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Nordic Fibreboard
Annual Report • Feb 29, 2024
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Annual Report
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Fourth quarter and 12 months Interim Report 2023
NORDIC FIBREBOARD AS
Consolidated Interim Report for the Fourth quarter and 12 months of 2023 (unaudited)
| Beginning of the Interim Report Period: | 1.10.2023 |
|---|---|
| End of the Interim Report Period: | 31.12.2023 |
| Beginning of the financial year: | 1.01.2023 |
| End of the financial year: | 31.12.2023 |
| 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 sales of fibreboards |
| COMPANY PROFILE 3 | |
|---|---|
| MANAGEMENT REPORT 4 | |
| DECLARATION OF THE MANAGEMENT BOARD 10 | |
| CONSOLIDATED INTERIM FINANCIAL STATEMENTS 11 | |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITIONS 11 | |
| CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 12 | |
| CONSOLIDATED STATEMENT OF CASH FLOWS 13 | |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 14 | |
| NOTES TO THE CONSOLIDATED INTERIM REPORT 15 | |
| Note 1 Accounting policies and measurement bases 15 | |
| Note 2 Trade and other receivables 15 | |
| Note 3 Inventories 16 | |
| Note 4 Investment property 16 | |
| Note 5 Property plant equipment and right of use assets 17 | |
| Note 6 Intangible assets 18 | |
| Note 7 Financial assets at fair value through profit or loss 18 | |
| Note 8 Borrowings 18 | |
| Note 9 Payables and prepayments 20 | |
| Note 10 Provisions 20 | |
| Note 11 Equity 21 | |
| Note 12 Earnings per share 22 | |
| Note 13 Segments 22 | |
| Note 14 Cost of goods sold 24 | |
| Note 15 Distribution costs 24 | |
| Note 16 Administrative and general expense 24 | |
| Note 17 Labour expenses 24 | |
| Note 18 Other operating income and expenses 25 | |
| Note 19 Financial income and expenses 25 | |
3
COMPANY PROFILE
Nordic Fibreboard AS is a holding company with subsidiaries Nordic Fibreboard Ltd OÜ, Pärnu Riverside Development OÜ and Skano Furniture OÜ. Skano Furniture OÜ has had no activities for the last couple of years and was liquidated on 18.01.2023.
Nordic Fibreboard AS main activity is production and wholesale of building materials. In addition it owns a real estate company with one real estate project ongoing in Pärnu, Estonia.
The Group, as of 31.12.2023, 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, door cores, expansion joint filler, pin and notice boards, acoustic reduction, cake boards, firelighters).
Pärnu Riverside Development OÜ owns and manages real estate located at Suur-Jõe Street in Pärnu, the Company provides rental service to local companies.
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 31.12.2023 the Group employed 67 people (31.12.2022: 74 employees).
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MANAGEMENT REPORT
NORDIC FIBREBOARD AS UNAUDITED RESULTS FOR FOURTH QUARTER OF 2023
Consolidated net sales for Q4 2023 were € 1.31 million (Q4 2022: € 2.03 million). The main business area is Nordic Fibreboard Ltd, the production and wholesale of fibreboard, which recorded sales in Q4 2023 of € 1.30 million, (Q4 2022: € 2.02 million). The remaining business area is the management of the property on Suur-Jõe street in Pärnu through the company Pärnu Riverside Development OÜ, whose sales revenue in the 4th quarter of 2023 was €12 thousand (Q4 2022: € 11 thousand).
The decline in Nordic Fibreboard's sales during the fourth quarter of 2023 was primarily influenced by a slowdown in new construction and renovation activities due to the winter season, along with global economic uncertainty affecting both end-users and industrial-oriented business customers. Nordic Fibreboard Ltd had sales of € 1.30 million in Q4 2023, marking a 35% decrease from Q4 2022.
The consolidated EBITDA of Nordic Fibreboard for Q4 2023 was € 245 thousand, the EBITDA margin was 19% (Q4 2022: EBITDA was € 661 thousand and the EBITDA margin was 33%). Compared to the Q4 2022 the Group`s gross margin decreased from 13% to 9% in the Q4 2023.
In Q4 2023, a revaluation of the fair value of real estate investment properties was conducted, relying on expert assessments prepared by an external appraiser, resulting in a profit of 404 thousand euros. (in the Q4 2022, a profit from the revaluation of real estate investments was 697 thousand euros).
Financial expenses for the Q4 2023 were € 237 thousand, of which € 54 thousand were loan interest costs and € 183 thousand were losses from the revaluation of Trigon Property Development (TPD) shares. Total financial income of € 150 thousand was recorded in Q4 2022, which consisted of the dividends received from TPD shares in the amount of € 24 thousand and losses from the revaluation of the same TPD shares in the amount of € 143 thousand and the interest expense of loan obligations in the amount of € 31 thousand.
Group`s consolidated net loss for Q4 2023 was € 115 thousand (Q4 2022: profit € 386 thousand).
