Nordic Fibreboard AS Audited Annual Report 2020
On 27 April 2021, the Supervisory Board of Nordic Fibreboard AS approved the company’s audited annual report for 2020.
OVERVIEW
Consolidated net sales for 2020 were € 10.27 million from continuing operations, being a 23% decrease compared to 2019 (2019: € 13.33 million from continuing operations). Fibreboard sales for year 2020 were € 10.00 million, which is 15% decrease from year 2019 sales of € 11.75 million. The main reason for the decrease in sales revenue was the loss of customers in the display board segment as a result of the COVID-19 pandemic. All production in this sector was produced at the Püssi factory, which was closed in March 2020.
Furniture retail sales in 2020 were € 56 thousand (2019: € 1,515 thousand). The retail sale of furniture has ended with the closure of the last shop on 31.01.2020 and the sales recorded in 2020 was from some remaining stock.
The sales revenue in 2020 from real estate management was € 212 thousand (2019: € 111 thousand), one of the reasons for the increase in sales revenue is that in 2020 the real estate management company operated throughout the financial year, but in 2019 it started operations in May.
Nordic Fibreboard AS recorded positive EBITDA of € 540 thousand for full year 2020 from continuing operations (vs positive € 325 thousand in 2019 from continuing operations). The EBITDA result for 2019 includes one-off operating income of € 324 thousand from revaluation of its property subsidiary Pärnu Riverside Development, while the EBITDA result for the 2020 includes one-off expense in the Group’s fibreboard subsidiary of € 38 thousand for the removal of previously used office building located at the fibreboard site in Pärnu. The main reason for such a large change in EBITDA are the improved efficiency of Nordic Fibreboard Ltd OÜ. The closure of the Püssi fibreboard factory enabled us to switch the Püssi factory construction sector orders to our Pärnu factory, and we started a 4th shift in Pärnu in April 2020 as a result thereof. The Pärnu factory is now running continuously, except for a one-shift maintenance stop every month. This has led to increased machine utilisation, and gross margin for Nordic Fibreboard Ltd OÜ has therefore increased substantially, being 25% in 2020 (from being 15% in 2019).
At the end of 2020, Nordic Fibreboard AS and Nordic Fibreboard Ltd entered into a new loan agreement with their current lender Swedbank AS and new lender, the Rural Development Foundation, to refinance Group`s loans and overdrafts. The refinancing enabled the Group to restructure its loan liabilities from € 4.4 million to € 3.2 million.
At the regular General Meeting of Shareholders held on 10.08.2020, a decision made to introduce no-par value shares and to reduce the share capital of Nordic Fibreboard AS by 2,249,530.50 euros, from 2,699,436.60 euros to 449,906.10 euros by reducing the book value of shares. The number of shares remained the same, but the book value of the share decreased from 0.60 euros to 0.10 euros.
Furniture retail EBITDA for 2020 was negative € 40 thousand (2019: negative € 200 thousand). Real Estate Management EBITDA for 2020 was € 0 (2019: positive € 352 thousand).
Net profit for full-year 2020 was € 1,074 thousand from continuing operations (2019: net loss of € 1,127 thousand from continuing operations).
GROUP’S REVENUE BY ACTIVITY
| € thousand | % of net sales | |||
| 2020 | 2019 | 2020 | 2019 | |
| Continued operations | ||||
| Fibreboards production and sales | 10,001 | 11,745 | 97% | 81% |
| Furniture retail | 56 | 1,515 | 1% | 10% |
| Real Estate Management | 212 | 111 | 2% | 1% |
| Group transactions | (0) | (38) | (0%) | (0%) |
| Total | 10,269 | 13,333 | 100% | 92% |
| Discontinued operations | 0 | 1,215 | 0% | 8% |
| TOTAL | 10,269 | 14,548 | 100% | 100% |
STATEMENT OF FINANCIAL POSITION AND CASH FLOW STATEMENT
As of 31.12.2020 the total assets of Nordic Fibreboard AS were € 7.7 million (31.12.2019: € 9.1 million). The liabilities of the company as of 31.12.2020 were € 5.0 million (31.12.2019: € 7.5 million), of which Nordic Fibreboard has borrowings of € 3.2 million as at 31.12.2020 (31.12.2019: € 4.6 million).
