Published: 2020-05-29 22:59:00 CEST
Silvano Fashion Group
Quarterly report

Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2020 (unaudited)

Selected Financial Indicators

Summarized selected financial indicators of the Group for Q1 of 2020 compared to Q1 of 2019 and 31.03.2020 compared to 31.12.2019 were as follows:

in thousands of EUR 03m 2020 03m 2019 Change
Revenue 11 546 13 820 -16.5%
Gross Profit 7 146 6 455 10.7%
Operating profit 3 152 2 322 35.7%
EBITDA 4 248 3 158 34.5%
Net profit (loss) for the period -1 440 3 080 -146.8%
Net profit (loss) attributable equity holders of the Parent company -1 406 3 098 -145.4%
Earnings per share (EUR) -0.04 0.09 -144.4%
Operating cash flow for the period 1 876 3 242 -42.1%
    
in thousands of EUR 31.03.2020 31.12.2019 Change
Total assets 41 682 46 309 -10.0%
Total current assets 25 866 27 123 -4.6%
Total equity attributable to equity holders of the Parent company 22 341 26 324 -15.1%
Cash and cash equivalents 6 350 5 152 23.3%
    
Margin analysis, % 03m 2020 03m 2019 Change
Gross profit 61,9 46.7 32.5%
Operating profit 27.3 16.8 62.5%
EBITDA 36.8 22.9 60.7%
Net profit (loss) -12.5 22.3 -156.0%
Net profit (loss)  attributable to equity holders of the Parent company -12.2 22.4 -154.5%
    
Financial ratios, % 31.03.2020 31.12.2019 Change
ROA 13.5 22.2 -39.2%
ROE 24.2 38.9 -37.8%
Price to earnings ratio (P/E) 8.2 7.3 12.3%
Current ratio 2.6 2.7 -3.7%
Quick ratio 0.9 0.8 12.5%

Financial performance

The Group`s sales amounted to 11 546 thousand EUR during Q1 of 2020, representing a 16.5% decrease as compared to the same period of previous year. Overall, wholesales decreased by 22.3%, measured in EUR.

The Group’s gross profit during Q1 of 2020 amounted to 7 146 thousand EUR and increase by 10.7% compared to previous year. The gross margin during Q1 of 2020 increased to 61.9%, from 46.7% in the respective period of previous year. The cost of sold goods decreased by 40.3%.

Consolidated operating profit for Q1 of 2020 amounted to 3 152 thousand EUR, compared to 2 322 thousand EUR in Q1 of 2019, increase by 35.7%. The consolidated operating profit margin was 27.3% for Q1 of 2020 (16.8% in Q1 of 2019). Consolidated EBITDA for Q1 of 2020 increased by 34.5% and amounted to 4 248 thousand EUR, which is 36.8% in margin terms (3 158 thousand EUR and 22.9% for Q1 of 2019).

Reported consolidated net loss attributable to equity holders of the Parent company for Q1 of 2020 amounted to        -1 406 thousand EUR, compared to net profit of 3 098 thousand EUR in Q1 of 2019, net profit (loss) margin attributable to equity holders of the Parent company for Q1 of 2020 was -12.2% against 22.4% in Q1 of 2019.

Financial position

As of 31 March 2020 consolidated assets amounted to 41 682 thousand EUR representing decrease by 10.0% as compared to the position as of 31 December 2019.

Trade and other receivables decreased by 318 thousand EUR as compared to 31 December 2019 and amounted to    2 292 thousand EUR as of 31 March 2020. Inventory balance decreased by 2 137 thousand EUR and amounted to 17 222 thousand EUR as of 31 March 2020.

Equity attributable to equity holders of the Parent company decreased by 3 983 thousand EUR and amounted to            22 341 thousand EUR as of 31 March 2020. Current liabilities decreased by 275 thousand EUR during    Q1 of 2020.

Investments

During Q1 of 2020 the Group’s investments into property, plant and equipment totalled 96 thousand EUR, in previous year same period 562 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 March 2020, the Group employed 1 856 employees, including 506 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2019 there were 1 888 employees, including 503 people in retail operations.

Total salaries and related taxes during Q1 of 2020 amounted to 3 145 thousand EUR (3 350 thousand EUR in Q1 of 2019). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 210 thousand EUR.

