LHV Institutional Baltic Insight, November 30th, 2020
* Silvano Fashion Group’s (‘Silvano’ or the ‘Group’) Q3 2020 results, published on 27th November 2020 revealed a significant y-o-y decline in revenues, primarily due to a decrease in the number of stores, unfavourable FX rates, and substantial decline in the local currency sales from Belarus. The Group has beaten our expectations in terms of revenues and overall profitability; however, due to a significant FX loss, the reported net profit is significantly lower than our expectations. Please also refer to the tables and charts in the attachment.* Despite a significant improvement in profitability at the operating level, Silvano reported the net profit attributable to shareholders of EUR 0.3m in the latest quarter, primarily due to a currency exchange loss of EUR 3.8m. If we subtract this currency exchange gain, then the net profit attributable to shareholders would be EUR 4.1m which is much higher than our expectations.
* Overall, we are happy with the Group’s performance in Q3 2020; however, key risks remain an unfavourable movement in FX rates, deterioration of CIS economies, political upheaval in Belarus, and negative impact of the restrictive measures by governments to stop the spread of coronavirus.
Silvano Fashion Group AS (SFG), formerly PTA Grupp AS, is an Estonia-based company, which is mainly engaged in the design, manufacture and marketing of women's apparel and lingerie. In addition, the Company provides sewing services to other manufacturers of women's lingerie. The Company owns such brands as Milavitsa, Alisee, Aveline, Lauma Lingerie and Laumelle. The Company is active domestically and abroad in such countries as the Russian Federation, Belarus, Ukraine and the Baltic States, where the Company sells its products through its retail chains, such as Milavitsa and Lauma Lingerie. Silvano Fashion Group AS operates eleven subsidiaries, located in Latvia, Belarus, France and the Russian Federation.
LHV Bank is an independent pan-Baltic bank, based on Estonian capital. The company was founded in 1999 by two founders of Hansapank (today’s Swedbank in the Baltics) and has been offering a full range of investment services for 15 years. In May 2009, LHV received a credit institution licence allowing it to provide all banking services.
The head office is situated in Tallinn, Estonia. Cross-border services are offered in Vilnius, Lithuania and in Riga, Latvia. LHV provides brokerage (institutional and retail), asset management, banking and capital markets services. Compared to other banks, we are more innovative and have more solid experience in investment and entrepreneurship.
The Bank, together with the Group asset management company employs over 320 people. LHV Group shares are listed on Nasdaq Tallinn.
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