Published: 2020-08-14 15:00:00 CEST
Silvano Fashion Group
Half Year financial report

Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6 months of 2020 (unaudited)

Selected Financial Indicators

Summarized selected financial indicators of the Group for 6 months of 2020 compared to 6 months of 2019 and 30.06.2020 compared to 31.12.2019 were as follows:

in thousands of EUR 06m 2020 06m 2019 Change
Revenue 17 731 30 264 -41.4%
Gross Profit 10 575 15 493 -31.7%
Operating profit 3 983 7 061 -43.6%
EBITDA 5 931 8 789 -32.5%
Net profit for the period 870 7 203 -87.9%
Net profit attributable equity holders of the Parent company 745 6 922 -89.2%
Earnings per share (EUR) 0,02 0,19 -89.5%
Operating cash flow for the period 2 742 8 331 -67.1%
    
in thousands of EUR 30.06.2020 31.12.2019 Change
Total assets 42 916 46 309 -7.3%
Total current assets 26 877 27 123 -0.9%
Total equity attributable to equity holders of the Parent company 24 672 26 324 -6.3%
Cash and cash equivalents 6 352 5 152 23.3%
    
Margin analysis, % 06m 2020 06m 2019 Change
Gross profit 59.6 51.2 16.4%
Operating profit 22.5 23.3 -3.4%
EBITDA 33.4 29.0 15.2%
Net profit 4.9 23.8 -79.4%
Net profit attributable to equity holders of the Parent company 4.2 22.9 -81.6%
    
Financial ratios, % 30.06.2020 31.12.2019 Change
ROA 10.2 22.2 -54.1%
ROE 18.1 38.9 -53.5%
Price to earnings ratio (P/E) 13.3 7.3 82.2%
Current ratio 3.3 2.7 22.2%
Quick ratio 1.1 0.8 37.5%

Financial performance

The Group`s sales amounted to 17 731 thousand EUR during 6 months of 2020, representing a 41.4% decrease as compared to the same period of previous year. Overall, wholesales decreased by 44.8%, measured in EUR.

The Group’s gross profit during 6 months of 2020 amounted to 10 575 thousand EUR and decrease by 31.7% compared to previous year. The gross margin during 6 months of 2020 increased to 59.6%, from 51.2% in the respective period of previous year. The cost of sold goods decreased by 51.6%.

Consolidated operating profit for 6 months of 2020 amounted to 3 983 thousand EUR, compared to 7 061 thousand EUR in 6 months of 2019, decrease by 43.6%. The consolidated operating profit margin was 22.5% for 6 months of 2020 (23.3% in 6 months of 2019). Consolidated EBITDA for 6 months of 2020 decreased by 32.5% and amounted to 5 931 thousand EUR, which is 33.4% in margin terms (8 789 thousand EUR and 29.0% for 6 months of 2019).

Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2020 amounted to 745 thousand EUR, compared to net profit of 6 922 thousand EUR in 6 months of 2019, net profit margin attributable to equity holders of the Parent company for 6 months of 2020 was 4.2% against 22.9% in 6 months of 2019.

Financial position

As of 30 June 2020 consolidated assets amounted to 42 916 thousand EUR representing decrease by 7.3% as compared to the position as of 31 December 2019.

Trade and other receivables decreased by 332 thousand EUR as compared to 31 December 2019 and amounted to    2 278 thousand EUR as of 30 June 2020. Inventory balance decreased by 1 114 thousand EUR and amounted to     18 245 thousand EUR as of 30 June 2020.

Equity attributable to equity holders of the Parent company decreased by 1 652 thousand EUR and amounted to            24 672 thousand EUR as of 30 June 2020. Current liabilities decreased by 2 093 thousand EUR during 6 months of 2020.

Investments

During 6 months of 2020 the Group’s investments into property, plant and equipment totalled 133 thousand EUR, in previous year same period 1 096 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 2020, the Group employed 1 784 employees, including 491 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 6 months of 2020 amounted to 5 008 thousand EUR (6 702 thousand EUR in 6 months of 2019). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 389 thousand EUR.

Consolidated Statement of Financial Position

in thousands of EUR Note 30.06.2020 31.12.2019
ASSETS    
Current assets    
Cash and cash equivalents   6 352 5 152
Current loans granted   2 2
Trade and other receivables 2 2 278 2 610
Inventories 3 18 245 19 359
Total current assets   26 877 27 123
    
Non-current assets    
Long-term receivables   281 334
Investments in associates   71 82
Available-for-sale investments   279 321
Deferred tax asset   1 405 905
Intangible assets   402 423
Investment property   746 869
Property, plant and equipment 4 12 855 16 252
Total non-current assets   16 039 19 186
TOTAL ASSETS   42 916 46 309
      
LIABILITIES AND EQUITY    
Current liabilities    
Short-term finance lease obligations   1 287 2 362
Trade and other payables 5 5 951 6 899
Tax liabilities   819 889
Total current liabilities   8 057 10 150
    
Non-current liabilities    
Deferred tax liability   0 14
Long-term loans   200 0
Long-term finance lease obligations   6 518 6 333
Long-term provisions   53 61
Total non-current liabilities   6 771 6 408
Total liabilities   14 828 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   -18 094 -15 697
Retained earnings   32 538 31 793
Total equity attributable to equity holders of the Parent company   24 672 26 324
Non-controlling interest   3 416 3 427
Total equity   28 088 29 751
TOTAL EQUITY AND LIABILITIES   42 916 46 309

Consolidated Income Statement

in thousands of EUR Note 2Q 2020 2Q 2019 06m 2020 06m 2019
Revenue 8 6 185 16 444 17 731 30 264
Cost of goods sold   -2 756 -7 406 -7 156 -14 771
Gross Profit   3 429 9 038 10 575 15 493
           
Distribution expenses   -1 713 -2 949 -4 447 -5 854
Administrative expenses   -811 -1 195 -1 933 -2 287
Other operating income   70 81 129 147
Other operating expenses   -144 -236 -341 -438
Operating profit   831 4 739 3 983 7 061
           
Currency exchange income/(expense)   2 174 439 -2 556 2 470
Other finance income/(expenses)   -109 -110 -234 -220
Net financial income   2 065 329 -2 790 2 250
        
Profit (loss) from associates using equity method   0 -1 0 0
Profit before tax   2 896 5 067 1 193 9 311
          
Income tax expense   -586 -944 -323 -2 108
        
Profit for the period   2 310 4 123 870 7 203
Attributable to:          
  Equity holders of the Parent company   2 151 3 824 745 6 922
  Non-controlling interest   159 299 125 281
          
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) 7 0,06 0,11 0,02 0,19

Consolidated Statement of Comprehensive Income

in thousands of EUR Note 2Q 2020 2Q 2019 06m 2020 06m 2019
      
Profit for the period   2 310 4 123 870 7 203
      
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods   166 182 -2 059 11
Attributable to :      
  Equity holders of the Parent company   180 90 -2 397 -193
  Non-controlling interest   -14 92 338 204
          
Total comprehensive income (loss) for the period   2 476 4 305 -1 189 7 214
Attributable to :      
  Equity holders of the Parent company   2 331 3 914 -1 652 6 729
  Non-controlling interest   145 391 463 485

 

Consolidated Statement of Cash Flows

in thousands of EUR 06m 2020 06m 2019
Cash flow from operating activities   
Profit for the period 870 7 203
Adjustments for:   
  Depreciation and amortization of non-current assets 1 948 1 728
  (Gains)/ losses on the sale of property, plant and equipment 3 23
  Net finance income / costs 212 -2 250
  Provision for inventories 1 0
  Provision for long-term benefits 0 3
Income tax expense 323 2 108
Change in inventories 1 114 -914
Change in trade and other receivables 219 -332
Change in trade and other payables -1 210 1 105
Change in finance lease obligations 0 997
Income tax paid -738 -1 340
Net cash from operating activities 2 742 8 331
   
Cash flow from investing activities   
Interest received 7 4
Proceeds from disposal of property, plant and equipment 28 59
Proceeds from repayments of loans granted 0 6
Acquisition of property, plant and equipment -133 -1 096
Acquisition of intangible assets -67 -118
Acquisition of subsidiary net of cash acquired -26 0
Net cash used in/from investing activities -191 -1 145
   
Cash flow from financing activities   
Proceeds from borrowings 200 0
Repayment of finance lease -1 006 -1 114
Interest paid  on finance lease -255 0
Dividends paid -474 -3 919
Reduction of share capital 0 -7 200
Net cash used in/ from financing activities -1 535 -12 233
   
Increase in cash and cash equivalents 1 016 -5 047
Cash and cash equivalents at the beginning of period 5 152 13 603
Effect of exchange rate fluctuations on cash held 184 -68
Cash and cash equivalents at the end of period 6 352 8 488

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

Attachment


SFG Q2 2020 ENG.pdf