Duni Group profits tumble 71.4% as logistics costs outpace sales growth

SWEDEN – Duni Group’s income after tax dropped to Skr32 million (US$3.2 million) in Q32026, a 71.4% decline from Skr112 million (US$11.2 million) a year earlier, as rising transport expenses and an unfavourable product mix offset a 3.1% rise in net sales to Skr2 billion (US$200 million).

Basic earnings per share attributable to equity holders of the parent company fell to Skr0.70 (US$0.07) from Skr2.23 (US$0.22) in the same quarter of 2025. 

While the top line improved, driven by robust performance in Australia and increased demand for customer own-brand products across Europe, the bottom line was squeezed by structural cost pressures.

Operating Income Weighed Down by Freight and Restructuring

Operating income declined to Skr133 million (US$13.3 million) from Skr168 million (US$16.8 million). 

Earnings before interest and taxes dropped to Skr94 million (US$9.4 million) from Skr151 million (US$15.1 million), a result that included Skr21 million (US$2.1 million) in restructuring charges. 

Return on capital employed, excluding goodwill, contracted to 12.7% from 23.9%. 

The deterioration highlights how higher logistics costs and a shift in the sales mix toward lower-margin products are eroding profitability for food packaging suppliers.

CEO Targets Logistics Efficiency and Regional Balance

Robert Dackeskog, president and chief executive officer of Duni Group, said the company would focus on completing its logistics transition, improving transport efficiency and refining customer offerings in the final months of the year. 

He also pointed to the strategic value of the Seti acquisition, finalised at the end of 2024, which, combined with the group’s Italian operations, has expanded its footprint in Southern Europe. 

Dackeskog noted that the year’s developments confirmed the benefit of building a more balanced geographic presence in Europe to reduce reliance on any single market.

Sealable Ronda Targets Lower Plastic Content

Despite the financial headwinds, Duni continued advancing its sustainable packaging portfolio through the Duniform brand. 

In April, the company launched Sealable Ronda, a paper bowl designed for the ready-to-eat salad and bowl meal segment. 

The product contains more than 85% less plastic and reduces carbon dioxide emissions by over 50% compared with similarly sized plastic bowls. 

For packaging manufacturers, Duni’s quarter illustrates the tension between investing in sustainable product lines and managing immediate margin compression caused by elevated freight and operational costs.

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