DIVISIONAL REVIEW
REVENUE BY BUSINESS SEGMENTS
| € thousand | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Fibreboards production and sales | 1,300 | 2,020 | 7,657 | 11,035 |
| Real Estate Management | 12 | 11 | 47 | 39 |
| TOTAL | 1,312 | 2,031 | 7,704 | 11,074 |
PROFIT BY BUSINESS SEGMENTS
| € thousand | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| EBITDA by business units: | ||||
| Fibreboards production and sales | 127 | (23) | 510 | 1,092 |
| Real Estate Management | 132 | 690 | 113 | 672 |
| Group transactions | (14) | (6) | (44) | (32) |
| TOTAL EBITDA | 245 | 661 | 579 | 1,732 |
| Extraordinary other operating expenses | 0 | 0 | (406) | 0 |
| Depreciation | (123) | (125) | (489) | (497) |
| TOTAL OPERATING PROFIT/ LOSS | 122 | 536 | (316) | 1,235 |
| Net financial costs | (237) | (150) | (366) | (1) |
| NET PROFIT/ LOSS | (115) | 386 | (682) | 1,234 |
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NORDIC FIBREBOARD LTD: FIBREBOARD PRODUCTION AND SALES
Fibreboard sales in Q4 2023 were € 1.30 million (Q4 2022: € 2.02 million). In Q4 2023, the main reason behind the decrease in sales revenue compared to Q4 2022 was the termination of the agreement with the primary customer in Denmark, which led to a decrease in sales by 24% compared to Q4 2022. In addition, sales in Finland decreased by 23% and sales in Latvia decreased by 47% in Q4 2023 compared to the same period in 2022. As a positive development, the company has successfully reestablished cooperation with former export customers and has also secured new customers in both the Middle East and the European Union. As a result, in Q4 2023 compared to Q4 2022, sales in Sweden have increased by 41%, and sales in Africa and Asia have recovered.
The EBITDA of the fiberboard segment for the Q4 2023 was a positive € 127 thousand, which is a quarterly improvement compared to the EBITDA for the Q4 2022, which was a negative € 23 thousand, but when comparing EBITDA for the twelve months of 2023 with the 2022 with the same period, the drop is 53%. The main reason for the decline can be attributed to the exceptionally high electricity prices in early 2023, which had a significant impact on the company. The situation was alleviated by the implementation of a new electricity contract in April 2023, which provided more favorable terms for purchasing electricity.
| € thousand | € thousand | |||
|---|---|---|---|---|
| Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 | |
| European Union | 1,120 | 1,871 | 6,974 | 10,297 |
| Africa | 64 | 0 | 197 | 0 |
| Middle East | 41 | 82 | 137 | 154 |
| Asia | 11 | 0 | 113 | 69 |
| Russia | 0 | 0 | 0 | 427 |
| Other | 64 | 67 | 236 | 88 |
| TOTAL | 1,300 | 2,020 | 7,657 | 11,035 |
FIBREBOARD SALES BY GEOGRAPHICAL SEGMENTS
PÄRNU RIVERSIDE DEVELOPMENT: REAL ESTATE MANAGEMENT
Pärnu Riverside Development owns the property located at Suur-Jõe 48 in Pärnu. The property has some rental tenants and rental income from real estate management was € 12 thousand in Q4 2023, (Q4 2022: € 11 thousand).
The real estate management EBITDA for Q4 2023 were positive € 132 thousand (Q4 2022: EBITDA was positive € 690 thousand). As of the end of 2023 and 2022, fair value revaluations of the real estate investment object located at 48 Suur-Jõe Street in Pärnu was conducted, resulting in an income of € 142 thousand in the Q4 2023 and the income of the Q4 2022 was € 697 thousand.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CASH FLOW STATEMENT
As of 31.12.2023 the total assets of Nordic Fibreboard AS were € 8.5 million (31.12.2022: 9.4 million). The liabilities of the company as of 31.12.2023 were € 4.2 million (31.12.2022: € 4.3 million), of which the Group has payables of € 0.5 million as at 31.012.2023 (31.12.2022: € 0.5 million) and borrowings of € 3.2 million as at 31.12.2023 (31.12.2022: also € 3.2 million).
Receivables and prepayments amounted to € 0.5 million as at 31.12.2023 (31.12.2022: € 0.6 million). Inventories were € 0.7 million as of 31.12.2023 (31.12.2022: € 1.7 million). Fixed assets were € 7.2 million as of 31.12.2023 (€ 7.2 million as of 31.12.2022).
During 2023 twelve months, the Group's cash flows from operating activities totalled € 266 thousand (2022 twelve months: € 152 thousand). Cash outflows due to investment activities was € 257 thousand during 2023 twelve months, mainly consisting of investments into production assets of € 251 thousand
6
and real estate investments of € 6 thousand (2022 twelve months: cash outflow € 129 thousand). Financing activities also resulted in cash outflows of € 4 thousand during 2023 twelve months (2022 twelve months: cash outflow € 78 thousand). Net cash effect during 2023 twelve months cash inflow of € 7 thousand, (2021 twelve months: cash outflow € 55 thousand).
PEOPLE
On the 31st of December 2023, the Group employed 67 people (compared to 74 people as of 31.12.2022). The average number of personnel in Q4 2023 was 66 (Q4 2022: the average number of personnel was 82).
Labour costs were € 0.38 million including taxes in Q4 2023 and € 1.62 million for twelve months of 2023 (Q4 2022: € 0.52 million, 12M 2022: € 2.05 million). Group fees for the members of the management boards of holding company and its subsidiaries, together with taxes, were € 69 thousand in Q4 2023 and € 274 thousand for twelve months of 2023 (Q4 2022: € 70 thousand, 12M 2022: € 267 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 building materials market is experiencing modest demand overall, with an uncertain short-term outlook. Operating in such a challenging market environment, forecasting future trends is difficult, and market stability is elusive. High interest rates, ongoing economic uncertainty, and international tensions are influencing the purchasing decisions and business plans of both consumers and businesses. These factors have led to a slowdown in the construction and renovation market, affecting both consumers and businesses.
