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Nordic Fibreboard
Interim / Quarterly Report • Aug 30, 2024
2229_10-q_2024-08-30_3bda3d87-25f6-4068-85b0-1cc8bc59a703.pdf
Interim / Quarterly Report
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Second quarter Interim report 2024
NORDIC FIBREBOARD AS
Consolidated Interim Report for the second quarter of 2024 (unaudited)
| Beginning of the Interim Report Period: | 1.04.2024 |
|---|---|
| End of the Interim Report Period: | 30.06.2024 |
| Beginning of the financial year: | 1.01.2024 |
| End of the financial year: | 31.12.2024 |
| Business name: | Nordic Fibreboard AS |
| Registry code: | 11421437 |
| Address: | Rääma 31, Pärnu 80044, Estonia |
| Telephone: | +372 44 78 323 |
| E-mail: | [email protected] |
| Homepage: | www.nordicfibreboard.com |
| Auditor: | AS PricewaterhouseCoopers |
| Main activity: | Production and wholesales of fibreboards |
| COMPANY PROFILE 3 | |
|---|---|
| MANAGEMENT REPORT 4 | |
| DECLARATION OF THE MANAGEMENT BOARD 9 | |
| INTERIM FINANCIAL STATEMENTS 10 | |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITIONS 10 | |
| CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 11 | |
| CONSOLIDATED STATEMENT OF CASH FLOWS 12 | |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 13 | |
| NOTES TO THE CONSOLIDATED INTERIM REPORT 14 | |
| NOTE 1 ACCOUNTING POLICIES AND MEASUREMENT BASES 14 | |
| NOTE 2 TRADE AND OTHER RECEIVABLES 14 | |
| NOTE 3 INVENTORIES 15 | |
| NOTE 4 INVESTMENT PROPERTY 15 | |
| NOTE 5 PROPERTY PLANT EQUIPMENT AND RIGHT-OF-USE ASSETS 16 | |
| NOTE 6 INTANGIBLE ASSETS 17 | |
| NOTE 7 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 17 | |
| NOTE 8 BORROWINGS 17 | |
| NOTE 9 PAYABLES AND PREPAYMENTS 19 | |
| NOTE 10 PROVISIONS 19 | |
| NOTE 11 EQUITY 20 | |
| NOTE 12 EARNINGS PER SHARE 20 | |
| NOTE 13 SEGMENTS 21 | |
| NOTE 14 COST OF GOODS SOLD 22 | |
| NOTE 15 DISTRIBUTION COSTS 22 | |
| NOTE 16 ADMINISTRATIVE AND GENERAL EXPENSES 22 | |
| NOTE 17 LABOUR EXPENSES 23 | |
| NOTE 18 OTHER OPERATING INCOME AND OTHER OPERATING EXPENSES 23 | |
| NOTE 19 FINANCIAL INCOME AND EXPENSES 23 | |
| NOTE 20 RELATED PARTIES 23 | |
| NOTE 21 EVENTS AFTER BALANCE SHEET DATE24 |
COMPANY PROFILE
Nordic Fibreboard AS is a holding company with subsidiaries Nordic Fibreboard Ltd OÜ and Pärnu Riverside Development OÜ.
The main activity of the Nordic Fibreboard AS group includes the production and wholesale of building materials. In addition, the group owns a real estate management company.
The Group, as of 30.06.2024, therefore consists of the following companies, all 100% owned:
| Subsidiary | Location | Activity |
|---|---|---|
| Nordic Fibreboard Ltd OÜ | Estonia | Production and sales |
| Pärnu Riverside Development OÜ | Estonia | Rental and property development |
Nordic Fibreboard Ltd OÜ produces and distributes softboard products for use in many different applications, the main categories being within construction (insulation, soundproofing, and interior finishing panels for walls and ceilings) and industry (packaging, expansion joint filler, pin and notice boards, acoustic reduction, firelighters).
Pärnu Riverside Development OÜ owns and manages a property located at 48 Suur-Jõe Street in the city of Pärnu and offers commercial premises rental services. A detailed plan for residential land development has been established for the property.
The principal markets of the company are the Nordic and Baltic region. Nordic Fibreboard's customers and partners are well recognized parties within their field of expertise, and value long-term relations with Nordic Fibreboard.
The shares of Nordic Fibreboard AS are listed on the Nasdaq Tallinn Stock Exchange secondary list.
As at 30.06.2024 the Group employed 63 employees (30.06.2023: 67 employees).
MANAGEMENT REPORT
NORDIC FIBREBOARD AS UNAUDITED RESULTS FOR SECOND QUARTER OF 2024
Consolidated net sales for Q2 2024 were € 2.18 million, which was a 8% increase compared to the same period last year (Q2 2023: € 2.01 million). The main business area is the production and wholesale of softboard, which recorded sales in Q2 2024 of € 2.17 million (Q2 2023: € 2.00 million). The remaining business area is real estate management of the property owned in Suur-Jõe street in Pärnu, who recorded sales of € 0.01 million in Q2 2024 (Q2 2023: also € 0.01 million).
The reason for the increase in sales revenue of fiberboard (comparing the Q2 2023 to the Q2 2024) is the addition of new industrial customers in 2024. The company's primary focus remains on finding new customers, with the goal of expanding its customer portfolio and discovering new business directions.
The consolidated EBITDA of Nordic Fibreboard AS for Q2 2024 was positive € 217 thousand (Q2 2023: positive € 190 thousand). EBITDA margin was positive 10% in Q2 2024 (Q2 2023: positive 9%). The Group's gross margin was 25% both in the Q2 2024 and in the Q2 2023.
The consolidated operating profit of Nordic Fibreboard AS for Q2 2024 was € 86 thousand and operating margin was 4%, (Q2 2023: operating profit € 69 thousand and operating margin was 3%).
Group`s consolidated net loss for Q2 2024 was € 23 thousand (Q2 2023: loss € 7 thousand). The net loss for the Q2 2024 included the loss from the revaluation of the shares of Trigon Property Development AS (TPD) owned by Nordic Fibreboard Ltd in the amount of € 56 thousand (Q2 2023, the loss from the revaluation of the TPD shares was € 19 thousand).
DIVISIONAL REVIEW
REVENUE BY BUSINESS SEGMENTS
| € thousand | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Fibreboards production and sales | 2,170 | 1,998 | 4,119 | 4,583 |
| Real Estate Management | 9 | 12 | 21 | 23 |
| TOTAL | 2,179 | 2,010 | 4,140 | 4,606 |
PROFIT BY BUSINESS SEGMENTS
| € thousand | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| EBITDA by business units: | ||||
| Fibreboards production and sales | 228 | 212 | 290 | 137 |
| Real Estate Management | (3) | (4) | (15) | (17) |
| Group transactions | (8) | (18) | (5) | (24) |
| TOTAL EBITDA | 217 | 190 | 270 | 96 |
| Extraordinary other operating expenses | 0 | 0 | 0 | (406*) |
| Depreciation | (131) | (121) | (260) | (244) |
| TOTAL OPERATING PROFIT/ LOSS | 86 | 69 | 10 | (554) |
| Net financial costs | (109) | (76) | (106) | (50) |
| NET PROFIT/ LOSS | (23) | (7) | (96) | (604) |
* consists of the one-time loss received from the resale of electricity to the electricity company.
