CEO’s comments

Increased focus on customer needs

Duni has continued on its long-term journey of transitioning from a product-oriented company to a customer-focused company with a strong commitment to the environment. It is a strategy that has been successively implemented in our business areas, support functions and the various companies of the Group – work that was particularly intensive in 2017. Focus on Asia and Oceania has continued, among other things with the acquisition of Sharp Serviettes in New Zealand. During the year, increases in raw material prices have been addressed through a number of measures.

The market has continued to change, not least in terms of meal behavior and increasing awareness of the environment, which in some respects has redrawn the map for both us and our customers. It not only brings with it increased demands for tailored solutions and more intense product and concept development, but also requires that we respond to the differentiation occurring in our customers and consumer groups. A number of measures were taken during the year to meet this change. For one, logistics was bettered overall, resulting in improved delivery performance. At the same time, we conducted clear market segmentation, leading to deeper insights and better adaptation to our customers’ varying needs. This enables us to deliver a more precise and customized offering.

PROFIT GENERATING ACTIVITIES

Duni has been pressured by higher costs for factors including raw materials during the year. In response to this development, we have worked more with internal efficiency improvements and have adjusted our prices. The Rexcell paper mill implemented a new work organization, which has already led to improved earnings. Purchasing routines have been reviewed and the organization has been incorporated into a more central structure. Based on the Goodfoodmood® platform, work to strengthen Duni’s premium position has been intensified. A number of premium products were launched during the year, and even more are in the launch phase.

SIGNIFICANT ENVIRONMENTAL WORK

An important focus during the year has been planning and driving the development of more environmentally-sound products and concepts – a clear effect of Our Blue Mission, Duni’s CSR program. The program acts as a strategy and steers product development towards environmental sustainability that meets our criteria in the ecoecho® classification. Duni puts environmental focus high on its agenda. As a market leader, we also consider it our role to drive the market towards more sustainable customer offerings. Sustainability issues have become even more important during the year, not least because needs arose through acquisitions, new employees, organizational development and continued work with Duni’s code of conduct. Our Blue Mission is a guarantee to our employees, partners and customers.

ANOTHER ACQUISITION IN ASIA

An important event during the year was the acquisition of Sharp Serviettes in New Zealand, which was incorporated into the New Markets business area in May 2017. Sharp Serviettes is a market leader in New Zealand and an important part of a strategic platform for our venture in Asia and Oceania. During the year, efforts were placed in creating synergies between Duni’s various companies and units across Europe and Asia. This is an ongoing integration process affecting all parts of the value chain.

EMPLOYEE INVOLVEMENT

Targeted efforts were made in several parts of the organization to create a higher degree of involvement and cooperation between employees. The core is more coaching leadership and a shift of responsibility outward in the organization. The goal is an organization where our employees perform well because they want to – not because they have to. Organization development was also achieved by further strengthening skills via our Duni Academy development program.

THANKS THOMAS!

In October, I took over the role of President and CEO from Thomas Gustafsson. After just a short time at Duni, I was impressed by all the positive changes that have taken place under Thomas’ leadership. In principle, all parts of the value chain have been strengthened and Duni is now well prepared to meet all opportunities that present themselves in the future. I would like to thank him for his solid efforts, and look forward to working with all of Duni’s talented employees to embrace, manage and develop Thomas’ work as we enter the next phase in the Company’s history.

Malmö, March 2018

 

 

Johan Sundelin
President and CEO since October 2017