Silvano Fashion Group Consolidated Interim Financial Report for Q3 and 9 months of 2017 (unaudited)
Selected Financial Indicators
Summarized selected financial indicators of the Group for 9 months of 2017 compared to 9 months of 2016 and 30.09.2017 compared to 31.12.2016 were as follows:
|
in thousands of EUR |
9m 2017 |
9m 2016 |
Change |
|
Revenue |
50 065 |
45 642 |
9.7% |
|
EBITDA |
13 149 |
15 978 |
-17.7% |
|
Net profit for the period |
9 726 |
9 381 |
3.7% |
|
Net profit attributable equity holders of the Parent company |
9 309 |
9 117 |
2.1% |
|
Earnings per share (EUR) |
0.26 |
0.25 |
4.0% |
|
Operating cash flow for the period |
12 975 |
12 969 |
0.0% |
|
|
|
|
|
|
in thousands of EUR |
30.09.2017 |
31.12.2016 |
Change |
|
Total assets |
50 941 |
56 145 |
-9.3% |
|
Total current assets |
39 442 |
42 677 |
-7.6% |
|
Total equity attributable to equity holders of the Parent company |
39 257 |
43 402 |
-9.6% |
|
Cash and cash equivalents |
22 090 |
22 303 |
-1.0% |
|
|
|
|
|
|
Margin analysis, % |
9m 2017 |
9m 2016 |
Change |
|
Gross profit |
50.4 |
55.4 |
-9.0% |
|
EBITDA |
26.3 |
35.0 |
-24.9% |
|
Net profit |
19.4 |
20.6 |
-5.8% |
|
Net profit attributable to equity holders of the Parent company |
18.6 |
20.0 |
-7.0% |
|
|
|
|
|
|
Financial ratios, % |
30.09.2017 |
31.12.2016 |
Change |
|
ROA |
14.1 |
14.7 |
-4.1% |
|
ROE |
19.1 |
19.6 |
-2.6% |
|
Price to earnings ratio (P/E) |
12.1 |
13.2 |
-8.3% |
|
Current ratio |
4.5 |
4.9 |
-8.2% |
|
Quick ratio |
2.9 |
3.0 |
-3.3% |
Financial performance
The Group`s sales amounted to 50 065 thousand EUR during 9 months of 2017, representing a 9.7% increase as compared to the same period of previous year. Overall, wholesales increased by 1.2% and retail sales increased by 33.9%, measured in EUR.
The Group’s reported gross profit margin during 9 months of 2017 continued to improve decreasing to 50.4%, reported gross margin was 55.4% in the respective period of previous year. Consolidated operating profit for 9 months of 2017 amounted to 11 763 thousand EUR, compared to 14 626 thousand EUR in 9 months of 2016. The consolidated operating profit margin was 23.5% for 9 months of 2017 (32.0% in 9 months of 2016). Consolidated EBITDA for 9 months of 2017 was 13 149 thousand EUR, which is 26.3% in margin terms (15 978 thousand EUR and 35.0% for 9 months of 2016).
Reported consolidated net profit attributable to equity holders of the Parent company for 9 months of 2017 amounted to 9 309 thousand EUR, compared to net profit of 9 117 thousand EUR in 9 months of 2016, net profit margin attributable to equity holders of the Parent company for 9 months of 2017 was 18.6% against 20.0% in 9 months of 2016.
Financial position
As of 30 September 2017 consolidated assets amounted to 50 941 thousand EUR representing an decrease by 9.3% as compared to the position as of 31 December 2016.
Trade and other receivables decreased by 1 172 thousand EUR as compared to 31 December 2016 and amounted to 2 996 thousand EUR as of 30 September 2017. Inventory balance decreased by 1 833 thousand EUR and amounted to 14 354 thousand EUR as of 30 September 2017.
Equity attributable to equity holders of the Parent company decreased by 4 145 thousand EUR and amounted to 39 257 thousand EUR as of 30 September 2017. Current liabilities decreased by 55 thousand EUR during 9 months of 2017.
Investments
During 9 months of 2017 the Group’s investments into property, plant and equipment totalled 590 thousand EUR, in previous year same period 571 thousand EUR. Investments were made mainly into opening and renovating own stores, as well into equipment and facilities to maintain effective production for future periods.
Personnel
As of 30 September 2017, the Group employed 2 301 employees, including 516 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2016 there were 2 163 employees, including 480 people in retail operations.
Total salaries during 9 months of 2017 amounted to 8 266 thousand EUR (8 798 thousand EUR in 9 months of 2016). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 672 thousand EUR.
