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Nordic Fibreboard
Quarterly Report • Aug 3, 2023
2229_10-q_2023-08-03_7950b1c0-7f58-4318-8339-0285977da1ec.pdf
Quarterly Report
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Second quarter Interim Report 2023
NORDIC FIBREBOARD AS
Consolidated Interim Report for the second quarter of 2023 (unaudited)
| 1.04.2023 |
|---|
| 30.06.2023 |
| 1.01.2023 |
| 31.12.2023 |
| Nordic Fibreboard AS |
| 11421437 |
| Rääma 31, Pärnu 80044, Estonia |
| +372 44 78 323 |
| [email protected] |
| www.nordicfibreboard.com |
| AS PricewaterhouseCoopers |
| Production and sales 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 20 | |
| NOTE 14 COST OF GOODS SOLD 23 | |
| NOTE 15 DISTRIBUTION COSTS 23 | |
| NOTE 16 ADMINISTRATIVE AND GENERAL EXPENSES 23 | |
| NOTE 17 LABOUR EXPENSES 23 | |
| NOTE 18 OTHER OPERATING INCOME AND EXPENSES 24 | |
| NOTE 19 FINANCIAL INCOME AND EXPENSES 24 | |
| NOTE 20 RELATED PARTIES 24 | |
| NOTE 21 EVENTS AFTER BALANCE SHEET DATE…………………………………………………………………25 |
COMPANY PROFILE
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. 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.
The Group, as of 30.06.2023, 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 30.06.2023 the Group employed 67 people (30.06.2022: 91 employees).
MANAGEMENT REPORT
NORDIC FIBREBOARD AS UNAUDITED RESULTS FOR SECOND QUARTER OF 2023
Consolidated net sales for Q2 2023 were € 2.01 million (Q2 2022: € 3.65 million). The main business area is Nordic Fibreboard Ltd, the production and wholesale of fibreboard, which recorded sales in Q2 2023 of € 2.00 million, (Q2 2021: € 3.64 million). The remaining business area is Pärnu Riverside Development, real estate management of the property owned in Suur-Jõe street in Pärnu, who recorded sales of € 12 thousand in Q2 2023 (Q2 2022: € 9 thousand).
Nordic Fibreboard Ltd sales of € 2.00 million was down 23% from its sales in Q1 2023, and down 45% from Q2 2022. The drop in sales compared to Q2 2022 was influenced by the termination of sales to Russian customers in the spring of 2022 as a result of sanctions imposed on Russia due to their aggressive war in Ukraine. However, continuing weak demand in three of our main markets, these being Finland, Denmark and Estonia, also had a negative on sales development when comparing last year and this year. We managed to offset some of this sales decline by recording improved sales in two of our other main markets, these being Sweden and Latvia.
The ongoing reduction of woodchip pricing, which is fibreboard main raw material, as well as the new more favourable electricity contracted which we entered into on 1.4.2023, resulted in gross margin being 25% in Q2 2023, up from 11% recorded in Q1 2023. Overhead costs were lower than planned, down in 20% in Q2 2023 compared to Q1 2023, which led a positive EBITDA 212 thousand euros (11% of sales) for Nordic Fibreboard Ltd in Q2 2023 compared to Q1 2023 EBITDA for the quarter, which was negative 76 thousand euros.
Financial expenses for the Q2 2023 were 76 thousand euros, of which 53 thousand euros were loan interest costs, 19 thousand euros were losses from the revaluation of Trigon Property Development (TPD) shares, and 4 thousand euros were other financial expenses. In the Q2 2022, a total financial income of € 82 thousand was recorded, consisting of financial income of € 105 thousand from dividend from the shares of Trigon Property Development (TPD), € 12 thousand from profits from the revaluation of these shares, and financial costs of € 35 thousand. The fibreboard division thus generated net profit of € 16 thousand in Q2 2023 (up from a loss of € 578 thousand in Q1 2023).
DIVISIONAL REVIEW
REVENUE BY BUSINESS SEGMENTS
| € thousand | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Fibreboards production and sales | 1,998 | 3,643 | 4,583 | 6,234 |
| Real Estate Management | 12 | 9 | 23 | 18 |
| TOTAL | 2,010 | 3,652 | 4,606 | 6,252 |
PROFIT BY BUSINESS SEGMENTS
| € thousand | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| EBITDA by business units: | ||||
| Fibreboards production and sales | 212 | 635 | 137 | 914 |
| Real Estate Management | (4) | (3) | (17) | (12) |
| Group transactions | (18) | (8) | (24) | (23) |
| TOTAL EBITDA | 190 | 624 | 96 | 879 |
| Depreciation | (121) | (126) | (244) | (248) |
| TOTAL OPERATING PROFIT/ LOSS | 69 | 498 | (148) | 631 |
| Extraordinary expenses | 0 | 0 | (406) | 0 |
| Net financial costs | (76) | 82 | (50) | 100 |
| NET PROFIT/ LOSS | (7) | 580 | (604) | 731 |
NORDIC FIBREBOARD LTD: FIBREBOARD PRODUCTION AND SALES
Fibreboard sales in Q2 2023 were € 2.00 million (2022: € 3.64 million). The main reasons for this slowdown in sales is due to the weak global economic environment, caused by macro factors such as higher interest rates and higher consumer pricing which have a negative effect on consumer and business confidence. Sales to our largest market Finland was down 29% for the first six months of 2023 compared to same period in 2022, while our market share in sale of fibreboards in Finland have remained unchanged during these periods. Nordic Fibreboard Ltd's homemarket in Estonia have experienced the most dramatic sales decline with 45% when comparing the two aforementioned periods. We had some positive news with restarting sales to our old customers in Africa during the first six months of this year.
EBITDA, of the fibreboard activities in Q2 2023 was positive at 212 thousand euros, which is a good improvement compared to Q1 2023 EBITDA which was negative 76 thousand euros, but far short of Q2 2022 when EBITDA was a positive 635 thousand euros. Fibreboard division's net profit for Q2 2023 was € 16 thousand (Q2 2022: net profit € 592 thousand).
| € thousand | € thousand | |||
|---|---|---|---|---|
| Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 | |
| European Union | 1,862 | 3,444 | 4,317 | 5,702 |
| Africa | 40 | 0 | 93 | 0 |
| Middle East | 28 | 13 | 28 | 26 |
| Asia | 23 | 28 | 55 | 70 |
| Russia | 0 | 158 | 0 | 427 |
| Other | 45 | 0 | 90 | 9 |
| TOTAL | 1,998 | 3,643 | 4,583 | 6,234 |
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 Q2 2023, (Q2 2022: € 9 thousand).
The real estate management EBITDA for Q2 2023 were negative € 4 thousand and net loss € 4 thousand (Q2 2022: EBITDA negative € 3 thousand and net loss € 3 thousand).
STATEMENT OF FINANCIAL POSITION AND CASH FLOW STATEMENT
As of 30.06.2023 the total assets of Nordic Fibreboard AS were € 8.9 million (30.06.2022: € 9.1 million). The liabilities of the company as of 30.06.2023 were € 4.4 million (30.06.2022: € 4.5 million), of which Group has payables amounting to € 0.9 million as at 30.06.2023 (30.06.2022: € 0.8 million) and borrowings of € 3.0 million as at 30.06.2023 (30.06.2022: € 3.2 million).
Receivables and prepayments amounted to € 0.7 million as at 30.06.2023 (30.06.2022: € 1.6 million). Inventories were € 0.9 million as of 30.06.2023 (30.06.2022: € 0.6 million). Fixed assets were € 7.2 million as of 30.06.2023 (€ 6.7 million as of 30.06.2022).
During 6M 2023, the Group's cash flows from operating activities totalled cash inflow of € 378 thousand (6M 2022: cash inflow € 269 thousand). Cash outflows due to investment activities was € 171 thousand during 6M 2023, consisting of investments into production assets (6M 2022: cash outflow € 39 thousand). Cash outflows due to financing activities was € 207 thousand during 6M 2023,
(6M 2022: cash outflow € 74 thousand). The net cash flow for the 6M 2023 was € 0 (6M 2022: cash inflows € 156 thousand).
PEOPLE
On the 30th of June 2023, the Group employed 67 people (compared to 91 people as of 30.06.2022). The average number of personnel in Q2 2023 was 68 (Q2 2022: 92 people).
Labour costs were € 415 thousand including taxes in Q2 2023 and € 851 thousand for first six months of 2023 (Q2 2022: € 533 thousand, 6M 2022: € 1.016 thousand). Group fees for the members of the management boards of holding company and its subsidiaries, together with taxes, were € 64 thousand in Q2 2023 and € 125 thousand for first six months of 2023 (Q2 2022: € 66 thousand, 6M 2022: € 132 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 overall demand picture continues to be challenging, and the short-term outlook remains uncertain due to headwinds coming from macro factors, such as increasing interest rates, global economic uncertainty, and the ongoing war in Ukraine. All have led to a construction/renovation market slowdown and a lack of confidence among end users of building materials, including the use of the company's fibreboards.
Main operation issue remains the ongoing preparation of upgrading the company's wood-based boiler house in Pärnu so to meet the new emission requirements coming into force in 01.01.2025.
PÄRNU RIVERSIDE DEVELOPMENT
We will continue to manage and develop the property on Suur-Jõe Street 48, Pärnu. A detail plan for the property is ongoing, with the intention of converting the property into a private residential property.
FINANCIAL HIGHLIGHTS
| € thousand | ||||
|---|---|---|---|---|
| Income statement | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
| Revenue | 2,010 | 3,652 | 4,606 | 6,252 |
| EBITDA | 190 | 624 | 96 | 879 |
| EBITDA margin | 9% | 17% | 2% | 14% |
| Operating profit | 69 | 498 | (148) | 631 |
| Operating margin | 3% | 14% | (3%) | 10% |
| Net profit | (7) | 580 | (604) | 731 |
| Net margin | (0%) | 16% | (13%) | 12% |
| Statement of financial position | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
| Total assets | 8,856 | 9,408 | 9,100 | 8,063 |
| Return on assets | (7%) | 13% | 8% | 15% |
| Equity | 4,480 | 5,084 | 4,582 | 3,850 |
| Return on equity | (13%) | 24% | 16% | 31% |
| Debt-to-assets ratio | 49% | 46% | 50% | 52% |
| Share | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
| Last Price* | 1.24 | 1.60 | 1.66 | 1.95 |
| Last Price* | 1.24 | 1.60 | 1.66 | 1.95 |
|---|---|---|---|---|
| Earnings per share | (0.02) | 0.27 | 0.17 | 0.27 |
| Price-earnings ratio | (54.66) | 5.83 | 9.61 | 7.30 |
| Book value of a share | 1.00 | 1.13 | 1.02 | 0.86 |
| Market to book ratio | 1.25 | 1.42 | 1.63 | 2.28 |
| Market capitalization, € thousand | 5,579 | 7,198 | 7,468 | 8,773 |
| Number of shares | 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-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 increases when the interest rate increases. At 30.06.2023 six months' EURIBOR rate was 3,900% and at 30.06.2022 0,263%. Before the rapid rise of EURIBOR starting in 2022, the EURIBOR rate was negative for several years, which meant that EURIBOR was equated to zero in the loan agreemens. The loan from the Rural Development Foundation is concluded with a fixed interest rate, thus bear no interest rate risk. However, the Company 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 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 because its 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 are mainly in EUR.
RISK OF THE ECONOMIC ENVIRONMENT
The risk of the economic environment for the Group depends on general developments in the construction and industrial segments. The economic environment in the last two years has been most affected by Russia`s aggression against Ukraine, which has had an impact on the world economy, especially in Europe. Commodities prices have therefore been volatile, supply chains have been disturbed, and interest rates have increased. At the start of 2023, there were signs of some easing of the macroeconomic risks that the Company faced in 2022, however the ongoing uncertainty created by the war in Ukraine, and its implications and effects on the global, and especially European, economic environment make it difficult to make future economic forecasts.
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. Fair value of investment property does not materially differ from its carrying amount.
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 2023.
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 10-25 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.
Torfinn Losvik, Chairman of the Management Board
Kevin Gustasson, Member of the Management Board
Pärnu, 3 August, 2023
INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONS
| € thousand | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
|---|---|---|---|---|
| Cash and cash equivalents | 2 | 2 | 213 | 57 |
| Receivables and prepayments (Note 2) | 717 | 559 | 1,632 | 902 |
| Inventories (Note 3) | 930 | 1,672 | 587 | 390 |
| Total current assets | 1,649 | 2,233 | 2,432 | 1,349 |
| Investment property (Note 4) | 1,859 | 1,859 | 1,152 | 1,152 |
| Financial assets at fair value through profit or loss (Note 7) |
698 | 644 | 708 | 644 |
| Property, plant and equipment (Note 5) | 4,648 | 4,670 | 4,805 | 4,915 |
| Intangible assets (Note 6) | 2 | 2 | 3 | 3 |
| Total non-current assets | 7,207 | 7,175 | 6,668 | 6,714 |
| TOTAL ASSETS | 8,856 | 9,408 | 9,100 | 8,063 |
| Borrowings (Note 8) | 324 | 290 | 75 | 146 |
| Payables and prepayments (Note 9) | 1,094 | 1,014 | 1,218 | 829 |
| Short-term provisions (Note 10) | 8 | 18 | 9 | 19 |
| Total current liabilities | 1,426 | 1,322 | 1,302 | 994 |
| Long-term borrowings (Note 8) | 2,684 | 2,875 | 3,071 | 3,074 |
| Long-term payables and prepayments (Note 9) | 139 | 0 | 0 | 0 |
| Long-term provisions (Note 10) | 127 | 127 | 145 | 145 |
| Total non-current liabilities | 2,950 | 3,002 | 3,216 | 3,219 |
| Total liabilities | 4,376 | 4,323 | 4,518 | 4,213 |
| Share capital (at nominal value) (Note 11) | 450 | 450 | 450 | 450 |
| Statutory reserve capital | 45 | 45 | 45 | 0 |
| Retained earnings (loss) | 3,985 | 4,589 | 4,087 | 3,400 |
| Total equity | 4,480 | 5,084 | 4,582 | 3,850 |
| TOTAL LIABILITIES AND EQUITY | 8,856 | 9,408 | 9,100 | 8,063 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| € thousand | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Revenue (Note 13) | 2,010 | 3,652 | 4,606 | 6,252 |
| Cost of goods sold (Note 14) | 1,629 | 2,687 | 4,064 | 4,746 |
| Gross profit | 381 | 965 | 542 | 1,506 |
| Distribution costs (Note 15) | 171 | 356 | 403 | 641 |
| Administrative expenses (Note 16) | 133 | 104 | 273 | 226 |
| Other operating expenses (Note 18) | 8 | 7 | 14 | 8 |
| Operating profit (loss) | 69 | 498 | (148) | 631 |
| Extraordinary expenses | 0 | 0 | 406 | 0 |
| Finance income (Note 19) | 0 | 117 | 74 | 169 |
| Finance costs (Note 19) | 76 | 35 | 124 | 69 |
| PROFIT (LOSS) BEFORE INCOME TAX | (7) | 580 | (604) | 731 |
| NET PROFIT (LOSS) FOR THE PERIOD | (7) | 580 | (604) | 731 |
| Basic earnings per share (Note 12) | (0.00) | 0.13 | (0.13) | 0.16 |
| Diluted earnings per share (Note 12) | (0.00) | 0.13 | (0.13) | 0.16 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand | 6M 2023 | 6M 2022 |
|---|---|---|
| Cash flows from operating activities | ||
| Operating profit (loss) | (148) | 631 |
| Adjustments: | ||
| Depreciation charge (Notes 5;6) | 244 | 248 |
| Profit/loss from sale of non-current asset (Note 18) | 0 | 1 |
| Change in trade and other receivables (Note 2) | (158) | (730) |
| Change in inventories (Note 3) | 742 | (197) |
| Change in trade and other payables (Note 9) | 219 | 389 |
| Change in provisions (Note 10) | (10) | (10) |
| Cash generated from operations | 889 | 332 |
| Interest payments (Note 19) | (101) | (63) |
| Net other financial income and expense | (4) | 0 |
| Extraordinary expense | (406) | 0 |
| Net cash generated from operating activities | 378 | 269 |
| Cash flows from investing activities | ||
| Purchase of property, plant and equipment and intangible assets (Notes 5;6) | (171) | (144) |
| Dividends received | 0 | 105 |
| Net cash used in investing activities | (171) | (39) |
| Cash flows from financing activities | ||
| Repayment of loans received (Note 8) | (306) | (50) |
| Loans received from related parties (Note 8) | 200 | 0 |
| Finance lease payments (Note 8) | (33) | (24) |
| Overdraft change (Note 8) | (68) | 0 |
| Net cash (used in)/from financing activities | (207) | (74) |
| NET CHANGE IN CASH | 0 | 156 |
| OPENING BALANCE OF CASH | 2 | 57 |
| CLOSING BALANCE OF CASH | 2 | 213 |
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 6M 2022 | 0 | 0 | 731 | 731 |
| Total comprehensive profit for 6M 2022 | 0 | 0 | 731 | 731 |
| Balance at 30.06.2022 | 450 | 45 | 4,087 | 4,582 |
| 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 |
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. The Group`s largest shareholder is Pärnu Holdings OÜ (owning 57.63%), whose largest owners as of 30.06.2023 and 30.06.2022 are 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 31.12.2022. 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 2nd 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 | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
|---|---|---|---|---|
| Customer receivables | 600 | 391 | 1,426 | 729 |
| Prepaid taxes | 105 | 150 | 192 | 151 |
| Prepaid services | 12 | 17 | 13 | 22 |
| Other receivables | 0 | 1 | 1 | 1 |
| TOTAL | 717 | 559 | 1,632 | 902 |
NOTE 2 TRADE AND OTHER RECEIVABLES
No write-downs of receivables have been made in Q2 2023 or Q2 2022.
ANALYSIS OF TRADE RECEIVABLES BY AGING:
| thousand € | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
|---|---|---|---|---|
| Not past due | 599 | 373 | 1,412 | 678 |
| incl receivables from customers who also have receivables past due |
0 | 236 | 416 | 95 |
| incl receivables from customers who have no receivables past due |
599 | 137 | 996 | 583 |
| Past due but not impaired | 1 | 18 | 14 | 51 |
| Overdue up to 90 days | 1 | 16 | 9 | 51 |
| Overdue more than 90 days | 0 | 2 | 5 | 0 |
| TOTAL | 600 | 391 | 1,426 | 729 |
NOTE 3 INVENTORIES
| € thousand | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
|---|---|---|---|---|
| Raw materials and other materials | 217 | 401 | 394 | 303 |
| Work-in-progress | 44 | 228 | 88 | 41 |
| Finished goods | 708 | 1,081 | 109 | 32 |
| Goods in transit | 0 | 0 | 0 | 11 |
| Prepayments to suppliers | 1 | 2 | 36 | 43 |
| Write-off reserve for inventories | (40) | (40) | (40) | (40) |
| TOTAL | 930 | 1,672 | 587 | 390 |
NOTE 4 INVESTMENT PROPERTY
| thousand € | |
|---|---|
| Carrying amount 31.12.2021 | 1,152 |
| Carrying amount 30.06.2022 | 1,152 |
| Carrying amount 31.12.2022 | 1,859 |
| Carrying amount 30.06.2023 | 1,859 |
The amount of expenses related to the management of investments properties for Q2 2023 were € 16 thousand and € 12 thousand in Q2 2022. Rental income from investment properties for Q2 2023 was € 12 thousand and in Q2 2022 were € 9 thousand.
| 31.12.2021 | |
|---|---|
| Share of registered immovable property at Suur-Jõe 48, Pärnu | 977 |
| Share of registered immovable property at Rääma Street 31, Pärnu | 175 |
| 30.06.2022 | |
| Share of registered immovable property at Suur-Jõe 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 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 |
| thousand € | Land | Buildings and facilities |
Machinery and equipment |
Other fixtures |
Construc tion-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 | 0 | 44 | 0 | 100 | 0 | 144 |
| Reclassification | 0 | 0 | 221 | 0 | (211) | (10) | 0 |
| Reclassification of accumulated deprecation |
0 | 0 | (10) | 0 | 0 | 10 | 0 |
| Disposals and write-offs (Note 18) | (7) | 0 | (80) | 0 | 0 | 0 | (87) |
| Accumulated depreciation of fixed assets written off |
0 | 0 | 80 | 0 | 0 | 0 | 80 |
| Depreciation (Note 14) | 0 | (39) | (184) | 0 | 0 | (24) | (247) |
| Cost at 30.06.2022 | 184 | 2,556 | 11,030 | 89 | 362 | 104 | 14,325 |
| Accumulated depreciation at 30.06.2022 |
0 | (1,818) | (7,573) | (88) | 0 | (42) | (9,520) |
| Carrying amount at 30.06.2022 | 184 | 738 | 3,458 | 1 | 362 | 62 | 4,805 |
| 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 | 0 | 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 30.06.2022 | 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 |
NOTE 5 PROPERTY PLANT EQUIPMENT AND RIGHT OF USE ASSETS
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 |
| Cost at 30.06.2022 | 13 |
| Accumulated amortisation at 30.06.2022 | (10) |
| Carrying amount 30.06.2022 | 3 |
| 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 30.06.2022 | 2 |
NOTE 7 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
| thousand € | 30.06.2023 | Change 6M 2023 |
31.12.2022 | 30.06.2022 | 31.12.2021 |
|---|---|---|---|---|---|
| Non-current assets | |||||
| Listed securities - Equity securities - cost as at |
338 | 0 | 338 | 338 | 338 |
| Revaluation* | 360 | 54 | 306 | 370 | 306 |
| Fair value as at | 698 | 54 | 644 | 708 | 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 30.06.2023 as shown on Nasdaq Tallinn.
NOTE 8 BORROWINGS
| thousand € | Interest rate | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
|---|---|---|---|---|---|
| Current borrowings | |||||
| Current portion of long-term loan (Coop Bank) |
6 month euribor+3.5% | 56 | 106 | 53 | 100 |
| Current portion of long-term loan (RDF) |
Until 30.12.2022 2%, later 4% |
55 | 83 | 0 | 0 |
| Current portion of long-term lease liabilities |
2,49% | 11 | 31 | 22 | 46 |
| Short term loan from related parties | 8% | 200 | 0 | 0 | 0 |
| Bank overdrafts (Coop Bank) | 4% | 2 | 70 | 0 | 0 |
| Total | 324 | 290 | 75 | 146 | |
| Non-current borrowings | |||||
| Non-current loans (Coop Bank) | 6 month euribor+3.5% | 926 | 926 | 1,031 | 1,034 |
| Non-current loans (RDF) | Until 30.12.2022 2%, later 4% |
1,689 | 1,917 | 2,000 | 2,000 |
| Non-current lease liabilities | 2,49% | 69 | 32 | 40 | 40 |
| Total | 2,684 | 2,875 | 3,071 | 3,074 | |
| Total borrowings | 3,008 | 3,165 | 3,146 | 3,220 |
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 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 one-year overdraft agreement with Coop Bank AS with a limit of € 200 thousand. The interest rate on the overdraft is 3.5% per annum.
In Q2 2023, repayments of lease obligations in the amount of € 33 thousand were made.
| Changes in liabilities arising | 31.12.2022 | Cash | Non | Interest | Interest | Reclassi | 30.06.2023 |
|---|---|---|---|---|---|---|---|
| from financing activities thousand € |
flows | monetary movements |
accrued | paid | fication | ||
| Current portion of long-term loan (Coop Bank) |
106 | (50) | 0 | 31 | (31) | 0 | 56 |
| Current portion of long-term loan (RDF) |
83 | (56) | 0 | 57 | (57) | 28 | 55 |
| Current portion of short-term lease liabilities |
31 | (33) | 13 | 1 | (1) | 0 | 11 |
| Short term loan from related parties |
0 | 200 | 0 | 0 | 0 | 0 | 200 |
| Bank overdrafts (Coop Bank) | 70 | (68) | 0 | 2 | (2) | 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 lease liabilities | 32 | 0 | 36 | 0 | 0 | 0 | 69 |
| Total liabilities from financing activities |
3,165 | (207) | 49 | 91 | (91) | 0 | 3,008 |
CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES 6M 2023
CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES 6M 2022
| thousand € | 31.12.2021 | Cash flows |
Non monetary movements |
Interest accrued |
Interest paid |
Reclassi fication |
30.06.2022 |
|---|---|---|---|---|---|---|---|
| Current portion of long-term loan (Coop Bank) |
100 | (50) | 0 | 23 | (23) | 3 | 53 |
| Current portion of short-term financial lease |
46 | (24) | 0 | 1 | (1) | 0 | 22 |
| Bank overdrafts (Coop Bank) | 0 | 0 | 0 | 1 | (1) | 0 | 0 |
| Non-current loans (Coop Bank) | 1,034 | 0 | 0 | 0 | 0 | (3) | 1,031 |
| Non-current loans (RDF) | 2,000 | 0 | 0 | 38 | (38) | 0 | 2,000 |
| Non-current lease liability | 40 | 0 | 0 | 0 | 0 | 0 | 40 |
| Total liabilities from financing activities |
3,220 | (74) | 0 | 63 | (63) | 0 | 3,146 |
| thousand € | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
|---|---|---|---|---|
| Current payables and prepayments | ||||
| Trade payables | 770 | 471 | 797 | 367 |
| Payables to employees | 134 | 145 | 156 | 149 |
| incl. accrued holiday pay reserve | 50 | 50 | 46 | 46 |
| Tax liabilities | 108 | 133 | 149 | 137 |
| incl. social security and unemployment insurance | 66 | 83 | 89 | 87 |
| personal income tax | 31 | 40 | 43 | 40 |
| contribution to mandatory funded pension | 2 | 2 | 2 | 2 |
| other taxes | 9 | 8 | 15 | 8 |
| Prepayments received | 51 | 246 | 60 | 152 |
| Other payables | 31 | 19 | 57 | 24 |
| TOTAL | 1,094 | 1,014 | 1,218 | 829 |
| thousand € | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
| Long-term payables and prepayments | ||||
| Long-term trade payables | 139 | 0 | 0 | 0 |
| TOTAL | 139 | 0 | 0 | 0 |
NOTE 9 PAYABLES AND PREPAYMENTS
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 6M: | |
| Use of provision | (13) |
| Interest cost (Note 19) | 3 |
| Balance at 30.06.2022 | 154 |
| incl. current portion of provision | 9 |
| incl. non-current portion of provision | 145 |
| Balance at 31.12.2022 | 145 |
| incl. current portion of provision | 18 |
| incl. non-current portion of provision | 127 |
| Movements 2023 6M: | |
| 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 |
NOTE 11 EQUITY
| Nominal value | Number of shares | Share capital | ||
|---|---|---|---|---|
| € | pcs | thousand € | ||
| Balance at 30.06.2023 | 0.10 | 4,499,061 | 450 | |
| Balance at 31.12.2022 | 0.10 | 4,499,061 | 450 | |
| Balance at 30.06.2022 | 0.10 | 4,499,061 | 450 | |
| Balance at 31.12.2021 | 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 30.06.2023 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 |
As at 30.06.2022 the Group had 1,182 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 | 597,367 | 13.28 |
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:
- Rando Tomingas 0 shares (30.06.2022: 0 shares)
- Trond Brekke 0 shares (30.06.2022: 0 shares)
- Sakari Wallin 0 shares (30.06.2022: 0 shares)
- Torfinn Losvik 0 shares (30.06.2022: 0 shares)
- Kevin Gustasson 0 shares (30.06.2022: 0 shares)
The Supervisory Board of AS Nordic Fibreboard elected Kevin Gustasson as a new member of the Management Board whose powers began on 20.06.2023 and are valid for 3 years. At the extraordinary general meeting of Nordic Fibreboard AS held on 28.06.2023, Joakim Johan Helenius was recalled from the Supervisory Board of Nordic Fibreboard AS, who owned 20,000 Nordic Fibreboard AS shares as of 30.06.2023 and 30.06.2022. Rando Tomingas, who owns shares through Triangel Kapital OÜ in the amount of 36,762 shares (30.06.2022: 36,762 shares), was confirmed as a new member of the Supervisory Board. Both Joakim Johan Helenius and Torfinn Losvik have indirect ownership through parent company Pärnu Holdings OÜ. Torfinn Losvik owns shares through Stetind OÜ in the amount of 44,206 shares (2022: 44,206 shares).
