Nordic Fibreboard Cites Interest Rate and Currency Risks in Q1 2024 Report

Nordic Fibreboard AS reports 24% decrease in consolidated net sales to €1.97 million in Q1 2024, citing interest rate and foreign currency exchange risks. The company's gross margin increased to 19% despite the decline in sales.

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Aqsa Younas Rana
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Nordic Fibreboard Cites Interest Rate and Currency Risks in Q1 2024 Report

Nordic Fibreboard Cites Interest Rate and Currency Risks in Q1 2024 Report

Nordic Fibreboard AS, an Estonia-based holding company with subsidiaries focused on fibreboard production and wholesale, has released its unaudited consolidated interim report for the first quarter of 2024. The report highlights the company's exposure to interest rate risk and foreign currency exchange risk, specifically mentioning changes in the EURIBOR rate and economic environment risks in Estonia and the euro zone.

Why this matters: The report's emphasis on interest rate and currency risks underscores the vulnerability of businesses to macroeconomic fluctuations, which can have far-reaching consequences for the entire economy. As global economic conditions continue to shift, companies like Nordic Fibreboard AS will need to adapt and mitigate these risks to remain competitive.

For the quarter ended March 31, 2024, Nordic Fibreboard reportedconsolidated net salesof €1.97 million, a 24% decrease compared to €2.60 million in the same period last year. The company's main business area, production and wholesale of fibreboards, recorded sales of €1.95 million in Q1 2024, down from €2.60 million in Q1 2023. Despite the decline in sales, the Group's gross margin increased from 11% in Q1 2023 to 19% in Q1 2024, primarily due to a decrease in input costs.

The consolidated EBITDA of Nordic Fibreboard AS for Q1 2024 was positive €53,000, an improvement from negative €94,000 in Q1 2023. However, the company reported a consolidated operating loss of €75,000 for Q1 2024, compared to an operating profit of €623,000 in the same period last year. The Group's consolidated net loss for Q1 2024 was €73,000, an improvement from the loss of €597,000 in Q1 2023.

Nordic Fibreboard AS reported a basic and diluted loss per share from continuing operations of €0.02 for Q1 2024, compared to a loss per share of €0.13 in the same period last year. The company's primary focus remains on finding new customers to expand its customer portfolio and discover new business directions.

The interim report also highlights the company's exposure to interest rate risk due to changes in the EURIBOR rate, which may affect its borrowings and financial expenses. Additionally, Nordic Fibreboard AS faces foreign currency exchange risk, particularly with respect to the Estonian kroon (EEK) and the euro (EUR), which may impact its revenue and profitability.

Nordic Fibreboard AS is a holding company with subsidiaries Nordic Fibreboard Ltd OÜ and Pärnu Riverside Development OÜ. The company's main activity is the production and wholesale of fibreboards, with a focus on the Nordic and Baltic regions. The shares of Nordic Fibreboard AS are listed on the Nasdaq Tallinn Stock Exchange secondary list.