STATEMENT OF FINANCIAL POSITION AND CASH FLOW STATEMENT
As of 30.06.2024 the total assets of Nordic Fibreboard AS were € 9.3 million (30.06.2023: € 8.9 million). The liabilities of the company as of 30.06.2024 were € 4.9 million (30.06.2023: € 4.4 million), of which
Group has payables amounting to € 1.1 million as at 30.06.2024 (30.06.2023: € 0.9 million) and borrowings of € 3.4 million as at 30.06.2024 (30.06.2023: € 3.0 million).
Receivables and prepayments amounted to € 1.1 million as at 30.06.2024 (30.06.2023: € 0.7 million). Inventories were € 1.0 million as of 30.06.2024 (30.06.2023: € 0.9 million). Fixed assets were € 7.1 million as of 30.06.2024 (€ 7.2 million as of 30.06.2023).
During 6M 2024, the Group's cash flows from operating activities totalled cash outflow of € 51 thousand (6M 2023: cash inflow € 378 thousand). Cash outflows due to investment activities was € 163 thousand during 6M 2024, which consisted of investments made in production assets and real estate investment objects (6M 2023: cash outflow € 171 thousand). Cash inflows due to financing activities was € 209 thousand during 6M 2024, (6M 2023: cash outflow € 207 thousand). The net cash flow for the 6M 2024 resulted in a cash outflow of € 5 thousand (6M 2022: the net cash flow € 0).
NORDIC FIBREBOARD LTD: FIBREBOARD PRODUCTIONS AND SALES
Fibreboard sales for Q2 2024 were € 2.17 million (Q2 2023: € 2.00 thousand). The main reason for the increase in sales revenue in the 2nd quarter of 2024 compared to the 2nd quarter of 2023 was the addition of new industrial customers. Sales in Estonia increased by 48% in the second quarter of 2024 compared to the same period last year, and sales to the Finnish market increased by 43%.
In the Q2 2024, there was no sales revenue from a large Danish customer, whose share was 22% of total sales in the same period of 2023. In the Q2 2024, this part of the sales revenue will be compensated by the addition of new industrial customers. The largest of them is located in the Netherlands, followed by Swedish and Polish companies. These new customers accounted for 18% of sales in the first half of 2024
The consolidated EBITDA of Nordic Fibreboard Ltd OÜ for Q2 2024 was positive € 228 thousand (Q2 2023: positive € 212 thousand).
| € thousand | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| European Union | 2,106 | 1,862 | 3,798 | 4,317 |
| Middle East | 41 | 28 | 57 | 28 |
| Asia | 23 | 23 | 84 | 55 |
| Africa | 0 | 40 | 167 | 93 |
| Other | 0 | 45 | 13 | 90 |
| TOTAL | 2,170 | 1,998 | 4,119 | 4,583 |
FIBREBOARD SALES BY GEOGRAPHICAL SEGMENTS
PÄRNU RIVERSIDE DEVELOPMENT: REAL ESTATE MANAGEMENT
Pärnu Riverside Development OÜ owns and manages real estate in Pärnu, Suur-Jõe street 48. The company offers commercial premises rental services in one of the property's buildings, the rental income from real estate management was € 9 thousand in Q2 2024, (Q2 2023: € 12 thousand).
The real estate management EBITDA for Q2 2024 were negative € 3 thousand (Q2 2023: negative € 4 thousand).
PEOPLE
On the 30.06.2024, the Group employed 63 people (as of 30.06.2023, 67 people). The average number of personnel in Q2 2024 was 63 (Q2 2023: 68).
Labour costs were € 406 thousand including taxes in Q2 2024 and € 799 thousand for first six months of 2024 (Q2 2023: € 415 thousand, 6M 2023: € 851 thousand). Group fees for the members of the management boards of holding company and its subsidiaries, together with taxes, were € 63 thousand
in Q2 2024 and € 122 thousand for first six months of 2024 (Q2 2023: € 64 thousand, 6M 2023: € 125 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
NORDIC FIBREBOARD LTD
The economic outlook for the second half of 2024 has not significantly improved, although regional interest rate reductions may have some positive impact on business operations. However, the effects of these measures are primarily long-term. In the near future, our greatest challenge—and simultaneously our greatest opportunity— is acquiring new clients and markets which we are actively working on. We are still focusing on managing existing markets and key clients, as stability and reliability are becoming increasingly valued in turbulent economic conditions.
On a positive side for Nordic Fibreboard the future trends and outlooks indicate an increasing focus on green and environmentally friendly solutions, both in the construction sector and also in various other industries that Nordic Fibreboard products are already being sold or potentially could be sold. Innovation is key in this process, providing solutions to the clients that meet increasingly stringent environmental regulations and the growing consumer preference for environmentally sustainable products.
As a result of our business analysis and mapping of growth opportunities, Nordic Fibreboard has launched a growth-oriented strategy focused on strategic investments in sales, marketing and development activities to expand our customer base and product line. In the first phase, we will focus on quick and straightforward opportunities to maximize growth potential in the near term. At the same time, we will continue to develop our value proposition to move higher up the value chain for our clients. This will ensure closer partnerships and a broader reach in capturing both current and future business opportunities.
When planning production volumes, we follow the dynamics of sales volumes, ensuring flexibility and quick response to customer orders.
PÄRNU RIVERSIDE DEVELOPMENT
We will continue to manage and develop the property on Suur-Jõe Street 48, Pärnu. A detail plan for the property has been completed, with the intention of converting the property into a residential property.
