Silvano Fashion Group Consolidated Interim Financial Report for Q3 and 9m of 2024 (unaudited)
Selected Financial Indicators
Summarized selected financial indicators of the Group for 9 months of 2024 compared to 9 months of 2023 and 30.09.2024 compared to 31.12.2023 were as follows:
| in thousands of EUR | 09m 2024 | 09m 2023 | Change |
| Revenue | 46 489 | 46 739 | -0.5% |
| Gross Profit | 27 232 | 28 078 | -3.0% |
| Operating profit | 14 452 | 16 267 | -11.2% |
| EBITDA | 16 724 | 18 630 | -10.2% |
| Net profit for the period | 10 705 | 8 842 | 21.1% |
| Net profit attributable equity holders of the Parent company | 9 711 | 7 912 | 22.7% |
| Earnings per share (EUR) | 0,27 | 0,22 | 22.7% |
| Operating cash flow for the period | 11 251 | 15 369 | -26.8% |
| in thousands of EUR | 30.09.2024 | 31.12.2023 | Change |
| Total assets | 80 299 | 72 252 | 11.1% |
| Total current assets | 67 978 | 59 395 | 14.5% |
| Total equity attributable to equity holders of the Parent company | 63 741 | 54 120 | 17.8% |
| Cash and cash equivalents | 40 888 | 32 878 | 24.4% |
| Margin analysis, % | 09m 2024 | 09m 2023 | Change |
| Gross profit | 58.6 | 60.1 | -2.5% |
| Operating profit | 31.1 | 34.8 | -10.6% |
| EBITDA | 36.0 | 39.9 | -9.8% |
| Net profit | 23.0 | 18.9 | 21.7% |
| Net profit attributable to equity holders of the Parent company | 20.9 | 16.9 | 23.7% |
| Financial ratios, % | 30.09.2024 | 31.12.2023 | Change |
| ROA | 15.1 | 14.5 | 4.1% |
| ROE | 19.9 | 20.2 | -1.5% |
| Price to earnings ratio (P/E) | 2.9 | 4.1 | -29.3% |
| Current ratio | 8.7 | 5.8 | 50.0% |
| Quick ratio | 5.6 | 3.4 | 64.7% |
Financial performance
The Group`s sales amounted 46 489 thousand EUR during 9 months of 2024, representing a 0.5% decrease as compared to the same period of previous year. Overall, wholesale decreased by 4.9%, measured in EUR.
The Group’s gross profit during 9 months of 2024 amounted to 27 232 thousand EUR and decrease by 3.0% compared to previous year. The gross margin during 9 months of 2024 decreased by 2.5% compared to 9 months of 2023. The cost of sold goods increased by 3.2%.
Consolidated operating profit for 9 months of 2024 amounted to 14 452 thousand EUR, compared to 16 267 thousand EUR for 9 months of 2023, decrease by 11.2%. The consolidated operating profit margin was 31.1% for 9 months of 2024 (34.8% for 9 months of 2023). Consolidated EBITDA for 9 months of 2024 decreased by 10.2% and amounted to 16 724 thousand EUR, which is 36.0% in margin terms (18 630 thousand EUR and 39.9% for 9 months of 2023).
Reported consolidated net profit attributable to equity holders of the Parent company for 9 months of 2024 amounted 9 711 thousand EUR, compared to net profit of 7 912 thousand EUR for 9 months of 2023, net profit margin attributable to equity holders of the Parent company for 9 months of 2024 was 20.9% against net profit 16.9% for 9 months of 2023.
Financial position
As of 30 September 2024 consolidated assets amounted to 80 299 thousand EUR representing increase by 11.1% as compared to the position as of 31 December 2023.
Trade and other receivables decreased by 16 thousand EUR as compared to 31 December 2023 and amounted to 1 338 thousand EUR as of 30 September 2024. Inventory balance increased by 647 thousand EUR and amounted to 24 587 thousand EUR as of 30 September 2024.
Equity attributable to equity holders of the Parent company increased by 9 621 thousand EUR and amounted to 63 741 thousand EUR as of 30 September 2024. Current liabilities decreased by 2 483 thousand EUR during 9 months of 2024.
