor, especially in Sweden. Eastern Europe, including Russia, demonstrated strong growth, as did parts of Southern Europe, such as Italy and Spain. Duni also enjoyed strong growth on certain export markets outside Europe, albeit from low sales levels. Sales growth is primarily attributable to premium napkins, which in turn is due to customers replacing linen napkins with Duni's products.

Table top products accounted in total for 90% of net sales within the business area, and meal packaging solutions for the remaining 10%. Central Europe accounted for SEK 1,640 (1,660) m of net sales, while the Nordic region contributed SEK 635 (645) m. Southern and Eastern Europe accounted for SEK 462 (451) m and other markets for SEK 29 (27) m.

Events in 2011

In Germany, Duni gained new customers such as the Mexican food chain Sausalitos and the Thai food chain Mosch-Mosch. Other important new customers who chose Duni during the year, and for whom Duni is producing customized packaging solutions, include Sodexo in Holland and Cojean in France.

In Russia, a sales force was established which operates from the newly opened sales office in Moscow. Warehousing and support functions were relocated from St Petersburg to Moscow.

In Eastern and Southern Europe, work is continuing on developing sales forces  and distributor networks. Sales efforts in the region are focused on high margin premium products. In the Middle East, too, Duni strengthened its presence on prioritized markets through agreements with local distributors, combined with the recruitment of its own sales personnel.

Several new products were launched during the year, such as the premium napkin Elegance 48. Towards the end of the year, preparations were also made for Duni's most important launch for many years – that of the unique table covering material Evolin ^®.

Unique sales model

Within the Professional business area, Duni has developed a sales model which is unique in the industry and specifically adapted to the customer structure and the role Duni's products play for customers within the HoReCa segment.

The model is based on the Company having its own large sales organization, which devotes most of its time to presenting the product range to end users. Professional's sales force makes a substantial number of visits annually, with approximately half the visits taking place to customers at restaurants, hotels and catering firms.

The frequent visits build up a strong relationship, while a great deal of time is devoted to presenting new products, concepts and collections which create value for both customers and end customers. By continuously demonstrating new areas of use and ways of combining the products, they can be used in an optimum manner by each customer, which contributes to the customer's own profitability.

The customers place their orders with wholesalers, either directly at the wholesaler or through Duni's sales personnel. This constitutes the basis for a strong partnership with both wholesalers and end customers. Some 90% of sales take place in this way via wholesalers and cash-and-carry stores.

The visits to end users distinguish Duni from its competitors, whose sales are primarily focused on wholesalers and cash-and-carries.

Parallel with the sales work at end customers, visits also take place to wholesalers and cash-and-carries. Wholesalers are increasing in importance and currently account for some 50% of sales. Duni provides sales personnel at wholesalers with training in the sale of tabletop concepts and how Duni's products can be used to the best effect. The sales personnel thereby become knowledgeable and effective ambassadors for Duni's products. Together with wholesalers, visits are also made to major end users.

Within the cash-and-carry segment, customers are served centrally by key account management.

Push/pull-effect

The sales model involves customers being visited by both Duni and by the wholesaler or cash-and-carry, which creates a push/pull effect. The model was introduced in Germany in the 1980s and has spread to other markets, a factor which has strongly contributed to Duni's position.

The end customers are also registered in a database in which sales personnel can see the purchasing patterns and needs of different customers. This helps them to continuously provide suggestions for new solutions and products, and to conduct sales campaigns.

• This is Duni
• The year in brief
• CEO statement
• Operations
• Business areas
  • Professional
    • Evolin
  • Retail
  • Tissue
• Employees
• Corporate social responsibility
• The share

Professional is Duni's largest business area and accounts for approx. 73% of sales.