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Duni: Whipping up an appetising margin expansion - SEB

A strong performance from segment Duni in Q1 increases our conviction in our long-term volume and margin recovery story, as well as Duni’s competitive advantage, expecting continued earnings growth coming quarters as operational leverage take effect and input prices fall. While BioPak fell short in Q1, we expect margins to improve from here as inventory acquired at higher cost cycle through. We raise our mid-point fair value to SEK 160 (130).

A strong performance from segment Duni in Q1 increases our conviction in our long-term volume and margin recovery story, as well as Duni’s competitive advantage, expecting continued earnings growth coming quarters as operational leverage take effect and input prices fall. While BioPak fell short in Q1, we expect margins to improve from here as inventory acquired at higher cost cycle through. We raise our mid-point fair value to SEK 160 (130).
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