Consolidated Statement of Financial Position

in thousands of EUR Note 31.03.2020 31.12.2019
ASSETS    
Current assets    
Cash and cash equivalents   6 350 5 152
Current loans granted   2 2
Trade and other receivables 2 2 292 2 610
Inventories 3 17 222 19 359
Total current assets   25 866 27 123
    
Non-current assets    
Long-term receivables   265 334
Investments in associates   63 82
Available-for-sale investments   262 321
Deferred tax asset   1 589 905
Intangible assets   374 423
Investment property   705 869
Property, plant and equipment 4 12 558 16 252
Total non-current assets   15 816 19 186
TOTAL ASSETS   41 682 46 309
    
LIABILITIES AND EQUITY    
Current liabilities    
Short-term finance lease obligations   1 614 2 362
Trade and other payables 5 6 909 6 899
Tax liabilities   1 352 889
Total current liabilities   9 875 10 150
    
Non-current liabilities    
Deferred tax liability   0 14
Long-term finance lease obligations   6 116 6 333
Long-term provisions   50 61
Total non-current liabilities   6 166 6 408
Total liabilities   16 041 16 558
    
Equity    
Share capital 6 3 600 3 600
Share premium   4 967 4 967
Statutory reserve capital   1 306 1 306
Revaluation reserve   355 355
Unrealised exchange rate differences   -18 274 -15 697
Retained earnings   30 387 31 793
Total equity attributable to equity holders of the Parent company   22 341 26 324
Non-controlling interest   3 300 3 427
Total equity   25 641 29 751
TOTAL EQUITY AND LIABILITIES   41 682 46 309

Consolidated Income Statement

in thousands of EUR Note 1Q 2020 1Q 2019
Revenue 8 11 546 13 820
Cost of goods sold   -4 400 -7 365
Gross Profit   7 146 6 455
      
Distribution expenses   -2 734 -2 905
Administrative expenses   -1 122 -1 092
Other operating income   59 66
Other operating expenses   -197 -202
Operating profit   3 152 2 322
       
Currency exchange income/(expense)   -4 730 2 031
Other finance income/(expenses)   -125 -110
Net financial income (loss)   -4 855 1 921
      
Profit (loss) from associates using equity method   0 1
Profit (loss) before tax   -1 703 4 244
      
Income tax expense   263 -1 164
    
Profit (loss) for the period   -1 440 3 080
Attributable to :      
  Equity holders of the Parent company   -1 406 3 098
  Non-controlling interest   -34 -18
      
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) 7 -0,04 0,09

Consolidated Statement of Comprehensive Income

in thousands of EUR Note 1Q 2020 1Q 2019
    
Profit (loss)  for the period   -1 440 3 080
    
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods   -2 225 -171
Attributable to :    
  Equity holders of the Parent company   -2 577 -283
  Non-controlling interest   352 112
      
Total comprehensive income (loss) for the period   -3 665 2 909
Attributable to :    
  Equity holders of the Parent company   -3 983 2 815
  Non-controlling interest   318 94

Consolidated Statement of Cash Flows

in thousands of EUR 03m 2020 03m 2019
Cash flow from operating activities   
Profit (loss) for the period -1 440 3 080
Adjustments for:   
  Depreciation and amortization of non-current assets 1 096 836
  Share of profit of equity accounted investees 0 -1
  (Gains)/ losses on the sale of property, plant and equipment 2 11
  Net finance income / costs 305 -1 921
  Provision for inventories 1 0
  Provision for long-term benefits 0 2
Income tax expense -263 1 164
Change in inventories 2 137 -1 298
Change in trade and other receivables 243 -1 484
Change in trade and other payables -86 1 635
Change in finance lease obligations 0 1 377
Income tax paid -119 -159
Net cash from operating activities 1 876 3 242
   
Cash flow from investing activities   
Interest received 5 3
Proceeds from disposal of property, plant and equipment 28 36
Proceeds from repayments of loans granted 0 6
Acquisition of property, plant and equipment -96 -562
Acquisition of intangible assets -50 -75
Acquisition of shares of a subsidiary -26 0
Net cash used in/from investing activities -139 -592
   
Cash flow from financing activities   
Repayment of finance lease -682 -657
Interest paid  on finance lease -136 0
Reduction of share capital 0 -7 200
Net cash used in/ from financing activities -818 -7 857
   
Increase in cash and cash equivalents 919 -5 207
Cash and cash equivalents at the beginning of period 5 152 13 603
Effect of exchange rate fluctuations on cash held 279 -46
Cash and cash equivalents at the end of period 6 350 8 350

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

Attachment


SFG consolidated interim financial report for Q1 of 2020.pdf