Nordic Fibreboard AS consolidated unaudited interim report for the second quarter of 2025
MANAGEMENT REPORT
Consolidated net sales for Q2 2025 were EUR 1.87 million, which was a 14% decrease
compared to the same period last year (Q2 2024: EUR 2.18 million). The Group`s
main activity is the production and wholesale of fibreboard, the sales revenue
of which in Q2 2025 was EUR 1.87 million (Q2 2024: EUR 2.17 million). The remaining
segment is the management of the real estate on Suur-Jõe street in Pärnu, the
sales revenue of which in Q2 2025 was EUR 1 thousand (Q2 2024: EUR 9 thousand). The
main difference in sales volumes between the second quarter of 2025 and the same
period in 2024 is due to the decline in sales to European Union markets.
Pärnu Riverside Development OÜ's real estate management revenue on the Suur-Jõe
street property decreased in Q2 2025 compared to the Q2 2024, due to the
termination of rental agreements in August 2024. The rental agreements were
terminated due to the specific characteristics of the production building
complex, which caused high communal costs that could not be covered by rental
income.
The consolidated EBITDA of Nordic Fibreboard for Q2 2025 was negative EUR 94
thousand, the EBITDA margin was negative 5% (Q2 2024: EBITDA was positive EUR 217
thousand, and the EBITDA margin was positive 10%). Compared to the Q2 2024 the
Group`s gross margin decreased from 25% to 14% in the Q2 2025, which indicates
that the Group`s profitability in the Q1 2025 has decreased compared to the same
period last year. The main reason for the change in EBITDA is the increased
repair and maintenance costs of the Pärnu factory and boiler house.
Financial expenses, which consisted of interest expenses, amounted to EUR 46
thousand in Q2 2025 (2024 Q2: EUR 109 thousand, consisting of interest expenses in
the amount of EUR 53 thousand and revaluation of Trigon Property Development AS
shares in the amount of EUR 56 thousand).
Group`s consolidated net loss for Q2 2025 was EUR 46 thousand (Q2 2024: net loss EUR
23 thousand).
Divisional review
Revenue by business segments
+----------------------------------+---------+---------+---------+---------+
| EUR thousand | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 |
+----------------------------------+---------+---------+---------+---------+
| Fibreboards production and sales | 1,867 | 2,170 | 3,602 | 4,119 |
+----------------------------------+---------+---------+---------+---------+
| Real Estate Management | 1 | 9 | 2 | 21 |
+----------------------------------+---------+---------+---------+---------+
| TOTAL | 1,868 | 2,179 | 3,603 | 4,140 |
+----------------------------------+---------+---------+---------+---------+
Profit by business segments
+----------------------------------+---------+---------+---------+---------+
| EUR thousand | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 |
+----------------------------------+---------+---------+---------+---------+
| EBITDA by business units: | | | | |
+----------------------------------+---------+---------+---------+---------+
| Fibreboards production and sales | (67) | 228 | (129) | 290 |
+----------------------------------+---------+---------+---------+---------+
| Real Estate Management | (21) | (3) | (43) | (15) |
+----------------------------------+---------+---------+---------+---------+
| Group transactions | (6) | (8) | (8) | (5) |
+----------------------------------+---------+---------+---------+---------+
| TOTAL EBITDA | (94) | 217 | (180) | 270 |
+----------------------------------+---------+---------+---------+---------+
| Deprecation | (128) | (131) | (260) | (260) |
+----------------------------------+---------+---------+---------+---------+
| TOTAL OPERATING PROFIT/LOSS | (222) | 86 | (440) | 10 |
+----------------------------------+---------+---------+---------+---------+
| Net financial cost | (46) | (109) | (57) | (106) |
+----------------------------------+---------+---------+---------+---------+
| NET PROFIT/LOSS | (268) | (23) | (497) | (96) |
+----------------------------------+---------+---------+---------+---------+
Nordic Fibreboard Ltd: Fibreboard production and sales
Fibreboard sales in Q2 2025 were EUR 1.87 million (Q2 2024: EUR 2.17 million). The
main decrease in sales revenue, compared to Q2 2025 with the same period in
2024, occurred in the Estonian market, sales volume in the Q2 2025 was EUR 253
thousand, which is 52% less than in the Q2 2024, and sales to customers in the
Middle East have also decreased. An increase in sales growth in the Q2 2025
compared to the same period last year was noticeable in the Finnish market -
8%, in addition, sales to African countries are recovering and new customers
have been added from Malaysia and the United Kingdom.
