Silvano Fashion Group Consolidated Interim Financial Report for Q3 and 9 months of 2023 (unaudited)
Selected Financial Indicators
Summarized selected financial indicators of the Group for 9 months of 2023 compared to 9 months of 2022 and 30.09.2023 compared to 31.12.2022 were as follows:
| in thousands of EUR | 09m 2023 | 09m 2022 | Change |
| Revenue | 46 739 | 43 974 | 6.3% |
| Gross Profit | 28 078 | 22 066 | 27.2% |
| Operating profit | 16 267 | 10 611 | 53.3% |
| EBITDA | 18 630 | 13 180 | 41.4% |
| Net profit for the period | 8 842 | 12 516 | -29.4% |
| Net profit attributable equity holders of the Parent company | 7 912 | 11 835 | -33.1% |
| Earnings per share (EUR) | 0,22 | 0,33 | -33.3% |
| Operating cash flow for the period | 15 369 | 12 493 | 23.0% |
| in thousands of EUR | 30.09.2023 | 31.12.2022 | Change |
| Total assets | 68 338 | 63 991 | 6.8% |
| Total current assets | 56 832 | 50 309 | 13.0% |
| Total equity attributable to equity holders of the Parent company | 50 010 | 44 786 | 11.7% |
| Cash and cash equivalents | 33 289 | 25 909 | 28.5% |
| Margin analysis, % | 09m 2023 | 09m 2022 | Change |
| Gross profit | 60.1 | 50.2 | 19.7% |
| Operating profit | 34.8 | 24.1 | 44.4% |
| EBITDA | 39.9 | 30.0 | 33.0% |
| Net profit | 18.9 | 28.5 | -33.7% |
| Net profit attributable to equity holders of the Parent company | 16.9 | 26.9 | -37.2% |
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| Financial ratios, % | 30.09.2023 | 31.12.2022 | Change |
| ROA | 11.9 | 19.0 | -37.4% |
| ROE | 16.8 | 28.1 | -40.2% |
| Price to earnings ratio (P/E) | 5.1 | 3.4 | 50.0% |
| Current ratio | 7.4 | 5.1 | 45.1% |
| Quick ratio | 4.7 | 2.8 | 67.9% |
Financial performance
The Group`s sales amounted 46 739 thousand EUR during 9 months of 2023, representing a 6.3% increase as compared to the same period of previous year. Overall, wholesale increased by 7.3%, measured in EUR.
The Group’s gross profit during 9 months of 2023 amounted to 28 078 thousand EUR and increase by 27.2% compared to previous year. The gross margin during 9 months of 2023 increased by 19.7% compared to 9 months of 2022. The cost of sold goods decreased by 14.8%.
Consolidated operating profit for 9 months of 2023 amounted to 16 267 thousand EUR, compared to 10 611 thousand EUR for 9 months of 2022, increase by 53.3%. The consolidated operating profit margin was 34.8% for 9 months of 2023 (24.1% for 9 months of 2022). Consolidated EBITDA for 9 months of 2023 increased by 41.4% and amounted to 18 630 thousand EUR, which is 39.9% in margin terms (13 180 thousand EUR and 30.0% for 9 months of 2022).
Reported consolidated net profit attributable to equity holders of the Parent company for 9 months of 2023 amounted to 7 912 thousand EUR, compared to net profit of 11 835 thousand EUR for 9 months of 2022, net profit margin attributable to equity holders of the Parent company for 9 months of 2023 was 16.9% against net profit 26.9% for 9 months of 2022.
Financial position
As of 30 September 2023 consolidated assets amounted to 68 338 thousand EUR representing increase by 6.8% as compared to the position as of 31 December 2022.
Trade and other receivables increased by 449 thousand EUR as compared to 31 December 2022 and amounted to 1 493 thousand EUR as of 30 September 2023. Inventory balance decreased by 1 387 thousand EUR and amounted to 20 877 thousand EUR as of 30 September 2023.
