MANAGEMENT REPORT
Nordic Fibreboard AS consolidated net revenue in Q1 2026 was €1.86 million, representing a 7.3% increase compared to the same period of the previous year (Q1 2025: €1.74 million), revenue increased by €126 thousand. The Group's main business activity is the production and wholesale of fibreboard, which accounted for the vast majority of the Group's revenue in Q1 2026. The second segment comprises the management of the property located on Suur-Jõe Street in Pärnu. However, following the termination of the lease agreements for the building in August 2024, the revenue generated by this segment is immaterial.
Nordic Fibreboard's consolidated EBITDA in Q1 2026 was negative €395 thousand, with an EBITDA margin of negative 21% (Q1 2025 EBITDA: negative €85 thousand, EBITDA margin: negative 5%). The results for the Q1 2026 were negatively impacted by the scheduled shutdown of the factory in early January in connection with the transition to the new boiler house, as well as by a significant increase in gas prices in February 2026.
Financial expenses in Q1 2026 were €41 thousand, consisting of loan interest costs and other financial costs (€51 thousand in Q1 2025).
The Group's consolidated net loss for Q1 2026 was €570 thousand (Q1 2025 net loss: €228 thousand).
Fibreboard production and sales
Revenue from fibreboard sales amounted to €1.86 million in Q1 2026, compared with €1.73 million in the same period of 2025, representing an increase of €127 thousand, or 7.3%. The improvement in sales performance was mainly supported by Finnish DIY stores, whose order volume increased by €241 thousand, from €614 thousand in Q1 2025 to €855 thousand in Q1 2026.
The fibreboard segment's EBITDA in Q1 2026 was negative €321 thousand (Q1 2025: negative €62 thousand). The fibreboard segment's net loss in Q1 2026 was €496 thousand (Q1 2025 net loss: €204 thousand). The EBITDA for Q1 2026 was impacted by the commissioning of the new gas boiler house, the calibration and start-up of which took approximately two months, as well as by cold weather conditions, which increased normal energy consumption. In late February, the US military attack on Iran caused a sharp increase in energy prices, with the market price of gas nearly doubling. Gas prices have since fallen, but remain approximately 50% higher than at the beginning of the year.
Fibreboard sales by geographical segments
| € thousand | ||
| Region | Q1 2026 | Q1 2025 |
| European Union | 1,781 | 1,639 |
| Asia | 13 | 0 |
| Africa | 62 | 87 |
| Other regions | 5 | 8 |
| TOTAL | 1,861 | 1,734 |
Real estate management
As a secondary activity, the Group owns and manages the former furniture factory property located at Suur-Jõe 48 in the city of Pärnu, for which a detailed plan has been established for residential real estate development (Admirali Quarter). Previously, the Suur-Jõe 48 property was owned and managed by Pärnu Riverside Development OÜ, a wholly owned subsidiary of Nordic Fibreboard AS, however on 30.07.2025 Nordic Fibreboard AS and Pärnu Riverside Development OÜ entered into a merger agreement, under which Nordic Fibreboard AS was the acquiring entity and Pärnu Riverside Development OÜ was the entity being absorbed. The merger date was 01.06.2025 and as a result of the merger, the Suur-Jõe 48 property is now directly owned by Nordic Fibreboard AS.
The design works for the Admirali Quarter development project at Suur-Jõe 48 have been completed. Building permits have been issued for the internal roads and utility networks within the quarter, for apartment buildings at Admirali 1/3, Admirali 5/7, and Admirali 9/11, as well as for the reconstruction of the existing office building at Suur-Jõe 48.
08.01.2026 Nordic Fibreboard AS entered into a preliminary sale-purchase agreement for the sale of ten properties located on Suur-Jõe Street and Admirali Street in Pärnu. The properties are currently owned by Nordic Fibreboard AS, and the final sale-purchase agreement (notarial real rights agreement) will be concluded with the potential Buyer upon fulfilment of the conditions set out in the preliminary agreement, but no later than 30.06.2026.
Consolidated statement of financial position and cash flow statement
As of 31.03.2026 the total assets of Nordic Fibreboard AS were € 9.7 million (31.03.2025: 8.7 million). The liabilities of the company as of 31.03.2026 were € 5.8 million (31.03.2025: € 5.3 million), of which the Group has payables of € 1.5 million as at 31.03.2026 (31.03.2025: € 1.0 million) and borrowings of € 3.3 million as at 31.03.2026 (31.03.2025: € 3.8 million).
