Duni Group Q2 Profit Falls as Logistics Transition Disrupts Deliveries, Food Packaging Business Posts Growth

Duni Group reported lower sales and earnings for the second quarter of 2026 as the ramp-up of a new external logistics operation in Germany disrupted deliveries, increased costs and weighed on profitability, although its Food Packaging Solutions business continued to grow.

Net sales for the April–June period declined 3.2% year-on-year to SEK 1.823 billion from SEK 1.884 billion. At constant exchange rates, sales were down 2.0%, primarily due to temporarily limited delivery capacity during the transition to the Group's external logistics setup. Operating income fell to SEK 65 million from SEK 121 million, while operating margin narrowed to 3.6% from 6.4%. EBIT decreased to SEK 17 million from SEK 103 million, and earnings per share attributable to shareholders fell to SEK -0.44 from SEK 1.25. For the first six months of 2026, net sales totaled SEK 3.587 billion, down from SEK 3.747 billion a year earlier, while operating income declined to SEK 165 million from SEK 230 million.

The company said the main factor behind the weaker performance was temporary delivery disruptions during the transition to a new external warehouse in Meppen, Germany. Limited outbound delivery capacity prevented Duni from fully meeting customer demand and led to higher warehousing and transport costs. The quarter was also affected by weaker demand in the Middle East as geopolitical tensions reduced travel and tourism activity. Additional pressure came from higher IT investments, increased energy costs and restructuring expenses related to a new efficiency programme and unused warehouse capacity.

President and CEO Robert Dackeskog said the logistics transition is a key step toward building a more scalable logistics network but acknowledged that implementation had been more challenging than expected. To stabilize operations, Duni postponed the planned transfer of German market distribution to the new logistics setup. The company said delivery performance improved toward the end of the quarter and during the first days of July, with the financial impact expected to be significantly lower in the third quarter.

Duni also announced additional cost-saving measures in sales and administration across Europe that are expected to generate SEK 30 million in annual savings, with the full benefit anticipated from the fourth quarter of 2026.

Within the Dining Solutions business area, net sales declined 6.2% at constant exchange rates to SEK 1.045 billion, while operating income dropped to SEK 31 million from SEK 99 million. The business was affected by logistics disruptions across Europe, a weaker product mix with increased sales of lower-margin products, and a sharp decline in Middle East sales. Germany performed comparatively better because distribution there had not yet been transferred to the new logistics network. During the quarter, Duni Lighting Solutions introduced its d.ls brand globally at Milan Design Week and showcased its modular lighting platform at 3daysofdesign in Copenhagen. The company also launched a Carbon Trust-verified carbon calculator for napkins and table covers and received supplier awards from Transgourmet/Prodega.

The Food Packaging Solutions business delivered stronger performance, with net sales increasing 4.3% at constant exchange rates to SEK 779 million, while operating income rose to SEK 34 million from SEK 22 million. Growth was supported by BioPak Group, recently acquired businesses and improved margins, despite logistics-related challenges in Europe. During the quarter, Duni consolidated newly acquired Solserv Solutions & Services Europe AB, expanded its industrial packaging and service offering, completed the rollout of its packaging portfolio without added PFAS to meet upcoming EU regulatory requirements, launched new recyclable paper-based packaging for sushi, deli and bakery applications, and introduced local composting solutions and reusable packaging at Sweden Rock Festival.

Financially, Duni reported operating cash flow of SEK -19 million for the first half of the year. The Group entered into a new 15-year lease for its logistics facility in Meppen, increasing interest-bearing net debt to SEK 2.567 billion at the end of June from SEK 1.591 billion at the end of 2025. During the period, the company also secured a new EUR 200 million long-term revolving credit facility and converted an existing SEK 200 million loan into a three-year EUR 25 million facility.

Duni continued to advance strategic initiatives alongside operational improvements. The company highlighted progress in integrating Solserv, the completion of its transition to packaging without added PFAS, continued expansion of Duni Lighting Solutions, and improvements in sustainability metrics, including a higher share of circular input materials and increased supplier adoption of its Code of Business Conduct. Management said its priorities remain restoring stable delivery performance, improving profitability and cash flow, strengthening competitiveness and continuing long-term growth initiatives.