FINANCIAL HIGHLIGHTS
| Income statement | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Revenue | 2,179 | 2,010 | 4,140 | 4,606 |
| EBITDA | 217 | 190 | 270 | 96 |
| EBITDA margin | 10% | 9% | 7% | 2% |
| Operating profit | 86 | 69 | 10 | (554) |
| Operating margin | 4% | 3% | 0% | (12%) |
| Net profit | (23) | (7) | (96) | (604) |
| Net margin | (1%) | (0%) | (2%) | (13%) |
| Statement of financial position | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
| Total assets | 9,252 | 8,505 | 8,856 | 9,408 |
| Return on assets | (1%) | (8%) | (7%) | 13% |
| Equity | 4,306 | 4,402 | 4,480 | 5,084 |
| Return on equity | (2%) | (16%) | (13%) | 24% |
| Debt-to-equity ratio | 53% | 48% | 49% | 46% |
| Share | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
| Last Price* | 1.03 | 0.90 | 1.24 | 1.60 |
| Earnings per share | (0.04) | (0.15) | (0.02) | 0.27 |
| Price-earnings ratio | (26.75) | (5.93) | (54.66) | 5.83 |
| Book value of a share | 0.96 | 0.98 | 1.00 | 1.13 |
| Market to book ratio | 1.08 | 0.92 | 1.25 | 1.42 |
| Market capitalization, € thousand | 4 634 | 4 049 | 5 579 | 7 198 |
| Number of shares, piece | 4,499,061 | 4,499,061 | 4,499,061 | 4,499,061 |
EBITDA = Earnings before interest, taxes, depreciation and amortization EBITDA margin = EBITDA / Revenue Operating margin = Operating profit / Revenue Net margin = Net profit / Revenue Return on assets = Net profit / Total assets Return on equity = Net profit / Equity Debt-to-total assets ratio = Liabilities / Total assets Earnings per share = Trailing twelve months (TTM) net profit / Total shares Price-earnings ratio = Last price / Earnings per share Book value of a share = Equity / Total shares Market to book ratio = Last price / Book value of a share Market capitalization = Last price * Total number of shares \*http://www.nasdaqbaltic.com/
FINANCIAL RISKS
INTEREST RATE RISK
Interest rate risk is the risk that the future cash flows of financial instruments will fluctuate because of changes in market interest rates. The interest rate risk of Nordic Fibreboard AS depends on a possible change in EURIBOR (Euro Interbank Offered Rate), since some of the Groups loans are linked to EURIBOR, the Groups financial cost also increase when the interest rate increases. At 30.06.2024 six months' EURIBOR rate was 3.682 % and at 30.06.2023 3.900%. The loan from the Rural Development Foundation is concluded with a fixed interest rate, thus bear no interest rate risk. However, the Group loan from Coop Pank AS does have a floating interest rate, but the management is of the opinion that the floating interest rate will not bear significant impact to Group's cash flows.
The dates for fixing interest rates on the basis of changes in EURIBOR are the 30th day of every six months for its bank loans.
The interest rate risk also depends on the overall economic situation in Estonia and in the euro zone. Nordic Fibreboard AS has a cash flow risk arising from the interest rate risk because one loan have a floating interest rate. Management believes that the cash flow risk is not significant, therefore no hedging instruments are used.
FOREIGN CURRENCY EXCHANGE RISK
The foreign exchange risk is the risk that the company may have significant loss because of fluctuating foreign exchange rates. Nordic Fibreboard has no operations outside of the euro zone and most of our export-import contracts to customers outside of the eurozone are nominated in euros. The production has been sold and raw materials for production has mainly been purchased in euros.
RISK OF THE ECONOMIC ENVIRONMENT
The economic risks in 2024 are influenced by both global and regional factors, with their impact varying depending on the industry. One of the main global risks is ongoing geopolitical instability, particularly related to the conflict between Russia and Ukraine, though tensions have also arisen in other regions. These tensions may affect international trade, leading to export restrictions, increased trade barriers, and higher tariffs. Military conflicts may also disrupt supply chains and raise transportation costs.
Regional and industry-specific risks relate to increasing pressure on production costs. Wage increases aimed at compensating for inflation could significantly raise labour costs. Additionally, persistently high prices of primary commodities and high interest rates reduce consumer purchasing power, which may in turn affect demand and business profitability.
Management is aware of these risks and is implementing strategic measures to mitigate and adapt to them.
FAIR VALUE
The management estimates that the fair values of cash, accounts receivables and payables, short-term loans and borrowings do not materially differ from their carrying amounts. The fair values of long-term loans do not materially differ from their carrying amounts because their interest rates correspond to the interest rate risks prevailing on the market.
LIQUIDITY RISK
The liquidity risk is a potential loss arising from the existence of limited or insufficient financial resources that are necessary for performing the obligations related to the activities of the Group. The Management Board continuously monitors cash flow movements, using the existence and sufficiency of the Group's financial resources for performing the assumed obligations and financing the strategic objectives of the Group.
DECLARATION OF THE MANAGEMENT BOARD
The management board has prepared the management report and the consolidated financial interim statements of Nordic Fibreboard AS for the second quarter 2024.
The management board confirms that the management report on pages 4-8 provides a true and fair view of the business operations, financial results and financial condition of the parent company and the entities included in consolidation.
The management board confirms that according to their best knowledge the consolidated financial interim report on pages 10-24 presents a fair view of the assets, liabilities, financial position and profit or loss of the issuer and the entities involved in the consolidation as a whole according to the International Financial Reporting Standards as they are adopted by the European Union and contains a description of the main risks.
| Enel Äkke | |
|---|---|
| Member of the Management Board | |
| Kristjan Erm | |
| Member of the Management Board |
Pärnu, August 30, 2024
INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONS
| € thousand | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
|---|---|---|---|---|
| Cash and cash equivalents | 2 | 7 | 2 | 2 |
| Receivables and prepayments (Note 2) | 1,084 | 534 | 717 | 559 |
| Inventories (Note 3) | 1,027 | 728 | 930 | 1,672 |
| Total current assets | 2,113 | 1,269 | 1,649 | 2,233 |
| Investment property (Note 4) | 2,294 | 2,269 | 1,859 | 1,859 |
| Financial assets at fair value through profit or | 491 | 491 | 698 | 644 |
| loss (Note 7) Property, plant and equipment (Note 5) |
4,351 | 4,475 | 4,648 | 4,670 |
| Intangible assets (Note 6) | 3 | 1 | 2 | 2 |