Receivables and prepayments amounted to € 1.0 million as at 31.03.2026 (31.03.2025: € 1.3 million). Inventories were € 1.1 million as of 31.03.2026 (31.03.2025: € 0.9 million). Fixed assets were € 7.5 million as of 31.03.2026 (€ 6.4 million as of 31.03.2025).
The Group's operating result during the 3 month of 2026 was negative cash flow of € 13 thousand (negative cash flow of €528 thousand in the 3 month of 2025). Cash outflows due to investment activities was € 169 thousand during 2026 3 months, mainly consisting of investments into production assets (2025 3 months: cash inflow € 471 thousand, which comprised investments in production assets in the amount of € 64 thousand and in investment property in the amount of € 4 thousand, while € 539 thousand was received from the sale of financial assets (TPD shares)). Financing activities resulted in cash inflows of € 152 thousand during 3 months of 2026 (3 months of 2025: cash inflow of € 84 thousand). Net cash flow during 3 months of 2026 was cash outflow of € 4 thousand, (3 months of 2025: cash inflow € 27 thousand).
Employees
On the 31st of March 2026, the Group employed 57 people (31.03.2025: 69 people). The average number of personnel was 59 people in Q1 2026 (69 people in Q1 2025).
Labour costs were € 0.41 million including taxes in Q1 2026 (Q1 2025: € 0.47 million). Group remuneration to the members of the management boards of holding company and its subsidiaries, together with taxes, were € 27 thousand in Q1 2026 (Q1 2025: € 66 thousand).
The Group's definition of labour costs includes payroll expenses (incl. holiday pay) with additional remuneration fees, payroll taxes, special benefits and taxes calculated on special benefits.
Outlook
Fibreboard production and sales
Nordic Fibreboard Ltd OÜ expects demand for fibreboard to remain stable in the coming months and anticipates that sales volumes will hold at their current level. The company continues to focus on developing existing clients and markets, as well as creating new sales opportunities, with the aim of supporting sales volume growth. Greater emphasis is being placed on growing the Nordic market, including through the recruitment of additional personnel.
In recent months, increased focus has also been placed on product development for interior finishing panels and on expanding sales opportunities for this product group across various markets.
The Group has carried out an investment in modern energy solutions, aimed at improving the reliability and energy efficiency of production processes. As part of the project, the boiler system used for steam production was upgraded, with completion taking place in January 2026.
Real estate management
The property management segment covers the management of the property located at Suur-Jõe 48 in Pärnu, as well as the planning and implementation of development activities (Admiral Quarter).
The design works for the Admirali Quarter development project have been completed. Building permits have been issued for the internal roads and utility networks within the quarter, for apartment buildings at Admirali 1/3, Admirali 5/7, and Admirali 9/11, as well as for the reconstruction of the existing office building at Suur-Jõe 48.
08.01.2026 Nordic Fibreboard AS entered into a preliminary sale-purchase agreement for the sale of ten properties located on Suur-Jõe Street and Admirali Street in Pärnu. The properties are currently owned by Nordic Fibreboard AS, and the final sale-purchase agreement (notarial real rights agreement) will be concluded with the potential Buyer upon fulfilment of the conditions set out in the preliminary agreement, but no later than 30.06.2026.
Financial highlights
| € thousand | ||
| Income statement | Q1 2026 | Q1 2025 |
| Revenue | 1,861 | 1,735 |
| EBITDA | (395) | (85) |
| EBITDA margin | (21%) | (5%) |
| Operating profit | (530) | (217) |
| Operating margin | (28%) | (13%) |
| Net profit/-loss | (570) | (228) |
| Net margin | (31%) | (13%) |
| Statement of financial position | 31.03.2026 | 31.12.2025 |
| Total assets | 9,694 | 9,323 |
| Return on assets | (6%) | (12%) |
| Equity | 3,892 | 4,462 |
| Return on equity | (15%) | (26%) |
| Debt-to-equity-ratio | 60% | 52% |
| Share | 31.03.2026 | 31.12.2025 |
| Last price (€)* | 0.70 | 0.77 |
| Earnings per share (€) | (0.18) | (0.14) |
| Price-earnings ratio | (3.98) | (5.67) |
| Book value of a share (€) | 0.46 | 0.53 |
| Market to book ratio | 1.53 | 1.47 |
| Market capitalization, (tuh €) | 5,949 | 6,544 |
| Number of shares (piece) | 8,499,061 | 8,499,061 |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONS
| € thousand | 31.03.2026 | 31.12.2025 | 31.03.2025 | 31.12.2024 |
| Cash and cash equivalents | 1 | 5 | 80 | 53 |
| Receivables and prepayments (Note 2) | 1,028 | 790 | 1,256 | 571 |
| Inventories (Note 3) | 1,136 | 1,034 | 945 | 624 |
| Total current assets | 2,164 | 1,829 | 2,281 | 1,248 |
| Investment property (Note 4) | 2,541 | 2,541 | 2,384 | 2,380 |
| Financial assets at fair value through profit or loss (Note 7) | 0 | 0 | 0 | 499 |
| Property, plant, equipment and right-of use assets (Note 5) | 4,988 | 4,952 | 4,055 | 4,122 |
| Intangible assets (Note 6) | 1 | 1 | 2 | 3 |
| Total non-current assets | 7,530 | 7,494 | 6,441 | 7,004 |
| TOTAL ASSETS | 9,694 | 9,323 | 8,722 | 8,252 |
| Borrowings (Note 8) | 2,511 | 2,963 | 855 | 1,111 |
| Payables and prepayments (Note 9) | 2,348 | 1,553 | 1,379 | 788 |
| Short-term provisions (Note 10) | 18 | 24 | 16 | 21 |
| Total current liabilities | 4,877 | 4,540 | 2,250 | 1,920 |
| Long-term borrowings (Note 8) | 809 | 205 | 2,953 | 2,613 |
| Long-term provisions (Note 10) | 72 | 72 | 94 | 94 |
| Other long-term liabilities | 44 | 44 | 37 | 9 |
| Total non-current liabilities | 925 | 321 | 3,084 | 2,716 |
| Total liabilities | 5,802 | 4,861 | 5,334 | 4,636 |
| Share capital (at nominal value) (Note 11) | 850 | 850 | 450 | 450 |
| Share premium | 1,600 | 1,600 | 0 | 0 |
| Statutory reserve capital | 45 | 45 | 45 | 45 |
| Retained earnings (loss) | 1,397 | 1,967 | 2,893 | 3,121 |
| Total equity | 3,892 | 4,462 | 3,388 | 3,616 |
| TOTAL LIABILITIES AND EQUITY | 9,694 | 9,323 | 8,722 | 8,252 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| € thousand | Q1 2026 | Q1 2025 |
| Revenue (Note 13) | 1,861 | 1,735 |
| Cost of goods sold (Note 14) | 1,966 | 1,608 |
| Gross profit (loss) | (105) | 127 |
| Distribution costs (Note 15) | 261 | 228 |
| Administrative expenses (Note 16) | 154 | 111 |
| Other operating income (Note 18) | 8 | 0 |
| Other operating expenses (Note 18) | 18 | 5 |
| Operating loss | (530) | (217) |
| Finance income (Note 19) | 0 | 40 |
| Finance costs (Note 19) | 41 | 51 |
| LOSS BEFORE INCOME TAX | (570) | (228) |
| NET LOSS FOR THE PERIOD | (570) | (228) |
| Basic earnings per share (Note 12) | (0.07) | (0.05) |
| Diluted earnings per share (Note 12) | (0.07) | (0.05) |
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand | Q1 2026 | Q1 2025 |
| Cash flow from operating activities | ||
| Operating profit (-loss) | (530) | (217) |
| Adjustments: | ||
| Depreciation charge (Note 5; 6) | 135 | 132 |
| Change in trade and other receivables (Note 2) | (238) | (685) |
| Change in inventories (Note 3) | (102) | (321) |
| Change in trade and other payables (Note 9) | 795 | 619 |
| Change in provisions | (6) | (5) |
| Cash generated from operations | 54 | (477) |
| Interest payments (Note 8; 19) | (36) | (45) |
| Net other financial income and expense | (5) | (6) |
| Net cash generated from operating activities | 13 | (528) |
| Cash flow from investing activities | ||
| Purchase of property, plant and equipment and intangible assets (Note 5; 6) | (169) | (64) |
| Purchase of real estate investment (Note 4) | 0 | (4) |
| Sales of financial assets (Note 7) | 0 | 539 |
| Net cash used in investing activities | (169) | 471 |
| Cash flow from financing activities | ||
| Repayment of loans received (Note 8) | (62) | (55) |
| Loans received from related parties (Note 8) | 343 | 140 |
| Finance lease payments (Note 8) | (6) | (6) |
| Change in overdraft (Note 8) | (123) | 5 |
| Net cash (used in)/from financing activities | 152 | 84 |
| NET CHANGE IN CASH | (4) | 27 |
| OPENING BALANCE OF CASH | 5 | 53 |
| CLOSING BALANCE OF CASH | 1 | 80 |