Investments
During 9 months of 2024 the Group’s investments into property, plant and equipment totalled 830 thousand EUR, in previous year same period 896 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 September 2024, the Group employed 1 668 employees, including 514 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2023 there were 1 626 employees, including 500 people in retail operations.
Total salaries and related taxes during 9 months of 2024 amounted 10 612 thousand EUR ( 9 964 thousand EUR in 9 months 2023). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 475 thousand EUR.
Decisions made by governing bodies during 09 months 2024
On the 19th of March 2024, the AS Silvano Fashion Group proposed to the shareholders to adopt the resolution of the extraordinary general meeting of shareholders stated below without convening the meeting.
The notice of the general meeting was published on March 19, 2024, in the information system NASDAQ OMX Tallinn and Warsaw Stock Exchange, on the website of SFG and in the newspaper Eesti Päevaleht.
On April 9, 2024 Silvano Fashion Group Extraordinary Meeting of Shareholders adopted the following decisions:
1.1. To appoint the auditing company Ernst & Young Baltic AS (registry code 10877299, located at Rävala puiestee 4, 10143 Tallinn) as the auditor of AS Silvano Fashion Group;
1.2. To authorize the Management Board of AS Silvano Fashion Group to enter into an audit service agreement with the auditing company AS Ernst & Young Baltic for auditing the economic activities of AS Silvano Fashion Group 2023.
On the 29th of May 2024, AS Silvano Fashion Group proposed to the shareholders to adopt the resolutions of the annual general meeting of shareholders without convening the meeting.
The notice of the general meeting was published on May 29, 2024, in the information system NASDAQ OMX Tallinn
and Warsaw Stock Exchange, on the website of SFG and in the daily newspaper Eesti Ekspress.
On June 20, 2024 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions:
- To approve the 2023 Annual Report;
- To left the net profit undistributed and to include the net profit of the financial year 2023 in retained earnings.
The decisions of the general meeting were published on the website of AS Silvano Fashion Group .
Consolidated Statement of Financial Position
| in thousands of EUR | Note | 30.09.2024 | 31.12.2023 |
| Unaudited | Audited | ||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 2 | 40 888 | 32 878 |
| Trade and other receivables | 3 | 1 338 | 1 354 |
| Prepayments and other tax receivables | 3 | 1 082 | 1 115 |
| Current loans granted | 0 | 29 | |
| Other assets | 83 | 79 | |
| Inventories | 4 | 24 587 | 23 940 |
| Total current assets | 67 978 | 59 395 | |
| Non-current assets | |||
| Non-current receivables | 278 | 292 | |
| Investments in associates | 99 | 85 | |
| Investments in other shares | 211 | 213 | |
| Deferred tax asset | 2 292 | 2 155 | |
| Intangible assets | 637 | 579 | |
| Investment property | 852 | 899 | |
| Property, plant and equipment | 5 | 7 952 | 8 634 |
| Total non-current assets | 12 321 | 12 857 | |
| TOTAL ASSETS | 80 299 | 72 252 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Current lease liabilities | 629 | 2 162 | |
| Trade and other payables | 6 | 4 933 | 7 377 |
| Tax liabilities | 2 241 | 747 | |
| Total current liabilities | 7 803 | 10 286 | |
| Non-current liabilities | |||
| Deferred tax liability | 730 | 736 | |
| Non-current lease liabilities | 4 920 | 4 321 | |
| Non-current provisions | 45 | 46 | |
| Total non-current liabilities | 5 695 | 5 103 | |
| Total liabilities | 13 498 | 15 389 | |
| 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 | -20 092 | -20 002 | |
| Retained earnings | 73 960 | 64 249 | |
| Total equity attributable to equity holders of the Parent company | 63 741 | 54 120 | |
| Non-controlling interest | 3 060 | 2 743 | |
| Total equity | 66 801 | 56 863 | |
| TOTAL EQUITY AND LIABILITIES | 80 299 | 72 252 |
Consolidated Income Statement