Equity attributable to equity holders of the Parent company increased by 5 224 thousand EUR and amounted to 50 010 thousand EUR as of 30 September 2023. Current liabilities decreased by 2 224 thousand EUR during 9 months of 2023.
Investments
During 9 months of 2023 the Group’s investments into property, plant and equipment totalled 896 thousand EUR, in previous year same period 228 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 2023, the Group employed 1 643 employees, including 509 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2022 there were 1 616 employees, including 499 people in retail operations.
Total salaries and related taxes during 9 months of 2023 amounted to 9 964 thousand EUR ( 8 938 thousand EUR in 9 months of 2022). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 423 thousand EUR.
Decisions made by governing bodies during 9 months 2023
On the 24th of May 2023, 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 24, 2023, in the information system NASDAQ OMX Tallinn https://view.news.eu.nasdaq.com/view?id=bc3e622810054b7a49a4f706f81ac5063&lang=en&src=listed
and Warsaw Stock Exchange, on the website of SFG https://www.silvanofashion.com/investors/company-announcements/ and in the daily newspaper Eesti Päevaleht.
On June 15, 2023 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions:
• Approved the 2022 Annual Report;
• Left the net profit undistributed and included the net profit of the financial year 2022 in retained earnings.
The protocol of the general meeting was published on the website of AS Silvano Fashion Group https://www.silvanofashion.com/investors/company-announcements/.
Consolidated Statement of Financial Position
| in thousands of EUR | Note | 30.09.2023 | 31.12.2022 |
| Unaudited | Audited | ||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 2 | 33 289 | 25 909 |
| Trade and other receivables | 3 | 1 493 | 1 044 |
| Prepayments and other tax receivables | 3 | 1 055 | 971 |
| Current loans granted | 33 | 10 | |
| Other assets | 85 | 111 | |
| Inventories | 4 | 20 877 | 22 264 |
| Total current assets | 56 832 | 50 309 | |
| Non-current assets | |||
| Non-current receivables | 286 | 301 | |
| Investments in associates | 79 | 82 | |
| Investments in other shares | 218 | 259 | |
| Deferred tax asset | 1 924 | 2 166 | |
| Intangible assets | 575 | 585 | |
| Investment property | 925 | 1 041 | |
| Property, plant and equipment | 5 | 7 499 | 9 248 |
| Total non-current assets | 11 506 | 13 682 | |
| TOTAL ASSETS | 68 338 | 63 991 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Current lease liabilities | 612 | 2 373 | |
| Trade and other payables | 6 | 4 674 | 5 837 |
| Tax liabilities | 2 392 | 1 692 | |
| Total current liabilities | 7 678 | 9 902 | |
| Non-current liabilities | |||
| Deferred tax liability | 883 | 1 039 | |
| Non-current lease liabilities | 4 695 | 4 041 | |
| Non-current provisions | 34 | 41 | |
| Total non-current liabilities | 5 612 | 5 121 | |
| Total liabilities | 13 290 | 15 023 | |
| 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 | -22 097 | -19 409 | |
| Retained earnings | 62 234 | 54 322 | |
| Total equity attributable to equity holders of the Parent company | 50 010 | 44 786 | |
| Non-controlling interest | 5 038 | 4 182 | |
| Total equity | 55 048 | 48 968 | |
| TOTAL EQUITY AND LIABILITIES | 68 338 | 63 991 |
Consolidated Income Statement
| in thousands of EUR | Note | 3Q 2023 | 3Q 2022 | 09m 2023 | 09m 2022 |
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| Revenue from contracts with customers | 9 | 15 332 | 17 604 | 46 739 | 43 974 |
| Cost of goods sold | -6 091 | -8 423 | -18 661 | -21 908 | |
| Gross Profit | 9 241 | 9 181 | 28 078 | 22 066 | |
