UK Markets close in 2 hrs 19 mins

Unaudited financial results of Nordic Fibreboard AS for the third quarter of 2021

·10-min read

Management report

Consolidated net sales for Q3 2021 were € 2.33 million (Q3 2020: € 2.51 million), of which fibreboard sales accounted for € 2.27 million and real estate management for € 0.06 million. Fibreboard sales for Q3 2021 decreased with 8% compared to Q3 2020, the main reason being less production output due to longer maintenance period in Q3 2021. We had 2 week maintenance stop in Q3 2021, which we did not have in Q3 2020. Real estate management sales for Q3 2021 increased with 81% compared to Q3 2020 due to more rental tenants occupation in our property in Suur-Jõe 48, Pärnu. There was no sales revenue from furniture retail in both the Q3 2021 and the Q3 2020, the furniture retail company is in process of being liquidated at the time of publishing this report.

Group EBITDA for Q3 2021 was € 356 thousand (Q3 2020: € 366 thousand), of which the fibreboard division EBITDA was € 344 thousand (Q3 2020: € 370 thousand) and real estate management EBITDA of € 11 thousand (Q3 2020: € 1 thousand).

Group profit for Q3 2021, after depreciation and interest cost from group loans, was € 202 thousand (Q3 2020: € 179 thousand).

Group net profit for Q3 2021, after recording a loss of € 129 thousand from the revaluation of the Group’s shareholding in the Nasdaq listed real estate company Trigon Property Development AS (“TPD”), was € 73 thousand (Q3 2020: € 183 thousand, including a revaluation profit from the TPD shares of € 4 thousand). The financial impact for the first 9 months of 2021 from the group’s shareholding in TPD shows financial income of € 354 thousand from the revaluation profit of the TPD shares.

DIVISIONAL REVIEW

Revenue by business segments

€ thousand

€ thousand

Q3 2021

Q3 2020

9M 2021

9M 2020

Fibreboards production and sales

2,270

2,477

7,539

7,994

Real Estate Management

65

36

218

148

Furniture retail

0

0

0

55

Group transactions

0

0

0

(0)

TOTAL

2,334

2,512

7,757

8,197

Profit by business segments

€ thousand

€ thousand

Q3 2021

Q3 2020

9M 2021

9M 2020

EBITDA by business units:

Fibreboards production and sales

344

370

1,337

458

Real Estate Management

11

1

10

(2)

Furniture retail

0

(0)

474

(39)

Group transactions

1

(5)

(479)

(13)

TOTAL EBITDA

356

366

1,341

403

Depreciation

(123)

(135)

(380)

(422)

TOTAL OPERATING PROFIT/ LOSS

232

231

962

(19)

Net financial income/ costs

(159)*

(49)

267*

(139)

NET PROFIT/ LOSS

73

183

1,229

(158)

* Includes financial cost of € 129 thousand in Q3 of 2021 and financial income € 354 thousand in the first 9 months of 2021, received from the revaluation of the shareholding owned by the group in the real estate development company Trigon Property Development AS.

NORDIC FIBREBOARD LTD: FIBREBOARD SALE

The regional demand for construction materials, including the fibreboards produced in our Pärnu factory, has been very steady during Q3 2021. This resulted in our factory running at full capacity utilisation, and also had the effect of extending the delivery times for our products.

Fibreboard sales in Q3 2021 was € 2.27 million, a decrease of 8% from Q3 2020. The decline was only due to us having longer maintenance period during Q3 2021 than was the case in Q3 2020. Sales in our key north European markets remained steady while sales fell to customers elsewhere, this being due to us having to prioritise the orders from our local markets.

FIBREBOARD SALES BY GEOGRAPHICAL SEGMENTS

€ thousand

€ thousand

Q3 2021

Q3 2020

9M 2021

9M 2020

European Union

1,980

2,003

6,233

6,693

Russia

269

360

1,083

934

Asia

0

62

124

140

Middle East

13

10

13

55

Africa

0

8

46

96

Other

8

32

40

77

TOTAL

2,270

2,477

7,539

7,994


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, including the resale of utilities, was € 65 thousand in Q3 2021, (Q3 2020: € 36 thousand). The reason for the increase in sales revenue was the addition of tenants to the commercial space.