However, there are signs of customer interest recovery in certain markets, and the company has secured agreements with some new customers, providing hope for some recovery of sales volume. Currently, the company's primary focus is on finding new customers to expand its customer portfolio. Meanwhile, the company continues to actively contribute to product development to ensure the sustainability of its operations and growth in the market.
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 private residential property.
7
FINANCIAL HIGHLIGHTS
| € thousand | ||||
|---|---|---|---|---|
| Income statement | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
| Revenue | 1,312 | 2,031 | 7,704 | 11,074 |
| EBITDA | 245 | 661 | 579 | 1,732 |
| EBITDA margin | 19% | 33% | 8% | 16% |
| Operating profit | 122 | 536 | (316) | 1,235 |
| Operating margin | 9% | 26% | (4%) | 11% |
| Net profit | (115) | 386 | (682) | 1,234 |
| Net margin | (9%) | 19% | (9%) | 11% |
| Statement of financial position | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Total assets | 8,505 | 9,408 |
| Return on assets | (8%) | 13% |
| Equity | 4,402 | 5,084 |
| Return on equity | (16%) | 24% |
| Debt-to-equity ratio | 48% | 46% |
| Share | 31.12.2023 | 31.12.2022 |
| Last Price (€)* | 0.90 | 1.60 |
|---|---|---|
| Earnings per share (€) | (0.15) | 0.27 |
| Price-earnings ratio | (5.93) | 5.83 |
| Book value of a share (€) | 0.98 | 1.13 |
| Market to book ratio | 0.92 | 1.42 |
| Market capitalization, € thousand | 4,049 | 7,198 |
| Number of shares, piece | 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 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 increases when the interest rate increases. At 31.12.2023 six months' EURIBOR rate was 3.861% and at 31.12.2022 2.693%. The loan from the Rural Development Foundation is concluded with a fixed interest rate, thus bear no interest rate risk. The Company loan agreement with Coop Pank AS has a floating interest rate, but according to the management's assessment, the floating interest rate does not have a significant impact on the Company'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 eurozone. Nordic Fibreboard AS has a cash flow risk arising from the interest rate risk, as part of the loans have a floating interest rate. Management believes that the cash flow risk is not significant, therefore no hedging instruments are used.
CURRENCY 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 EUR. Raw materials for production purchased mainly in EUR.
RISK OF THE ECONOMIC ENVIRONMENT
The risks of the Group's economic environment depend to a significant extent on events in the construction-renovation and industrial sectors. Additionally, macroeconomic factors such as fluctuations in interest rates, global economic downturns, and geopolitical tensions impact consumption and export reduction, which in turn reflects in low production volumes and sales revenue. The rise in input prices can increase production costs, making products less affordable or forcing companies to raise prices, thereby potentially reducing demand. Changes resulting from government policies, such as changes in tax policy, regulations or trade policy, can affect the operating environment of companies.
In recent years, the aggression of Russia against Ukraine has had a particularly significant impact, affecting the global economy extensively, especially in Europe. This has caused fluctuations in raw materials prices, disruptions in supply chains, and an increase in interest rates. Currently, uncertainty continues regarding the prospect of higher interest rates, which will have a significant impact on end consumers as well as the construction-renovation and industrial sectors and the global economic environment as a whole, and makes it difficult to prepare future economic forecasts.
We are aware of these risks and implement strategies to mitigate and adapt to them, ensuring sustainability and resilience in changing economic conditions.
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.
9
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 fourth quarter 2023.
The management board confirms that the management report on pages 4-9 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 11-26 presents a fair view of the assets, liabilities, financial position and profit 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 Kevin Gustasson, Member of the Management Board
Pärnu, 29 February, 2024
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONS
| € thousand | 31.12.2023 | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Cash and cash equivalents | 7 | 2 | 57 |
| Receivables and prepayments (Note 2) | 534 | 559 | 902 |
| Inventories (Note 3) | 728 | 1,672 | 390 |
| Total current assets | 1,269 | 2,233 | 1,349 |
| Investment property (Note 4) | 2,269 | 1,859 | 1,152 |
| Financial assets at fair value through profit or loss (Note 7) | 491 | 644 | 644 |
| Property, plant, equipment and right-of-use assets (Note 5) | 4,475 | 4,670 | 4,915 |
| Intangible assets (Note 6) | 1 | 2 | 3 |
| Total non-current assets | 7,236 | 7,175 | 6,714 |
| TOTAL ASSETS | 8,505 | 9,408 | 8,063 |
| Borrowings (Notes 8) | 756 | 290 | 146 |
| Payables and prepayments (Notes 9) | 756 | 1,014 | 829 |
| Short-term provisions (Note 10) | 21 | 18 | 19 |
| Total current liabilities | 1,533 | 1,322 | 994 |
| Long-term borrowings (Notes 8) | 2,459 | 2,875 | 3,074 |
| Long-term provisions (Note 10) | 111 | 127 | 145 |
| Total non-current liabilities | 2,570 | 3,002 | 3,219 |
| Total liabilities | 4,103 | 4,324 | 4,213 |
| Share capital (at nominal value) (Note 11) | 450 | 450 | 450 |
| Statutory reserve capital | 45 | 45 | 0 |
| Retained earnings (loss) | 3,907 | 4,589 | 3,400 |
