Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6 months of 2018 (unaudited)Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6 months of 2018 (unaudited) Selected Financial Indicators Summarized selected financial indicators of the Group for 6 months of 2018 compared to 6 months of 2017 and 30.06.2018 compared to 31.12.2017 were as follows: | in thousands of EUR | 6m 2018 | 6m 2017 | Change | | Revenue | 33 533 | 32 810 | 2.2% | | EBITDA | 11 810 | 8 094 | 45.9% | | Net profit for the period | 8 418 | 5 702 | 47.6% | | Net profit attributable to equity holders of the Parent company | 7 657 | 5 434 | 40.9% | | Earnings per share (EUR) | 0,21 | 0,15 | 40.0% | | Operating cash flow for the period | 7 949 | 4 716 | 68.6% | | | | | | | in thousands of EUR | 30.06.2018 | 31.12.2017 | Change | | Total assets | 51 090 | 52 880 | -3.4% | | Total current assets | 40 091 | 41 708 | -3.9% | | Total equity attributable to equity holders of the Parent company | 30 756 | 40 974 | -24.9% | | Cash and cash equivalents | 17 585 | 21 230 | -17.2% | | | | | | | Margin analysis, % | 6m 2018 | 6m 2017 | Change | | Gross profit | 57,8 | 49,5 | 16.8% | | EBITDA | 35,2 | 24,7 | 42.5% | | Net profit | 25,1 | 17,4 | 44.3% | | Net profit attributable to equity holders of the Parent company | 22,8 | 16,6 | 37.3% | | | | | | | Financial ratios, % | 30.06.2018 | 31.12.2017 | Change | | ROA | 25,9 | 19,9 | 30.2% | | ROE | 36,4 | 27,1 | 34.3% | | Price to earnings ratio (P/E) | 8,7 | 9,5 | -8.4% | | Current ratio | 2,4 | 4,7 | -48.9% | | Quick ratio | 1,3 | 2,7 | -51.9% |
Financial performance The Group`s revenue amounted to 33 533 thousand EUR for 6 months of 2018, representing a 2.2% increase as compared to the same period of previous year. Overall, wholesales increased by 3.5% measured in EUR. The Group’s reported gross profit margin for 6 months of 2018 continued to improve increasing to 57.8%, reported gross margin was 49.5% in the respective period of previous year. Consolidated operating profit for 6 months of 2018 amounted to 11 020 thousand EUR, compared to 7 122 thousand EUR in 6 months of 2017. The consolidated operating profit margin was 32.9% for 6 months of 2018 (21.7% in 6 months of 2017). Consolidated EBITDA for 6 months of 2018 was 11 810 thousand EUR, which is 35.2% in margin terms (8 094 thousand EUR and 24.7% for 6 months of 2017). Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2018 amounted to 7 657 thousand EUR, compared to net profit of 5 434 thousand EUR in 6 months of 2017, net profit margin attributable to equity holders of the Parent company for 6 months of 2018 was 22.8% against 16.6% in 6 months of 2017.
Financial position
As of 30 June 2018 consolidated assets amounted to 51 090 thousand EUR representing a decrease of 3.4% as compared to the position as of 31 December 2017.
Trade and other receivables increased by 1 078 thousand EUR as compared to 31 December 2017 and amounted to 3 794 thousand EUR as of 30 June 2018. Inventory balance increased by 950 thousand EUR and amounted to 18 710 thousand EUR as of 30 June 2018. Equity attributable to equity holders of the Parent company decreased by 10 218 thousand EUR and amounted to 30 756 thousand EUR as of 30 June 2018. Current liabilities increased by 7 971 thousand EUR for 6 months of 2018. Investments
During 6 months of 2018 the Group’s investments into property, plant and equipment totalled 373 thousand EUR, in previous year same period 412 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 June 2018, the Group employed 2 172 employees, including 506 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2017 there were 2 279 employees, including 506 people in retail operations. Total salaries and related taxes for 6 months of 2018 amounted to 6 474 thousand EUR (7 418 thousand EUR in 6 months of 2017). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 407 thousand EUR. Decisions made by governing bodies Q2 2018
On January 12, 2018 Silvano Fashion Group Extraordinary Meeting of Shareholders decided to distribute additional dividends in the amount 0.30 EUR per share (record date 25.01.2018, payment completed on 29.01.2018). On June 28, 2018 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions. - The Meeting approved the 2017 Annual Report.
