New Markets business area

Continuing expansion in new markets

Business area New Markets sells Duni’s concepts and products in markets outside Europe.

448

Net sales amounted to SEK 448 m (322).

13

Operating income was SEK 13 m (24).

2.9 %

The operating margin was 2.9% (7.4%).

THEME: EXPLORE

“We’re building our expertise in environmentally sound packaging and will get out the message that we are the market leader in this area. We must use our expertise to build strong partner relationships: we will understand our customers’ businesses better than our competitors and provide better service to our customers.”

Patrik Söderstjerna, Director Business Area New Markets

Net sales and operating income, SEK m
Net sales by product group, %
Net sales per geographic region, %

NEW MARKETS customer segments

  • Cafes
  • Fast food
  • Full service restaurants
  • Hotels
  • Take-away

Expansion in the world market

New Markets is a combination of sales offices and acquired companies outside of Europe. Now New Markets is working to bring this family closer to Duni in Europe. The business area saw continuing entrepreneur-driven expansion in the world market in 2018. Mexico is home to a concept store with Duni’s premium assortment. In Taiwan, Duni is collaborating with a partner to launch its assortment. Tourism and the number of business trips are on the rise, as is the number of meals eaten outside the home. This has had a positive impact on the business.

New Markets’ markets

Restructuring in Singapore

Duni Song Seng in Singapore, acquired in 2013, was restructured in 2018. The implementation of a new ERP system, relocation to a new office and the shift to an external warehouse had a temporary negative impact on income. These changes will streamline the company’s operations and improve logistics.

Asian market trends

The number of market participants in Asia has increased due to the low entry barriers for single-use products. Competition in the low-price segment has become fiercer as a result. The market for premium products is smaller, but that hasn’t stopped Duni’s premium napkin sales from increasing. Growing environmental awareness has also translated into increasingly higher demand for sustainable alternatives.

More efficient production

In 2018, Sharp Serviettes in New Zealand invested in a machine to streamline napkin conversion at its production plant in Auckland. The company mainly sells to the HoReCa segment and retail sector, and also distributes Duni products.

Export increases in Thailand

Exports from Terinex Siam’s factory in Thailand continue to grow. A new inventory management system was installed to improve operations. In addition, new qualities and colors were introduced in conversion to make the premium assortment even more competitive.

Acquisitions strengthen sustainable segment in Asia and Oceania

Asia and Oceania represent a prioritized growth region for Duni in which we are expanding through acquisitions and structural improvements. In 2018, Duni acquired BioPak Pty Ltd in Australia, which delivers eco-profiled disposable packaging for the food service industry that is made of fiber, cardboard and bioplastics. With its rapid growth, the company is the market leader in Australia and is also strong in New Zealand. The acquisition opens the door for growth and expansion in other markets.