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Duni Q3: 12 % operating margin the star of the show - SEB

While volumes in Q3 fell, and Duni saw -2.2% organic growth mainly due to lower volumes in the retail sector and BA BioPak facing tough comps, the report's main headline is the operating margin. Despite lower than expected sales, operating margin expanded to 11.6%, 260bps better than we expected. As a result, Duni also generated c. SEK 578m in FCF in the quarter, which in combination with mid to high single digit estimate revisions should support the shares today we believe.

While volumes in Q3 fell, and Duni saw -2.2% organic growth mainly due to lower volumes in the retail sector and BA BioPak facing tough comps, the report's main headline is the operating margin. Despite lower than expected sales, operating margin expanded to 11.6%, 260bps better than we expected. As a result, Duni also generated c. SEK 578m in FCF in the quarter, which in combination with mid to high single digit estimate revisions should support the shares today we believe.
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