| Distribution expenses | -2 517 | -3 093 | -8 071 | -8 120 | |
| Administrative expenses | -1 026 | -1 094 | -3 303 | -3 136 | |
| Other operating income | 78 | 130 | 194 | 349 | |
| Other operating expenses | -190 | -198 | -631 | -548 | |
| Operating profit | 5 586 | 4 926 | 16 267 | 10 611 | |
| Currency exchange income/(expense) | -991 | -949 | -3 582 | 5 036 | |
| Other finance income/(expenses) | -1 | 127 | -186 | -103 | |
| Net finance income | -992 | -822 | -3 768 | 4 933 | |
| Profit (loss) from associates using equity method | 7 | 10 | 19 | -1 | |
| Profit before tax | 4 601 | 4 114 | 12 518 | 15 543 | |
| Income tax expense | -1 181 | -1 425 | -3 676 | -3 027 | |
| Profit for the period | 3 420 | 2 689 | 8 842 | 12 516 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 3 140 | 2 489 | 7 912 | 11 835 | |
| Non-controlling interest | 280 | 200 | 930 | 681 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 8 | 0,09 | 0,07 | 0,22 | 0,33 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | 3Q 2023 | 3Q 2022 | 09m 2023 | 09m 2022 |
| Unaudited | Unaudited | Unaudited | Unaudited | ||
| Profit for the period | 3 420 | 2 689 | 8 842 | 12 516 | |
| Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods: | |||||
| Exchange differences on translation of foreign operations | -672 | 2 894 | -2 055 | 2 175 | |
| Total other comprehensive income for the period | -672 | 2 894 | -2 055 | 2 175 | |
| Total comprehensive income (loss) for the period | 2 748 | 5 583 | 6 787 | 14 691 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 2 612 | 5 489 | 5 224 | 13 945 | |
| Non-controlling interest | 136 | 94 | 1 563 | 746 | |
Consolidated Statement of Cash Flows
| in thousands of EUR | Note | 09m 2023 | 09m 2022 |
| Unaudited | Unaudited | ||
| Cash flow from operating activities | |||
| Profit for the period | 8 842 | 12 516 | |
| Adjustments for: | |||
| Depreciation and amortization of non-current assets | 2 363 | 2 569 | |
| Share of profit of equity accounted investees | -19 | 1 | |
| Gains/Losses on the sale of property, plant and equipment | -3 | 9 | |
| Net finance income / costs | 3 768 | -522 | |
| Provision for impairment losses on trade receivables | -3 | 0 | |
| Provision for inventories | 3 | 5 | |
| Income tax expense | 3 676 | 3 027 | |
| Change in inventories | 1 387 | -3 022 | |
| Change in trade and other receivables | -507 | -266 | |
| Change in trade and other payables | -1 067 | -91 | |
| Income tax paid | -3 071 | -1 733 | |
| Net cash flow from operating activities | 15 369 | 12 493 | |
| Cash flow from investing activities | |||
| Interest received | 331 | 29 | |
| Dividends received | 11 | 3 | |
| Proceeds from disposal of property, plant and equipment | 9 | 31 | |
| Loans granted | -23 | -11 | |
| Acquisition of property, plant and equipment | -896 | -228 | |
| Acquisition of intangible assets | -123 | -74 | |
| Net cash flow from investing activities | -691 | -250 | |
| Cash flow from financing activities | |||
| Payment of principal portion of lease liabilities | -1 689 | -1 879 | |
| Interest paid on lease liabilities | -521 | -356 | |
| Dividends paid | -707 | -670 | |
| Net cash flow from financing activities | -2 917 | -2 905 | |
| Net increase in cash and cash equivalents | 11 761 | 9 338 | |
| Cash and cash equivalents at the beginning of period | 25 909 | 17 098 | |
| Effect of translation to presentation currency | -4 891 | 0 | |
| Effect of exchange rate fluctuations on cash held | 510 | -173 | |
| Cash and cash equivalents at the end of period | 33 289 | 26 263 |
AS Silvano Fashion Group
Phone: +372 6845 000
Email: info@silvanofashon.com
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