The EBITDA of the fibreboard segment for the Q2 2025 was a negative EUR 67
thousand, (Q2 2024: positive EUR 228 thousand). The net loss of the fibreboard
segment for the Q2 2025 was EUR 241 thousand (Q2 2024: net loss EUR 10 thousand).
Fibreboard sales by geographical segments
+----------------+---------+---------+---------+---------+
| EUR thousand | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 |
+----------------+---------+---------+---------+---------+
| European Union | 1,777 | 2 106 | 3 416 | 3,798 |
+----------------+---------+---------+---------+---------+
| Asia | 28 | 23 | 28 | 84 |
+----------------+---------+---------+---------+---------+
| Middle East | 14 | 41 | 14 | 57 |
+----------------+---------+---------+---------+---------+
| Africa | 13 | 0 | 100 | 167 |
+----------------+---------+---------+---------+---------+
| Other regions | 35 | 0 | 43 | 13 |
+----------------+---------+---------+---------+---------+
| TOTAL | 1,867 | 2,170 | 3,601 | 4,119 |
+----------------+---------+---------+---------+---------+
Pärnu Riverside Development: Real estate management
Pärnu Riverside Development owns property located at Suur-Jõe 48 in Pärnu.
Rental income from property management was EUR 1 thousand in Q2 2025, (Q2 2024: EUR
9 thousand), the decreased in sales revenue was due to termination of rental
agreements in the second half of 2024. The decision to terminate the rental
agreements was due to the specific characteristics of the production building
complex, which caused high communal costs, and which could not be covered by
rental income.
The real estate management EBITDA for Q2 2025 were negative EUR 21 thousand and
net loss was EUR 21 thousand (Q2 2024: EBITDA was negative EUR 3 thousand and net
loss EUR 3 thousand).
At the beginning of 2025, the Suur-Jõe 48 property owned by Pärnu Riverside
Development OÜ was divided based on the approved detailed plan and during land
operations, which resulted in 10 separate properties, of which 5 properties are
residential land (Admirali 1/3, Admirali 5/7, Admirali 9/11, Admirali 2/4/6 and
Admirali 13/15), 1 commercial land (Suur-Jõe 48), 3 transport lands (Admirali
street T1, T2 and T3) and 1 land for public buildings (Admirali tn.11A). In
2025, the design of roads and routes and buildings of the planned business and
residential district will continue for the purpose of applying for building
permits.
Consolidated statement of financial position and cash flow statement
As of 30.06.2025 the total assets of Nordic Fibreboard AS were EUR 8.85 million
(30.06.2024: 9.25 million). Receivables and prepayments amounted to EUR 1.07
million as at 30.06.2025 (30.06.2024: EUR 1.08 million). Inventories were EUR 1.02
million as of 30.06.2025 (30.06.2024: also EUR 1.02 million) and the Group´s total
fixed assets were EUR 6.72 million as of 30.06.2025 (EUR 7.14 million as of
30.06.2024).
The liabilities of the Group as of 30.06.2025 were EUR 5.73 million (30.06.2024: EUR
4.95 million). Payables and prepayments amounted to EUR 1.33 million (30.06.2024:
EUR 1.40 million), of which the Group has payables of EUR 0.97 million as at
30.06.2025 (30.06.2024: EUR 1.09 million). Borrowings amounted to EUR 4.27 million
as at 30.06.2025 (30.06.2024: EUR 3.42 million), provision for former employees
and other liabilities amounted to EUR 0.14 million (30.06.2024: EUR 0.12 million).
Nordic Fibreboard`s consolidated cash flow from operating activities for the
first six months of 2025 was negative in the amount of EUR 621 thousand (first six
months of 2024: negative cash flow of EUR 51 thousand). Cash inflow due to
investment activities during the first six months 2025 was EUR 63 thousand, which
consisted of the sale of TPD shares and investments in production assets and
real estate investment objects (first six months of 2024: cash outflow EUR 163
thousand). Cash inflows due to financing activities was EUR 542 thousand for the
first six months of 2025, (first six months of 2024: cash inflow EUR 209
thousand). The net cash flow for the first six months of 2025 resulted in a cash
outflow of EUR 16 thousand (first six months of 2024: cash outflow EUR 5 thousand).
Outlook
Nordic Fibreboard Ltd
In recent years, the market has remained stable, although the expected rapid
growth has not yet been noticeable in the construction or manufacturing sectors.
Although sales volumes have decreased more than expected in some markets, the
addition of new customers has helped to balance this decline. Market
fluctuations show that in addition to finding new customers, it is important to
actively focus on maintaining and developing existing markets. We will continue
to invest consistently in product development and strengthening customer
relationships to offer the most suitable and up-to-date solutions in a changing
market environment.