NOTE 12 EARNINGS PER SHARE
Diluted earnings (loss) per share is calculated based on the net profit (loss) and the number of shares. 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 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.
| 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 | |
|---|---|---|---|---|
| Net profit (-loss) (in thousands of euros) | (604) | 1,234 | 731 | 1,202 |
| Weighted average number of shares (th pc) | 4,499 | 4,499 | 4,499 | 4,499 |
| Basic earnings per share (in euros) | (0.13) | 0.27 | 0.16 | 0.27 |
| Weighted average number of shares used for calculating the diluted earnings per shares (th pc) |
4,499 | 4,499 | 4,499 | 4,499 |
| Diluted earnings per share (in euros) | (0.13) | 0.27 | 0.16 | 0.27 |
| Last price of the share of Nordic Fibreboard AS on Tallinn Stock Exchange (in euros) |
1.24 | 1.60 | 1.66 | 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, 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.
| 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 | (107) | (17) | (24) | (148) |
| Extraordinary expenses | 406 | 0 | 0 | 406 |
| Finance income (Note 19) | 74 | 0 | 0 | 74 |
| Finance costs (Note 19) | (122) | 0 | (2) | (124) |
| 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 |
BUSINESS SEGMENTS:
| 6 months 2022 thousand € |
Fibreboard manufacturing and wholesale |
Real Estate Management |
Group's general expenses and eliminations |
SEGMENTS TOTAL |
|---|---|---|---|---|
| Revenue from external customers | 6,234 | 18 | 0 | 6,252 |
| EBITDA | 914 | (12) | (23) | 879 |
| Amortisation/ depreciation (Notes 5; 6) | 248 | 0 | 0 | 248 |
| Operating profit/-loss | 666 | (12) | (23) | 631 |
| Finance income (Note 19) | 169 | 0 | 0 | 169 |
| Finance costs (Note 19) | 67 | 0 | 2 | 69 |
| Net profit/loss | 769 | (12) | (26) | 731 |
| Segment assets | 8,296 | 983 | (179) | 9,100 |
| Non-current assets of the segment (Notes 4; 5; 6; 7) |
5,690 | 977 | 0 | 6,668 |
| Segment liabilities | 4,366 | 15 | 137 | 4,518 |
| Additions to non-current assets (Notes 5; 6) |
144 | 0 | 0 | 144 |
| thousand € | 6M 2023 | 6M 2022 | ||||
|---|---|---|---|---|---|---|
| Fibreboard manufacturi ng and wholesale |
Real Estate Manage ment |
SEGMENTS TOTAL |
Fibreboard manufacturi ng and wholesale |
Real Estate Manage ment |
SEGMENTS TOTAL |
|
| European Union | 4,317 | 23 | 4,340 | 5,702 | 18 | 5,720 |
| Africa | 93 | 0 | 93 | 0 | 0 | 0 |
| Middle East | 28 | 0 | 28 | 26 | 0 | 26 |
| Asia | 55 | 0 | 55 | 70 | 0 | 70 |
| Russian | 0 | 0 | 0 | 427 | 0 | 427 |
| Other | 90 | 0 | 90 | 9 | 0 | 9 |
| Grand Total | 4,583 | 23 | 4,606 | 6,234 | 18 | 6,252 |
SALES REVENUE OF BUSINESS SEGMENTS BY THE GEOGRAPHICAL LOCATION OF CUSTOMERS:
NOTE 14 COST OF GOODS SOLD
| thousand € | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Raw materials and main materials | 571 | 1,100 | 968 | 1,851 |
| Electricity and heat | 648 | 998 | 1,447 | 1,857 |
| Labour expenses (Note 17) | 308 | 419 | 648 | 798 |
| Depreciation (Notes 5;6) | 121 | 126 | 244 | 248 |
| Purchased goods | 0 | 0 | 127 | 0 |
| Change in balances of finished goods, goods in transit and work in progress |
(56) | (14) | 546 | (113) |
| Other expenses | 37 | 58 | 84 | 105 |
| TOTAL | 1,629 | 2,687 | 4,064 | 4,746 |
NOTE 15 DISTRIBUTION COSTS
| thousand € | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Transportation expenses | 102 | 283 | 271 | 503 |
| Labour expenses (Note 17) | 48 | 46 | 90 | 92 |
| Marketing expense | 2 | 0 | 2 | 0 |
| Agency fees | 17 | 22 | 36 | 34 |
| Other expenses | 2 | 5 | 4 | 12 |
| TOTAL | 171 | 356 | 403 | 641 |
NOTE 16 ADMINISTRATIVE AND GENERAL EXPENSES
| thousand € | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Labour expenses (Note 17) | 57 | 65 | 110 | 120 |
| Purchased services | 38 | 19 | 90 | 55 |
