Published: 2018-08-10 17:20:00 CEST
Silvano Fashion Group
Quarterly report

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

Attachment


SFG Q2 and 6 months 2018 interim report.pdf