Professional business area

Focus on growth niches within stable markets

Following a weak start to the year, both growth and profitability within the Professional business area picked up during the second half of 2013. Sales rose to SEK 2,702 (2,682) m and profitability increased to SEK 356 (337), equal to an operating margin of 13.2% (12.6%).

The business area comprises two customer categories: Table Top and Meal Service. Table Top focuses primarily on hotels and restaurants, while Meal Service focuses on larger chain-driven restaurant and cafe concepts with a large percentage of take-away, as well as players within the public sector and various types of catering. Both categories focus primarily on various decision-makers and satisfy different needs with different products. In the case of Table Top, this involves products for the set table to create atmosphere and provide convenience. Meal Service focuses on functional packaging and serving solutions.

Specialized, more efficient sales organizations

A large part of the internal work during the year has been devoted to developing the sales organization. This has resulted in two specialized sales organizations – one within Table Top and one within Meal Service. Each of them is a specialist as regards a narrower range of products, thereby resulting in more efficient sales work.

For the customers, the change means that they meet two experts, each of whom is even more knowledgeable about his or her area. This is considered to be a significant competitive advantage in most major customer interactions. Within the wholesale trade, Table Top and Meal Service largely focus on the same customers, a factor which requires internal coordination between the activities of the sales organizations of both customer categories.

Offensive strategy in selected growth areas

Table Top accounted for approximately 80% of the business area's sales in 2013. Table Top is largely operating on mature markets with overall low or zero growth. Table Top has long focused on defending the positions built up within the premium segment. During 2013, Table Top defined a number of areas – both geographic markets and product areas – on which there is a higher rate of growth and where there is an opportunity for Duni to strengthen its presence by adopting an offensive strategy.

During the past three years, when most European countries have been plagued with severe economic difficulties, it has been a challenge to identify geographic growth areas in Europe. This has further contributed to the overall stagnation on the market, not least in those countries which, a few years ago, were regarded by Duni as growth markets – for example, the countries of southern Europe.

Historically, Germany, the Nordic countries and the Benelux countries have been Table Top's strongest markets. In 2013, the strategy of defending our positions on these markets was maintained, in order to be able to go on the offensive in other countries, particularly in Italy and England.

Focus on southern Europe

During 2013, focus was placed on southern Europe, with the business area developing products and offerings specifically adapted for the market. The work has been successful and will continue in the coming years.

Regained strong position in England

In contrast to the countries of southern Europe, the English market is dominated by a small number of wholesalers. In 2013, Table Top's structured activities resulted in it regaining a position on the market.

Candles and accessories – a natural part of the offering

In 2013, Table Top also focused on Duni's third product category: "Candles and accessories". For Table Top, these types of products are strategically important in order to be able to offer an attractive, all-inclusive concept for the set table. During the year, Table Top expanded the product range and successfully sourced suppliers in Asia in order to increase its competitiveness.

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• CEO statement
• 2013 in brief
• Financial targets
• Strategy
• Duni's markets
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• Growth areas
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