| Total non-current assets | 7,139 | 7,236 | 7,207 | 7,175 |
| TOTAL ASSETS | 9,252 | 8,505 | 8,856 | 9,408 |
| Borrowings (Notes 8) | 765 | 556 | 124 | 290 |
| Payables and prepayments (Notes 9) | 1,401 | 756 | 1,094 | 1,014 |
| Short-term provisions (Note 10) | 10 | 21 | 8 | 18 |
| Total current liabilities | 2,176 | 1,333 | 1,226 | 1,322 |
| Long-term borrowings (Notes 8) | 2,659 | 2,659 | 2,884 | 2,875 |
| Long-term payables and prepayments (Notes 9) | 0 | 0 | 139 | 0 |
| Long-term provisions (Note 10) | 111 | 111 | 127 | 127 |
| Total non-current liabilities | 2,770 | 2,770 | 3,150 | 3,002 |
| Total liabilities | 4,946 | 4,103 | 4,376 | 4,324 |
| Share capital (at nominal value) (Note 11) | 450 | 450 | 450 | 450 |
| Statutory reserve capital | 45 | 45 | 45 | 45 |
| Retained earnings (loss) | 3,811 | 3,907 | 3,985 | 4,589 |
| Total equity | 4,306 | 4,402 | 4,480 | 5,084 |
| TOTAL LIABILITIES AND EQUITY | 9,252 | 8,505 | 8,856 | 9,408 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| € thousand | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Revenue (Note 13) | 2,179 | 2,010 | 4,140 | 4,606 |
| Cost of goods sold (Note 14) | 1,755 | 1,629 | 3,468 | 4,064 |
| Gross profit | 424 | 381 | 672 | 542 |
| Distribution costs (Note 15) | 251 | 171 | 477 | 403 |
| Administrative expenses (Note 16) | 94 | 133 | 192 | 273 |
| Other operating income (Note 18) | 8 | 0 | 8 | 0 |
| Other operating expenses (Note 18) | 1 | 8 | 1 | 420 |
| Operating profit (loss) | 86 | 69 | 10 | (554) |
| Finance income (Note 19) | 0 | 0 | 0 | 55 |
| Finance costs (Note 19) | 109 | 76 | 106 | 105 |
| LOSS BEFORE INCOME TAX | (23) | (7) | (96) | (604) |
| NET PROFIT (LOSS) FOR THE PERIOD | (23) | (7) | (96) | (604) |
| Basic earnings per share (Note 12) | (0.01) | (0.00) | (0.02) | (0.13) |
| Diluted earnings per share (Note 12) | (0.01) | (0.00) | (0.02) | (0.13) |
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand | 6M 2024 | 6M 2023 |
|---|---|---|
| Cash flows from operating activities | ||
| Operating profit (loss) | 10 | (554) |
| Adjustments: | ||
| Depreciation charge (Notes 5; 6) | 260 | 244 |
| Change in trade and other receivables (Note 2) | (550) | (158) |
| Change in inventories (Note 3) | (299) | 742 |
| Change in trade and other payables (Note 9) | 645 | 219 |
| Change in provisions (Note 10) | (11) | (10) |
| Cash generated from operations | 55 | 483 |
| Interest payments (Note 19) | (106) | (101) |
| Net other financial income and expense | 0 | (4) |
| Net cash generated from operating activities | (51) | 378 |
| Cash flows from investing activities | ||
| Purchase of property, plant and equipment and intangible assets (Notes 5; 6) | (138) | (171) |
| Purchase of real estate investment (Note 4) | (25) | 0 |
| Net cash used in investing activities | (163) | (171) |
| Cash flows from financing activities | ||
| Repayment of loans received (Note 8) | (104) | (306) |
| Loans received from related parties (Note 8) | 0 | 200 |
| Change in overdraft (Note 8) | 324 | (68) |
| Repayment of principal element of lease liability (Note 8) | (11) | (33) |
| Net cash (used in)/from financing activities | 209 | (207) |
| NET CHANGE IN CASH | (5) | 0 |
| OPENING BALANCE OF CASH | 7 | 2 |
| CLOSING BALANCE OF CASH | 2 | 2 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| € thousand | Share capital | Statutory reserve capital |
Retained earnings |
Total |
|---|---|---|---|---|
| Balance at 31.12.2022 | 450 | 45 | 4,589 | 5,084 |
| Net loss for 6M 2023 | 0 | 0 | (604) | (604) |
| Total comprehensive loss for 6M 2023 | 0 | 0 | (604) | (604) |
| Balance at 30.06.2023 | 450 | 45 | 3,985 | 4,480 |
| Balance at 31.12.2023 | 450 | 45 | 3,907 | 4,402 |
| Net loss for 6M 2024 | 0 | 0 | (96) | (96) |
| Total comprehensive loss for 6M 2024 | 0 | 0 | (96) | (96) |
| Balance at 30.06.2024 | 450 | 45 | 3,811 | 4,306 |
NOTES TO THE CONSOLIDATED INTERIM REPORT
NOTE 1 ACCOUNTING POLICIES AND MEASUREMENT BASES
GENERAL INFORMATION
Nordic Fibreboard AS (the Company) (registration number: 11421437; address: Rääma 31, Pärnu), is an entity registered in the Republic of Estonia, whose activities take place in Estonia.
Nordic Fibreboard AS was established on 19 September 2007 in the demerger of the former Skano Group AS, currently AS Trigon Property Development, as a result of which the manufacturing units, i.e. the building materials division and furniture division were separated and transferred to subsidiaries established at the same time. The furniture production subsidiary was sold out of the Group in 2019, the same year the Group's real estate management subsidiary was added. The Group's main activities are production and wholesale of soft fibreboard, to a minor extent, as a secondary activity the Group also deals with real estate management.
The Group's shares were listed in the Main List of the Nasdaq Tallinn until 2nd of April 2018, when the shares were moved from the Main List to the Secondary List. As of 30.06.2024 the Group`s largest shareholder is NFB Pärnu Holdings OÜ (owning 49.2%), whose sole owner as of 30.06.2024 is Joakim Johan Helenius. As of 30.06.2023 the largest shareholder of the Group was Pärnu Holdings OÜ (owning 57.63%) and its largest owners as of 30.06.2023 were OÜ Stetind (50%) and Joakim Johan Helenius (50%).
BASIS FOR PREPARATION
The Condensed Consolidated Interim Accounts of Nordic Fibreboard AS has been prepared in accordance with the International Financial Reporting Standard (IFRS) Interim Financial Reporting as adopted by the European Union. The same accounting policies were applied for both the Interim Report and the Annual Report for the financial year that ended on 31.12.2023. The consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 34: Interim Financial Reporting. The Condensed Interim Financial Statements do not contain all the information presented in the annual financial statements and should be read in conjunction with the Group`s latest published annual financial statements as at and for the year ended 31 December 2023.
The functional and presentation currency of Nordic Fibreboard AS is euro. All amounts disclosed in the financial statements have been rounded to the nearest thousand unless referred to otherwise.
According to the assessment of the Management Board Nordic Fibreboard AS is a going concern and the Interim Report for the second quarter of 2024 gives a true and fair view of the financial position of Nordic Fibreboard AS and the results of its operations. This Condensed Consolidated Interim Report has not been audited or otherwise reviewed by auditors.
| € thousand | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
|---|---|---|---|---|
| Trade receivables | 942 | 443 | 600 | 391 |
| Prepaid taxes | 125 | 71 | 105 | 150 |
| Prepaid services | 17 | 13 | 12 | 17 |
| Other receivables | 0 | 7 | 0 | 1 |
| TOTAL | 1,084 | 534 | 717 | 559 |
NOTE 2 TRADE AND OTHER RECEIVABLES
No write-downs of receivables have been made in Q2 2024 or Q2 2023.
