Published: 2021-08-06 16:00:00 CEST
Silvano Fashion Group
Half Year financial report

Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6m of 2021 (unaudited)

Selected Financial Indicators

Summarized selected financial indicators of the Group for 6 months of 2021 compared to 6 months of 2020 and 30.06.2021 compared to 31.12.2020 were as follows:

in thousands of EUR 06m 2021 06m 2020 Change
Revenue 23 225 17 731 31.0%
Gross Profit 13 661 10 575 29.2%
Operating profit 7 941 3 983 99.4%
EBITDA 9 533 5 931 60.7%
Net profit for the period 6 696 870 669.7%
Net profit attributable equity holders of the Parent company 6 031 745 709.5%
Earnings per share (EUR) 0,17 0,02 750.0%
Operating cash flow for the period 8 055 2 742 193.8%
    
in thousands of EUR 30.06.2021 31.12.2020 Change
Total assets 49 446 42 256 17.0%
Total current assets 36 381 29 597 22.9%
Total equity attributable to equity holders of the Parent company 30 497 24 504 24.5%
Cash and cash equivalents 14 022 8 980 56.1%
    
Margin analysis, % 06m 2021 06m 2020 Change
Gross profit 58.8 59.6 -1.3%
Operating profit 34.2 22.5 52.0%
EBITDA 41.0 33.4 22.8%
Net profit 28.8 4.9 487.8%
Net profit attributable to equity holders of the Parent company 26.0 4.2 519.0%
    
Financial ratios, % 30.06.2021 31.12.2020 Change
ROA 23.7 3.2 640.6%
ROE 40.2 5.6 617.9%
Price to earnings ratio (P/E) 5.5 41.7 -86.8%
Current ratio 4.0 3.4 17.6%
Quick ratio 1.8 1.3 38.5%

Financial performance

The Group`s sales amounted to 23 225 thousand EUR during 6 months of 2021, representing a 31.0% increase as compared to the same period of previous year. Overall, wholesale increased by 40.1%, measured in EUR.

The Group’s gross profit during 6 months of 2021 amounted to 13 661 thousand EUR and increase by 29.2% compared to previous year. The gross margin during 6 months of 2021 decreased to 58.8%, from 59.6% in the respective period of previous year. The cost of sold goods increased by 33.7%.

Consolidated operating profit for 6 months of 2021 amounted to 7 941 thousand EUR, compared to 3 983 thousand EUR in 6 months of 2020, increase by 99.4%. The consolidated operating profit margin was 34.2% for 6 months of 2021 (22.5% in 6 months of 2020). Consolidated EBITDA for 6 months of 2021 increased by 60.7% and amounted to 9 533 thousand EUR, which is 41.0% in margin terms (5 931 thousand EUR and 33.4% for 6 months of 2020).

Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2021 amounted to   6 031 thousand EUR, compared to net profit of 745 thousand EUR in 6 months of 2020, net profit margin attributable to equity holders of the Parent company for 6 months of 2021 was 26.0% against 4.2% in 6 months of 2020.

Financial position

As of 30 June 2021 consolidated assets amounted to 49 446 thousand EUR representing increase by 17.0% as compared to the position as of 31 December 2020.

Trade and other receivables increased by 273 thousand EUR as compared to 31 December 2020 and amounted to    2 361 thousand EUR as of 30 June 2021. Inventory balance increased by 1 469 thousand EUR and amounted to      19 996 thousand EUR as of 30 June 2021.

Equity attributable to equity holders of the Parent company increased by 5 993 thousand EUR and amounted to            30 497 thousand EUR as of 30 June 2021. Current liabilities increased by 255 thousand EUR during    6 months of 2021.

Investments

During 6 months of 2021 the Group’s investments into property, plant and equipment totalled 120 thousand EUR, in previous year same period 133 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 2021, the Group employed 1 696 employees, including 518 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 6 months of 2021 amounted to 4 745 thousand EUR (5 008 thousand EUR in 6 months of 2020). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 293 thousand EUR.