The real estate management EBITDA for Q3 2021 were positive € 11 thousand (Q3 2020: positive € 1 thousand). The real estate management net profit for Q3 2021 was € 11 thousand (Q3 2020: net profit € 1 thousand).

SKANO FURNITURE: RETAIL SALES

Skano Furniture finished its activities on 31.01.2020, when it closed the last two furniture showrooms, thus the retail sale of furniture did not have any sales revenue in Q3 2021 and in Q3 2020.

Skano Furniture OÜ is in the process of being liquidation at the time of publishing the reports.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CASH FLOW STATEMENT

As of 30.09.2021 the total assets of Nordic Fibreboard AS were € 8.3 million (30.09.2020: € 7.8 million). The liabilities of the company as of 30.09.2021 were € 4.4 million (30.09.2020: € 6.3 million), of which the Group has payables of € 0.6 million as at 30.09.2021 (30.09.2020: € 1.2 million) and borrowings of € 3.3 million as at 30.09.2021 (30.09.2020: € 4.5 million).

Receivables and prepayments amounted to € 1.1 million as at 30.09.2021 (30.09.2020: € 1.0 million). Inventories were € 0.4 million as of 30.09.2021 (30.09.2020: € 0.4 million). Fixed assets were € 6.6 million as of 30.09.2021 (€ 6.3 million as of 30.09.2020).

During 2020 9M, the group’s cash flows from operating activities totalled cash inflow of € 512 thousand (2020 9M: cash inflow € 115 thousand). Investment activities resulted in cash outflows in amount of € 243 thousand during 2021 9M, compared to outflows in amount € 39 thousand during 9M 2020. Financing activities also resulted in cash outflows of € 91 thousand during 9M 2021 (2020 9M: cash outflow € 79 thousand). Net cash effect during 2021 9M showed cash inflows of € 178 thousand, (2020 9M: cash outflows € 3 thousand).

OUTLOOK

NORDIC FIBREBOARD LTD

Demand for fibreboards continue to be strong, reflecting the growth in the building material market, as well as the growing awareness of the green credentials of soft density fibreboards, as produced by Nordic Fibreboard Ltd.

Management is working on preparing the Pärnu based factory’s boiler house to meet the new emission requirements coming into force in 2024.

Preparations is also being undertaken in upgrading the company’s second factory, located in Püssi, so that the factory’s technical capabilities is adequate for possible restarting of the factory. The factory’s main energy source is gas, and the current high gas prices is therefore making it untenable to consider restarting this factory in the near future.

PÄRNU RIVERSIDE DEVELOPMENT

Management is considering the future of its real estate development subsidiary Pärnu Riverside Development, and has entered into an agreement with a brokerage firm whereby possible disposal of this subsidiary is being considered.

PEOPLE

On the 30th of September 2021, the Group employed 93 people (compared to 99 people as of 30.09.2020). The average number of personnel in Q3 2021 was 90 (Q3 2020: the average number of personnel was 94).

For nine months of 2021, wages and salaries with taxes amounted to € 1.5 million (nine months 2020: € 1.6 million). Payments made to management board members of all group companies including all subsidiaries with relevant taxes were € 166 thousand during 9M 2021 and € 158 thousand during 9M 2020.