| Total equity | 4,402 | 5,084 | 3,850 |
| TOTAL LIABILITIES AND EQUITY | 8,505 | 9,408 | 8,063 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| € thousand | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Revenue (Note 13) | 1,312 | 2,031 | 7,704 | 11,074 |
| Cost of goods sold (Note 14) | 1,313 | 1,890 | 6,810 | 9,024 |
| Gross profit | (1) | 141 | 894 | 2,050 |
| Distribution costs (Note 15) | 137 | 193 | 673 | 1,112 |
| Administrative expenses (Note 16) | 141 | 109 | 514 | 424 |
| Other operating income (Note 18) | 404 | 697 | 404 | 730 |
| Other operating expenses (Note 18) | 3 | 0 | 427 | 9 |
| Operating profit (loss) | 122 | 536 | (316) | 1,235 |
| Finance income (Note 19) | 0 | 24 | 0 | 129 |
| Finance costs (Note 19) | 237 | 174 | 366 | 130 |
| PROFIT (LOSS) BEFORE INCOME TAX | (115) | 386 | (682) | 1,234 |
| NET PROFIT (LOSS) FOR THE PERIOD | (115) | 386 | (682) | 1,234 |
| Basic earnings per share (Note 12) | (0.03) | 0.09 | (0.15) | 0.27 |
| Diluted earnings per share (Note 12) | (0.03) | 0.09 | (0.15) | 0.27 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand | 12M 2023 | 12M 2022 |
|---|---|---|
| Cash flows from operating activities | ||
| Operating profit (loss) | (316) | 1,235 |
| Adjustments: | ||
| Depreciation charge (Notes 5; 6) | 489 | 498 |
| Profit/loss from revaluation of real estate investment (Note 4) | (404) | (697) |
| Profit/loss from sale of non-current assets (Note 18) | 0 | 1 |
| Change in trade and other receivables (Note 2) | 25 | 343 |
| Change in inventories (Note 3) | 944 | (1,282) |
| Change in trade and other payables (Note 9) | (258) | 185 |
| Cash generated from operations | 480 | 283 |
| Interest payments (Notes 8; 19) | (181) | (120) |
| Net other financial income and expense | (33) | (11) |
| Net cash generated from operating activities | 266 | 152 |
| Cash flows from investing activities | ||
| Purchase of property, plant and equipment and intangible assets (Notes 5; 6) | (251) | (254) |
| Disposal of property, plant and equipment and intangible assets (Notes 5;6) | 0 | 6 |
| Purchase of investment property (Note 4) | (6) | (10) |
| Received dividends | 0 | 129 |
| Net cash used in investing activities | (257) | (129) |
| Cash flows from financing activities | ||
| Repayment of loans received (Note 8) | (408) | (102) |
| Loans received from related parties (Note 8) | 200 | 0 |
| Finance lease payments (Note 8) | (50) | (46) |
| Change in overdraft (Note 8) | 254 | 70 |
| Net cash (used in)/from financing activities | (4) | (78) |
| NET CHANGE IN CASH | 5 | (55) |
| OPENING BALANCE OF CASH | 2 | 57 |
| CLOSING BALANCE OF CASH | 7 | 2 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| € thousand | Share capital | Statutory reserve capital |
Retained earnings |
Total |
|---|---|---|---|---|
| Balance at 31.12.2021 | 450 | 0 | 3,400 | 3,850 |
| Other changes | 0 | 45 | (45) | 0 |
| Net profit for 12M 2022 | 0 | 0 | 1,234 | 1,234 |
| Total comprehensive income for 12M 2022 | 0 | 0 | 1,234 | 1,234 |
| Balance at 31.12.2022 | 450 | 45 | 4,589 | 5,084 |
| Net loss for 12M 2023 | 0 | 0 | (682) | (682) |
| Total comprehensive income for 12M 2023 | 0 | 0 | (682) | (682) |
| Balance at 31.12.2023 | 450 | 45 | 3,907 | 4,402 |
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.
The Group's main activities are production and wholesale of softboard, to a minor extent, the Group also handles real estate management.
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 real estate management activities were added to the Group in 2019.
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 31.12.2023 the largest shareholder of the Group is NFB Pärnu Holdings OÜ (owning 38.9%), whose owner is 100% Joakim Johan Helenius.
BASIC 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 31.12.2022. 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 2022.
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 4nd quarter of 2023 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 | 31.12.2023 | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Customer receivables | 443 | 391 | 729 |
| Prepaid taxes | 71 | 150 | 151 |
| Prepaid services | 13 | 17 | 21 |
| Other receivables | 7 | 1 | 1 |
| TOTAL | 534 | 559 | 902 |
NOTE 2 TRADE AND OTHER RECEIVABLES
No write-downs of receivables have been made in Q4 2023 or Q4 2022.
ANALYSIS OF TRADE RECEIVABLES BY AGING
| thousand € | 31.12.2023 | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Not past due | 412 | 373 | 678 |
| incl receivables from customers who also have receivables past due |
0 | 236 | 95 |
| incl receivables from customers who have no receivables past due |
412 | 137 | 583 |
| Past due but not impaired | 31 | 18 | 51 |
| Overdue up to 90 days | 31 | 16 | 51 |
| Overdue more than 90 days | 0 | 2 | 0 |
| TOTAL | 443 | 391 | 729 |
NOTE 3 INVENTORIES
| € thousand | 31.12.2023 | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Raw materials and other materials | 177 | 401 | 303 |
| Work-in-progress | 30 | 228 | 41 |
| Finished goods | 561 | 1,081 | 32 |
| Goods in transit | 0 | 0 | 11 |
| Prepayments to suppliers | 0 | 2 | 43 |
| Write-off reserve for inventories | (40) | (40) | (40) |
| TOTAL | 728 | 1,672 | 390 |
NOTE 4 INVESTMENT PROPERTY
| thousand € | |
|---|---|
| Carrying amount 31.12.2021 | 1,152 |
| Capitalized cost | 10 |
| Fair value revaluation | 697 |
| Carrying amount 31.12.2022 | 1,859 |
| Capitalized cost | 6 |
| Fair value revaluation | 404 |
| Carrying amount 31.12.2023 | 2,269 |
The property belonging to Pärnu Riverside Development OÜ, Suur-Jõe street 48 in Pärnu and the part of the property belonging to Nordic Fibreboard Ltd OÜ, Rääma street 31 are recorded as real estate investments.
