Nordic Fibreboard AS: A Resilient Player in the Fibreboard Industry

Nordic Fibreboard AS, a leading producer and wholesaler of fibreboard, has released its unaudited financial report for the fourth quarter (Q4) and the full year of 2024. The company's consolidated net sales for Q4 2024 were € 1.51 million, marking a 15% increase compared to the same period last year (Q4 2023: € 1.31 million). This growth can be attributed to several key factors, including increased sales from industrial clients, growth in construction-related customer orders, and a surge in sales in the Baltic markets.



The company's main business area, Nordic Fibreboard Ltd, accounted for the majority of the Group's revenue in Q4 2024. The second segment, the management of the real estate on Suur-Jõe street in Pärnu, contributed only 0.10% to total sales in the 4th quarter of 2024, down from 0.95% in Q4 2023. This decrease was primarily due to the termination of rental agreements in August 2024, as the specific characteristics of the production building complex led to high communal costs that could not be covered by rental income.



Nordic Fibreboard's consolidated EBITDA for Q4 2024 was negative € 276 thousand, with an EBITDA margin of negative 18%. This was a significant decrease compared to Q4 2023, when the company reported a positive EBITDA of € 245 thousand and an EBITDA margin of positive 19%. The Group's gross margin also decreased from 9% to 4% in Q4 2024, indicating a decrease in profitability compared to the same period last year. The large decrease in EBITDA was mainly due to the revaluations of investment properties and the forced shutdown of the factory due to a force majeure situation in December 2024. During the shutdown, personnel costs, factory maintenance costs, and repair costs continued to be covered, which had a negative effect on EBITDA.



The financial income for Q4 2024 was € 68 thousand, consisting of the revaluation of Trigon Property Development (TPD) shares. Financial expenses for the Q4 2024 amounted to € 87 thousand, consisting of loan interest costs. The Group's consolidated net loss for Q4 2024 was € 427 thousand, compared to a net loss of € 115 thousand in Q4 2023.

Despite the challenges faced in Q4 2024, Nordic Fibreboard AS has demonstrated resilience and growth in its core business areas. The company's strategic focus on industrial clients and expansion into new markets, such as the Baltic region, has contributed to its overall success. As the company continues to navigate the complexities of the fibreboard industry, investors can expect Nordic Fibreboard AS to remain a strong player in the market, driven by its commitment to innovation, quality, and customer satisfaction.