Silvano Fashion Group Consolidated Interim Financial Report for Q3 and 9m of 2021 (unaudited)
Selected Financial Indicators
Summarized selected financial indicators of the Group for 9 months of 2021 compared to 9 months of 2020 and 30.09.2021 compared to 31.12.2020 were as follows:
| in thousands of EUR | 09m 2021 | 09m 2020 | Change |
| Revenue | 36 891 | 29 759 | 24.0% |
| Gross Profit | 21 095 | 18 097 | 16.6% |
| Operating profit | 12 325 | 8 370 | 47.3% |
| EBITDA | 14 744 | 11 042 | 33.5% |
| Net profit for the period | 10 518 | 1 198 | 778.0% |
| Net profit attributable equity holders of the Parent company | 9 562 | 1 000 | 856.2% |
| Earnings per share (EUR) | 0,27 | 0,03 | 800.0% |
| Operating cash flow for the period | 12 910 | 6 620 | 95.0% |
| in thousands of EUR | 30.09.2021 | 31.12.2020 | Change |
| Total assets | 52 677 | 42 256 | 24.7% |
| Total current assets | 39 897 | 29 597 | 34.8% |
| Total equity attributable to equity holders of the Parent company | 34 501 | 24 504 | 40.8% |
| Cash and cash equivalents | 18 097 | 8 980 | 101.5% |
| Margin analysis, % | 09m 2021 | 09m 2020 | Change |
| Gross profit | 57.2 | 60.8 | -5.9% |
| Operating profit | 33.4 | 28.1 | 18.9% |
| EBITDA | 40.0 | 37.1 | 7.8% |
| Net profit | 28.5 | 4.0 | 612.5% |
| Net profit attributable to equity holders of the Parent company | 25.9 | 3.4 | 661.8% |
| Financial ratios, % | 30.09.2021 | 31.12.2020 | Change |
| ROA | 20.8 | 3.2 | 550.0% |
| ROE | 34.1 | 5.6 | 508.9% |
| Price to earnings ratio (P/E) | 6.7 | 41.7 | -83.9% |
| Current ratio | 5.2 | 3.4 | 52.9% |
| Quick ratio | 2.6 | 1.3 | 100.0% |
Financial performance
The Group`s sales amounted to 36 891 thousand EUR during 9 months of 2021, representing a 24.0% increase as compared to the same period of previous year. Overall, wholesale increased by 29.8%, measured in EUR.
The Group’s gross profit during 9 months of 2021 amounted to 21 095 thousand EUR and increase by 16.6% compared to previous year. The gross margin during 9 months of 2021 decreased to 57.2%, from 60.8% in the respective period of previous year. The cost of sold goods increased by 35.4%.
Consolidated operating profit for 9 months of 2021 amounted to 12 325 thousand EUR, compared to 8 370 thousand EUR in 9 months of 2020, increase by 47.3%. The consolidated operating profit margin was 33.4% for 9 months of 2021 (28.1% in 9 months of 2020). Consolidated EBITDA for 9 months of 2021 increased by 33.5% and amounted to 14 744 thousand EUR, which is 40.0% in margin terms (11 042 thousand EUR and 37.1% for 9 months of 2020).
Reported consolidated net profit attributable to equity holders of the Parent company for 9 months of 2021 amounted to 9 562 thousand EUR, compared to net profit of 1 000 thousand EUR in 9 months of 2020, net profit margin attributable to equity holders of the Parent company for 9 months of 2021 was 25.9% against 3.4% in 9 months of 2020.
Financial position
As of 30 September 2021 consolidated assets amounted to 52 677 thousand EUR representing increase by 24.7% as compared to the position as of 31 December 2020.
Trade and other receivables decreased by 48 thousand EUR as compared to 31 December 2020 and amounted to 2 040 thousand EUR as of 30 September 2021. Inventory balance increased by 1 231 thousand EUR and amounted to 19 758 thousand EUR as of 30 September 2021.
Equity attributable to equity holders of the Parent company increased by 9 997 thousand EUR and amounted to 34 501 thousand EUR as of 30 September 2021. Current liabilities decreased by 1 048 thousand EUR during 9 months of 2021.
Investments
During 9 months of 2021 the Group’s investments into property, plant and equipment totalled 177 thousand EUR, in previous year same period 191 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 2021, the Group employed 1 633 employees, including 490 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 9 months of 2021 amounted to 7 158 thousand EUR (7 407 thousand EUR in 9 months of 2020). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 443 thousand EUR.
Consolidated Statement of Financial Position
| in thousands of EUR | Note | 30.09.2021 | 31.12.2020 |
| Unaudited | Audited | ||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 2 | 18 097 | 8 980 |
| Current loans granted | 2 | 2 | |
| Trade and other receivables | 3 | 2 040 | 2 088 |
| Inventories | 4 | 19 758 | 18 527 |
| Total current assets | 39 897 | 29 597 | |
| Non-current assets | |||
| Long-term receivables | 256 | 249 | |
| Investments in associates | 67 | 57 | |
| Investments in other shares | 258 | 238 | |
| Deferred tax asset | 1 077 | 1 032 | |
| Intangible assets | 509 | 374 | |
| Investment property | 1 079 | 1 018 | |
| Property, plant and equipment | 5 | 9 534 | 9 691 |
| Total non-current assets | 12 780 | 12 659 | |
| TOTAL ASSETS | 52 677 | 42 256 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Short-term borrowings | 0 | 400 | |
| Short-term lease liabilities | 592 | 2 121 | |
| Trade and other payables | 6 | 5 624 | 5 583 |
| Tax liabilities | 1 515 | 675 | |
| Total current liabilities | 7 731 | 8 779 | |
| Non-current liabilities | |||
| Deferred tax liability | 605 | 500 | |
| Long-term borrowings | 0 | 400 | |
| Long-term lease liabilities | 5 979 | 4 707 | |
| Long-term provisions | 57 | 52 | |
| Total non-current liabilities | 6 641 | 5 659 | |
| Total liabilities | 14 372 | 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 | -18 429 | -18 864 | |
| Retained earnings | 43 057 | 33 140 | |
| Total equity attributable to equity holders of the Parent company | 34 501 | 24 504 | |
| Non-controlling interest | 3 804 | 3 314 | |
| Total equity | 38 305 | 27 818 | |
| TOTAL EQUITY AND LIABILITIES | 52 677 | 42 256 |
Consolidated Income Statement
| in thousands of EUR | Note | 3Q 2021 | 3Q 2020 | 09m 2021 | 09m 2020 |
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| Revenue from contracts with customers | 9 | 13 666 | 12 028 | 36 891 | 29 759 |
| Cost of goods sold | -6 232 | -4 506 | -15 796 | -11 662 | |
| Gross Profit | 7 434 | 7 522 | 21 095 | 18 097 | |
| Distribution expenses | -2 249 | -2 161 | -6 453 | -6 608 | |
| Administrative expenses | -875 | -935 | -2 663 | -2 868 | |
| Other operating income | 247 | 94 | 813 | 223 | |
| Other operating expenses | -173 | -133 | -467 | -474 | |
| Operating profit | 4 384 | 4 387 | 12 325 | 8 370 | |
| Currency exchange income/(expense) | 347 | -3 830 | 1 407 | -6 386 | |
| Other finance income/(expenses) | -100 | -111 | -316 | -345 | |
| Net finance income | 247 | -3 941 | 1 091 | -6 731 | |
| Profit (loss) from associates using equity method | 7 | -3 | 6 | -3 | |
| Profit before tax | 4 638 | 443 | 13 422 | 1 636 | |
| Income tax expense | -816 | -115 | -2 904 | -438 | |
| Profit for the period | 3 822 | 328 | 10 518 | 1 198 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 3 531 | 255 | 9 562 | 1 000 | |
| Non-controlling interest | 291 | 73 | 956 | 198 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 8 | 0,10 | 0,01 | 0,27 | 0,03 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | 3Q 2021 | 3Q 2020 | 09m 2021 | 09m 2020 |
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| Profit for the period | 3 822 | 328 | 10 518 | 1 198 | |
| Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods : | |||||
| Exchange differences on translation of foreign operations | 439 | -690 | 708 | -2 749 | |
| Total other comprehensive income for the period | 439 | -690 | 708 | -2 749 | |
| Total comprehensive income (loss) for the period | 4 261 | -362 | 11 226 | -1 551 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 4 004 | -486 | 9 997 | -2 138 | |
| Non-controlling interest | 257 | 124 | 1 229 | 587 | |
Consolidated Statement of Cash Flows
| in thousands of EUR | Note | 09m 2021 | 09m 2020 |
| Unaudited | Unaudited | ||
| Cash flow from operating activities | |||
| Profit for the period | 10 518 | 1 198 | |
| Adjustments for: | |||
| Depreciation and amortization of non-current assets | 2 419 | 2 672 | |
| Share of profit of equity accounted investees | -6 | 3 | |
| Gains/Losses on the sale of property, plant and equipment | 11 | 3 | |
| Net finance income / costs | -395 | 1 941 | |
| Provision for impairment losses on trade receivables | 1 | 0 | |
| Provision for inventories | 5 | 2 | |
| Receipt of government grants | 550 | 0 | |
| Movements in provisions and government grants | -550 | 0 | |
| Income tax expense | 2 904 | 438 | |
| Change in inventories | -1 231 | 2 991 | |
| Change in trade and other receivables | 32 | 769 | |
| Change in trade and other payables | 330 | -2 255 | |
| Interest paid | -2 | 0 | |
| Income tax paid | -1 676 | -1 142 | |
| Net cash flow from operating activities | 12 910 | 6 620 | |
| Cash flow from investing activities | |||
| Interest received | 14 | 10 | |
| Proceeds from disposal of property, plant and equipment | 60 | 34 | |
| Acquisition of property, plant and equipment | -177 | -191 | |
| Acquisition of intangible assets | -121 | -83 | |
| Net cash flow from investing activities | -224 | -230 | |
| Cash flow from financing activities | |||
| Acquisition of non-controlling interests | 0 | -26 | |
| Proceeds from borrowings | 0 | 400 | |
| Repayment of borrowings | -800 | 0 | |
| Payment of principal portion of lease liabilities | -1 761 | -1 619 | |
| Interest paid on lease liabilities | -326 | -367 | |
| Dividends paid | -739 | -424 | |
| Net cash flow from financing activities | -3 626 | -2 036 | |
| Net increase in cash and cash equivalents | 9 060 | 4 354 | |
| Cash and cash equivalents at the beginning of period | 8 980 | 5 152 | |
| Effect of exchange rate fluctuations on cash held | 57 | 350 | |
| Cash and cash equivalents at the end of period | 18 097 | 9 856 |
Jarek Särgava
AS Silvano Fashion Group
Member of the Board
Phone:
Email:
Attachment