The amount of expenses related to the management of investments properties for Q4 2023 were € 23 thousand and € 18 thousand in Q4 2022. Rental income from investment properties for Q4 2023 was € 12 thousand and in Q4 2022 were € 11 thousand.
As of 31.12.2023 the investment property objects at Suur-Jõe Street 48 and Rääma Street 31 were recorded in the balance sheet at the new fair value, which is based on expert assesments prepared by an indipendent appraiser in January 2024. In selecting the valuating method, the valuer has assumed that the valuer is aware of the purchase and sale transactions of similar assets to be valued from competing market areas, which was a sufficient basis for using the comparison method.
INVESTMENT PROPERTY BY LOCATION:
| thousand € | |
|---|---|
| 31.12.2021 | |
| Share of registered immovable property at Suur-Jõe Street 48, Pärnu | 977 |
| Share of registered immovable property at Rääma Street 31, Pärnu | 175 |
| 31.12.2022 | |
| Share of registered immovable property at Suur-Jõe Street 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 Street 48, Pärnu | 1,832 |
| Share of registered immovable property at Rääma Street 31, Pärnu | 437 |
NOTE 5 PROPERTY PLANT EQUIPMENT AND RIGHT OF USE ASSETS
| thousand € | Land | Buildings and facilities |
Machinery and equipment |
Other fixtures |
Construct ion-in progress |
Right-of use asset |
TOTAL |
|---|---|---|---|---|---|---|---|
| Cost at 31.12.2021 | 191 | 2,556 | 10,845 | 89 | 473 | 114 | 14,268 |
| Accumulated depreciation at 31.12.2021 |
0 | (1,779) | (7,459) | (88) | 0 | (28) | (9,353) |
| Carrying amount at 31.12.2021 | 191 | 777 | 3,387 | 1 | 473 | 86 | 4,915 |
| Additions | 0 | 4 | 44 | 0 | 187 | 44 | 279 |
| Reclassification | 0 | 0 | 265 | 0 | (255) | (10) | 0 |
| Accumulated depreciation of reclassified fixed assets |
0 | 0 | (10) | 0 | 0 | 10 | 0 |
| Disposals and write-offs (Note 20) | (7) | 0 | (124) | 0 | 0 | (29) | (160) |
| Accumulated depreciation of fixed assets written off |
0 | 0 | 124 | 0 | 0 | 9 | 133 |
| Depreciation (Notes 15;17) | 0 | (78) | (371) | 0 | 0 | (48) | (497) |
| 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 | 17 | 0 | 226 | 56 | 299 |
| Reclassification | 0 | 0 | 295 | 0 | (295) | 0 | 0 |
| Disposals and write-offs (Note 20) | 0 | (3) | (158) | (8) | 0 | (75) | (244) |
| Accumulated depreciation of fixed assets written off |
0 | 3 | 158 | 8 | 0 | 69 | 238 |
| Depreciation (Notes 15;17) | 0 | (79) | (373) | 0 | 0 | (36) | (488) |
| 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 |
NOTE 6 INTANGIBLE ASSETS
| thousand € | Computer software |
|---|---|
| Cost at 31.12.2021 | 13 |
| Accumulated amortisation at 31.12.2021 | (10) |
| Carrying amount 31.12.2021 | 3 |
| Amortisation charge (Note 14) | (1) |
| Cost at 31.12.2022 | 13 |
| Accumulated amortisation at 31.12.2022 | (11) |
| Carrying amount 31.12.2022 | 2 |
| Amortisation charge (Note 14) | (1) |
| Cost at 31.12.2023 | 13 |
| Accumulated amortisation at 31.12.2023 | (12) |
| Carrying amount 31.12.2023 | 1 |
NOTE 7 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
| thousand € | 31.12.2023 | Change 12M 2023 |
31.12.2022 | 31.12.2021 |
|---|---|---|---|---|
| Non-current assets | ||||
| Listed securities - Equity securities - cost as at | 338 | 0 | 338 | 338 |
| Revaluation | 153 | (153) | 306 | 306 |
| Fair value as at | 491 | (153) | 644 | 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 31.12.2023 as shown on Nasdaq Tallinn.
NOTE 8 BORROWINGS
Nordic Fibreboard AS subsidiary Nordic Fibreboard Ltd OÜ has loan obligations to Coop Pank AS and Rural Development Foundation (RDF). The term of the loan received from Coop Pank AS is 5 years with a 10-year amortization schedule, from March 2022 the loan interest is 6 months euribor+3.5% per annum. The term of the loan received from RDF is 6 years and from 31.12.2022 the loan interest is 4% per annum. There is also a 1.5 year overdraft agreement with Coop Bank AS with a limit of € 700 thousand, the overdraft interest rate is 6 months euribor+2.9% per annum. The overdraft limit was increased from € 200 thousand to € 700 thousand in the Q4 2023, and the conditions of the agreement were also changed.
In 2023, Nordic Fibreboard Ltd OÜ received a short-term loan of € 200 thousand at an interest rate of 8% per year from Pärnu Holdings AS, a related party.