Decisions made by governing bodies during 9 months 2017
On February 2, 2017 Silvano Fashion Group Extraordinary Meeting of Shareholders decided to change Silvano Fashion Group AS shareholders General Meeting decision from June 29, 2016 of its share buyback program terms and set the new maximum price at which Silvano Fashion Group AS may buy back its own shares within the own share buy-back programme is EUR 3.30 per share.
In connection with expiration of the term of the board member agreement, Kati Kusmin left the company from May 16, 2017. AS Silvano Fashion Group the Management Board continues with one member: Jarek Särgava.
On June 29, 2017 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted following decisions.
-
The Meeting approved the 2016 Annual Report.
-
The Meeting decided to distribute dividends in the amount 0.20 EUR per share (record date 13.07.2017, payment completed on 19.07.2017).
-
The Meeting decided to re-appoint AS PricewaterhouseCoopers as the Group`s auditor for financial year 2017.
-
The Meeting decided to cancel the 1 000 000 own shares acquired within the own share buy-back programme as approved by the shareholders of AS Silvano Fashion Group on 29th of June 2016;
-
The Meeting decided to extend authority of the supervisory board member Mr. Toomas Tool for the next term of authority starting from 1 July 2017 till 30 June 2022.
-
The Meeting decided to continue with the remuneration plan of the supervisory board members as approved by the annual general meeting held on 30 June 2012.
-
On October 31, 2017, the decrease of share capital of Silvano Fashion Group AS was registered in the Commercial Register based on the resolutions adopted by the General Meeting of Shareholders of the Company held on June 29, 2017. The new registered share capital of the Company is 10 800 000 euros, which is divided into 36 000 000 ordinary shares with nominal value of 0.30 euros per share.
Consolidated Statement of Financial Position
|
in thousands of EUR |
Note |
30.09.2017 |
31.12.2016 |
|
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
22 090 |
22 303 |
|
Current loans granted |
|
2 |
19 |
|
Trade and other receivables |
2 |
2 996 |
4 168 |
|
Inventories |
3 |
14 354 |
16 187 |
|
Total current assets |
|
39 442 |
42 677 |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
Long-term receivables |
|
252 |
21 |
|
Investments in associates |
|
45 |
19 |
|
Available-for-sale investments |
|
326 |
369 |
|
Deferred tax asset |
|
918 |
1 012 |
|
Intangible assets |
|
213 |
291 |
|
Investment property |
|
943 |
1 091 |
|
Property, plant and equipment |
4 |
8 802 |
10 665 |
|
Total non-current assets |
|
11 499 |
13 468 |
|
TOTAL ASSETS |
|
50 941 |
56 145 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
5 |
7 000 |
6 894 |
|
Tax liabilities |
|
1 696 |
1 857 |
|
Total current liabilities |
|
8 696 |
8 751 |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Deferred tax liability |
|
13 |
37 |
|
Total non-current liabilities |
|
13 |
37 |
|
Total liabilities |
|
8 709 |
8 788 |
|
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
6 |
11 100 |
11 100 |
|
Share premium |
|
10 787 |
10 787 |
|
Treasury shares |
6 |
-2 520 |
-998 |
|
Statutory reserve capital |
|
1 306 |
1 306 |
|
Revaluation reserve |
|
710 |
710 |
|
Unrealised exchange rate differences |
|
-15 700 |
-10 968 |
|
Retained earnings |
|
33 574 |
31 465 |
|
Total equity attributable to equity holders of the Parent company |
|
39 257 |
43 402 |
|
Non-controlling interest |
|
2 975 |
3 955 |
|
Total equity |
|
42 232 |
47 357 |
|
TOTAL EQUITY AND LIABILITIES |
|
50 941 |
56 145 |
Consolidated Income Statement
|
in thousands of EUR |
Note |
3Q 2017 |
3Q 2016 |
9m 2017 |
9m 2016 |
|
Revenue |
8 |
17 255 |
