Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6 months of 2023 (unaudited)
Selected Financial Indicators
Summarized selected financial indicators of the Group for 6 months of 2023 compared to 6 months of 2022 and 30.06.2023 compared to 31.12.2022 were as follows:
| in thousands of EUR | 06m 2023 | 06m 2022 | Change |
| Revenue | 31 407 | 26 370 | 19.1% |
| Gross Profit | 18 837 | 12 885 | 46.2% |
| Operating profit | 10 681 | 5 685 | 87.9% |
| EBITDA | 12 272 | 7 355 | 66.9% |
| Net profit for the period | 5 422 | 9 827 | -44.8% |
| Net profit attributable equity holders of the Parent company | 4 772 | 9 346 | -48.9% |
| Earnings per share (EUR) | 0.13 | 0.26 | -50.0% |
| Operating cash flow for the period | 10 802 | 5 070 | 113.1% |
| in thousands of EUR | 30.06.2023 | 31.12.2022 | Change |
| Total assets | 67 842 | 63 991 | 6.0% |
| Total current assets | 55 309 | 50 309 | 9.9% |
| Total equity attributable to equity holders of the Parent company | 47 398 | 44 786 | 5.8% |
| Cash and cash equivalents | 31 041 | 25 909 | 19.8% |
| Margin analysis, % | 06m 2023 | 06m 2022 | Change |
| Gross profit | 60.0 | 48.9 | 22.7% |
| Operating profit | 34.0 | 21.6 | 57.4% |
| EBITDA | 39.1 | 27.9 | 40.1% |
| Net profit | 17.3 | 37.3 | -53.6% |
| Net profit attributable to equity holders of the Parent company | 15.2 | 35.4 | -57.1% |
| Financial ratios, % | 30.06.2023 | 31.12.2022 | Change |
| ROA | 10.8 | 19.0 | -43.2% |
| ROE | 15.6 | 28.1 | -44.5% |
| Price to earnings ratio (P/E) | 5.5 | 3.4 | 61.8% |
| Current ratio | 5.8 | 5.1 | 13.7% |
| Quick ratio | 3.6 | 2.8 | 28.6% |
Financial performance
The Group`s sales amounted 31 407 thousand EUR during 6 months of 2023, representing a 19.1% increase as compared to the same period of previous year. Overall, retail increased by 20.6%, measured in EUR.
The Group’s gross profit during 6 months of 2023 amounted to 18 837 thousand EUR and increase by 46.2% compared to previous year. The gross margin during 6 months of 2023 increased by 22.7% compared to 6 months of 2022. The cost of sold goods decreased by 6.8%.
Consolidated operating profit for 6 months of 2023 amounted to 10 681 thousand EUR, compared to 5 685 thousand EUR for 6 months of 2022, increase by 87.9%. The consolidated operating profit margin was 34.0% for 6 months of 2023 (21.6% for 6 months of 2022). Consolidated EBITDA for 6 months of 2023 increased by 66.9% and amounted to 12 272 thousand EUR, which is 39.1% in margin terms (7 355 thousand EUR and 27.9% for 6 months of 2022).
Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2023 amounted to 4 772 thousand EUR, compared to net profit of 9 346 thousand EUR for 6 months of 2022, net profit margin attributable to equity holders of the Parent company for 6 months of 2023 was 15.2% against net profit 35.4% for 6 months of 2022.
Financial position
As of 30 June 2023 consolidated assets amounted to 67 842 thousand EUR representing increase by 6.0% as compared to the position as of 31 December 2022.
Trade and other receivables increased by 1 195 thousand EUR as compared to 31 December 2022 and amounted to 3 321 thousand EUR as of 30 June 2023. Inventory balance decreased by 1 342 thousand EUR and amounted to 20 922 thousand EUR as of 30 June 2023.
Equity attributable to equity holders of the Parent company increased by 2 612 thousand EUR and amounted to 47 398 thousand EUR as of 30 June 2023. Current liabilities decreased by 288 thousand EUR during 6 months of 2023.
Investments
During 6 months of 2023 the Group’s investments into property, plant and equipment totalled 708 thousand EUR, in previous year same period 100 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 2023, the Group employed 1 663 employees, including 527 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2022 there were 1 616 employees, including 499 people in retail operations.
Total salaries and related taxes during 6 months of 2023 amounted to 6 902 thousand EUR ( 5 641 thousand EUR in 6 months of 2022). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 296 thousand EUR.