In Q4 2023, repayments of lease obligations in the amount of € 6 thousand were made and in 2023 a total of € 50 thousand.
| thousand € | Interest rate | 31.12.2023 | 31.12.2022 | 31.12.2021 |
|---|---|---|---|---|
| Current borrowings | ||||
| Current portion of long-term loan (Coop | 6 month EURIBOR+3.5% | 98 | 106 | 100 |
| Bank) | ||||
| Current portion of long-term loan (RDF) | Until 30.12.2022 2%, later 4% | 111 | 83 | 0 |
| Current portion of long-term lease liabilities |
2.49% | 23 | 31 | 46 |
| Short term loan from related parties | 8% | 200 | 0 | 0 |
| Bank overdrafts (Coop Pank) | 6 month EURIBOR+2.9% | 324 | 70 | 0 |
| Total | 756 | 290 | 146 | |
| Non-current borrowings | ||||
| Non-current portion of long-term loan (Coop Pank) |
6 month EURIBOR+3.5% | 836 | 926 | 1 034 |
| Non-current portion of long-term loan (RDF) |
Until 30.12.2022 2%, later 4% | 1,578 | 1,917 | 2,000 |
| Non-current portion of long-term lease liabilities |
2.49% | 45 | 32 | 40 |
| Total | 2,459 | 2,875 | 3,074 | |
| Total borrowings | 3,215 | 3,165 | 3,220 |
INFORMATION REGARDING BORROWINGS AS AT:
CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES 12M 2023
| thousand € | 31.12.2022 | Cash flows |
Non monetary settlements |
Interest accrued |
Interest paid |
Reclassi fied |
31.12.2023 |
|---|---|---|---|---|---|---|---|
| Current portion of long-term loan (Coop Bank) |
106 | (97) | 0 | 99 | (99) | 90 | 98 |
| Current portion of long-term loan (RDF) |
83 | (111) | 0 | 76 | (76) | 139 | 111 |
| Current portion of long-term lease liabilities |
31 | (50) | 19 | 3 | (3) | 23 | 23 |
| Short term loan from related parties |
0 | 200 | 0 | 0 | 0 | 0 | 200 |
| Bank overdrafts (Coop Bank) | 70 | 254 | 0 | 3 | (3) | 0 | 324 |
| Non-current portion of long term loan (Coop Bank) |
926 | 0 | 0 | 0 | 0 | (90) | 836 |
| Non-current portion of long term loan (RDF) |
1,917 | (200) | 0 | 0 | 0 | (139) | 1,578 |
| Non-current portion of long term lease liabilities |
32 | 0 | 35 | 0 | 0 | (23) | 45 |
| Total liabilities from financing activities |
3,165 | (4) | 54 | 181 | (181) | 0 | 3,215 |
| thousand € | 31.12.2021 | Cash flows |
Non monetary settlements |
Interest accrued |
Interest paid |
Reclassi fied |
31.12.2022 |
|---|---|---|---|---|---|---|---|
| Current portion of long-term loan (Coop Bank) |
100 | (102) | 0 | 81 | (81) | 108 | 106 |
| Current portion of long-term loan (RDF) |
0 | 0 | 0 | 0 | 0 | 83 | 83 |
| Current portion of long-term lease liabilities |
46 | (46) | 0 | 1 | (1) | 31 | 31 |
| Bank overdrafts (Coop Pank) | 0 | 70 | 0 | 2 | (2) | 0 | 70 |
| Non-current portion of long term loan (Coop Pank) |
1,034 | 0 | 0 | 0 | 0 | (108) | 926 |
| Non-current portion of long term loan (RDF) |
2,000 | 0 | 0 | 37 | (37) | (83) | 1,917 |
| Non-current portion of long term lease liabilities |
40 | 0 | 23 | 0 | 0 | (31) | 32 |
| Total liabilities from financing activities |
3,220 | (78) | 23 | 120 | (120) | 0 | 3,165 |
CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES 12M 2022
NOTE 9 PAYABLES AND PREPAYMENTS
| thousand € | 31.12.2023 | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Trade payables | 500 | 471 | 367 |
| Payables to employees | 99 | 145 | 149 |
| incl. accrued holiday pay reserve | 27 | 50 | 46 |
| Tax liabilities | 97 | 133 | 137 |
| incl. social security and unemployment insurance | 64 | 83 | 87 |
| personal income tax | 27 | 40 | 40 |
| contribution to mandatory funded pension | 1 | 2 | 2 |
| value added tax | 0 | 0 | 0 |
| other taxes | 5 | 8 | 8 |
| Prepayments received | 37 | 246 | 152 |
| Other payables | 23 | 19 | 24 |
| TOTAL | 756 | 1,014 | 829 |
NOTE 10 PROVISIONS
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.
| thousand € | |
|---|---|
| Balance at 31.12.2021 | 164 |
| incl. current portion of provision | 19 |
| incl. non-current portion of provision | 145 |
| Movements 2022 12M: | |
| Use of provision | (25) |
| Interest cost (Note 19) | 6 |
| Balance at 31.12.2022 | 145 |
| incl. current portion of provision | 18 |
| incl. non-current portion of provision | 127 |
| Movements 2023 12M: | |
| Use of provision | (24) |
| Interest cost (Note 19) | 7 |
| Increase of reserve | 4 |
| Balance at 31.12.2023 | 132 |
| incl. current portion of provision | 21 |
| incl. non-current portion of provision | 111 |
NOTE 11 EQUITY
| Nominal value | Number of shares | Share capital | |
|---|---|---|---|
| € | pcs | thousand € | |
| Balance at 31.12.2023 | 0.10 | 4,499,061 | 450 |
| Balance at 31.12.2022 | 0.10 | 4,499,061 | 450 |
| Balance at 31.12.2021 | 0.10 | 4,499,061 | 450 |
As of 31.12.2023 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 31.12.2023 the Group had 1,103 shareholders of which with more than 5% ownership interest were:
| Shareholder | Number of shares (pcs) | Ownership interest (%) |
|---|---|---|
| NFB Pärnu Holdings OÜ | 1,750,135 | 38.90 |
| Pärnu Holdings OÜ | 842,640 | 18.73 |
| OÜ Kõik või Mittemidagi | 646,399 | 14.37 |
As at 31.12.2022 the Group had 1,130 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 | 613,991 | 13.65 |
The number of Nordic Fibreboard AS shares owned by the members of the Management Board and Supervisory Board of Nordic Fibreboard AS was as follows:
- Joakim Johan Helenius 20,000 shares (31.12.2022: 20,000 shares)
- Rando Tomingas 0 shares (31.12.2022: 0 shares)
- Sakari Wallin 0 shares (31.12.2022: 0 shares)
- Torfinn Losvik 0 shares (31.12.2022: 0 shares)
- Enel Äkke 0 shares (31.12.2022: 0 shares)
- Kevin Gustasson 0 shares (31.12.2022: 0 shares)
Joakim Johan Helenius have indirect ownership through companies NFB Pärnu Holdings OÜ and Pärnu Holdings OÜ. Torfinn Losvik have indirect ownership through Pärnu Holdings OÜ, in addition, he owns shares through Stetind OÜ in the amount of 44,206 shares (31.12.2022: 44,206 shares). Rando Tomingas owns shares through Triangel Kapital OÜ in the amount of 36,762 shares (31.12.2022: 36,762 shares).
NOTE 12 EARNINGS PER SHARE
Basic earnings per share have been calculated by dividing the profit (loss) attributable to equity holders of the Parent Company by the weighted average number of shares outstanding during the period.
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 from 31.12.2020, the Group does not own any potential shares.
| 31.12.2023 | 31.12.2022 | 31.12.2021 | |
|---|---|---|---|
| Net profit (-loss) (in thousands of euros) | (682) | 1,234 | 1,202 |
| Weighted average number of shares (th pc) | 4,499 | 4,499 | 4,499 |
| Basic earnings per share (in euros) | (0.15) | 0.27 | 0.27 |
| Weighted average number of shares used for | 4,499 | 4,499 | 4,499 |
| calculating the diluted earnings per shares (th pc) | |||
| Diluted earnings per share (in euros) | (0.15) | 0.27 | 0.27 |
| Last price of the share of Nordic Fibreboard AS on Tallinn Stock Exchange (in euros) |
0.90 | 1.60 | 1.95 |
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 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 Street 48, Pärnu.
In 2022 and 2023, the furniture retail sales in Estonia (Skano Furniture OÜ) has not been treated separately since the said subsidiary ceased active operations in the first quarter of 2020. Skano Furniture OÜ was liquidated on 18.01.2023.
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.
| 12 months 2023 thousand € |
Fibreboard manufacturing and wholesale |
Real Estate Management |
Group's general expenses and eliminations |
SEGMENTS TOTAL |
|---|---|---|---|---|
| Revenue from external customers | 7,657 | 47 | 0 | 7,704 |
| EBITDA | 510 | 113 | (44) | 579 |
| Amortisation/ depreciation (Note 8) | 489 | 0 | 0 | 489 |
| Operating profit/-loss | (384) | 113 | (45) | (316) |
| Extraordinary other operating expenses | 406 | 0 | 0 | 406 |
| Finance income (Note 21) | 30 | 0 | (30) | 0 |
| Finance costs (Note 21) | 361 | 3 | 2 | 366 |
| Net profit/-loss | (715) | 110 | (77) | (682) |
| Segment assets | 6,665 | 1,836 | 4 | 8,505 |
| Non-current assets of the segment (Notes 7; 8; 9)* |
5,404 | 1,832 | 0 | 7,236 |
| Segment liabilities | 3,981 | 73 | 49 | 4,103 |
| Additions to non-current assets (Note 8)* | 279 | 6 | 0 | 285 |
| 12 months 2022 thousand € |
Fibreboard manufacturing and sale |
Real Estate Management |
Group's general expenses and eliminations |
SEGMENTS TOTAL |
|---|---|---|---|---|
| Revenue from external customers | 11,035 | 39 | 0 | 11,074 |
| EBITDA | 1,092 | 672 | (32) | 1,732 |
| Amortisation/ depreciation (Note 8)* | 497 | 0 | 0 | 497 |
| Operating profit/-loss | 595 | 672 | (32) | 1,235 |
| Finance income (Note 21) | 129 | 0 | 0 | 129 |
| Finance costs (Note 21) | 129 | 0 | 1 | 130 |
| Net profit/-loss | 595 | 672 | (33) | 1,234 |
