Market announcement

Management Commentary

In the 2025/2026 financial year, the Group continued to implement the debt restructuring plan agreed in the 2024/2025 financial year. At the end of the financial year, the Group successfully completed its exit from the Saaremaa production unit in Estonia, resulting in a one-off gain of EUR 1.0 million, with total proceeds from the disposal amounting to EUR 2.3 million. The sale of the Saaremaa unit brought the Group’s production activities in Estonia to an end and enables the Group to focus on higher value-added products in the UK market. The Management Board would like to thank the Saaremaa team for their contribution and acknowledge Management Board member Timo Pärn for his work in managing the unit and the Group as a whole.

The table below provides a summary of the Group’s results from discontinued and continuing operations.

The Group’s revenue from the Saaremaa and Scotland production units amounted to EUR 15.3 million, representing a year-on-year decrease of 18.5%. Revenue from the Scotland unit amounted to EUR 13.4 million, down 3.1% compared with the previous year, reflecting weak consumer demand, pricing pressure, tax changes and uncertainty in the retail and HoReCa sectors. Despite challenging market conditions, the Group maintained a strong market position and profitability: the Scotland production unit ended the financial year with an operating profit of EUR 0.1 million (2024/2025: EUR 0.8 million).

The Group ended the 2025/2026 financial year with a loss. The Group’s total net loss from discontinued and continuing operations amounted to EUR 2.5 million. The net loss from discontinued operations was EUR 0.2 million; excluding the one-off gain from the disposal of the production unit, the loss would have amounted to EUR 1.3 million (2024/2025: loss of EUR 1.0 million).

Continuing operations generated a net loss of EUR 2.3 million (2024/2025: net profit of EUR 8.3 million, including a EUR 7.3 million gain from the restructuring of debt obligations). The result was affected by EUR 1.9 million of interest expense recognised on the restructured debt obligations using the effective interest method. The nominal interest rate on the loans is 0% and, in accordance with the restructuring agreement, no interest payments are made, thereby reducing pressure on cash flows and supporting the implementation of the Group’s strategic objectives. The Scotland unit ended the financial year at break-even (2024/2025: profit of EUR 0.5 million).

The Management Board is focused on restoring the profitability of the Scotland unit and improving operational efficiency, with the objective of increasing cash flows, strengthening the Group’s capital position and achieving the targets set out in the restructuring agreement.

We would like to thank all our employees, business partners and investors for their commitment and trust. The restructuring measures implemented have laid the foundation for a stronger Group and ensured the continuation of the Group’s operations.

Consolidated statement of financial position

Consolidated statement of comprehensive income