Silvano Fashion Group Consolidated Interim Financial Report for Q4 and 12 months of 2020 (unaudited)
Selected Financial Indicators
Summarized selected financial indicators of the Group for 12 months of 2020 compared to 12 months of 2019 and 31.12.2020 compared to 31.12.2019 were as follows:
| in thousands of EUR | 12m 2020 | 12m 2019 | Change |
| Revenue | 38 479 | 56 943 | -32.4% |
| Gross Profit | 23 209 | 29 651 | -21.7% |
| Operating profit | 10 544 | 12 712 | -17.1% |
| EBITDA | 14 111 | 17 004 | -17.0% |
| Net profit for the period | 2 551 | 11 149 | -77.1% |
| Net profit attributable equity holders of the Parent company | 2 231 | 10 663 | -79.1% |
| Earnings per share (EUR) | 0,06 | 0,30 | -80.0% |
| Operating cash flow for the period | 6 356 | 15 086 | -57.9% |
| in thousands of EUR | 31.12.2020 | 31.12.2019 | Change |
| Total assets | 42 256 | 46 309 | -8.8% |
| Total current assets | 29 597 | 27 123 | 9.1% |
| Total equity attributable to equity holders of the Parent company | 24 504 | 26 324 | -6.9% |
| Cash and cash equivalents | 8 980 | 5 152 | 74.3% |
| Margin analysis, % | 12m 2020 | 12m 2019 | Change |
| Gross profit | 60,3 | 52,1 | 15.7% |
| Operating profit | 27,4 | 22,3 | 22.9% |
| EBITDA | 36,7 | 29,9 | 22.7% |
| Net profit | 6,6 | 19,6 | -66.3% |
| Net profit attributable to equity holders of the Parent company | 5,8 | 18,7 | -69.0% |
| Financial ratios, % | 31.12.2020 | 31.12.2019 | Change |
| ROA | 5,3 | 22,2 | -76.1% |
| ROE | 9,3 | 38,9 | -76.1% |
| Price to earnings ratio (P/E) | 25,2 | 7,3 | 245.2% |
| Current ratio | 3,4 | 2,7 | 25.9% |
| Quick ratio | 1,3 | 0,8 | 62.5% |
Financial performance
The Group`s sales amounted to 38 479 thousand EUR during 12 months of 2020, representing a 32.4% decrease as compared to the same period of previous year. Overall, retail decreased by 32.4%, measured in EUR.
The Group’s gross profit during 12 months of 2020 amounted to 23 209 thousand EUR and decrease by 21.7% compared to previous year. The gross margin during 12 months of 2020 increased to 60.3%, from 52.1% in the respective period of previous year.
Consolidated operating profit for 12 months of 2020 amounted to 10 544 thousand EUR, compared to 12 712 thousand EUR in 12 months of 2019, decrease by 17.1%. The consolidated operating profit margin was 27.4% for 12 months of 2020 (22.3% in 12 months of 2019). Consolidated EBITDA for 12 months of 2020 decreased by 17.0% and amounted to 14 111 thousand EUR, which is 36.7% in margin terms (17 004 thousand EUR and 29.9% for 12 months of 2019).
Reported consolidated net profit attributable to equity holders of the Parent company for 12 months of 2020 amounted to 2 231 thousand EUR, compared to net profit of 10 663 thousand EUR in 12 months of 2019, net profit margin attributable to equity holders of the Parent company for 12 months of 2020 was 5.8% against 18.7% in 12 months of 2019.
Financial position
As of 31 December 2020 consolidated assets amounted to 42 256 thousand EUR representing decrease by 8.8% as compared to the position as of 31 December 2019.
Trade and other receivables decreased by 522 thousand EUR as compared to 31 December 2019 and amounted to 2 088 thousand EUR as of 31 December 2020. Inventory balance decreased 832 thousand EUR and amounted to 18 527 thousand EUR as of 31 December 2020.
