This company's branding has already reached 3,124 peopleand his is followed by 8 Storybook users.On average, the company has been rated 4.4 points.and commented 25 times.

Strategic decision: No desire to increase customer base
Board member Kuido Kuntro (05.06.2024): "We focus only on providing high-quality service to existing customers and maintaining relationships. We do not plan to increase our customer base."

's activity report 2022

About the company briefly

Ardor OÜ was founded in August 2013. The pellet factory built in Sõmeru started production in January 2014.

The main activity of Ardor OÜ is the production and sale of high-quality premium class wood pellets. The production capacity of the pellet factory is 90,000 tons. The main export markets are Scandinavia, Western Europe and the UK.

The company has a 1,260 KW solar park, which covers 20% of the factory's annual electricity needs. Ardor OÜ holds the following international certificates: PEFC, FSC, SBP, ENplus, DINplus, ISO 50 001.

Overview of economic activity

In the reporting year 2022, like most companies, it had to deal with the effects of the war in Ukraine. Demand for wood products decreased significantly and therefore the supply of raw materials (planing chips, piece dimensions) necessary for pellet production decreased. The production volume was 68.4 thousand tons, which was significantly below the annual target (90 thousand tons). The company did not significantly benefit from the increase in pellet prices in the second half of the year, as most of the production had been sold in advance.

In the summer, a PVC hall with an area of 1,440 m2 was completed, which can be used for both raw material and finished product storage.

In September, a blower pellet business unit was acquired from Warmeston OÜ with the aim of contributing to the sale of bulk pellets on the local market.

The business unit consists of four employees and four pellet trucks. As a result of the purchase analysis, goodwill in the amount of 94,464 euros was created from the acquisition of the business unit.

Ardor OÜ's sales revenue in 2022 was 13 million euros (14.7 million euros in 2021), profit 2.2 million euros (1.1 million euros in 2021).

In 2022, 870 thousand euros were invested in fixed assets (158 thousand euros in 2021).

The average number of employees during the reporting period was 14 people, they were calculated labor costs of 599 thousand euros (12 people and 509 thousand euros in 2021).

No major investments are planned for the next financial year after the purchase of one pellet truck.

Pellet sales contracts and raw material purchase contracts are largely short-term in order to be able to adapt operationally to the constantly changing market situation.

Main financial indicators of the reporting year:

Financial indicator 2022 2021

Sales revenue (million euros) 13.0 14.7

Profitability 17% 8%

EBITDA (million euros) 2.7 1.8

Debt coverage ratio 4.4 4.5

ROA 28% 20%

ROE 33% 23%

Formulas for financial indicators:

Profitability=net profit / sales revenue

EBITDA = profit before financial, tax and depreciation and impairment of fixed assets

Debt coverage ratio=current assets/short-term liabilities

ROA = net profit / assets