- The Meeting decided to distribute dividends in the amount 0.20 EUR per share (record date 16.07.2018, payment completed on 24.07.2018).
- The Meeting decided to select audit company Ernst&Young Baltic AS as the auditor of AS Silvano Fashion Group 2018 and 2019 business activities.
- The Meeting decided to extend authority of the Supervisory Board member Mr. Mart Mutso for the
next term of authority starting from 1 July 2018 till 30 June 2023. - The Meeting decided to amend the first sentence of Section 2.1 of the Articles of Association of the Company and approve the sentence of Section 2.1 in the following wording:the minimum amount of the share capital of the Company shall be EUR three million six hundred thousand(3,600,000) and the maximum amount of the share capital shall be EUR fourteen million four hundred thousand (14,400,000) and to amend the second sentence of Section 2.2 of the Articles of Association of the Company and approve the second sentence of Section 2.2 in the following wording:the nominal value of each share is 0.10 euros.
- The Meeting decided to reduce the share capital of the Company by reducing the nominal value of the shares by 0.20 EUR per share (record date 16.07.2018, to be paid out after the registration of the capital reduction is completed) and amend the Articles of Association accordingly.
Consolidated Statement of Financial Position | in thousands of EUR | Note | 30.06.2018 | 31.12.2017 | | ASSETS | | | | | Current assets | | | | | Cash and cash equivalents | | 17 585 | 21 230 | | Current loans granted | | 2 | 2 | | Trade and other receivables | 2 | 3 794 | 2 716 | | Inventories | 3 | 18 710 | 17 760 | | Total current assets | | 40 091 | 41 708 | | | | | | | Non-current assets | | | | | Long-term receivables | | 259 | 255 | | Investments in associates | | 62 | 55 | | Available-for-sale investments | | 326 | 320 | | Deferred tax asset | | 999 | 900 | | Intangible assets | | 245 | 217 | | Investment property | | 922 | 920 | | Property, plant and equipment | 4 | 8 186 | 8 505 | | Total non-current assets | | 10 999 | 11 172 | | TOTAL ASSETS | | 51 090 | 52 880 | | | | | | | LIABILITIES AND EQUITY | | | | | Current liabilities | | | | | Trade and other payables | 5 | 14 878 | 8 025 | | Tax liabilities | | 1 967 | 849 | | Total current liabilities | | 16 845 | 8 874 | | | | | | | Non-current liabilities | | | | | Deferred tax liability | | 10 | 10 | | Long-term provisions | | 53 | 52 | | Total non-current liabilities | | 63 | 62 | | Total liabilities | | 16 908 | 8 936 | | | | | | | Equity | | | | | Share capital | 6 | 10 800 | 10 800 | | Share premium | | 8 567 | 8 567 | | Statutory reserve capital | | 1 306 | 1 306 | | Revaluation reserve | | 710 | 710 | | Unrealised exchange rate differences | | -15 463 | -15 588 | | Retained earnings | | 24 836 | 35 179 | | Total equity attributable to equity holders of the Parent company | | 30 756 | 40 974 | | Non-controlling interest | | 3 426 | 2 970 | | Total equity | | 34 182 | 43 944 | | TOTAL EQUITY AND LIABILITIES | | 51 090 | 52 880 |
