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Nordic Fibreboard AS unaudited financial report for the Q1 of 2025
Consolidated net sales for Q1 2025 were € 1.51 million, which was a 11% decrease compared to the same period last year (Q1 2024: € 1.97 million). The Group`s main activity is the production and wholesale of fibreboard, the sales revenue of which in Q1 2025 was € 1.73 million (Q1 2024: € 1.95 million). The remaining segment is the management of the real estate on Suur-Jõe street in Pärnu, the sales revenue of which in Q1 2025 was € 1 thousand (Q1 2024: € 12 thousand). The main difference in sales volumes between the first quarter of 2025 and the same period in 2024 is due to the decline in sales to the Asian, Middle Eastern, and African markets.
Pärnu Riverside Development OÜ's real estate management revenue on the Suur-Jõe street property decreased in Q1 2025 compared to the Q1 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 Q1 2025 was negative € 85 thousand, the EBITDA margin was negative 5% (Q1 2024: EBITDA was positive € 53 thousand, and the EBITDA margin was positive 3%). Compared to the Q1 2024 the Group`s gross margin decreased from 19% to 15% in the Q1 2024, which indicates that the Group`s profitability in the Q1 2025 has decreased compared to the same period last year.
The financial income for Q1 2025 was € 40 thousand, consisting of the revaluation of Trigon Property Development (TPD) shares (Q1 2024: € 56 thousand). TPD shares were sold on 21.02.2025 and the last revaluation was carried out on 19.02.2025 at the closing price of 0.67 euros per share. Financial expenses in Q1 2025 were € 51 thousand, consisting of loan interest expenses in the amount of € 46 thousand and other financial expenses in the amount of € 5 (2024 Q1: € 54 thousand, consisting of loan interest expenses).
Group`s consolidated net loss for Q1 2025 was € 228 thousand (Q1 2024: net loss € 73 thousand).
DIVISIONAL REVIEW
Revenue by business segments
Profit by business segments
Nordic Fibreboard Ltd: Fibreboard production and sales
Fibreboard sales in Q1 2025 were € 1.73 million (Q1 2024: € 1.95 million). The sales volume of the largest market, Finland, was € 614 thousand in Q1 2025, which is € 58 thousand less than Q1 2024. Sales growth has increased in the Baltic market, where sales growth, compared to the same period last year, was € 110 thousand, total sales revenue € 633 thousand (Q1 2024: € 523 thousand). Compared to the same period last year, sales in the Q1 2025 to Africa have decreased and there were no sales to customers in Asia and the Middle East.
The EBITDA of the fibreboard segment for the Q1 2025 was a negative € 62 thousand, (Q1 2024: positive € 62 thousand). The net loss of the fibreboard segment for the Q1 2025 was € 204 thousand (Q1 2024: net loss € 63 thousand).
Fibreboard sales by geographical segments
Pärnu Riverside Development: Real Estate management
Pärnu Riverside Development owns property located at Suur-Jõe 48 in Pärnu. Rental income from property management was € 1 thousand in Q1 2025, (Q1 2024: € 12 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 Q1 2025 were negative € 21 thousand and net loss was € 21 thousand (Q1 2024: EBITDA was negative € 11 thousand and net loss € 11 thousand).
Consolidated statement of financial position and cash flow statement
As of 31.03.2025 the total assets of Nordic Fibreboard AS were € 8.7 million (31.03.2024: 9.1 million). The liabilities of the company as of 31.03.2025 were € 5.3 million (31.03.2024: € 4.8 million), of which the Group has payables of € 1.0 million as at 31.03.2025 (31.03.2024: also € 1.0 million) and borrowings of € 3.8 million as at 31.03.2025 (31.03.2024: € 3.3 million).
Receivables and prepayments amounted to € 1.3 million as at 31.03.2025 (31.03.2024: € 1.1 million). Inventories were € 0.9 million as of 31.03.2025 (31.03.2024: € 0.8 million). Fixed assets were € 6.4 million as of 31.03.2025 (€ 7.3 million as of 31.03.2024).
The Group's operating result in the Q1 2025 was negative cash flow of € 528 thousand (2024 Q1: negative € 9 thousand). The result of investment activities was positive cash flow of € 471 in Q1 2025, consisting of investments made in production assets amounting to € 64 thousand and real estate related investments amounting to € 4 thousand, as well as € 539 thousand obtained from the sale of financial assets (TPD shares) (2024 Q1: negative cash flow € 90 thousand). The cash inflow from financing activities in the Q1 2025 was € 84 thousand (2024 Q1: cash outflow € 98 thousand). Net cash flow result for Q1 2025 was a positive cash flow of € 27 thousand, (2024 Q1: cash outflow € 1 thousand).
OUTLOOK
Nordic Fibreboard Ltd
2025 continues to be challenging, especially in the construction sector. Nordic Fibreboard's largest export market is Finland, which accounts for over 30% of the company's total sales, and where the majority of sales are to the construction sector. Unfortunately, the Finnish market has not shown sales growth so far.
However, the company has made progress in the first quarter, signing cooperation agreements with several new customers for the supply of goods. Increasing its sales volumes will also be Nordic Fibreboard's main priority in 2025.
Despite the difficult economic environment, Nordic Fibreboard is looking to the future. The company plans to renew and improve its digital solutions and invest in the modernization of the factory's energy systems.
Pärnu Riverside development
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.
Pärnu Riverside Development: Real estate management
Pärnu Riverside Development owns property located at Suur-Jõe 48 in Pärnu. Rental income from property management was € 1 thousand in Q1 2025, (Q1 2024: € 12 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 Q1 2025 were negative € 21 thousand and net loss was € 21 thousand (Q1 2024: EBITDA was negative € 11 thousand and net loss € 11 thousand).
FINANCIAL HIGHLIGHTS
*The notes to the financial statements presented on pages 14 to 24 are an integral part of these consolidated financial statements.
*The notes to the financial statements presented on pages 14 to 24 are an integral part of these consolidated financial statements.
*The notes to the financial statements presented on pages 14 to 24 are an integral part of these consolidated financial statements.
Enel Äkke
Member of Management Board
+372 55525550
group@nordicfibreboard.com
Attachment
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti