Börsiteade

 

MANAGEMENT REPORT

Nordic Fibreboard AS consolidated net revenue in Q2 2026 was €2.27 million, representing a 21.4% increase compared to the same period of the previous year (Q2 2025: €1.87 million), revenue increased by €397 thousand. The Group's main business activity is the production and wholesale of fibreboard, which accounted for the vast majority of the Group's revenue in Q2 2026. The second segment comprises the management of the property located on Suur-Jõe Street in Pärnu. However, following the termination of the lease agreements for the building in August 2024, the revenue generated by this segment is immaterial.

Nordic Fibreboard's consolidated EBITDA in Q2 2026 was negative €225 thousand, with an EBITDA margin of negative 10% (Q2 2025 EBITDA: negative €94 thousand, EBITDA margin: negative 5%). The results for the Q2 2026 were significantly negatively impacted by the sharp increase in gas prices in February 2026. The negative impact is ongoing, and the company is not able to raise product prices to a level that would match the rise in gas prices. This is partly due to long-term contracts with fixed prices, and partly due to the competitive situation prevailing in the market.

Financial expenses in Q2 2026 were €44 thousand, consisting of loan interest costs and other financial costs (€46 thousand in Q2 2025).

The Group's consolidated net loss for Q2 2026 was €414 thousand (Q2 2025 net loss: €268 thousand).

Fibreboard production and sales

Revenue from fibreboard sales amounted to €2.27 million in Q2 2026, compared with €1.87 million in the same period of 2025, representing an increase of €397 thousand, or 21.4%. The improvement in sales performance was primarily supported by sales to new customers.

Nordic Fibreboard Ltd OÜ’s EBITDA for the Q2 of 2026 was negative EUR 188 thousand (Q2 2025 negative EUR 67 thousand). Nordic Fibreboard Ltd OÜ’s net loss for the Q2 of 2026 amounted to EUR 377 thousand (Q2 2025 net loss of EUR 241 thousand). Q2 2026 EBITDA was negatively impacted by a sharp rise in energy prices (including gas prices nearly doubling), which resulted from the U.S. military strike on Iran at the end of February.

Fibreboard sales by geographical segments

	€ thousand		€ thousand
Region	Q2 2026	Q2 2025	6m 2026	6m 2025
European Union	2,154	1,777	3,935	3,416
Asia	86	28	99	28
Africa	0	27	62	114
Other regions	23	35	28	43
TOTAL	2,263	1,867	4,124	3,601

 

Real estate management

As a secondary activity, the Group owns and manages the former furniture factory property located at Suur-Jõe 48 in the city of Pärnu, for which a detailed plan has been established for residential real estate development. Previously, the Suur-Jõe 48 property was owned and managed by Pärnu Riverside Development OÜ, a wholly owned subsidiary of Nordic Fibreboard AS, however on 30.07.2025 Nordic Fibreboard AS and Pärnu Riverside Development OÜ entered into a merger agreement, under which Nordic Fibreboard AS was the acquiring entity and Pärnu Riverside Development OÜ was the entity being absorbed. The merger date was 01.06.2025 and as a result of the merger, the Suur-Jõe 48 property is now directly owned by Nordic Fibreboard AS.

The design works for the Admirali Quarter development project at Suur-Jõe 48 have been completed. Building permits have been issued for the internal roads and utility networks within the quarter, for apartment buildings at Admirali 1/3, Admirali 5/7, and Admirali 9/11, as well as for the reconstruction of the existing office building at Suur-Jõe 48.

Consolidated statement of financial position and cash flow statement

As of 30.06.2026 the total assets of Nordic Fibreboard AS were € 9.4 million (30.06.2025: 8.85 million). The liabilities of the company as of 30.06.2026 were € 5.9 million (30.06.2025: € 5.73 million), of which the Group has trade payables of € 1.6 million as at 30.06.2026 (30.06.2025: € 0.97 million) and borrowings of € 3.5 million as at 30.06.2026 (30.06.2025: € 4.27 million).

Receivables and prepayments amounted to € 0.8 million as at 30.06.2026 (30.06.2025: € 1.07 million). Inventories were € 1.1 million as of 30.06.2026 (30.06.2025: € 1.02 million). Fixed assets were € 7.5 million as of 30.06.2026 (€ 6.72 million as of 30.06.2025).

The Group's operating result during the 6 month of 2026 was negative cash flow of € 25 thousand (negative cash flow of €621 thousand in the 6 month of 2025). Cash outflows due to investment activities was € 259 thousand during 2026 6 months, mainly consisting of investments into production assets (2025 6 months: cash inflow € 63 thousand, which comprised sale of TPD shares, investments in production assets and in investment property). Financing activities resulted in cash inflows of € 282 thousand during 6 months of 2026 (6 months of 2025: cash inflow of € 542 thousand). Net cash flow during 6 months of 2026 was cash outflow of € 2 thousand, (6 months of 2025: cash outflow € 16 thousand).

People

On the 30th of June 2026, the Group employed 55 people (30.06.2025: 69 people). The average number of personnel was 56 people in Q2 2026 and 57 people in 6 months of 2026 (69 people in Q2 and 6 months of 2025).

Labour costs including taxes were € 0.48 million in Q2 2026 and € 0.89 million in 6 months 2026 (Q2 2025: € 0.47 million and 6 months 2025: € 0.95 million). Group remuneration to the members of the management boards of holding company and its subsidiaries, together with taxes, were € 45 thousand in Q2 2026 and € 72 thousand in 6M 2026 (Q2 2025: € 72 thousand and 6months 2025: € 137 thousand).

The Group`s definition of labour costs includes payroll expenses (incl. holiday pay) with additional remuneration fees, payroll taxes, special benefits and taxes calculated on special benefits.

Outlook

Fibreboard production and sales

Nordic Fibreboard Ltd OÜ expects demand for fibreboard to remain stable in the coming months and anticipates that sales volumes will hold at their current level. The company continues to focus on developing existing clients and markets, as well as creating new sales opportunities, with the aim of supporting sales volume growth. Greater emphasis is being placed on growing the Nordic market.

Gas prices continue to have a negative impact on the company's operations and profitability due to the war in the Middle East. It is impossible for the company to raise product prices to a level that would match the increase in gas prices. This is partly due to long-term contracts with fixed prices, and partly due to the competitive situation prevailing in the market. We do not see a solution to this problem in the near future, not until gas prices decline significantly. There is even a risk that the situation will worsen further.

In recent months, increased focus has also been placed on product development for interior finishing panels and on expanding sales opportunities for this product group across various markets.

The Group has carried out an investment in modern energy solutions, aimed at improving the reliability and energy efficiency of production processes. As part of the project, the boiler system used for steam production was upgraded to a gas boiler, with completion taking place in January 2026.

Real estate management

The property management segment covers the management of the property located at Suur-Jõe 48 in Pärnu, as well as the planning and implementation of development activities.

The design works for the Admirali Quarter development project have been completed. Building permits have been issued for the internal roads and utility networks within the quarter, for apartment buildings at Admirali 1/3, Admirali 5/7, and Admirali 9/11, as well as for the reconstruction of the existing office building at Suur-Jõe 48.

Due to the Buyer's failure to fulfil the conditions precedent set out in the preliminary sale-purchase agreement concluded on 08.01.2026 for the sale of ten real estate properties belonging to Nordic Fibreboard AS, located on Suur-Jõe tn 48 and Admirali tänav in Pärnu, the agreement was not completed, and the parties terminated the preliminary sale-purchase agreement.

Financial highlights

€ thousand
Income statement	Q2 2026	Q2 2025	6 m 2026	6 m 2025
Revenue	2,263	1,868	4,124	3,603
EBITDA	(225)	(94)	(620)	(180)
EBITDA margin	(10%)	(5%)	(15%)	(5%)
Operating profit	(370)	(223)	(899)	(440)
Operating margin	(16%)	(12%)	(22%)	(12%)
Net profit/-loss	(414)	(268)	(984)	(497)
Net margin	(18%)	(14%)	(24%)	(14%)

 

Statement of financial position	30.06.2026	31.12.2025	30.06.2025	31.12.2024
Total assets	9,387	9,323	8,852	8,252
Return on assets	(10%)	(12%)	(3%)	(0%)
Equity	3,478	4,462	3,119	3,616
Return on equity	(28%)	(26%)	(9%)	(1%)
Debt-to-equity-ratio	63%	52%	65%	53%
Share	30.06.2026	31.12.2025	30.06.2025	31.12.2024
Last price (€)*	0.61	0.77	1.00	0.90
Earnings per share (€)	(0.19)	(0.14)	(0.26)	(0.17)
Price-earnings ratio	(3.24)	(5.67)	(3.79)	(5.15)
Book value of a share (€)	0.41	0.53	0.69	0.80
Market to book ratio	1.49	1.47	1.44	1.12
Market capitalization, (€ thousand)	5,184	6,544	4,499	4,049
Number of shares (piece)	8,499,061	8,499,061	4,499,061	4,499,061

 CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONS

€ thousand	30.06.2026	31.12.2025	30.06.2025	31.12.2024
Cash and cash equivalents	3	5	37	53
Receivables and prepayments (Note 2)	788	790	1,075	571
Inventories (Note 3)	1,123	1,034	1,020	624
Total current assets	1,914	1,829	2,132	1,248
Investment property (Note 4)	2,541	2,541	2,481	2,380
Financial assets at fair value through profit or loss (Note 7)	0	0	0	499
Property, plant, equipment and right-of use assets (Note 5)	4,771	4,952	4,237	4,122
Intangible assets (Note 6)	161	1	2	3
Total non-current assets	7,473	7,494	6,720	7,004
TOTAL ASSETS	9,387	9,323	8,852	8,252
Borrowings (Note 8)	2,641	2,963	748	1,111
Payables and prepayments (Note 9)	2,331	1,553	1,326	788
Short-term provisions (Note 10)	13	24	10	21
Total current liabilities	4,985	4,540	2,084	1,920
Long-term borrowings (Note 8)	809	205	3,518	2,613
Long-term provisions (Note 10)	71	72	94	94
Other long-term liabilities	44	44	37	9
Total non-current liabilities	924	321	3,649	2,716
Total liabilities	5,909	4,861	5,733	4,636
Share capital (at nominal value) (Note 11)	850	850	450	450
Share premium	1,600	1,600	0	0
Statutory reserve capital	45	45	45	45
Retained earnings (loss)	983	1,967	2,624	3,121
Total equity	3,478	4,462	3,119	3,616
TOTAL LIABILITIES AND EQUITY	9,387	9,323	8,852	8,252

  

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

€ thousand	Q2 2026	Q2 2025	6 m 2026	6 m 2025
Revenue (Note 13)	2,263	1,868	4,124	3,603
Cost of goods sold (Note 14)	2,176	1,740	4,142	3,348
Gross profit (loss)	87	128	(18)	255
Distribution costs (Note 15)	301	245	563	473
Administrative expenses (Note 16)	144	115	297	226
Other operating income (Note 18)	0	13	8	13
Other operating expenses (Note 18)	11	3	29	9
Operating loss	(370)	(222)	(899)	(440)
Finance income (Note 19)	0	0	0	40
Finance costs (Note 19)	44	46	85	97
LOSS BEFORE INCOME TAX	(414)	(268)	(984)	(497)
NET LOSS FOR THE PERIOD	(414)	(268)	(984)	(497)
Basic earnings per share (Note 12)	(0.05)	(0.06)	(0.12)	(0.11)
Diluted earnings per share (Note 12)	(0.05)	(0.06)	(0.12)	(0.11)

 

CONSOLIDATED STATEMENT OF CASH FLOWS

€ thousand	6M 2026	6M 2025
Cash flow from operating activities
Operating profit (-loss)	(899)	(440)
Adjustments:
Depreciation charge (Note 5; 6)	280	260
Change in trade and other receivables (Note 2)	2	(504)
Change in inventories (Note 3)	(89)	(396)
Change in trade and other payables (Note 9)	778	566
Change in provisions (Note 10)	(12)	(11)
Cash generated from operations	60	(525)
Interest payments (Note 8; 19)	(80)	(89)
Net other financial income and expense (Note 19)	(5)	(8)
Net cash generated from operating activities	(25)	(621)
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets (Note 5; 6)	(259)	(375)
Purchase of real estate investment (Note 4)	0	(101)
Sales of financial assets (Note 7)	0	539
Net cash used in investing activities	(259)	63
Cash flow from financing activities
Repayment of loans received (Note 8)	(119)	(110)
Loans received from related parties (Note 8)	493	705
Finance lease payments (Note 8)	(11)	(12)
Change in overdraft (Note 8)	(81)	(41)
Net cash (used in)/from financing activities	282	542
NET CHANGE IN CASH	(2)	(16)
OPENING BALANCE OF CASH	5	53
CLOSING BALANCE OF CASH	3	37