| in thousands of EUR | Note | 3Q 2024 | 3Q 2023 | 09m 2024 | 09m 2023 |
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| Revenue from contracts with customers | 9 | 16 344 | 15 332 | 46 489 | 46 739 |
| Cost of goods sold | -6 301 | -6 091 | -19 257 | -18 661 | |
| Gross Profit | 10 043 | 9 241 | 27 232 | 28 078 | |
| Distribution expenses | -2 950 | -2 517 | -8 723 | -8 071 | |
| Administrative expenses | -1 086 | -1 026 | -3 540 | -3 303 | |
| Other operating income | 71 | 78 | 178 | 194 | |
| Other operating expenses | -188 | -190 | -695 | -631 | |
| Operating profit | 5 890 | 5 586 | 14 452 | 16 267 | |
| Currency exchange income/(expense) | -1 280 | -991 | -415 | -3 582 | |
| Other finance income/(expenses) | 329 | -1 | 401 | -186 | |
| Net finance income | -951 | -992 | -14 | -3 768 | |
| Profit (loss) from associates using equity method | 2 | 7 | 16 | 19 | |
| Profit before tax | 4 941 | 4 601 | 14 454 | 12 518 | |
| Income tax expense | -2 022 | -1 181 | -3 749 | -3 676 | |
| Profit for the period | 2 919 | 3 420 | 10 705 | 8 842 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 2 658 | 3 140 | 9 711 | 7 912 | |
| Non-controlling interest | 261 | 280 | 994 | 930 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 0,07 | 0,09 | 0,27 | 0,22 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | 3Q 2024 | 3Q 2023 | 09m 2024 | 09m 2023 |
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| Profit for the period | 2 919 | 3 420 | 10 705 | 8 842 | |
| Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods: | |||||
| Exchange differences on translation of foreign operations | -563 | -672 | -157 | -2 055 | |
| Total other comprehensive income for the period | -563 | -672 | -157 | -2 055 | |
| Total comprehensive income (loss) for the period | 2 356 | 2 748 | 10 548 | 6 787 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 2 308 | 2 612 | 9 621 | 5 224 | |
| Non-controlling interest | 48 | 136 | 927 | 1 563 | |
Consolidated Statement of Cash Flows
| in thousands of EUR | Note | 09m 2024 | 09m 2023 |
| Unaudited | Unaudited | ||
| Cash flow from operating activities | |||
| Profit for the period | 10 705 | 8 842 | |
| Adjustments for: | |||
| Depreciation and amortization of non-current assets | 2 272 | 2 363 | |
| Share of profit of equity accounted investees | -16 | -19 | |
| Gains/Losses on the sale of property, plant and equipment | 7 | -3 | |
| Net finance income / costs | 14 | 3 768 | |
| Provision for impairment losses on trade receivables | -1 | -3 | |
| Provision for inventories | 2 | 3 | |
| Income tax expense | 3 749 | 3 676 | |
| Change in inventories | -647 | 1 387 | |
| Change in trade and other receivables | 16 | -507 | |
| Change in trade and other payables | -2 021 | -1 067 | |
| Income tax paid | -2 829 | -3 071 | |
| Net cash flow from operating activities | 11 251 | 15 369 | |
| Cash flow from investing activities | |||
| Interest received | 997 | 331 | |
| Dividends received | 8 | 11 | |
| Proceeds from disposal of property, plant and equipment | 21 | 9 | |
| Loans granted | 0 | -23 | |
| Proceeds from repayments of loans granted | 29 | 0 | |
| Acquisition of property, plant and equipment | -830 | -896 | |
| Acquisition of intangible assets | -112 | -123 | |
| Net cash flow from investing activities | 113 | -691 | |
| Cash flow from financing activities | |||
| Proceeds from borrowings | 4 000 | 0 | |
| Repayment of borrowings | -4 000 | 0 | |
| Payment of principal portion of lease liabilities | -1 659 | -1 689 | |
| Interest paid on lease liabilities | -553 | -521 | |
| Dividends paid | -610 | -707 | |
| Net cash flow from financing activities | -2 822 | -2 917 | |
| Net increase in cash and cash equivalents | 8 542 | 11 761 | |
| Cash and cash equivalents at the beginning of period | 2 | 32 878 | 25 909 |
| Effect of translation to presentation currency | -404 | -4 891 | |
| Effect of exchange rate fluctuations on cash held | -128 | 510 | |
| Cash and cash equivalents at the end of period | 40 888 | 33 289 |
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