A strong player on a changing playing field

Even during much of 2021 the pandemic and subsequent restrictions had a major negative impact on restaurants, travel and hotels. As a supplier to these customers, Duni business area with its tableware range was also affected.

On the other hand, the BioPak business area, with products for take-away, has continued to develop better than we anticipated. Already before the pandemic, take-away had strong growth, which increased significantly in 2020 and 2021, benefiting us.

Methodically secured operations

From the Board’s perspective, the management and the organisation have dealt with the challenges of the year in a good and balanced way. We have worked methodically, had a good follow-up on both pandemic developments and our own operations.

Like many other affected companies, the Group has received financial support. We have continuously had a good and constructive dialogue with banks and financiers and have coped well with the renegotiated ratios in the banking agreement we received during the pandemic.

”I think a good summary is that it feels like we have never been more challenged, but we’ve also never been as positive as we are now.”

Sustainability and innovation are key areas

I am impressed by the way in which, under the current circumstances, the Group both launched a decisive reorganization and worked through and launched an updated strategy, vision and values in 2021. Many important decisions were made during the year, when we could only meet digitally at times.

We were early with environmental smart, fiber-based alternatives. With the updated strategy, we are taking a decisive step towards circular development with a net zero target for our own operations. It is a big move and a marker to show our high ambitions. From being key issues, sustainability and innovation now permeate all aspects of the business.

Reorganization improves efficiency

The reorganization supports the updated strategy. By making the Duni and BioPak segments into business areas, they now own their respective processes with marketing, business and production/purchasing. It increases transparency and creates a better understanding within the organization and less friction in the value chain.

For the Duni business area , this means streamlining our vertical integration and creating a better balance between market and production. BioPak business area gains better control over its purchases and can, for example, steer production closer to its customers.

Historically, Duni Group has had a stable performance with relatively good returns, mainly through expansion in new and existing markets. Looking ahead, we see a more fast-moving world primarily influenced by new patterns of behavior, digitalization and a focus on sustainability. This transformation increases the need for innovation and creates opportunities for new product solutions and business models.

Here, Duni Group has already taken an active role through investing in or initiating close partnerships in exciting start-up companies in reuse and recycling. The aim is to complement our strong core business with new sustainable business models and partnerships where we can also bring our own expertise. Internal and external collaboration on innovation will be crucial.

Employees and culture are critical success factors

Human resources issues have been given a more central role in the strategy. HR has become People & Culture and both are crucial to achieving our strategic goals. We need to secure our skills supply and continue to involve and motivate employees.

I feel a strong positive commitment and there is a great insight and knowledge within the company. So, finally, I would like to thank the staff, and our shareholders who have had confidence in the company and the work that has been done. Our main owner, Mellby Gård, continues to see Duni Group as a long-term investment and has confidence in the company and its management.

In 2021, the Group has taken major steps in a partly new direction. We must now work resolutely towards the new goals.

Malmö, March 2022

Thomas Gustafsson
Chairman of the Board