Consolidated Income Statement | in thousands of EUR | Note | 2Q 2018 | 2Q 2017 | 6m 2018 | 6m 2017 | | Revenue | 8 | 17 376 | 18 268 | 33 533 | 32 810 | | Cost of goods sold | | -7 313 | -8 804 | -14 162 | -16 563 | | Gross profit | | 10 063 | 9 464 | 19 371 | 16 247 | | | | | | | | | Distribution expenses | | -2 990 | -3 285 | -5 928 | -6 159 | | Administrative expenses | | -1 058 | -1 284 | -2 123 | -2 559 | | Other operating income | | 67 | 112 | 126 | 155 | | Other operating expenses | | -235 | -292 | -426 | -562 | | Operating profit | | 5 847 | 4 715 | 11 020 | 7 122 | | | | | | | | | Currency exchange income/(expense) | | -201 | 2 073 | -241 | 875 | | Other finance income/(expenses) | | 16 | 39 | 40 | 106 | | Net financial income | | -185 | 2 112 | -201 | 981 | | | | | | | | | Profit (loss) from associates using equity method | | 4 | 3 | 12 | 12 | | Profit before tax | 5 666 | 6 830 | 10 831 | 8 115 | | | | | | | | | Income tax expense | | -1 310 | -1 237 | -2 413 | -2 413 | | | | | | | | | Profit for the period | | 4 356 | 5 593 | 8 418 | 5 702 | | Attributable to : | | | | | | | Equity holders of the Parent company | | 3 962 | 5 383 | 7 657 | 5 434 | | Non-controlling interest | | 394 | 210 | 761 | 268 | | | | | | | | | Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 7 | 0,11 | 0,15 | 0,21 | 0,15 |
Consolidated Statement of Comprehensive Income | in thousands of EUR | Note | 2Q 2018 | 2Q 2017 | 6m 2018 | 6m 2017 | | | | | | | | | Profit for the period | | 4 356 | 5 593 | 8 418 | 5 702 | | | | | | | | | Exchange rate differences attributable to foreign operations | | 877 | -4 807 | 205 | -3 315 | | Attributable to : | | | | | | | Equity holders of the Parent company | | 742 | -4 428 | 125 | -3 002 | | Non-controlling interest | | 135 | -379 | 80 | -313 | | | | | | | | | Total comprehensive income for the period | | 5 233 | 786 | 8 623 | 2 387 | | Attributable to : | | | | | | | Equity holders of the Parent company | | 4 704 | 955 | 7 782 | 2 432 | | Non-controlling interest | | 529 | -169 | 841 | -45 | | | | | | | |
Consolidated Statement of Cash Flows | in thousands of EUR | 6m 2018 | 6m 2017 | | Cash flow from operating activities | | | | Profit for the period | 8 418 | 5 702 | | Adjustments for: | | | | Depreciation and amortization of property, plant and equipment | 790 | 972 | | Share of profit of equity accounted investees | -12 | -12 | | (Gains)/ losses on disposal of PPE and IA | 22 | -10 | | Net finance income / costs | 201 | -981 | | Provision for impairment losses on trade receivables | 1 | 0 | | Provision for long-term benefits | 1 | 0 | | Income tax expense | 2 413 | 2 413 | | Change in inventories | -950 | 473 | | Change in trade and other receivables | -1 078 | -459 | | Change in trade and other payables | -943 | -1 269 | | Income tax paid | -914 | -2 113 | | Net cash flow from operating activities | 7 949 | 4 716 | | | | | | Cash flow from investing activities | | | | Interest received | 19 | 81 | | Dividends received | 1 | 1 | | Proceeds from disposal of property, plant and equipment | 8 | 40 | | Acquisition of property, plant and equipment | -373 | -412 | | Acquisition of intangible assets | -75 | -39 | | Net cash flow used in/from investing activities | -420 | -329 | | | | | | Cash flow from financing activities | | | | Dividends paid | -11 185 | -947 | | Acquisition of own shares | 0 | -1 522 | | Net cash flow used in/ from financing activities | -11 185 | -2 469 | | | | | | Increase in cash and cash equivalents | -3 656 | 1 918 | | Cash and cash equivalents at the beginning of period | 21 230 | 22 303 | | Effect of exchange rate differences on cash held | 11 | 712 | | Cash and cash equivalents at the end of period | 17 585 | 24 933 |
Jarek Särgava
AS Silvano Fashion Group
Member of the Board
Phone: +372 6845 000
Email: info@silvanofashon.com
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