Published: 2019-02-28 16:00:00 CET
Silvano Fashion Group
Quarterly report

Silvano Fashion Group Consolidated Interim Financial Report for Q4 and 12 months of 2018 (unaudited)

Selected Financial Indicators

Summarized selected financial indicators of the Group for 12 months of 2018 compared to 12 months of 2017 and 31.12.2018 compared to 31.12.2017 were as follows:

in thousands of EUR 12m 2018 12m 2017 Change
Revenue 62 213 62 348 -0.2%
EBITDA 19 310 15 735 22.7%
Net profit for the period 11 525 11 393 1.2%
Net profit attributable equity holders of the Parent company 10 796 10 914 -1.1%
Earnings per share (EUR) 0,30 0,30 0.0%
Operating cash flow for the period 11 240 9 178 22.5%
    
in thousands of EUR 31.12.2018 31.12.2017 Change
Total assets 45 504 52 880 -13.9%
Total current assets 34 904 41 708 -16.3%
Total equity attributable to equity holders of the Parent company 27 462 40 974 -33.0%
Cash and cash equivalents 13 603 21 230 -35.9%
    
Margin analysis, % 12m 2018 12m 2017 Change
Gross profit 55,6 51,2 8.6%
EBITDA 31,0 25,2 23.0%
Net profit 18,5 18,3 1.1%
Net profit attributable to equity holders of the Parent company 17,4 17,5 -0.6%
    
Financial ratios, % 31.12.2018 31.12.2017 Change
ROA 22,9 19,9 15.1%
ROE 34,7 27,1 28.0%
Price to earnings ratio (P/E) 7,7 9,5 -18.9%
Current ratio 2,4 4,7 -48.9%
Quick ratio 1,2 2,7 -55.6%

Financial performance

The Group`s revenue amounted to 62 213 thousand EUR for 12 months of 2018, representing a 0.2% decrease as compared to the same period of previous year. Overall, retail decreased by 1.3% measured in EUR.

The Group’s reported gross profit margin for 12 months of 2018 continued to improve increasing to 55.6%, reported gross margin was 51.2% in the respective period of previous year. Consolidated operating profit for 12 months of 2018 amounted to 17 736 thousand EUR, compared to 13 948 thousand EUR in 12 months of 2017. The consolidated operating profit margin was 28.5% for 12 months of 2018 (22.4% in 12 months of 2017). Consolidated EBITDA for 12 months of 2018 was 19 310 thousand EUR, which is 31.0% in margin terms (15 735 thousand EUR and 25.2% for 12 months of 2017).

Reported consolidated net profit attributable to equity holders of the Parent company for 12 months of 2018 amounted to 10 796 thousand EUR, compared to net profit of 10 914 thousand EUR in 12 months of 2017, net profit margin attributable to equity holders of the Parent company for 12 months of 2018 was 17.4% against 17.5% in 12 months of 2017.

Financial position

As of 31 December 2018 consolidated assets amounted to 45 504 thousand EUR representing a decrease of 13.9% as compared to the position as of 31 December 2017.

Trade and other receivables increased by 932 thousand EUR as compared to 31 December 2017 and amounted to    3 648 thousand EUR as of 31 December 2018. Inventory balance decreased by 115 thousand EUR and amounted to 17 645 thousand EUR as of 31 December 2018.

Equity attributable to equity holders of the Parent company decreased by 13 512 thousand EUR and amounted to      27 462 thousand EUR as of 31 December 2018. Current liabilities increased by 5 951 thousand EUR for 12 months of 2018.

Investments

During 12 months of 2018 the Group’s investments into property, plant and equipment totalled 497 thousand EUR, in previous year same period 1 226 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 31 December 2018, the Group employed 2 073 employees, including 500 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 12 months of 2018 amounted to 12 500 thousand EUR (13 994 thousand EUR in 12 months of 2017). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 800 thousand EUR.

Decisions made by governing bodies 12 months 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. As of 29 October 2018, Tartu County Court registered the decrease of the share capital to 3 600 thousand EUR according to the resolution of the Annual General Meeting (June 28, 2018).  Payment completed on 30.01.2019.

Consolidated Statement of Financial Position

in thousands of EUR Note 31.12.2018 31.12.2017
ASSETS    
Current assets    
Cash and cash equivalents   13 603 21 230
Current loans granted   8 2
Trade and other receivables 2 3 648 2 716
Inventories 3 17 645 17 760
Total current assets   34 904 41 708
    
Non-current assets    
Long-term receivables   292 255
Investments in associates   64 55
Available-for-sale investments   305 320
Deferred tax asset   1 433 900
Intangible assets   261 217
Investment property   851 920
Property, plant and equipment 4 7 394 8 505
Total non-current assets   10 600 11 172
TOTAL ASSETS   45 504 52 880
    
LIABILITIES AND EQUITY    
Current liabilities    
Trade and other payables 5 14 163 8 025
Tax liabilities   662 849
Total current liabilities   14 825 8 874
    
Non-current liabilities    
Deferred tax liability   7 10
Long-term provisions   61 52
Total non-current liabilities   68 62
Total liabilities   14 893 8 936
    
Equity    
Share capital 6 3 600 10 800
Share premium   8 567 8 567
Statutory reserve capital   1 306 1 306
Revaluation reserve   355 710
Unrealised exchange rate differences   -14 696 -15 588
Retained earnings   28 330 35 179
Total equity attributable to equity holders of the Parent company   27 462 40 974
Non-controlling interest   3 149 2 970
Total equity   30 611 43 944
TOTAL EQUITY AND LIABILITIES   45 504 52 880

Consolidated Income Statement

in thousands of EUR Note 4Q 2018 4Q 2017 12m 2018 12m 2017
Revenue 8 12 378 12 283 62 213 62 348
Cost of goods sold   -6 227 -5 589 -27 594 -30 435
Gross Profit   6 151 6 694 34 619 31 913
          
Distribution expenses   -3 007 -2 947 -11 963 -12 081
Administrative expenses   -1 101 -1 197 -4 279 -4 937
Other operating income   84 93 281 323
Other operating expenses   -317 -458 -922 -1 270
Operating profit   1 810 2 185 17 736 13 948
          
Currency exchange income/(expense)   -922 89 -2 842 1 221
Other finance income/(expenses)   6 29 61 176
Net financial income   -916 118 -2 781 1 397
      
Profit (loss) from associates using equity method   2 10 20 39
Profit before tax 896 2 313 14 975 15 384
        
Income tax expense   -138 -646 -3 450 -3 991
      
Profit for the period   758 1 667 11 525 11 393
Attributable to :          
  Equity holders of the Parent company   938 1 605 10 796 10 914
  Non-controlling interest   -180 62 729 479
          
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) 7 0,03 0,04 0,30 0,30

Consolidated Statement of Comprehensive Income

in thousands of EUR Note 4Q 2018 4Q 2017 12m 2018 12m 2017
      
Profit for the period   758 1 667 11 525 11 393
          
Exchange rate differences attributable to foreign operations   707 43 715 -5 183
Attributable to :          
  Equity holders of the Parent company   739 112 892 -4 620
  Non-controlling interest   -32 -69 -177 -563
          
Total comprehensive income for the period   1 465 1 710 12 240 6 210
Attributable to :          
  Equity holders of the Parent company   1 677 1 717 11 688 6 294
  Non-controlling interest   -212 -7 552 -84
           

Consolidated Statement of Cash Flows

in thousands of EUR 12m 2018 12m 2017
Cash flow from operating activities   
Profit for the period 11 525 11 393
Adjustments for:   
  Depreciation and amortization of non-current assets 1 574 1 787
  Share of profit of equity accounted investees -20 -39
  (Gains)/ losses on the sale of PPE and IA 16 7
  Net finance income / costs 240 -1 397
  Provision for impairment losses on trade receivables 5 -19
  Provision for long-term benefits 9 52
Income tax expense 3 450 3 991
Change in inventories 115 -1 573
Change in trade and other receivables -871 1 081
Change in trade and other payables -1260 -1 709
Income tax paid -3 543 -4 396
Net cash from operating activities 11 240 9 178
   
Cash flow from investing activities   
Interest received 31 127
Dividends received 3 1
Proceeds from disposal of property, plant and equipment 18 463
Proceeds from repayments of loans granted 0 -17
Acquisition of property, plant and equipment -497 -1 226
Acquisition of intangible assets -156 -118
Acquisition of shares of a subsidiary -8 0
Net cash used in/from investing activities -609 -770
   
Cash flow from financing activities   
Dividends paid -18 373 -8 101
Acquisition of own shares 0 -1 522
Net cash used in/ from financing activities -18 373 -9 623
   
Increase in cash and cash equivalents -7 742 -1 215
Cash and cash equivalents at the beginning of period 21 230 22 303
Effect of exchange rate fluctuations on cash held 115 142
Cash and cash equivalents at the end of period 13 603 21 230
     

Jarek Särgava
AS Silvano Fashion Group
Member of the Board
Phone: +372 6845 000
Email: info@silvanofashon.com

Attachment


SFG Q4 and 12 months 2018 interim report.pdf