We are convinced that the segment of energy-efficient and environmentally
friendly products is on a growth trend in terms of both innovation and demand.
Although changes may be long-term, they will provide a clear competitive
advantage in the future compared to products that have a negative impact on both
the environment and the indoor climate of buildings.
Our goal is to be a leader in this development - to provide solutions that meet
increasingly stringent energy efficiency and sustainability requirements, while
ensuring additional value for customers in terms of quality, durability, and a
healthy living environment.
Pärnu Riverside development
In 2025, the design of the roads, infrastructure, and buildings of the planned
business and residential area will continue for the purpose of applying for
building permits. The building permit process has started, and according to the
preliminary plans, it is planned to complete it by the end of 2025.
On 30.07.2025, Nordic Fibreboard AS and Pärnu Riverside Development OÜ entered
into a merger agreement, according to which Nordic Fibreboard AS is the
acquiring company and Pärnu Riverside Development OÜ is the company being
acquired. The purpose of the merger is to simplify the company's structure.
FINANCIAL HIGHLIGHTS
+---------------------------------------------------------------------------+
|Income statement |
+-------------------------------+----------+----------+----------+----------+
|EUR thousand | Q2 2025| Q2 2024| 6M 2025| 6M 2024|
+-------------------------------+----------+----------+----------+----------+
|Revenue | 1,868| 2,179| 3,603| 4,140|
+-------------------------------+----------+----------+----------+----------+
|EBITDA | (94)| 216| (180)| 270|
+-------------------------------+----------+----------+----------+----------+
|EBITDA margin | (5%)| 10%| (5%)| 7%|
+-------------------------------+----------+----------+----------+----------+
|Operating profit | (223)| 86| (440)| 10|
+-------------------------------+----------+----------+----------+----------+
|Operating margin | (12%)| 4%| (12%)| 0%|
+-------------------------------+----------+----------+----------+----------+
|Net profit/-loss | (268)| (23)| (497)| (96)|
+-------------------------------+----------+----------+----------+----------+
|Net margin | (14%)| (1%)| (14%)| (2%)|
+-------------------------------+----------+----------+----------+----------+
+---------------------------------------------------------------------------+
|Statement of financial position |
+-------------------------------+----------+----------+----------+----------+
|EUR thousand |30.06.2025|31.12.2024|30.06.2024|31.12.2023|
+-------------------------------+----------+----------+----------+----------+
|Total assets | 8,852| 8,252| 9,252| 8,505|
+-------------------------------+----------+----------+----------+----------+
|Return on assets | (3%)| (0%)| (5%)| (1%)|
+-------------------------------+----------+----------+----------+----------+
|Equity | 3,119| 3,616| 4,306| 4,402|
+-------------------------------+----------+----------+----------+----------+
|Return on equity | (9%)| (1%)| (12%)| (2%)|
+-------------------------------+----------+----------+----------+----------+
|Debt-to-equity-ratio | 65%| 53%| 53%| 48%|
+-------------------------------+----------+----------+----------+----------+
+-------------------------------+----------+----------+----------+----------+
|Share |30.06.2025|31.12.2024|30.06.2024|31.12.2023|
+-------------------------------+----------+----------+----------+----------+
|Last price (EUR)* | 1.00| 0.90| 0.97| 0.90|
+-------------------------------+----------+----------+----------+----------+
|Earnings per share (EUR) | (0.26)| (0.17)| (0.04)| (0.15)|
+-------------------------------+----------+----------+----------+----------+
|Price-earnings ratio | (3.79)| (5.15)| (25.19)| (5.93)|
+-------------------------------+----------+----------+----------+----------+
|Book value of a share (EUR) | 0.69| 0.80| 0.96| 0.98|
+-------------------------------+----------+----------+----------+----------+
|Market to book ratio | 1.44| 1.12| 1.01| 0.92|
+-------------------------------+----------+----------+----------+----------+
|Market capitalization, (th EUR) | 4,499| 4,049| 4,364| 4,049|
+-------------------------------+----------+----------+----------+----------+
|Number of shares (piece) | 4,499,061| 4,499,061| 4,499,061| 4,499,061|
+-------------------------------+----------+----------+----------+----------+
CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONS
+----------------------------------+----------+----------+----------+----------+
|EUR thousand |30.06.2025|31.12.2024|30.06.2024|31.12.2023|
+----------------------------------+----------+----------+----------+----------+
|Cash and cash equivalents | 37| 53| 2| 7|
+----------------------------------+----------+----------+----------+----------+
|Receivables and prepayments (Note | | | | |
|2) | 1,075| 571| 1,084| 534|
+----------------------------------+----------+----------+----------+----------+