Receivables and prepayments amounted to € 0.8 million as at 31.12.2020 (31.12.2019: € 1.4 million). Inventories were € 0.5 million as of 31.12.2020 (31.12.2019: € 0.9 million). The fair value of financial assets (i.e. Trigon Property Development shares) increased from € 397 thousand as of 31.12.2019 to € 450 thousand as of 31.12.2020. As of 31.12.2020 and 31.12.2019, Real Estate Investments amounted to € 1.1 million, property, plant, equipment and intangibles were € 4.7 million as of 31.12.2020 (€ 5.2 million as of 31.12.2019).
In 2020, the Group’s cash flows from operating activities totalled € 150 thousand € (2019: € 516 thousand). Investment activities resulted in cash outflows in amount of € 56 thousand in 2020, compared to outflows in amount € 153 thousand in 2019. Financing activities also resulted in cash outflows of € 75 thousand in 2020 (2019: € outflow 410 thousand). Net cash effect in 2020 € was positive 19 thousand, which is € 66 thousand more cash inflow compared to the cash outflow in the amount of € 47 thousand in 2019.
In 2020, investments in non-current assets totalled € 110 thousand. In 2019, the investments totalled € 133 thousand.
FINANCIAL RATIOS
| € thousand | ||
| Income statement | 2020 | 2019 |
| Revenue | 10,269 | 13,333 |
| EBITDA | 540 | 325 |
| EBITDA margin | 5% | 2% |
| Operating profit | (19) | (343) |
| Operating margin | (0%) | (3%) |
| Net profit | 1,074 | (1,127) |
| Net margin | 10% | (8%) |
| Discontinued operations | 0 | (271) |
| TOTAL NET PROFIT | 1,074 | (1,398) |
| Statement of financial position | 31.12.2020 | 31.12.2019 |
| Total assets | 7,650 | 9,045 |
| Return on assets | 14% | (12%) |
| Equity | 2,648 | 1,542 |
| Return on equity | 41% | (73%) |
| Debt-to-equity ratio | 65% | 83% |
| Share | 31.12.2020 | 31.12.2019 |
| Last Price* | 0.45 | 0.41 |
| Earnings per share | 0.24 | (0.31) |
| Price-earnings ratio | 1.89 | (1.32) |
| Book value of a share | 0.59 | 0.34 |
| Market to book ratio | 0.76 | 1.20 |
| Market capitalization, € thousand | 2,025 | 1,845 |
| Number of shares, piece | 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 = 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/
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| € thousand | 31.12.2020 | 31.12.2019 |
| Cash and cash equivalents | 26 | 7 |
| Receivables and prepayments (Note 5) | 794 | 1,394 |
| Inventories (Note 6) | 544 | 894 |
| Total current assets | 1,364 | 2,296 |
| Investment property (Note 7) | 1,134 | 1,121 |
| Financial assets at fair value through profit or loss (Note 9) | 451 | 397 |
| Property, plant and equipment (Note 8) | 4,695 | 5,212 |
| Intangible assets (Note 8) | 6 | 19 |
| Total non-current assets | 6,286 | 6,749 |
| TOTAL ASSETS | 7,650 | 9,045 |
| Borrowings (Notes 10) | 756 | 4,547 |
| Payables and prepayments (Notes 11) | 1,574 | 2,665 |
| Short-term provisions (Note 12) | 18 | 20 |
| Total current liabilities | 2,348 | 7,232 |
| Long-term borrowings (Notes 10) | 2,493 | 92 |
| Long-term provisions (Note 12) | 161 | 179 |
| Total non-current liabilities | 2,654 | 271 |
| Total liabilities | 5,002 | 7,503 |
| Share capital (at nominal value) (Note 13) | 450 | 2,699 |
| Share premium | 0 | 364 |
| Statutory reserve capital | 0 | 288 |
| Other reserves | 0 | 84 |
| Retained earnings (loss) | 2,198 | (1,894) |
| Total equity | 2,648 | 1,542 |