ANALYSIS OF TRADE RECEIVABLES BY AGING:
| thousand € | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
|---|---|---|---|---|
| Not past due | 874 | 412 | 599 | 373 |
| incl receivables from customers who also have receivables past due |
292 | 0 | 0 | 236 |
| incl receivables from customers who have no receivables past due |
582 | 412 | 599 | 137 |
| Past due but not impaired | 68 | 31 | 1 | 18 |
| Overdue up to 90 days | 68 | 31 | 1 | 16 |
| Overdue more than 90 days | 0 | 0 | 0 | 2 |
| TOTAL | 942 | 443 | 600 | 391 |
NOTE 3 INVENTORIES
| € thousand | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
|---|---|---|---|---|
| Raw materials and other materials | 247 | 177 | 217 | 401 |
| Work-in-progress | 81 | 30 | 44 | 228 |
| Finished goods | 735 | 561 | 708 | 1,080 |
| Prepayments to suppliers | 4 | 0 | 1 | 2 |
| Write-off reserve for inventories | (40) | (40) | (40) | (40) |
| TOTAL | 1 027 | 728 | 930 | 1,672 |
NOTE 4 INVESTMENT PROPERTY
| thousand € | |||
|---|---|---|---|
| Carrying amount 31.12.2022 | 1,859 | ||
| Carrying amount 30.06.2023 | 1,859 | ||
| Carrying amount 31.12.2023 | 2,269 | ||
| Capitalized cost 6M 2024 | 25 | ||
| Carrying amount 30.06.2024 | 2,294 |
FAIR VALUE OF INVESTMENT PROPERTY BY OBJECT:
| thousand € | ||
|---|---|---|
| 31.12.2022 | ||
| Share of registered immovable property at Suur-Jõe 48, Pärnu | 1,684 | |
| Share of registered immovable property at Rääma Street 31, Pärnu | 175 | |
| 30.06.2023 | ||
| Share of registered immovable property at Suur-Jõe 48, Pärnu | 1,684 | |
| Share of registered immovable property at Rääma Street 31, Pärnu | 175 | |
| 31.12.2023 | ||
| Share of registered immovable property at Suur-Jõe 48, Pärnu | 1,832 | |
| Share of registered immovable property at Rääma Street 31, Pärnu | 437 | |
| 30.06.2024 | ||
| Share of registered immovable property at Suur-Jõe 48, Pärnu | 1,844 | |
| Share of registered immovable property at Rääma Street 31, Pärnu | 450 | |
| 15 |
The amount of expenses related to the management of investments properties for Q2 2024 were € 12 thousand (Q2 2023: € 16 thousand). Rental income from investment properties for O2 2024 was € 9 thousand (Q2 2023 € 12 thousand).
| thousand € | Land | Buildings and facilities |
Machinery and equipment |
Other fixtures |
Construct ion-in progress |
Right-of use asset |
TOTAL |
|---|---|---|---|---|---|---|---|
| Cost at 31.12.2022 | 184 | 2,560 | 11,030 | 89 | 405 | 119 | 14,387 |
| Accumulated depreciation at 31.12.2022 |
0 | (1,857) | (7,716) | (88) | 0 | (57) | (9,717) |
| Carrying amount at 31.12.2022 | 184 | 703 | 3,314 | 1 | 405 | 62 | 4,670 |
| Additions | 0 | 0 | 15 | 156 | 56 | 227 | |
| Disposals and write-offs (Note 18) | 0 | 0 | (1) | 0 | 0 | (75) | (76) |
| Accumulated depreciation of fixed assets written off |
0 | 0 | 2 | 0 | 0 | 69 | 71 |
| Depreciation (Note 14) | 0 | (40) | (182) | 0 | 0 | (22) | (244) |
| Cost at 30.06.2023 | 184 | 2,560 | 11,044 | 89 | 561 | 100 | 14,538 |
| Accumulated depreciation at 30.06.2023 |
0 | (1,896) | (7,896) | (88) | 0 | (10) | (9,890) |
| Carrying amount at 30.06.2023 | 184 | 664 | 3,148 | 1 | 561 | 90 | 4,648 |
| Cost at 31.12.2023 | 184 | 2,557 | 11,184 | 81 | 336 | 100 | 14,442 |
| Accumulated depreciation at 31.12.2023 |
0 | (1,933) | (7,931) | (80) | 0 | (24) | (9,967) |
| Carrying amount at 31.12.2023 | 184 | 624 | 3,253 | 1 | 336 | 76 | 4,475 |
| Additions | 0 | 0 | 27 | 0 | 108 | 0 | 135 |
| Reclassification | 0 | 0 | 36 | 0 | (36) | 0 | 0 |
| Depreciation (Note 14) | 0 | (39) | (206) | 0 | 0 | (14) | (259) |
| 0 | |||||||
| Cost at 30.06.2024 | 184 | 2,557 | 11,247 | 81 | 408 | 100 | 14,577 |
| Accumulated depreciation at 30.06.2024 |
0 | (1,972) | (8,136) | (80) | 0 | (37) | (10,226) |
| Carrying amount at 30.06.2024 | 184 | 585 | 3,111 | 1 | 408 | 62 | 4,351 |
NOTE 5 PROPERTY PLANT EQUIPMENT AND RIGHT-OF-USE ASSETS
NOTE 6 INTANGIBLE ASSETS
| thousand € | Computer software |
|---|---|
| Cost at 31.12.2022 | 13 |
| Accumulated amortisation at 31.12.2022 | (11) |
| Carrying amount 31.12.2022 | 2 |
| Cost at 30.06.2023 | 13 |
| Accumulated amortisation at 30.06.2023 | (11) |
| Carrying amount 30.06.2023 | 2 |
| Cost at 31.12.2023 | 13 |
| Accumulated amortisation at 31.12.2023 | (12) |
| Carrying amount 31.12.2023 | 1 |
| Additions 6M 2024 | 3 |
| Amortisation charge (Note 14) | (1) |
| Cost at 30.06.2024 | 16 |
| Accumulated amortisation at 30.06.2024 | (13) |
| Carrying amount 30.06.2024 | 3 |
NOTE 7 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
| thousand € | 30.06.2024 | Change 6M 2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
|---|---|---|---|---|---|
| Non-current assets | |||||
| Listed securities - Equity securities - cost as at |
338 | 0 | 338 | 338 | 338 |
| Revaluation* | 153 | 0 | 153 | 360 | 306 |
| Fair value as at | 491 | 0 | 491 | 698 | 644 |
*Financial assets at fair value through profit or loss (i.e. Trigon Property Development shares) have been revaluated to reflect fair value based on last price as at 30.06.2024 as shown on Nasdaq Tallinn.