|Inventories (Note 3) | 1,020| 624| 1,027| 728|
+----------------------------------+----------+----------+----------+----------+
|Total current assets | 2,132| 1,248| 2,113| 1,269|
+----------------------------------+----------+----------+----------+----------+
| | | | | |
+----------------------------------+----------+----------+----------+----------+
|Investment property (Note 4) | 2,481| 2,380| 2,294| 2,269|
+----------------------------------+----------+----------+----------+----------+
|Financial assets at fair value | | | | |
|through profit or loss (Note 7) | 0| 499| 491| 491|
+----------------------------------+----------+----------+----------+----------+
|Property, plant, equipment and | | | | |
|right-of use assets (Note 5) | 4,237| 4,122| 4,351| 4,475|
+----------------------------------+----------+----------+----------+----------+
|Intangible assets (Note 6) | 2| 3| 3| 1|
+----------------------------------+----------+----------+----------+----------+
|Total non-current assets | 6,720| 7,004| 7,139| 7,236|
+----------------------------------+----------+----------+----------+----------+
| | | | | |
+----------------------------------+----------+----------+----------+----------+
|TOTAL ASSETS | 8,852| 8,252| 9,252| 8,505|
+----------------------------------+----------+----------+----------+----------+
| | | | | |
+----------------------------------+----------+----------+----------+----------+
|Borrowings (Note 8) | 748| 1,111| 765| 556|
+----------------------------------+----------+----------+----------+----------+
|Payables and prepayments (Note 9) | 1,326| 788| 1,401| 756|
+----------------------------------+----------+----------+----------+----------+
|Short-term provisions (Note 10) | 10| 21| 10| 21|
+----------------------------------+----------+----------+----------+----------+
|Total current liabilities | 2,084| 1,920| 2,176| 1,333|
+----------------------------------+----------+----------+----------+----------+
| | | | | |
+----------------------------------+----------+----------+----------+----------+
|Long-term borrowings (Note 8) | 3,518| 2,613| 2,659| 2,659|
+----------------------------------+----------+----------+----------+----------+
|Long-term provisions (Note 10) | 94| 94| 111| 111|
+----------------------------------+----------+----------+----------+----------+
|Other long-term liabilities | 37| 9| 0| 0|
+----------------------------------+----------+----------+----------+----------+
|Total non-current liabilities | 3,649| 2,716| 2,770| 2,770|
+----------------------------------+----------+----------+----------+----------+
|Total liabilities | 5,733| 4,636| 4,946| 4,103|
+----------------------------------+----------+----------+----------+----------+
| | | | | |
+----------------------------------+----------+----------+----------+----------+
|Share capital (at nominal value) | | | | |
|(Note 11) | 450| 450| 450| 450|
+----------------------------------+----------+----------+----------+----------+
|Statutory reserve capital | 45| 45| 45| 45|
+----------------------------------+----------+----------+----------+----------+
|Retained earnings (loss) | 2,624| 3,121| 3,811| 3,907|
+----------------------------------+----------+----------+----------+----------+
|Total equity | 3,119| 3,616| 4,306| 4,402|
+----------------------------------+----------+----------+----------+----------+
| | | | | |
+----------------------------------+----------+----------+----------+----------+
|TOTAL LIABILITIES AND EQUITY | 8,852| 8,252| 9,252| 8,505|
+----------------------------------+----------+----------+----------+----------+
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
+--------------------------------------+---------+---------+---------+---------+
| EUR thousand | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 |
+--------------------------------------+---------+---------+---------+---------+
| Revenue (Note 13) | 1,868 | 2,179 | 3,603 | 4,140 |
+--------------------------------------+---------+---------+---------+---------+
| Cost of goods sold (Note 14) | (1,740) | (1,755) | (3,348) | (3,468) |
+--------------------------------------+---------+---------+---------+---------+
| Gross profit | 128 | 424 | 255 | 672 |
+--------------------------------------+---------+---------+---------+---------+
| | | | | |
+--------------------------------------+---------+---------+---------+---------+
| Distribution costs (Note 15) | (245) | (251) | (473) | (477) |
+--------------------------------------+---------+---------+---------+---------+
| Administrative expenses (Note 16) | (115) | (94) | (226) | (192) |
+--------------------------------------+---------+---------+---------+---------+
| Other operating income (Note 18) | 13 | 8 | 13 | 8 |
+--------------------------------------+---------+---------+---------+---------+
| Other operating expenses (Note 18) | (3) | (1) | (9) | (1) |
+--------------------------------------+---------+---------+---------+---------+
| Operating profit (loss) | (222) | 86 | (440) | 10 |
+--------------------------------------+---------+---------+---------+---------+