Consolidated Statement of Financial Position

in thousands of EUR Note 30.06.2021 31.12.2020
    Unaudited Audited
ASSETS    
Current assets    
Cash and cash equivalents 2 14 022 8 980
Current loans granted   2 2
Trade and other receivables 3 2 361 2 088
Inventories 4 19 996 18 527
Total current assets   36 381 29 597
    
Non-current assets    
Long-term receivables   268 249
Investments in associates   59 57
Investments in other shares   250 238
Deferred tax asset   1 091 1 032
Intangible assets   462 374
Investment property   1 053 1 018
Property, plant and equipment 5 9 882 9 691
Total non-current assets   13 065 12 659
TOTAL ASSETS   49 446 42 256
      
LIABILITIES AND EQUITY    
Current liabilities    
Short-term borrowings   0 400
Short-term lease liabilities   1 283 2 121
Trade and other payables 6 5 815 5 583
Goverment Grants   56 0
Tax liabilities   1 880 675
Total current liabilities   9 034 8 779
    
Non-current liabilities    
Deferred tax liability   584 500
Long-term borrowings   0 400
Long-term lease obligations   5 707 4 707
Long-term provisions   55 52
Total non-current liabilities   6 346 5 659
Total liabilities   15 380 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   0 355
Unrealised exchange rate differences   -18 547 -18 864
Retained earnings   39 171 33 140
Total equity attributable to equity holders of the Parent company   30 497 24 504
Non-controlling interest   3 569 3 314
Total equity   34 066 27 818
TOTAL EQUITY AND LIABILITIES   49 446 42 256

Consolidated Income Statement

in thousands of EUR Note 2Q 2021 2Q 2020 06m 2021 06m 2020
    Unaudited Unaudited Unaudited Unaudited
Revenue from contracts with customers 9 12 960 6 185 23 225 17 731
Cost of goods sold   -5 541 -2 756 -9 564 -7 156
Gross Profit   7 419 3 429 13 661 10 575
          
Distribution expenses   -2 094 -1 713 -4 204 -4 447
Administrative expenses   -903 -811 -1 788 -1 933
Other operating income   385 70 566 129
Other operating expenses   -151 -144 -294 -341
Operating profit   4 656 831 7 941 3 983
           
Currency exchange income/(expense)   605 2 174 1 060 -2 556
Other finance income/(expenses)   -106 -109 -216 -234
Net financial income   499 2 065 844 -2 790
        
Profit (loss) from associates using equity method 5 0 -1 0
Profit before tax   5 160 2 896 8 784 1 193
        
Income tax expense   -1 028 -586 -2 088 -323
        
Profit for the period   4 132 2 310 6 696 870
Attributable to :      
   Equity holders of the Parent company   3 770 2 151 6 031 745
   Non-controlling interest   362 159 665 125
          
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) 8 0,10 0,06 0,17 0,02

Consolidated Statement of Comprehensive Income

in thousands of EUR Note 2Q 2021 2Q 2020 06m 2021 06m 2020
   Unaudited Unaudited Unaudited Unaudited
Profit for the period   4 132 2 310 6 696 870
      
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods :          
Exchange differences on translation of foreign operations 40 166 269 -2 059
Total other comprehensive income for the period 40 166 269 -2 059
          
Total comprehensive income (loss) for the period   4 172 2 476 6 965 -1 189
Attributable to :      
   Equity holders of the Parent company   3 829 2 331 5 993 -1 652
   Non-controlling interest   343 145 972 463

Consolidated Statement of Cash Flows

in thousands of EUR   06m 2021 06m 2020
    Unaudited Unaudited
Cash flow from operating activities    
Profit for the period   6 696 870
Adjustments for:    
  Depreciation and amortization of non-current assets   1 592 1 948
  Share of profit of equity accounted investees   1 0
  (Gains)/ losses on the sale of property, plant and equipment   0 3
  Net finance income / costs   -596 212
  Provision for inventories   4 1
  Receipt of government grants   450 0
  Movements in provisions and government grants   -394 0
Income tax expense   2 088 323
Change in inventories   -1 469 1 114
Change in trade and other receivables   -289 219
Change in trade and other payables   639 -1 210
Interest paid   -2 0
Income tax paid   -665 -738
Net cash from operating activities   8 055 2 742
    
Cash flow from investing activities    
Interest received   9 7
Proceeds from disposal of property, plant and equipment   18 28
Acquisition of property, plant and equipment   -120 -133
Acquisition of intangible assets   -82 -67
Net cash flow from investing activities   -175 -165
      
Cash flow from financing activities     
Acquisition of non-controlling interests   0 -26
Proceeds from borrowings   0 200
Repayment of borrowings   -800 0
Payment of principal portion of lease liabilities   -1 135 -1 006
Interest paid  on finance lease   -224 -255
Dividends paid   -717 -474
Net cash flow from financing activities   -2 876 -1 561
    
Increase in cash and cash equivalents   5 004 1 016
Cash and cash equivalents at the beginning of period   8 980 5 152
Effect of exchange rate fluctuations on cash held   38 184
Cash and cash equivalents at the end of period   14 022 6 352

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 Q2 and 6m of 2021 unaudited.pdf