NOTE 8 BORROWINGS
| thousand € | Interest rate | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
|---|---|---|---|---|---|
| Current borrowings | |||||
| Current portion of long-term loan (Coop Bank) |
6 month EURIBOR+3.5% |
50 | 98 | 56 | 106 |
| Current portion of long-term loan (RDF) | 4% | 55 | 111 | 55 | 83 |
| Current portion of long-term lease liabilities | 2.49% | 12 | 23 | 11 | 31 |
| Bank overdrafts (Coop Pank) | 6 month EURIBOR+2.9% |
648 | 324 | 2 | 70 |
| Total current borrowings | 765 | 556 | 124 | 290 | |
| Non-current borrowings | |||||
| Non-current portion of long-term loan (Coop Bank) |
6 month EURIBOR+3.5% |
836 | 836 | 926 | 926 |
| Non-current portion of long-term loan (RDF) | 4% | 1,578 | 1,578 | 1,689 | 1,917 |
| Long-term loan from related parties | 8% | 200 | 200 | 200 | 0 |
| Non-current portion of long-term lease liabilities |
2.49% | 45 | 45 | 69 | 32 |
| Total non-current borrowings | 2,659 | 2,659 | 2,884 | 2,875 | |
| Total borrowings | 3,424 | 3,215 | 3,008 | 3,165 |
During the first six months of 2024, repayments of the loans were made in the amount of € 104 thousand, repayments of lease obligations in the amount of € 11 thousand and the use of overdrafts increased by € 324 thousand.
INFORMATION REGARDING MOVEMENT OF BORROWINGS (TABLE SHOWING CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES): 6 MONTHS IN 2024
| Changes in liabilities arising from financing activities thousand € |
31.12.2023 | Cash flows | Interest accrued |
Interest paid |
30.06.2024 |
|---|---|---|---|---|---|
| Current portion of long-term loan (Coop Bank) |
98 | (48) | 50 | (50) | 50 |
| Current portion of long-term loan (RDF) | 111 | (56) | 33 | (33) | 55 |
| Current portion of long-term lease liabilities |
23 | (11) | 1 | (1) | 12 |
| Bank overdrafts (Coop Pank) | 324 | 324 | 17 | (17) | 648 |
| Non-current portion of long-term loan (Coop Bank) |
836 | 0 | 0 | 0 | 836 |
| Non-current portion of long-term loan (RDF) |
1,578 | 0 | 0 | 0 | 1,578 |
| Long-term loan from realted parties | 200 | 0 | 0 | 0 | 200 |
| Non-current portion of long-term lease liabilities |
45 | 0 | 0 | 0 | 45 |
| Total liabilities from financing activities | 3,215 | 209 | 102 | (102) | 3,424 |
INFORMATION REGARDING MOVEMENT OF BORROWINGS (TABLE SHOWING CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES): 6 MONTHS IN 2023
| Changes in liabilities arising from financing activities thousand € |
31.12.2022 | Cash flows |
Non monetary movements |
Interest accrued |
Interest paid |
Reclassi fication |
30.06.2023 |
|---|---|---|---|---|---|---|---|
| Current portion of long-term loan (Coop Bank) |
106 | (50) | 0 | 48 | (48) | 0 | 56 |
| Current portion of long-term loan (RDF) |
83 | (56) | 0 | 41 | (41) | 28 | 55 |
| Current portion of short-term lease liabilities |
31 | (33) | 13 | 1 | (1) | 0 | 11 |
| Bank overdrafts (Coop Bank) | 70 | (68) | 0 | 1 | (1) | 0 | 2 |
| Non-current loans (Coop Bank) | 926 | 0 | 0 | 0 | 0 | 0 | 926 |
| Non-current loans (RDF) | 1,917 | (200) | 0 | 0 | 0 | (28) | 1,689 |
| Non-current loan from related parties |
0 | 200 | 0 | 0 | 0 | 0 | 200 |
| Non-current lease liabilities | 32 | 0 | 37 | 0 | 0 | 0 | 69 |
| Total liabilities from financing activities |
3,165 | (207) | 50 | 91 | (91) | 0 | 3,008 |
| thousand € | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
|---|---|---|---|---|
| Trade payables | 1,088 | 500 | 770 | 471 |
| Payables to employees | 116 | 99 | 134 | 145 |
| incl. accrued holiday pay reserve | 50 | 27 | 50 | 50 |
| Tax liabilities | 116 | 97 | 108 | 133 |
| incl. social security and unemployment insurance | 66 | 64 | 66 | 83 |
| personal income tax | 33 | 27 | 31 | 40 |
| contribution to mandatory funded pension | 1 | 1 | 2 | 2 |
| value added tax | 1 | 0 | 0 | 0 |
| other taxes | 15 | 5 | 9 | 8 |
| Prepayments received | 35 | 37 | 51 | 246 |
| Other payables | 46 | 23 | 31 | 19 |
| TOTAL | 1,401 | 756 | 1,094 | 1,014 |
| thousand € | 30.06.2024 | 31.12.2022 | 30.06.2023 | 31.12.2021 |
| Long-term payables and prepayments | ||||
| Long-term trade payables | 0 | 0 | 139 | 0 |
| TOTAL | 0 | 0 | 139 | 0 |
| NOTE 10 PROVISIONS | ||||
| thousand € | ||||
| Balance at 31.12.2022 | 145 | |||
| incl. current portion of provision | 18 | |||
| incl. non-current portion of provision | 127 | |||
| Movements 6M 2023: | ||||
| Use of provision | (12) | |||
| Interest cost (Note 19) | 2 | |||
| Balance at 30.06.2023 | 135 | |||
| incl. current portion of provision | 8 | |||
| incl. non-current portion of provision | 127 | |||
| Balance at 31.12.2023 | 132 | |||
| incl. current portion of provision | 21 | |||
| incl. non-current portion of provision | 111 | |||
| Movements 6M 2024: | ||||
| Use of provision | (12) | |||
| Interest cost (Note 19) | 2 | |||
| Balance at 30.06.2024 | 121 | |||
| incl. current portion of provision | ||||
| 10 |
NOTE 9 PAYABLES AND PREPAYMENTS
Provisions are made in relation to the compensations for loss of working capacity of former employees after work accidents. The total amount of the provision has been estimated considering the number of persons receiving the compensation, extent of their disability, their former level of salary, level of pension payments and estimations of the remaining period of payments.
NOTE 11 EQUITY
| Nominal value | Number of shares | Share capital | ||
|---|---|---|---|---|
| € | pcs | thousand € | ||
| Balance at 30.06.2024 | 0.10 | 4,499,061 | 450 | |
| Balance at 31.12.2023 | 0.10 | 4,499,061 | 450 | |
| Balance at 30.06.2023 | 0.10 | 4,499,061 | 450 | |
| Balance at 31.12.2022 | 0.10 | 4,499,061 | 450 |
As of 30.06.2023 the share capital of Nordic Fibreboard AS totalled 449,906.10 euros which consisted of 4,449,061 no par value registered shares with a book value of 0.10 euros per share. Each ordinary share grants its owner one vote in the General Meeting of Shareholders and the right to receive dividends. The minimum share capital outlined in the Articles of Association is 250,000 euros and the maximum share capital is 1,000,000 euros.