| | | | | |
+--------------------------------------+---------+---------+---------+---------+
| Finance income (Note 19) | 0 | 0 | 40 | 0 |
+--------------------------------------+---------+---------+---------+---------+
| Finance costs (Note 19) | (46) | (109) | (97) | (106) |
+--------------------------------------+---------+---------+---------+---------+
| LOSS BEFORE INCOME TAX | (268) | (23) | (497) | (96) |
+--------------------------------------+---------+---------+---------+---------+
| | | | | |
+--------------------------------------+---------+---------+---------+---------+
| NET LOSS FOR THE PERIOD | (268) | (23) | (497) | (96) |
+--------------------------------------+---------+---------+---------+---------+
| | | | | |
+--------------------------------------+---------+---------+---------+---------+
| Basic earnings per share (Note 12) | (0.06) | (0.01) | (0.11) | (0.02) |
+--------------------------------------+---------+---------+---------+---------+
| Diluted earnings per share (Note 12) | (0.06) | (0.01) | (0.11) | (0.02) |
+--------------------------------------+---------+---------+---------+---------+
CONSOLIDATED STATEMENT OF CASH FLOWS
+--------------------------------------------------------------+-------+-------+
|EUR thousand |6M 2025|6M 2024|
+--------------------------------------------------------------+-------+-------+
|Cash flow from operating activities | | |
+--------------------------------------------------------------+-------+-------+
|Operating profit (-loss) | (440)| (10)|
+--------------------------------------------------------------+-------+-------+
|Adjustments: | | |
+--------------------------------------------------------------+-------+-------+
|Depreciation charge (Note 5; 6) | 260| 260|
+--------------------------------------------------------------+-------+-------+
|Change in trade and other receivables (Note 2) | (504)| (550)|
+--------------------------------------------------------------+-------+-------+
|Change in inventories (Note 3) | (396)| (299)|
+--------------------------------------------------------------+-------+-------+
|Change in trade and other payables (Note 9) | 566| 645|
+--------------------------------------------------------------+-------+-------+
|Change of provisions (Note 10) | (11)| (11)|
+--------------------------------------------------------------+-------+-------+
|Cash generated from operations | (525)| 55|
+--------------------------------------------------------------+-------+-------+
|Interest payments (Note 8; 19) | (89)| (106)|
+--------------------------------------------------------------+-------+-------+
|Net other financial income and expense | (8)| 0|
+--------------------------------------------------------------+-------+-------+
|Net cash generated from operating activities | (621)| (51)|
+--------------------------------------------------------------+-------+-------+
| | | |
+--------------------------------------------------------------+-------+-------+
|Cash flow from investing activities | | |
+--------------------------------------------------------------+-------+-------+
|Purchase of property, plant and equipment and intangible | | |
|assets (Note 5; 6) | (375)| (138)|
+--------------------------------------------------------------+-------+-------+
|Purchase of real estate investment (Note 4) | (101)| (25)|
+--------------------------------------------------------------+-------+-------+
|Sales of financial assets (Note 7) | 539| 0|
+--------------------------------------------------------------+-------+-------+
|Net cash used in investing activities | 63| (163)|
+--------------------------------------------------------------+-------+-------+
| | | |
+--------------------------------------------------------------+-------+-------+
|Cash flow from financing activities | | |
+--------------------------------------------------------------+-------+-------+
|Repayment of loans received (Note 8) | (110)| (104)|
+--------------------------------------------------------------+-------+-------+
|Loans received from related parties (Note 8) | 705| 0|
+--------------------------------------------------------------+-------+-------+
|Finance lease payments (Note 8) | (12)| (11)|
+--------------------------------------------------------------+-------+-------+
|Change in overdraft (Note 8) | (41)| 324|
+--------------------------------------------------------------+-------+-------+
|Net cash (used in)/from financing activities | 542| 209|
+--------------------------------------------------------------+-------+-------+
| | | |
+--------------------------------------------------------------+-------+-------+
|NET CHANGE IN CASH | (16)| (5)|
+--------------------------------------------------------------+-------+-------+
|OPENING BALANCE OF CASH | 53| 7|
+--------------------------------------------------------------+-------+-------+
|CLOSING BALANCE OF CASH | 37| 2|
+--------------------------------------------------------------+-------+-------+
Enel Äkke
Member of Management Board
+372 55525550
[email protected]