MANAGEMENT REPORT
Consolidated net sales for Q2 2025 were € 1.87 million, which was a 14% decrease compared to the same period last year (Q2 2024: € 2.18 million). The Group's main activity is the production and wholesale of fibreboard, the sales revenue of which in Q2 2025 was € 1.87 million (Q2 2024: € 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 € 1 thousand (Q2 2024: € 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 € 94 thousand, the EBITDA margin was negative 5% (Q2 2024: EBITDA was positive € 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 € 46 thousand in Q2 2025 (2024 Q2: € 109 thousand, consisting of interest expenses in the amount of € 53 thousand and revaluation of Trigon Property Development AS shares in the amount of € 56 thousand).
Group's consolidated net loss for Q2 2025 was € 46 thousand (Q2 2024: net loss € 23 thousand).
Divisional review
Revenue by business segments
| € 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
| € 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 € 1.87 million (Q2 2024: € 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 € 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 € 67 thousand, (Q2 2024: positive € 228 thousand). The net loss of the fibreboard segment for the Q2 2025 was € 241 thousand (Q2 2024: net loss € 10 thousand).
Fibreboard sales by geographical segments
| € 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 € 1 thousand in Q2 2025, (Q2 2024: € 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 € 21 thousand and net loss was € 21 thousand (Q2 2024: EBITDA was negative € 3 thousand and net loss € 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 € 8.85 million (30.06.2024: 9.25 million). Receivables and prepayments amounted to € 1.07 million as at 30.06.2025 (30.06.2024: € 1.08 million). Inventories were € 1.02 million as of 30.06.2025 (30.06.2024: also € 1.02 million) and the Group's total fixed assets were € 6.72 million as of 30.06.2025 (€ 7.14 million as of 30.06.2024).
The liabilities of the Group as of 30.06.2025 were € 5.73 million (30.06.2024: € 4.95 million). Payables and prepayments amounted to € 1.33 million (30.06.2024: € 1.40 million), of which the Group has payables of € 0.97 million as at 30.06.2025 (30.06.2024: € 1.09 million). Borrowings amounted to € 4.27 million as at 30.06.2025 (30.06.2024: € 3.42 million), provision for former employees and other liabilities amounted to € 0.14 million (30.06.2024: € 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 € 621 thousand (first six months of 2024: negative cash flow of € 51 thousand). Cash inflow due to investment activities during the first six months 2025 was € 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 € 163 thousand). Cash inflows due to financing activities was € 542 thousand for the first six months of 2025, (first six months of 2024: cash inflow € 209 thousand). The net cash flow for the first six months of 2025 resulted in a cash outflow of € 16 thousand (first six months of 2024: cash outflow € 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 | ||||
| € 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 | ||||
| € 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 (€)* | 1.00 | 0.90 | 0.97 | 0.90 |
| Earnings per share (€) | (0.26) | (0.17) | (0.04) | (0.15) |
| Price-earnings ratio | (3.79) | (5.15) | (25.19) | (5.93) |
| Book value of a share (€) | 0.69 | 0.80 | 0.96 | 0.98 |
| Market to book ratio | 1.44 | 1.12 | 1.01 | 0.92 |
| Market capitalization, (th €) | 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
| € 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
| € 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
| € 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
group@nordicfibreboard.com