As at 30.06.2024 the Group had 1 017 shareholders of which with more than 5% ownership interest were:
| Shareholder | Number of shares (pcs) | Ownership interest (%) |
|---|---|---|
| NFB Pärnu Holdings OÜ | 2,215,334 | 49.24 |
| Pärnu Holdings OÜ | 842,640 | 18.73 |
| OÜ Kõik või Mittemidagi | 662,933 | 14.74 |
As at 30.06.2023 the Group had 1,137 shareholders of which with more than 5% ownership interest were:
| Shareholder | Number of shares (pcs) | Ownership interest (%) |
|---|---|---|
| Pärnu Holdings OÜ | 2,592,775 | 57.63 |
| OÜ Kõik või Mittemidagi | 632,788 | 14.07 |
The number of Nordic Fibreboard AS shares owned by the members of the Management Board and Supervisory Board of Nordic Fibreboard AS was as follow as of 30.06.2023:
- Joakim Johan Helenius 40,000 shares (30.06.2023: 20,000 shares)
- Rando Tomingas 0 shares (30.06.2023: 0 shares)
- Sakari Wallin 0 shares (30.06.2023: 0 shares)
- Torfinn Losvik 0 shares (30.06.2023: 0 shares)
- Enel Äkke 0 shares (30.06.2023: 0 shares)
- Kevin Gustasson 0 shares (30.06.2023: 0 shares)
- Kristjan Erm 0 shares (30.06.2023: 0 shares)
Joakim Johan Helenius has indirect ownership through companies NFB Pärnu Holdings OÜ and Pärnu Holdings OÜ. Torfinn Losvik has indirect ownership through Pärnu Holdings OÜ (as of 30.06.2023, Torfinn Losvik had an indirect stake through the company Pärnu Holdings OÜ, in addition he owned shares through Stetind OÜ in the amount of 44,206 shares). Rando Tomingas owns shares through Triangel Kapital OÜ in the amount of 1,000 shares (30.06.2023: 36,762 shares).
NOTE 12 EARNINGS PER SHARE
Basic earnings per share have been calculated by dividing the profit attributable to equity holders of the Parent Company by the weighted average number of shares outstanding during the period. Diluted earnings (loss) per share is calculated based on the net profit (loss) and the number of shares.
Diluted earnings per share have been calculated by dividing the profit attributable to equity holders of the Parent Company by the weighted average number of shares outstanding during the period, taking into account the number of shares potentially issued. As the Group has no option programs valid the Group does not own any potential shares.
| 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 | |
|---|---|---|---|---|
| Net profit (-loss) (in thousands of euros) | (96) | (682) | (604) | 1,234 |
| Weighted average number of shares (pc) | 4,499,061 | 4,499,061 | 4,499,061 | 4,499,061 |
| Basic earnings per share (in euros) | (0.02) | (0.15) | (0.13) | 0.27 |
| Weighted average number of shares used for calculating the diluted earnings per shares (pc) |
4,499,061 | 4,499,061 | 4,499,061 | 4,499,061 |
| Diluted earnings per share (in euros) | (0.02) | (0.15 | (0.13) | 0.27 |
| Last price of the share of Nordic Fibreboard AS on Nasdaq Tallinn (in euros) |
1.03 | 0.90 | 1.24 | 1.60 |
The share of Nordic Fibreboard AS has been listed on Nasdaq Tallinn starting from 25.09.2007.
NOTE 13 SEGMENTS
Operating segments have been determined based on the reports reviewed by the Management Board that are used to make strategic decision. The Management Board considers the current business based on the types of products and services as follows:
- Fibreboard manufacturing and sale (Nordic Fibreboard Ltd OÜ) manufacture general construction boards based on soft wood fibre boards and interior finishing boards in the Pärnu factory and wholesale of those boards.
- Real Estate Management (Pärnu Riverside Development OÜ) real estate management and development on Suur-Jõe 48, Pärnu.
The Management Board assesses the performance of operating segments based on operating profit and EBITDA as a primary measure. As a secondary measure, the Management Board also reviews net revenue. The Group defines EBITDA as profit before extraordinary other operating costs and net finance costs and tax, depreciation and impairment charges. As extraordinary other business expenses, the Group has treated one-time expenses that have not arisen in the course of normal business activities, but have arisen from some extraordinary circumstances. EBITDA is not a performance measure defined in IFRS. The Group`s definition of EBITDA may not be comparable to similarly titled operating profit measures and disclosures by other entities.
All amounts provided to the Management Board are measured in a manner consistent with that of the financial statements.
6 months 2024 thousand € Fibreboard manufacturing and wholesale Real Estate Management Group's general expenses and eliminations SEGMENTS TOTAL Revenue from external customers 4,119 21 0 4,140 EBITDA 290 (15) (5) 270 Amortisation/ depreciation (Notes 5; 6) (260) 0 0 (260) Operating profit/-loss 31 (15) (6) 10 Finance costs (Note 19) (104) 0 (2) (106) Net profit/loss (73) (15) (8) (96) Segment assets 7,421 1,847 (16) 9,252 Non-current assets of the segment (Notes 4; 5; 6; 7) 5,295 1,844 0 7,139 Segment liabilities 4,810 99 37 4,139 Additions to non-current assets (Notes 4; 5;6) 151 12 0 163
BUSINESS SEGMENTS:
Nordic Fibreboard AS Consolidated Interim Report (unaudited) Second quarter 2024
| 6 months 2023 thousand € |
Fibreboard manufacturing and wholesale |
Real Estate Management |
Group's general expenses and eliminations |
SEGMENTS TOTAL |
|---|---|---|---|---|
| Revenue from external customers | 4,583 | 23 | 0 | 4,606 |
| EBITDA | 137 | (17) | (24) | 96 |
| Amortisation/ depreciation (Notes 5; 6) | 244 | 0 | 0 | 244 |
| Operating profit/-loss | (513) | (17) | (24) | (554) |
| Extraordinary other operating expenses | 406 | 0 | 0 | 406 |
| Finance income (Note 19) | 55 | 0 | 0 | 55 |
| Finance costs (Note 19) | (103) | 0 | (2) | (105) |
| Net profit/loss | (562) | (17) | (25) | (604) |
| Segment assets | 7,427 | 1,688 | (259) | 8,856 |
| Non-current assets of the segment (Notes 4; 5; 6; 7) |
5,523 | 1,684 | 0 | 7,207 |
| Segment liabilities | 4,230 | 52 | 94 | 4,376 |
| Additions to non-current assets (Notes 5;6) |