Consolidated Statement of Financial Position
| in thousands of EUR | Note | 30.06.2023 | 31.12.2022 |
| Unaudited | Audited | ||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 2 | 31 041 | 25 909 |
| Trade and other receivables | 3 | 2 031 | 1 044 |
| Prepayments and other tax receivables | 3 | 1 184 | 971 |
| Current loans granted | 25 | 10 | |
| Other assets | 106 | 111 | |
| Inventories | 4 | 20 922 | 22 264 |
| Total current assets | 55 309 | 50 309 | |
| Non-current assets | |||
| Non-current receivables | 314 | 301 | |
| Investments in associates | 78 | 82 | |
| Investments in other shares | 228 | 259 | |
| Deferred tax asset | 2 006 | 2 166 | |
| Intangible assets | 575 | 585 | |
| Investment property | 903 | 1 041 | |
| Property, plant and equipment | 5 | 8 429 | 9 248 |
| Total non-current assets | 12 533 | 13 682 | |
| TOTAL ASSETS | 67 842 | 63 991 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Current lease liabilities | 1 177 | 2 373 | |
| Trade and other payables | 6 | 5 326 | 5 837 |
| Tax liabilities | 3 111 | 1 692 | |
| Total current liabilities | 9 614 | 9 902 | |
| Non-current liabilities | |||
| Deferred tax liability | 921 | 1 039 | |
| Non-current lease liabilities | 4 790 | 4 041 | |
| Non-current provisions | 36 | 41 | |
| Total non-current liabilities | 5 747 | 5 121 | |
| Total liabilities | 15 361 | 15 023 | |
| Equity | |||
| Share capital | 7 | 3 600 | 3 600 |
| Share premium | 4 967 | 4 967 | |
| Statutory reserve capital | 1 306 | 1 306 | |
| Unrealised exchange rate differences | -21 569 | -19 409 | |
| Retained earnings | 59 094 | 54 322 | |
| Total equity attributable to equity holders of the Parent company | 47 398 | 44 786 | |
| Non-controlling interest | 5 083 | 4 182 | |
| Total equity | 52 481 | 48 968 | |
| TOTAL EQUITY AND LIABILITIES | 67 842 | 63 991 |
Consolidated Income Statement
| in thousands of EUR | Note | 2Q 2023 | 2Q 2022 | 06m 2023 | 06m 2022 |
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| Revenue from contracts with customers | 9 | 17 266 | 15 334 | 31 407 | 26 370 |
| Cost of goods sold | -6 553 | -8 967 | -12 570 | -13 485 | |
| Gross Profit | 10 713 | 6 367 | 18 837 | 12 885 | |
| Distribution expenses | -2 775 | -2 776 | -5 554 | -5 027 | |
| Administrative expenses | -1 091 | -1 090 | -2 277 | -2 042 | |
| Other operating income | 59 | 129 | 116 | 219 | |
| Other operating expenses | -188 | -166 | -441 | -350 | |
| Operating profit | 6 718 | 2 464 | 10 681 | 5 685 | |
| Currency exchange income/(expense) | -1 492 | 8 455 | -2 591 | 5 985 | |
| Other finance income/(expenses) | -29 | -126 | -185 | -230 | |
| Net finance income | -1 521 | 8 329 | -2 776 | 5 755 | |
| Profit (loss) from associates using equity method | 8 | 2 | 12 | -11 | |
| Profit before tax | 5 205 | 10 795 | 7 917 | 11 429 | |
| Income tax expense | -1 650 | -775 | -2 495 | -1 602 | |
| Profit for the period | 3 555 | 10 020 | 5 422 | 9 827 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 3 156 | 9 612 | 4 772 | 9 346 | |
| Non-controlling interest | 399 | 408 | 650 | 481 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 8 | 0.09 | 0.27 | 0.13 | 0.26 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | 2Q 2023 | 2Q 2022 | 06m 2023 | 06m 2022 |
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| Profit for the period | 3 555 | 10 020 | 5 422 | 9 827 | |
| Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods | |||||
| Exchange differences on translation of foreign operations | -624 | 576 | -1 384 | -719 | |
| Total other comprehensive income for the period | -624 | 576 | -1 384 | -719 | |
| Total comprehensive income (loss) for the period | 2 931 | 10 596 | 4 038 | 9 108 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 2 029 | 10 294 | 2 612 | 8 456 | |
| Non-controlling interest | 902 | 302 | 1 426 | 652 | |
Consolidated Statement of Cash Flows
| in thousands of EUR | Note | 06m 2023 | 06m 2022 |
| Unaudited | Unaudited | ||
| Cash flow from operating activities | |||
| Profit for the period | 5 422 | 9 827 | |
| Adjustments for: | |||
| Depreciation and amortization of non-current assets | 1 591 | 1 670 | |
| Share of profit of equity accounted investees | -12 | 11 | |
| Gains/Losses on the sale of property, plant and equipment | -11 | 1 | |
| Net finance income / costs | 2 776 | -2 000 | |
| Provision for impairment losses on trade receivables | -1 | 0 | |
| Provision for inventories | 2 | 3 | |
| Income tax expense | 2 495 | 1 602 | |
| Change in inventories | 1 342 | -3 861 | |
| Change in trade and other receivables | -1 195 | -897 | |
| Change in trade and other payables | -125 | -347 | |
| Income tax paid | -1 482 | -939 | |
| Net cash flow from operating activities | 10 802 | 5 070 | |
| Cash flow from investing activities | |||
| Interest received | 172 | 12 | |
| Dividends received | 11 | 3 | |
| Proceeds from disposal of property, plant and equipment | 5 | 8 | |
| Loans granted | -15 | -9 | |
| Acquisition of property, plant and equipment | -708 | -100 | |
| Acquisition of intangible assets | -88 | -42 | |
| Net cash flow from investing activities | -623 | -128 | |
| Cash flow from financing activities | |||
| Payment of principal portion of lease liabilities | -1 118 | -1 137 | |
| Interest paid on lease liabilities | -367 | -246 | |
| Dividends paid | -525 | 0 | |
| Net cash flow from financing activities | -2 010 | -1 383 | |
| Net increase in cash and cash equivalents | 8 169 | 3 559 | |
| Cash and cash equivalents at the beginning of period | 25 909 | 17 098 | |
| Effect of translation to presentation currency | -3 452 | 0 | |
| Effect of exchange rate fluctuations on cash held | 415 | -166 | |
| Cash and cash equivalents at the end of period | 31 041 | 20 491 |
AS Silvano Fashion Group
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