FINANCIAL HIGHLIGHTS

€ thousand

Income statement

Q3 2021

Q3 2020

9M 2021

9M 2020

Revenue

2,334

2,512

7,757

8,197

EBITDA

356

366

1,341

403

EBITDA margin

15%

15%

17%

5%

Operating profit

232

231

962

(19)

Operating margin

10%

9%

12%

(0%)

Net profit

73

183

1,229

(158)

Net margin

3%

7%

16%

(2%)

Statement of financial position

30.09.2021

31.12.2020

30.09.2020

31.12.2019

Total assets

8,301

7,650

7,753

9,045

Return on assets

15%

14%

(2%)

(12%)

Equity

3,878

2,648

1,414

1,542

Return on equity

32%

41%

(11%)

(73%)

Debt-to-equity ratio

53%

65%

82%

83%

Share

30.09.2021

31.12.2020

30.09.2020

31.12.2019

Last Price*

2.20

0.45

0.40

0.41

Earnings per share

0.55

0.24

(0.05)

(0.31)

Price-earnings ratio

4.02

1.89

(7.79)

(1.32)

Book value of a share

0.86

0.59

0.31

0.34

Market to book ratio

2.55

0.76

1.28

1.20

Market capitalization, € thousand

9,898

2,025

1,809

1,845

Number of shares, piece

4,499,061

4,499,061

4,499,061

4,499,061

EBITDA = Earnings before interest, taxes, depreciation and amortization
EBITDA margin = EBITDA / Revenue
Operating margin = Operating profit / Revenue
Net margin = Net profit / Revenue
Return on assets = Net profit / Total assets
Return on equity = Net profit / Equity
Debt-to-equity 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/


Consolidated statement of financial positions

€ thousand

30.09.2021

31.12.2020

30.09.2020

Cash and cash equivalents

204

26

4

Receivables and prepayments (Note 2)

1,118

794

1,008

Inventories (Note 3)

390

544

410

Total current assets

1,712

1,364

1,423

Investment property (Note 4)

1,139

1,134

1,126

Available-for-sale financial assets (Note 7)

805

451

418

Property, plant and equipment (Note 5)

4,642

4,695

4,777

Intangible assets (Note 6)

3

6

10

Total non-current assets

6,589

6,286

6,331

TOTAL ASSETS

8,301

7,650

7,753

Borrowings (Notes 8)

36

756

4,436

Payables and prepayments (Notes 9)

1,002

1,574

1,674

Short-term provisions (Note 10)

4

18

4

Total current liabilities

1,042

2,348

6,114

Long-term borrowings (Notes 8)

3,220

2,493

47

Long-term provisions (Note 10)

161

161

179

Total non-current liabilities

3,381

2,654

226

Total liabilities

4,424

5,002

6,340

Share capital (at nominal value) (Note 11)

450

450

450

Other reserves

0

0

114

Retained earnings (loss)

3,428

2,198

850

Total equity

3,878

2,648

1,414

TOTAL LIABILITIES AND EQUITY

8,301

7,650

7,753

*The notes to the financial statements presented on pages 14 to 25 are an integral part of these consolidated financial statements

Consolidated statement of profit or loss and other comprehensive income

€ thousand

Q3 2021

Q3 2020

9M 2021

9M 2020

Revenue (Note 13)

2,334

2,512

7,757

8,197

Cost of goods sold (Note 14)

1,721

1,892

5,451

6,508

Gross profit

613

620

2,306

1,689

Distribution costs (Note 15)

251

282

891

1,015

Administrative expenses (Note 16)

131

126

445

430

Other operating income (Note 18)

2

22

5

24

Other operating expenses (Note 18)

1

3

13

287

Operating profit (loss)

232

231

962

(19)

Finance income (Note 19)

0

4

354

21

Finance costs (Note 19)

159

52

87

160

Profit (loss) before income tax

73

183

1,229

(158)

Net profit (loss) for the period

73

183

1,229

(158)

Basic earnings per share (Note 12)

0.02

0.04

0.27

(0.04)

Diluted earnings per share (Note 12)

0.02

0.04

0.27

(0.04)

*The notes to the financial statements presented on pages 14 to 25 are an integral part of these consolidated financial statements.

TORFINN LOSVIK
Chairman of the board
Phone: +372 56 99 0988
torfinn.losvik@nordicfibreboard.com



Attachment


Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting