Published: 2021-05-21 15:00:00 CEST
Silvano Fashion Group
Quarterly report

Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2021 (unaudited)

Selected Financial Indicators

Summarized selected financial indicators of the Group for Q1 of 2021 compared to Q1 of 2020 and 31.03.2021 compared to 31.12.2020 were as follows:

in thousands of EUR 1Q 2021 1Q 2020 Change
Revenue 10 265 11 546 -11.1%
Gross Profit 6 242 7 146 -12.7%
Operating profit 3 285 3 152 4.2%
EBITDA 4 080 4 248 -4.0%
Net profit for the period 2 564 -1 440 278.1%
Net profit attributable equity holders of the Parent company 2 261 -1 406 260.8%
Earnings per share (EUR) 0,06 -0,04 250.0%
Operating cash flow for the period 3 589 1 876 91.3%
    
in thousands of EUR 31.03.2021 31.12.2020 Change
Total assets 46 279 42 256 9.5%
Total current assets 32 959 29 597 11.4%
Total equity attributable to equity holders of the Parent company 26 668 24 504 8.8%
Cash and cash equivalents 11 024 8 980 22.8%
    
Margin analysis, % 1Q 2021 1Q 2020 Change
Gross profit 60,8 61,9 -1.8%
Operating profit 32,0 27,3 17.2%
EBITDA 39,7 36,8 7.9%
Net profit 25,0 -12,5 300.0%
Net profit attributable to equity holders of the Parent company 22,0 -12,2 280.3%
    
Financial ratios, % 31.03.2021 31.12.2020 Change
ROA 13,9 3,2 334.4%
ROE 24,0 5,6 328.6%
Price to earnings ratio (P/E) 9,5 41,7 -77.2%
Current ratio 3,2 3,4 -5.9%
Quick ratio 1,3 1,3 -0.0%

Financial performance

The Group`s sales amounted to 10 265 thousand EUR during Q1 of 2021, representing a 11.1% decrease as compared to the same period of previous year. Overall, retail decreased by 18.6%, measured in EUR.

The Group’s gross profit during Q1 of 2021 amounted to 6 242 thousand EUR and decrease by 12.7% compared to previous year. The gross margin during Q1 of 2021 decreased to 60.8%, from 61.9% in the respective period of previous year. The cost of sold goods decreased by 8.6%.

Consolidated operating profit for Q1 of 2021 amounted to 3 285 thousand EUR, compared to 3 152 thousand EUR in Q1 of 2020, increase by 4.2%. The consolidated operating profit margin was 32.0% for Q1 of 2021 (27.3% in Q1 of 2020). Consolidated EBITDA for Q1 of 2021 decreased by 4.0% and amounted to 4 080 thousand EUR, which is 39.7% in margin terms (4 248 thousand EUR and 36.8% for Q1 of 2020).

Reported consolidated net profit attributable to equity holders of the Parent company for Q1 of 2021 amounted to        2 261 thousand EUR, compared to net loss of – 1 406 thousand EUR in Q1 of 2020, net profit (loss) margin attributable to equity holders of the Parent company for Q1 of 2021 was 22.0% against -12.2% in Q1 of 2020.

Financial position

As of 31 March 2021 consolidated assets amounted to 46 279 thousand EUR representing increase by 9.5% as compared to the position as of 31 December 2020.

Trade and other receivables increased by 194 thousand EUR as compared to 31 December 2020 and amounted to    2 282 thousand EUR as of 31 March 2021. Inventory balance increased by 1 124 thousand EUR and amounted to 19 651 thousand EUR as of 31 March 2021.

Equity attributable to equity holders of the Parent company increased by 2 164 thousand EUR and amounted to            26 668 thousand EUR as of 31 March 2021. Current liabilities increased by 1 479 thousand EUR during    Q1 of 2021.

Investments

During Q1 of 2021 the Group’s investments into property, plant and equipment totalled 78 thousand EUR, in previous year same period 96 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 2021, the Group employed 1 734 employees, including 510 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2020 there were 1 744 employees, including 500 people in retail operations.

Total salaries and related taxes during Q1 of 2021 amounted to 2 359 thousand EUR (3 145 thousand EUR in Q1 of 2020). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 148 thousand EUR.

Consolidated Statement of Financial Position

in thousands of EUR Note 31.03.2021 31.12.2020
    Unaudited Audited
ASSETS    
Current assets    
Cash and cash equivalents 2 11 024 8 980
Current loans granted   2 2
Trade and other receivables 3 2 282 2 088
Inventories 4 19 651 18 527
Total current assets   32 959 29 597
    
Non-current assets    
Long-term receivables   250 249
Investments in associates   53 57
Investments in other shares   245 238
Deferred tax asset   1 071 1 032
Intangible assets   426 374
Investment property   1 039 1 018
Property, plant and equipment 5 10 236 9 691
Total non-current assets   13 320 12 659
TOTAL ASSETS   46 279 42 256
      
LIABILITIES AND EQUITY    
Current liabilities    
Short-term borrowings   0 400
Short-term lease liabilities   1 881 2 121
Trade and other payables 6 6 363 5 583
Goverment Grants   52 0
Tax liabilities   1 962 675
Total current liabilities   10 258 8 779
    
Non-current liabilities    
Deferred tax liability   531 500
Long-term borrowings   0 400
Long-term lease obligations   5 518 4 707
Long-term provisions   54 52
Total non-current liabilities   6 103 5 659
Total liabilities   16 361 14 438
    
Equity    
Share capital 7 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   -18 961 -18 864
Retained earnings   35 401 33 140
Total equity attributable to equity holders of the Parent company   26 668 24 504
Non-controlling interest   3 250 3 314
Total equity   29 918 27 818
TOTAL EQUITY AND LIABILITIES   46 279 42 256

Consolidated Income Statement

in thousands of EUR Note Q1 2021 Q1 2020
    Unaudited Unaudited
Revenue from contracts with customers 9 10 265 11 546
Cost of goods sold   -4 023 -4 400
Gross Profit   6 242 7 146
       
Distribution expenses   -2 110 -2 734
Administrative expenses   -885 -1 122
Other operating income   181 59
Other operating expenses   -143 -197
Operating profit   3 285 3 152
       
Currency exchange income/(expense)   455 -4 730
Other finance income/(expenses)   -110 -125
Net financial income/(expenses)   345 -4 855
      
Profit (loss) from associates using equity method   -6 0
Profit before tax   3 624 -1 703
      
Income tax expense   -1 060 263
      
Profit for the period   2 564 -1 440
Attributable to :     
   Equity holders of the Parent company   2 261 -1 406
   Non-controlling interest   303 -34
       
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR)   0.06 -0.04

Consolidated Statement of Comprehensive Income

in thousands of EUR Note Q1 2021 Q1 2020
    Unaudited Unaudited
    
Profit for the period   2 564 -1 440
    
Other comprehensive income for the period    
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods :      
Exchange differences on translation of foreign operations 229 -2 225
Total other comprehensive income for the period 229 -2 225
Total comprehensive income (loss) for the period   2 793 -3 665
Attributable to :    
   Equity holders of the Parent company   2 164 -3 983
   Non-controlling interest   629 318

Consolidated Statement of Cash Flows

in thousands of EUR Note 1Q 2021 1Q 2020
    Unaudited Unaudited
Cash flow from operating activities    
Profit for the period   2 564 -1 440
Adjustments for:    
  Depreciation and amortization of non-current assets   795 1 096
  Share of profit of equity accounted investees   6 0
  (Gains)/ losses on the sale of property, plant and equipment   0 2
  Net finance income / costs   -604 305
  Provision for inventories   3 1
  Receipt of government grants   150 0
  Movements in provisions and government grants   -98 0
Income tax expense   1 060 -263
Change in inventories   -1 124 2 137
Change in trade and other receivables   -208 243
Change in trade and other payables   1 192 -86
Interest paid   -2 0
Income tax paid   -145 -119
Net cash from operating activities   3 589 1 876
      
Cash flow from investing activities     
Interest received   4 5
Proceeds from disposal of property, plant and equipment   0 28
Acquisition of property, plant and equipment   -78 -96
Acquisition of intangible assets   -48 -50
Net cash flow from investing activities   -122 -113
      
Cash flow from financing activities     
Acquisition of non-controlling interests   0 -26
Repayment from borrowings   -800 0
Payment of principal portion of lease liabilities   -530 -682
Interest paid  on finance lease   -114 -136
Net cash flow from financing activities   -1 444 -844
      
Increase in cash and cash equivalents   2 023 919
Cash and cash equivalents at the beginning of period   8 980 5 152
Effect of exchange rate fluctuations on cash held   21 279
Cash and cash equivalents at the end of period   11 024 6 350

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 2021 unaudited.pdf