| Office supplies | 12 | 10 | 33 | 23 |
| Other expenses | 26 | 10 | 40 | 28 |
| TOTAL | 133 | 104 | 273 | 226 |
NOTE 17 LABOUR EXPENSES
| thousand € | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Wages and salaries | 312 | 400 | 640 | 764 |
| Social security and unemployment insurance | 101 | 130 | 208 | 246 |
| Fringe benefits paid to employees | 2 | 3 | 3 | 6 |
| TOTAL | 415 | 533 | 851 | 1,016 |
NOTE 18 OTHER OPERATING EXPENSES
| thousand € | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Reclamations | 2 | 3 | 2 | 3 |
| Commission fees | 1 | 1 | 1 | 1 |
| Penalties paid | 4 | 3 | 4 | 3 |
| Loss from sales of fixed assets | 0 | 0 | 0 | 1 |
| Other costs | 1 | 0 | 7 | 0 |
| TOTAL | 8 | 7 | 14 | 8 |
NOTE 19 EXTRAORDINARY EXPENSES, FINANCIAL INCOME AND EXPENSES
EXTRAORDINARY EXPENSES
| thousand € | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Loss from electricity sold back | 0 | 0 | 406 | 0 |
| KOKKU | 0 | 0 | 406 | 0 |
FINANCIAL INCOME
| thousand € | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Received dividends | 0 | 105 | 0 | 105 |
| Revaluation of TPD shares | 0 | 12 | 74 | 64 |
| Total financial income | 0 | 117 | 74 | 169 |
FINANCIAL EXPENSES
| thousand € | ||||
|---|---|---|---|---|
| Interest expenses | 53 | 31 | 101 | 65 |
| ' including interest expenses related to provisions (Note 10) |
1 | 1 | 2 | 3 |
| Revaluation of TPD shares | 19 | 0 | 19 | 0 |
| Other finance cost | 4 | 4 | 4 | 4 |
| Total financial cost | 76 | 35 | 124 | 69 |
NOTE 20 RELATED PARTIES
The following parties are considered to be related parties:
- Parent company Pärnu Holdings OÜ and 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 June 2023, the largest shareholder of Pärnu Holdings OÜ and the entities with significant influence over the Group are: Stetind OÜ (50%) and Joakim Johan Helenius (50%). The owner of Stetind OÜ is Torfinn Losvik.
| thousand € | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Membership fees | 48 | 50 | 94 | 98 |
| Social tax | 16 | 16 | 31 | 33 |
| Total | 64 | 66 | 125 | 132 |
BENEFITS (INCL. TAX EXPENSES) TO THE MEMBERS OF THE MANAGEMENT ALL CONSOLIDATION GROUP ENTITIES:
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. The member of the Management Board of Nordic Fibreboard AS will receive severance pay to three months' remuneration according to the contract. No payments were made to members of Supervisory Board.
Nordic Fibreboard AS has purchased consultation services from related parties. Transactions with related parties are based on market terms.
In the Q1 2023, Nordic Fibreboard AS subsidiary Nordic Fibreboard Ltd OÜ received a short-term loan in the amount of € 200 thousand from the related party Pärnu Holdings OÜ, with an interest rate of 8% per annum.
| thousand € | Q2 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
|---|---|---|---|---|
| Received short-term loan | 0 | 0 | 200 | 0 |
| Purchased services | 5 | 5 | 9 | 9 |
| Total | 5 | 5 | 209 | 9 |
| BALANCES WITH RELATED PARTIES AS OF: | ||||
| thousand € | 30.06.2023 | 31.12.2022 | 30.06.2022 | 31.12.2021 |
| Purchased services | 6 | 1 | 3 | 1 |
| Received short-term loan | 200 | 0 | 0 | 0 |
| Total | 206 | 1 | 3 | 1 |
TRANSACTIONS WITH RELATED PARTIES:
NOTE 21 EVENTS AFTER BALANCE SHEET DATE
At the extraordinary general meeting of Nordic Fibreboard AS held on 13.07.2023, Trond B. Brekke was recalled from the Council, Aigar Kallas was confirmed as a new member of the Council. Aigar Kallas does not own Nordic Fibreboard AS shares.
The Supervisory Board of Nordic Fibreboard AS recalled Rando Tomingas from the Audit Committee, in connection with his election as a Member of the Supervisory Board. The Supervisory Board elected Kairi Ratas as a new member of the Audit Committee.
