Nordic Fibreboard (SKN1T) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 8% year-over-year to €1.94 million, driven by increased industrial orders and higher construction material sales, especially in Finland.

• EBITDA for Q3 2024 was negative €19 thousand, down from positive €238 thousand in Q3 2023, reflecting higher input, marketing, and product development costs.

• Net loss for Q3 2024 was €263 thousand, compared to a profit of €37 thousand in Q3 2023, with profitability pressured by rising costs and lower real estate income.

• Real estate management revenue declined due to terminated rental agreements, as high communal costs outpaced rental income.

Financial highlights

• Q3 2024 revenue: €1.94 million (Q3 2023: €1.79 million); 9M 2024 revenue: €6.08 million (9M 2023: €6.39 million).

• Q3 2024 EBITDA margin: -1% (Q3 2023: 13%); 9M 2024 EBITDA margin: 4% (9M 2023: 5%).

• Q3 2024 net margin: -14% (Q3 2023: 2%); 9M 2024 net margin: -6% (9M 2023: -9%).

• Total assets as of 30.09.2024: €8.8 million; equity: €4.04 million; debt-to-total assets ratio: 54%.

• Basic EPS for Q3 2024: -€0.06 (Q3 2023: €0.01); 9M 2024: -€0.08 (9M 2023: -€0.13).

Outlook and guidance

• Construction markets in Estonia, Baltics, and Scandinavia remain weak with no short-term recovery expected.

• Focus for 2025 is on product development, process improvements, and launching new products for construction and industrial sectors.

• Increased marketing and collaboration projects planned to capture demand for sustainable fiberboard solutions.

• Preparing for compliance with new environmental regulations, including EPDs and EU Deforestation Regulation.