The year in brief

A year characterized by investments for the future

During the period January 1 – December 31, 2011, net sales declined by SEK 164 m compared with the same period last year, to SEK 3 807 (3 971) m. Adjusted for exchange rate movements, net sales declined by 0.8%.

During the year, Professional increased its sales by 3.1%, with the growth markets of Southern and Eastern Europe expanding at a faster than average rate. Retail lost sales in a tough market but retained its market shares within the grocery retail trade. Tissue has been characterized by weak demand and inventory adjustments, but the operating margin strengthened thanks to increased production efficiency.

The gross margin improved from 26.5% to 27.1%. Operating income (EBIT) adjusted for non-recurring items for the period January 1 – December 31, 2011 was SEK 404 (435) m. The Group's underlying operating margin thus fell from 10.9% to 10.6%. Adjusted for exchange rate movements, operating income was SEK 18 m lower than last year. The somewhat lower operating income is largely due to increased selling and marketing costs connected with the investments for growth that were implemented during the year. The reported income after financial items was SEK 358 (418) m, and income after tax was SEK 261 (306) m.

In light of the economic situation in Europe, Duni believes that the market may weaken during 2012. In this perspective, current conditions may result in a fall in prices for input materials compared with prices in 2011. During 2012, Duni will carry out a plan of measures aimed at increasing production and organizational efficiency. In combination with the major investments for growth, this is expected to result in improved profitability.

During 2011, Duni focused on measures for promoting long-term growth. Duni intensified its work on increasing sales on a number of prioritized growth markets in Eastern and Southern Europe. During 2011, an investment in e-commerce resulted in Duni's first e-shop in Sweden, and the channel will be further developed in 2012. Duni's major investment for the development of a unique material which matches linen in terms of both appearance and feel was also finalized in 2011. The product is now being launched in Europe under the name Evolin^®. 

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• The year in brief
• CEO statement
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• The share

Florena – one of the year's new Retail designs.