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Duni: Lean, mean, money making machine - SEB

A strong operational performance resulted in wide margin expansion, EBIT growth of +130% y/y and a FCF of SEK 320m in Q2, despite lower volumes in BioPak. This highlights the beauty of the business model, and a taste of what is to come now that volumes have recovered and operational leverage can kick in with full effect. We raise our estimates and DCF derived mid-point fair value to SEK 164 (160).

A strong operational performance resulted in wide margin expansion, EBIT growth of +130% y/y and a FCF of SEK 320m in Q2, despite lower volumes in BioPak. This highlights the beauty of the business model, and a taste of what is to come now that volumes have recovered and operational leverage can kick in with full effect. We raise our estimates and DCF derived mid-point fair value to SEK 164 (160).
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