| TOTAL LIABILITIES AND EQUITY | 7,650 | 9,045 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| € thousand | 2020 | 2019 |
| Continued operations | ||
| Revenue (Note 22) | 10,269 | 13,333 |
| Cost of goods sold (Note 15) | 8,099 | 11,538 |
| Gross profit | 2,170 | 1,796 |
| Distribution costs (Note 16) | 1,283 | 1,698 |
| Administrative expenses (Note 17) | 605 | 658 |
| Other operating income (Note 19) | 42 | 351 |
| Other operating expenses (Note 19) | 342 | 134 |
| Operating profit (loss) | (19) | (343) |
| Finance income (Note 20) | 1,291 | 19 |
| Finance costs (Note 20) | 199 | 803 |
| LOSS BEFORE INCOME TAX | 1,074 | (1,127) |
| NET PROFIT (LOSS) FOR THE FINANCIAL YEAR FROM CONTINUING OPERATIONS | 1,074 | (1,127) |
| Net profit (loss) for the financial year from discontinuing operations | 0 | (271) |
| NET PROFIT (LOSS) FOR THE FINANCIAL YEAR | 1,074 | (1,398) |
| Basic earnings per share (Note 14) | 0.24 | (0.31) |
| Diluted earnings per share (Note 14) | 0.24 | (0.30) |
CONSOLIDATED STATEMENT OF CASH FLOWS
| € thousand | 2020 | 2019 |
| Cash flows from operating activities | ||
| Operating profit (loss) | (19) | (343) |
| Adjustments: | ||
| Depreciation charge (Notes 8) | 560 | 669 |
| Profit/loss from revaluation of real estate investment (Note 7) | (5) | (327) |
| Profit/loss from sale of non-current asset | (28) | 0 |
| Profit/loss on non-current asset write-off | 2 | 2 |
| Profit/loss from revaluation of financial assets (Note 9;21) | (53) | 25 |
| Non-monetary transactions: reserve for share option | 32 | 39 |
| Expenses of doubtful receivables | 0 | 1 |
| Change in trade and other receivables (Note 5) | 600 | (651) |
| Change in inventories (Note 6) | 350 | 581 |
| Change in trade and other payables (Note 11) | (1,091) | 617 |
| Discontinued operations | 0 | 131 |
| Cash generated from operations | 348 | 744 |
| Interest payments (Note 21) | (192) | (221) |
| Net other financial income and expense (Note 21) | (6) | (7) |
| Net cash generated from operating activities | 150 | 516 |
| Cash flows from investing activities | ||
| Purchase of property, plant and equipment and intangible assets (Notes 8) | (78) | (133) |
| Disposal of property, plant and equipment and intangible assets (Note 8) | 29 | 0 |
| Purchase of investment property (Note 7) | (7) | (20) |
| Net cash used in investing activities | (56) | (153) |
| Cash flows from financing activities | ||
| Loans received (Note 10) | 1,200 | 0 |
| Repayment of loans received (Note 10) | (853) | (306) |
| Loans received from related parties (Note 10) | 549 | 304 |
| Repayment of loans received from related parties (Note 10) | (569) | (284) |
| Repayment of principal element of lease liabilities (Note 10) | (62) | (96) |
| Change in overdraft (Note 10) | (340) | (28) |
| Net cash (used in)/from financing activities | (75) | (410) |
| NET CHANGE IN CASH | 19 | (47) |
| OPENING BALANCE OF CASH | 7 | 54 |
| CLOSING BALANCE OF CASH | 26 | 7 |
The audited annual report of Nordic Fibreboard AS for 2020 is attached to the stock exchange announcement and is published on the websites of NASDAQ Tallinn and Nordic Fibreboard (https://group.nordicfibreboard.com/en/investor/financial-reports/annual-reports)
Torfinn Losvik
CEO & Chairman of the Management Board
Phone: + 372 56 99 09 88
E-mail: torfinn.losvik@nordicfibreboard.com
Attachment
- Nordic Fibreboard Annual Report 2020_ eng