Equity attributable to equity holders of the Parent company decreased by 1 820 thousand EUR and amounted to 24 504 thousand EUR as of 31 December 2020. Current liabilities decreased by 1 371 thousand EUR during 12 months of 2020.
Investments
During 12 months of 2020 the Group’s investments into property, plant and equipment totalled 289 thousand EUR, in previous year same period 1 216 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 31 December 2020, the Group employed 1 744 employees, including 500 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 12 months of 2020 amounted 9 854 thousand EUR (13 195 thousand EUR in 12 months of 2019). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 710 thousand EUR.
Decisions made by governing bodies during 12 months 2020
On June 30, 2020 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions.
- The Meeting approved the 2019 Annual Report.
- The Meeting decided leave the net profit undistributed and include the net profit of the financial year 2019 in retained earnings.
- The Meeting decided: To annul Article 5.7 of the Articles of Association which includes: The public limited company may be represented in all legal transactions only by two members of the Management Board jointly. To approve the new Articles of Association of the Company.
- The Meeting decided: To recall Toomas Tool, Mart Mutso, Risto Mägi, Triin Nellis and Stephan David Balkin from the Supervisory Board of SFG. To elect Toomas Tool as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025. To elect Mari Tool as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025. To elect Risto Mägi as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025. To elect Triin Nellis as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025. To elect Stephan David Balkin as member of the Supervisory Board of SFG for the next 5-year period until June 30, 2025.
Consolidated Statement of Financial Position
| in thousands of EUR | Note | 31.12.2020 | 31.12.2019 |
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 8 980 | 5 152 | |
| Current loans granted | 2 | 2 | |
| Trade and other receivables | 2 | 2 088 | 2 610 |
| Inventories | 3 | 18 527 | 19 359 |
| Total current assets | 29 597 | 27 123 | |
| Non-current assets | |||
| Long-term receivables | 249 | 334 | |
| Investments in associates | 57 | 82 | |
| Available-for-sale investments | 238 | 321 | |
| Deferred tax asset | 1 032 | 905 | |
| Intangible assets | 374 | 423 | |
| Investment property | 1 018 | 869 | |
| Property, plant and equipment | 4 | 9 691 | 16 252 |
| Total non-current assets | 12 659 | 19 186 | |
| TOTAL ASSETS | 42 256 | 46 309 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Current borrowings | 400 | 0 | |
| Short-term finance lease obligations | 2 121 | 2 362 | |
| Trade and other payables | 5 | 5 583 | 6 899 |
| Tax liabilities | 675 | 889 | |
| Total current liabilities | 8 779 | 10 150 | |
| Non-current liabilities | |||
| Deferred tax liability | 500 | 14 | |
| Long-term borrowings | 400 | 0 | |
| Long-term finance lease obligations | 4 707 | 6 333 | |
| Long-term provisions | 52 | 61 | |
| Total non-current liabilities | 5 659 | 6 408 | |
| Total liabilities | 14 438 | 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 | -19 748 | -15 697 | |
| Retained earnings | 34 024 | 31 793 | |
| Total equity attributable to equity holders of the Parent company | 24 504 | 26 324 | |
| Non-controlling interest | 3 314 | 3 427 | |
| Total equity | 27 818 | 29 751 | |
| TOTAL EQUITY AND LIABILITIES | 42 256 | 46 309 |
Consolidated Income Statement
| in thousands of EUR | Note | 4Q 2020 | 4Q 2019 | 12m 2020 | 12m 2019 |
| Revenue | 8 | 8 720 | 12 132 | 38 479 | 56 943 |
| Cost of goods sold | -3 608 | -5 138 | -15 270 | -27 292 | |
| Gross Profit | 5 112 | 6 994 | 23 209 | 29 651 | |
| Distribution expenses | -1 940 | -2 958 | -8 548 | -11 714 | |
| Administrative expenses | -911 | -1 181 | -3 779 | -4 582 | |
| Other operating income | 113 | 81 | 336 | 300 | |
| Other operating expenses | -200 | -314 | -674 | -943 | |
| Operating profit | 2 174 | 2 622 | 10 544 | 12 712 | |
| Currency exchange income/(expense) | 214 | 144 | -6 172 | 3 057 | |
| Other finance income/(expenses) | -83 | -223 | -428 | -590 | |
| Net financial income | 131 | -79 | -6 600 | 2 467 | |
| Profit (loss) from associates using equity method | 4 | 5 | 1 | 8 | |
| Profit before tax | 2 309 | 2 548 | 3 945 | 15 187 | |
| Income tax expense | -956 | -1 163 | -1 394 | -4 038 | |
| Profit for the period | 1 353 | 1 385 | 2 551 | 11 149 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 1 231 | 1 371 | 2 231 | 10 663 | |
| Non-controlling interest | 122 | 14 | 320 | 486 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 0,03 | 0,04 | 0,06 | 0,30 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | 4Q 2020 | 4Q 2019 | 12m 2020 | 12m 2019 |
| Profit for the period | 1 353 | 1 385 | 2 551 | 11 149 | |
| Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods | -1 321 | -1 035 | -4 071 | -699 | |
| Attributable to : | |||||
| Equity holders of the Parent company | -913 | -1 035 | -4 051 | -1 001 | |
| Non-controlling interest | -408 | 0 | -20 | 302 | |
| Total comprehensive income (loss) for the period | 32 | 350 | -1 520 | 10 450 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 318 | 336 | -1 820 | 9 662 | |
| Non-controlling interest | -286 | 14 | 300 | 788 |
Consolidated Statement of Cash Flows
| in thousands of EUR | Note | 12m 2020 | 12m 2019 |
| Cash flow from operating activities | |||
| Profit for the period | 2 551 | 11 149 | |
| Adjustments for: | |||
| Depreciation and amortization of non-current assets | 3 567 | 4 292 | |
| Share of profit of equity accounted investees | -1 | -8 | |
| (Gains)/ losses on the sale of property, plant and equipment | 9 | 50 | |
| Net finance income / costs | 560 | -2 467 | |
| Provision for impairment losses on trade receivables | 20 | 45 | |
| Provision for inventories | 202 | 263 | |
| Provision for long-term benefits | 52 | 0 | |
| Provision for deferred tax asset | 0 | 678 | |
| Income tax expense | 1 394 | 4 038 | |
| Change in inventories | 832 | -1 714 | |
| Change in trade and other receivables | 427 | 944 | |
| Change in trade and other payables | -1 512 | 114 | |
| Interest paid | -9 | 0 | |
| Income tax paid | -1 736 | -2 298 | |
| Net cash from operating activities | 6 356 | 15 086 | |
| Cash flow from investing activities | |||
| Interest received | 13 | 12 | |
| Dividends received | 46 | 0 | |
| Proceeds from disposal of property, plant and equipment | 75 | 84 | |
| Proceeds from repayments of loans granted | 0 | 6 | |
| Acquisition of property, plant and equipment | -289 | -1 216 | |
| Acquisition of intangible assets | -110 | -219 | |
| Acquisition of subsidiary net of cash acquired | -26 | 0 | |
| Net cash used in/from investing activities | -291 | -1 333 | |
| Cash flow from financing activities | |||
| Proceeds from borrowings | 800 | 0 | |
| Repayment of finance lease | -2 495 | -2 988 | |
| Interest paid on finance lease | -492 | -636 | |
| Dividends paid | -413 | -7 710 | |
| Reduction of share capital | 0 | -10 800 | |
| Net cash used in/ from financing activities | -2 600 | -22 134 | |
| Increase in cash and cash equivalents | 3 465 | -8 381 | |
| Cash and cash equivalents at the beginning of period | 5 152 | 13 603 | |
| Effect of exchange rate fluctuations on cash held | 363 | -70 | |
| Cash and cash equivalents at the end of period | 8 980 | 5 152 |
Jarek Särgava
AS Silvano Fashion Group
Member of the Board
Phone:
Email:
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