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:
Email:
Attachment