227 | 0 | 0 | 227 |
NOTE 14 COST OF GOODS SOLD
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Raw materials and main materials | 616 | 571 | 1,117 | 968 |
| Electricity and heat | 721 | 648 | 1,396 | 1,447 |
| Labour expenses (Note 17) | 315 | 308 | 617 | 648 |
| Depreciation (Notes 5;6) | 131 | 121 | 259 | 244 |
| Purchased goods | 170 | 0 | 170 | 127 |
| Change in balances of finished goods, goods in transit and work in progress |
(265) | (56) | (226) | 546 |
| Other expenses | 67 | 37 | 135 | 84 |
| TOTAL | 1,755 | 1,629 | 3,468 | 4,064 |
NOTE 15 DISTRIBUTION COSTS
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Transportation expenses | 124 | 102 | 268 | 271 |
| Labour expenses (Note 17) | 50 | 48 | 104 | 90 |
| Marketing expense | 9 | 2 | 9 | 2 |
| Agency fees | 51 | 17 | 75 | 36 |
| Other expenses | 17 | 2 | 21 | 4 |
| TOTAL | 251 | 171 | 477 | 403 |
NOTE 16 ADMINISTRATIVE AND GENERAL EXPENSES
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Labour expenses (Note 17) | 39 | 57 | 75 | 110 |
| Purchased services | 16 | 33 | 33 | 80 |
| Office supplies | 9 | 12 | 29 | 33 |
| Audit fees | 21 | 5 | 33 | 10 |
| Other expenses | 9 | 26 | 22 | 40 |
| TOTAL | 94 | 133 | 192 | 273 |
NOTE 17 LABOUR EXPENSES
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Wages and salaries | 304 | 312 | 599 | 640 |
| Social security and unemployment insurance | 100 | 101 | 197 | 208 |
| Fringe benefits paid to employees | 2 | 2 | 3 | 3 |
| TOTAL | 406 | 415 | 799 | 851 |
NOTE 18 OTHER OPERATING INCOME AND OTHER OPERATING EXPENSES
OTHER OPERATING INCOME
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Other operating income | 8 | 0 | 8 | 0 |
| TOTAL | 8 | 0 | 8 | 0 |
OTHER OPERATING EXPENSES
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Reclamations | 0 | 2 | 0 | 2 |
| Contract fees | 0 | 1 | 0 | 1 |
| Penalties paid | 0 | 4 | 0 | 4 |
| Membership fees | 1 | 0 | 1 | 0 |
| Other costs | 0 | 1 | 0 | 7 |
| Extraordinary other operating expenses | 0 | 0 | 0 | 406 |
| TOTAL | 1 | 8 | 1 | 420 |
NOTE 19 FINANCIAL INCOME AND EXPENSES
FINANCIAL INCOME
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Revaluation of TPD shares | 0 | 0 | 0 | 55 |
| Total financial income | 0 | 0 | 0 | 55 |
| FINANCIAL COST | ||||
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
| Interest expenses | 53 | 53 | 106 | 101 |
| including interest expenses related to provisions (Note 10) |
1 | 1 | 2 | 2 |
| Revaluation of TPD shares | 56 | 19 | 0 | 0 |
| Other finance cost | 0 | 4 | 0 | 4 |
| Total financial cost | 109 | 76 | 106 | 105 |
NOTE 20 RELATED PARTIES
The following parties are considered to be related parties:
- Owners of the parent company;
- Other entities in the same consolidation group;
- Members of the Management, the Management Board and the Supervisory Board of Nordic Fibreboard AS and their close relatives;
- Entities under the control of the members of the Management Board and Supervisory Board;
- Individuals with significant ownership unless these individuals lack the opportunity to exert significant influence over the business decisions of the Group.
As of 30.06.2024, Joakim Johan Helenius, the owner of NFB Pärnu Holdings OÜ, had significant influence over the Group (total indirect and direct shareholding of 59.49% in the Company). As of 30.06.2023, the persons with significant influence over the Group were Stetind OÜ (owned by 100% Torfinn Losvik) and Joakim Johan Helenius who both held 50% shareholding in Pärnu Holdings OÜ, a company which owned 57.63% of the Company.
BENEFITS (INCL. TAX EXPENSES) TO THE MEMBERS OF THE MANAGEMENT ALL CONSOLIDATION GROUP ENTITIES:
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Membership fees | 47 | 48 | 91 | 94 |
| Compensation for use of personal automobile | 0 | 0 | 1 | 0 |
| Social tax | 16 | 16 | 30 | 31 |
| Total | 63 | 64 | 122 | 125 |
Benefits (incl. Tax expenses) include remuneration paid to the members of the Management Board and Supervisory Board of the parent companies and subsidiaries during the period. No payments were made to members of Supervisory Board.
Nordic Fibreboard AS has purchased consulting and management services from related parties, and related parties have also mediated expenses incurred on real estate investment properties. Transactions with related parties are based on market terms.
TRANSACTIONS WITH RELATED PARTIES:
| thousand € | Q2 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|
| Received short-term loan | 0 | 0 | 0 | 200 |
| Purchased services | 21 | 5 | 29 | 9 |
| Capitalized expenses of real estate investment | 25 | 0 | 25 | 0 |
| Total | 46 | 5 | 54 | 9 |
BALANCES WITH RELATED PARTIES AS OF:
| thousand € | 30.06.2024 | 31.12.2023 | 30.06.2023 | 31.12.2022 |
|---|---|---|---|---|
| Long-term loan | 200 | 200 | 200 | 0 |
| Purchased services | 35 | 7 | 6 | 1 |
| Capitalized expenses of real estate investment | 30 | 0 | 0 | 0 |
| Total | 265 | 207 | 206 | 1 |
NOTE 21 EVENTS AFTER BALANCE SHEET DATE
On 11.07.2024, Joakim Johan Helenius' indirect participation Nordic Fibreboard AS increased to 68.86%, as the division of Pärnu Holdings OÜ was completed and as a result of which 18.73% of Nordic Fibreboard AS shares moved to NFB Ventures OÜ. After the division NFB Pärnu Holdings OÜ, a company owned 100% by Joakim Johan Helenius, bought 50% of NFB Pärnu Ventures OÜ shares. As a result of the purchase Joakim Johan Helenius owns directly and indirectly 100% of NFB Venture OÜ.
Following the transaction, Pärnu Holdings OÜ no longer owns Nordic Fibreboard AS shares, NFB Ventures OÜ owns 18.73% of Nordic Fibreboard AS shares, and Joakim Johan Helenius owns directly and indirectly 68.86% of Nordic Fibreboard AS shares.
On 17.07.2024, Nordic Fibreboard AS received a loan in the amount of € 100 thousand from the related party Trigon Carbon Negative Agriculture OÜ for financing short-term working capital needs. The loan interest rate is 6.5% + 6 months Euribor per year.