15 047 |
50 065 |
45 642 |
|
Cost of goods sold |
|
-8 283 |
-6 975 |
-24 846 |
-20 346 |
|
Gross Profit |
|
8 972 |
8 072 |
25 219 |
25 296 |
|
|
|
|
|
|
|
|
Distribution expenses |
|
-2 975 |
-2 420 |
-9 134 |
-6 650 |
|
Administrative expenses |
|
-1 181 |
-1 216 |
-3 740 |
-3 481 |
|
Other operating income |
|
75 |
81 |
230 |
250 |
|
Other operating expenses |
|
-250 |
-231 |
-812 |
-789 |
|
Operating profit |
|
4 641 |
4 286 |
11 763 |
14 626 |
|
|
|
|
|
|
|
|
Currency exchange income/(expense) |
|
257 |
-26 |
1 132 |
-2 520 |
|
Other finance income/(expenses) |
|
41 |
43 |
147 |
144 |
|
Net financial income |
|
298 |
17 |
1 279 |
-2 376 |
|
|
|
|
|
|
|
|
Profit (loss) from associates using equity method |
|
17 |
0 |
29 |
0 |
|
Profit before tax and gain/(loss) on net monetary position |
4 956 |
4 303 |
13 071 |
12 250 |
|
|
|
|
|
|
|
|
Income tax expense |
|
-932 |
-1 055 |
-3 345 |
-2 869 |
|
|
|
|
|
|
|
|
Profit for the period |
|
4 024 |
3 248 |
9 726 |
9 381 |
|
Attributable to : |
|
|
|
|
|
|
Equity holders of the Parent company |
|
3 875 |
3 131 |
9 309 |
9 117 |
|
Non-controlling interest |
|
149 |
117 |
417 |
264 |
|
|
|
|
|
|
|
|
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) |
7 |
0.11 |
0.08 |
0.26 |
0.25 |
Consolidated Statement of Comprehensive Income
|
in thousands of EUR |
Note |
3Q 2017 |
3Q 2016 |
9m 2017 |
9m 2016 |
|
|
|
|
|
|
|
|
Profit for the period |
|
4 024 |
3 248 |
9 726 |
9 381 |
|
|
|
|
|
|
|
|
Exchange rate differences attributable to foreign operations |
|
-1 911 |
100 |
-5 226 |
801 |
|
Attributable to : |
|
|
|
|
|
|
Equity holders of the Parent company |
|
-1 730 |
100 |
-4 732 |
927 |
|
Non-controlling interest |
|
-181 |
0 |
-494 |
-126 |
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
2 113 |
3 348 |
4 500 |
10 182 |
|
Attributable to : |
|
|
|
|
|
|
Equity holders of the Parent company |
|
2 145 |
3 231 |
4 577 |
10 044 |
|
Non-controlling interest |
|
-32 |
117 |
-77 |
138 |
Consolidated Statement of Cash Flows
|
in thousands of EUR |
9m 2017 |
9m 2016 |
|
Cash flow from operating activities |
|
|
|
Profit for the period |
9 726 |
9 381 |
|
Adjustments for: |
|
|
|
Depreciation and amortization of non-current assets |
1 386 |
1 352 |
|
Share of profit of equity accounted investees |
-29 |
0 |
|
(Gains)/ losses on the sale of PPE and IA |
6 |
-32 |
|
Net finance income / costs |
-1 279 |
2 376 |
|
Provision for impairment losses on trade receivables |
0 |
-5 |
|
Income tax expense |
3 345 |
2 869 |
|
Change in inventories |
1 833 |
1 226 |
|
Change in trade and other receivables |
941 |
347 |
|
Change in trade and other payables |
-2 977 |
-2 180 |
|
Income tax paid |
-3 291 |
-2 365 |
|
Net cash from operating activities |
9 661 |
12 969 |
|
|
|
|
|
Cash flow from investing activities |
|
|
|
Interest received |
110 |
101 |
|
Dividends received |
1 |
3 |
|
Proceeds from disposal of property, plant and equipment |
411 |
36 |
|
Acquisition of property, plant and equipment |
-590 |
-573 |
|
Acquisition of intangible assets |
-84 |
-77 |
|
Acquisition of shares of a subsidiary |
0 |
-3 |
|
Net cash used in/from investing activities |
-152 |
-513 |
|
|
|
|
|
Cash flow from financing activities |
|
|
|
Dividends paid |
-8 098 |
-5 970 |
|
Acquisition of own shares |
-1 522 |
-1 505 |
|
Net cash used in/ from financing activities |
-9 620 |
-7 475 |
|
|
|
|
|
Increase in cash and cash equivalents |
-111 |
4 981 |
|
Cash and cash equivalents at the beginning of period |
22 303 |
21 274 |
|
Effect of exchange rate fluctuations on cash held |
-102 |
-158 |
|
Cash and cash equivalents at the end of period |
22 090 |
26 097 |
Jarek Särgava
Member of the Board
AS Silvano Fashion Group
Phone +372 6845 000
E-mail: info@silvanofashion.com
|