| Segment assets | 7,934 | 1,688 | (214) | 9,408 |
| Non-current assets of the segment (Notes 7; 8; 9)* |
5,491 | 1,684 | 0 | 7,175 |
| Segment liabilities | 4,175 | 36 | 113 | 4,324 |
| Additions to non-current assets (Note 8)* | 279 | 10 | 0 | 289 |
| thousand € | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Fibreboard manufacturing and wholesale |
Real Estate Management |
SEGMENTS TOTAL |
Fibreboard manufacturing and wholesale |
Real Estate Management |
SEGMENTS TOTAL |
|
| European Union | 6,974 | 47 | 7,021 | 10,297 | 39 | 10,336 |
| Africa | 197 | 0 | 197 | 0 | 0 | 0 |
| Middle East | 137 | 0 | 137 | 154 | 0 | 154 |
| Asia | 114 | 0 | 114 | 69 | 0 | 69 |
| Russia | 0 | 0 | 0 | 427 | 0 | 427 |
| Other | 236 | 0 | 236 | 88 | 0 | 88 |
| TOTAL | 7,657 | 47 | 7,704 | 11,035 | 39 | 11,074 |
SALES REVENUE OF BUSINESS BY THE GEOGRAPHICAL LOCATION OF CUSTOMERS:
NOTE 14 COST OF GOODS SOLD
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Raw materials and main materials | 279 | 1,132 | 1,749 | 4,056 |
| Electricity, heat and water | 404 | 1,049 | 2,367 | 3,870 |
| Labour expenses (Note 17) | 255 | 414 | 1,189 | 1,621 |
| Depreciation (Note 5; 6) | 122 | 125 | 489 | 497 |
| Purchased goods | 29 | 0 | 155 | 0 |
| Change in balances of finished goods and work in progress |
177 | (877) | 690 | (1,225) |
| Other expenses | 47 | 47 | 171 | 205 |
| TOTAL | 1,313 | 1,890 | 6,810 | 9,024 |
NOTE 15 DISTRIBUTION COSTS
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Transportation expenses | 61 | 122 | 400 | 831 |
| Labour expenses (Note 17) | 54 | 48 | 192 | 186 |
| Marketing expense | 0 | 1 | 2 | 1 |
| Commission fees | 17 | 19 | 66 | 77 |
| Other expenses | 5 | 3 | 13 | 17 |
| TOTAL | 137 | 193 | 673 | 1,112 |
NOTE 16 ADMINISTRATIVE AND GENERAL EXPENSE
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Labour expenses (Note 17) | 57 | 53 | 224 | 226 |
| Purchased services | 40 | 21 | 141 | 80 |
| Office supplies | 19 | 16 | 63 | 51 |
| Other expenses | 25 | 19 | 86 | 67 |
| TOTAL | 141 | 109 | 514 | 424 |
NOTE 17 LABOUR EXPENSES
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Wages and salaries | 272 | 389 | 1,206 | 1,536 |
| Social security and unemployment insurance | 94 | 126 | 399 | 496 |
| Fringe benefits paid to employees | 10 | 4 | 15 | 12 |
| TOTAL | 376 | 519 | 1,620 | 2,045 |
NOTE 18 OTHER OPERATING INCOME AND EXPENSES
OTHER OPERATING INCOME
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Compensation from insurance | 0 | 0 | 0 | 33 |
| Profit from revaluation of real estate investments |
404 | 697 | 404 | 697 |
| TOTAL | 404 | 697 | 404 | 730 |
| OTHER OPERATING EXPENSES | ||||
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
| Reclamations | 0 | 0 | 2 | 3 |
| Contract fees | 2 | 0 | 3 | 1 |
| Membership fees | 0 | 0 | 5 | 1 |
| Penalties paid | 1 | 0 | 4 | 3 |
| Loss from sales of fixed assets | 0 | 0 | 0 | 1 |
| Other costs | 0 | 0 | 413 | 0 |
| TOTAL | 3 | 0 | 427 | 9 |
NOTE 19 FINANCIAL INCOME AND EXPENSES
FINANCIAL INCOME
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Receiced dividends | 0 | 24 | 0 | 129 |
| Total financial income | 0 | 24 | 0 | 129 |
FINANCIAL EXPENSES
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Interest expenses | 54 | 31 | 209 | 126 |
| including interest expenses related to provisions (Note 10) |
3 | 2 | 7 | 6 |
| Revaluation of TPD shares | 183 | 143 | 153 | 0 |
| Other finance cost | 0 | 0 | 4 | 4 |
| Total financial cost | 237 | 174 | 366 | 130 |
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 31 December 2023, Joakim Johan Helenius, the owner of NFB Pärnu Holdings OÜ, had significant influence over the Group (indirect and direct shareholding of 48.71% in the Company). As of 31 December 2022, 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
Nordic Fibreboard AS Consolidated Interim Report (unaudited)
Fourth quarter and 12 months 2023
BENEFITS (INCL. TAX EXPENSES) TO THE MEMBERS OF THE MANAGEMENT ALL CONSOLIDATION GROUP ENTITIES:
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Membership fees | 51 | 53 | 204 | 200 |
| Compensation for use of personal automobile | 1 | 0 | 1 | 0 |
| Social tax | 17 | 17 | 69 | 67 |
| Total | 69 | 70 | 274 | 267 |
Benefits (incl. tax expenses) include payments of parent and subsidiary company Management Board and Supervisory Board fees paid within the period. No payments were made to members of Supervisory Board.
TRANSACTIONS WITH RELATED PARTIES:
Nordic Fibreboard AS has purchased consultation services from related parties. Transactions with related parties are based on market terms.
| thousand € | Q4 2023 | Q4 2022 | 12M 2023 | 12M 2022 |
|---|---|---|---|---|
| Purchased services | 5 | 5 | 21 | 17 |
| Total | 5 | 5 | 21 | 17 |
BALANCES WITH RELATED PARTIES AS OF:
| thousand € | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Purchased services | 7 | 1 |
| Short-term loan | 200 | 0 |
| Total | 207 | 1 |
