Interim Report for Duni AB (publ) 1 January – 31 March 2012

Improved profitability within Professional
1 January – 31 March 2012

  · Net sales amounted to SEK 856 m (867). Adjusted
for exchange rate changes, net sales fell by 1.5%.
  · Earnings per share
amounted, after dilution, to SEK 0.78 (0.86).
  · Evolin®, Duni's new
revolutionary tablecovering material, was launched during the quarter.
  ·
Strong seasonally adjusted cash flow following a successful reduction of working
capital.

Key financials

SEK m         3 months  3 months  12 months  12
months January-December
                                  April      2011
January   January   -March
              -March    -March    2011/2012
2012      2011
Net sales     856       867       3 796      3 807
Operating
60        67        397        404
income1)
Operating     7.0%      7.8%
10.4%      10.6%
margin1)
Income after  50        55        353
358
financial
items
Net income    37        41        257        261

1)
Underlying operating income; for link to reported operating income, see the
section entitled "Non-recurring items".

CEO’s comments

“The economy has
weakened during a couple of quarters, particularly in the heavily debt-burdened
markets of southern Europe. In this economic climate, Duni achieved sales of SEK
856 m, which represents a fall of 1.5% at fixed exchange rates.

It is
positive to note that sales within our largest business area, Professional, are
continuing to increase, and did so by 3.4% in the quarter. The rate of growth in
southern Europe has slowed down due to the harsh economic climate, while Eastern
Europe continues to display solid growth. The sales trend in the larger, mature
markets is stable or slightly positive.

Sales in the Tissue business area
were unchanged compared with last year.

On the other hand, Consumer (formerly
Retail) experienced a weak quarter, retreating 20%. This is due to a generally
poor Easter season, high inventory levels of some customers, and a weak market
position in the Nordic region. These factors, combined with the lost private
label contract, already mentioned in previous reports, are the main reasons for
the weak sales.

Despite Consumer’s weak start to the year, the prospects for
the coming quarters appear to be better. We have signed a couple of new
contracts, including with the major private label customer whom we previously
lost, and these will have a positive impact on sales, particularly during the
second half of the year.

Income for the first quarter fell due to the weak
development within Consumer and lower capacity utilization in the Tissue
business area, in order to reduce the inventory level. The Group’s EBIT was SEK
60 m, compared with SEK 67 m last year. The Professional business area increased
its operating income by SEK 8 m, to SEK 61 m, despite expenditures incurred in
the quarter on the new tablecovering material, Evolin®. We are currently in the
initial phase of launching Evolin and sales will increase gradually during the
year.

During the quarter, the Group generated a positive cash flow thanks to
a reduction in working capital. As a consequence, the net debt was reduced even
during the seasonally weak first quarter.

Duni's most important challenge is
to create growth. Several initiatives have been taken and investments started up
with this aim. As from the second quarter, Duni is introducing a new, more
market-oriented organization, which should also be seen as a step towards
creating improved conditions for growth.

Although Duni has taken measures to
promote sales growth, we anticipate a continued slowdown in economic activity in
Europe during the current year,” says Fredrik von Oelreich, President and CEO,
Duni.
Additional information is provided by:
Fredrik von Oelreich, President and CEO,
+46 40 10 62 00
Mats Lindroth, CFO, +46 40 10 62 00
Helena Haglund, Group
Accounting Manager, +46 734-19 63 04
Duni is a leading supplier of attractive and convenient products for table
setting and takeaway. The Duni brand is sold in more than 40 markets and enjoys
a number one position in Central and Northern Europe. Duni has some 2,000
employees in 17 countries, headquarters in Malmö and production units in Sweden,
Germany and Poland. Duni is listed on NASDAQ OMX Stockholm under the ticker name
“DUNI”. ISIN-code is SE 0000616716.