Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2022 (unaudited)
Selected Financial Indicators
Summarized selected financial indicators of the Group for Q1 of 2022 compared to Q1 of 2021 and 31.03.2022 compared to 31.12.2021 were as follows:
| in thousands of EUR | 03m 2022 | 03m 2021 | Change |
| Revenue | 11 036 | 10 265 | 7.5% |
| Gross Profit | 6 518 | 6 242 | 4.4% |
| Operating profit | 3 221 | 3 285 | -1.9% |
| EBITDA | 3 993 | 4 080 | -2.1% |
| Net profit (loss) for the period | -193 | 2 564 | -107.5% |
| Net profit (loss) attributable equity holders of the Parent company | -266 | 2 261 | -111,8% |
| Earnings per share (EUR) | -0.01 | 0.06 | -116.7% |
| Operating cash flow for the period | 3 143 | 3 589 | -12.4% |
| in thousands of EUR | 31.03.2022 | 31.12.2021 | Change |
| Total assets | 50 694 | 53 753 | -5.7% |
| Total current assets | 38 728 | 40 331 | -4.0% |
| Total equity attributable to equity holders of the Parent company | 32 310 | 34 148 | -5.4% |
| Cash and cash equivalents | 17 224 | 17 098 | 0.7% |
| Margin analysis, % | 03m 2022 | 03m 2021 | Change |
| Gross profit | 59.1 | 60.8 | -2.8% |
| Operating profit | 29.2 | 32.0 | -8.8% |
| EBITDA | 36.2 | 39.7 | -8.8% |
| Net profit (loss) | -1.7 | 25.0 | -106.8% |
| Net profit (loss) attributable to equity holders of the Parent company | -2.4 | 22.0 | -110.9% |
| Financial ratios, % | 31.03.2022 | 31.12.2021 | Change |
| ROA | 12.6 | 17.9 | -29.6% |
| ROE | 19.8 | 28.7 | -31.0% |
| Price to earnings ratio (P/E) | 5.3 | 7.8 | -32.1% |
| Current ratio | 5.0 | 4.3 | 16.3% |
| Quick ratio | 2.6 | 2.1 | 23.8% |
Financial performance
The Group`s sales amounted to 11 036 thousand EUR during Q1 of 2022, representing a 7.5% increase as compared to the same period of previous year. Overall, retail increased by 7.8%, measured in EUR.
The Group’s gross profit during Q1 of 2022 amounted to 6 518 thousand EUR and increase by 4.4% compared to previous year. The gross margin during Q1 of 2022 decreased to 59.1%, from 60.8% in the respective period of previous year. The cost of sold goods increased by 12.3%.
Consolidated operating profit for Q1 of 2022 amounted to 3 221 thousand EUR, compared to 3 285 thousand EUR in Q1 of 2021, decrease by 1.9%. The consolidated operating profit margin was 29.2% for Q1 of 2022 (32.0 in Q1 of 2021). Consolidated EBITDA for Q1 of 2022 decreased by 2.1% and amounted to 3 993 thousand EUR, which is 36.2% in margin terms (4 080 thousand EUR and 39.7% for Q1 of 2021).
Reported consolidated net loss attributable to equity holders of the Parent company for Q1 of 2022 amounted to -266 thousand EUR, compared to net profit of 2 261 thousand EUR in Q1 of 2021, net loss margin attributable to equity holders of the Parent company for Q1 of 2022 was -2.4% against net profit 22.0% in Q1 of 2021.
Financial position
As of 31 March 2022 consolidated assets amounted to 50 694 thousand EUR representing decrease by 5.7% as compared to the position as of 31 December 2021.
Trade and other receivables increased by 463 thousand EUR as compared to 31 December 2021 and amounted to 2 788 thousand EUR as of 31 March 2022. Inventory balance decreased by 2 199 thousand EUR and amounted to 18 707 thousand EUR as of 31 March 2022.
Equity attributable to equity holders of the Parent company decreased by 1 838 thousand EUR and amounted to 32 310 thousand EUR as of 31 March 2022. Current liabilities decreased by 1 594 thousand EUR during Q1 of 2022.
Investments
During Q1 of 2022 the Group’s investments into property, plant and equipment totalled 60 thousand EUR, in previous year same period 78 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 March 2022, the Group employed 1 586 employees, including 484 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2021 there were 1 602 employees, including 485 people in retail operations.
Total salaries and related taxes during Q1 of 2022 amounted to 2 546 thousand EUR (2 359 thousand EUR in Q1 of 2021). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 144 thousand EUR.
Consolidated Statement of Financial Position
| in thousands of EUR | Note | 31.03.2022 | 31.12.2021 |
| Unaudited | Audited | ||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 2 | 17 224 | 17 098 |
| Current loans granted | 9 | 2 | |
| Trade receivables and other assets | 3 | 2 788 | 2 325 |
| Inventories | 4 | 18 707 | 20 906 |
| Total current assets | 38 728 | 40 331 | |
| Non-current assets | |||
| Non-current receivables | 237 | 262 | |
| Investments in associates | 56 | 80 | |
| Investments in other shares | 228 | 262 | |
| Deferred tax asset | 1 348 | 1 226 | |
| Intangible assets | 470 | 535 | |
| Investment property | 939 | 1 086 | |
| Property, plant and equipment | 5 | 8 688 | 9 971 |
| Total non-current assets | 11 966 | 13 422 | |
| TOTAL ASSETS | 50 694 | 53 753 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Current lease liabilities | 1 682 | 2 193 | |
| Trade and other payables | 6 | 4 788 | 6 504 |
| Tax liabilities | 1 304 | 671 | |
| Total current liabilities | 7 774 | 9 368 | |
| Non-current liabilities | |||
| Deferred tax liability | 1 534 | 1 746 | |
| Non-current lease liabilities | 4 969 | 4 727 | |
| Non-current provisions | 44 | 51 | |
| Total non-current liabilities | 6 547 | 6 524 | |
| Total liabilities | 14 321 | 15 892 | |
| 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 | -19 823 | -18 251 | |
| Retained earnings | 42 260 | 42 526 | |
| Total equity attributable to equity holders of the Parent company | 32 310 | 34 148 | |
| Non-controlling interest | 4 063 | 3 713 | |
| Total equity | 36 373 | 37 861 | |
| TOTAL EQUITY AND LIABILITIES | 50 694 | 53 753 |
Consolidated Income Statement
| in thousands of EUR | Note | 1Q 2022 | 1Q 2021 |
| Unaudited | Unaudited | ||
| Revenue from contracts with customers | 9 | 11 036 | 10 265 |
| Cost of goods sold | -4 518 | -4 023 | |
| Gross Profit | 6 518 | 6 242 | |
| Distribution expenses | -2 251 | -2 110 | |
| Administrative expenses | -952 | -885 | |
| Other operating income | 90 | 181 | |
| Other operating expenses | -184 | -143 | |
| Operating profit | 3 221 | 3 285 | |
| Currency exchange income/(expense) | -2 470 | 455 | |
| Other finance income/(expenses) | -104 | -110 | |
| Net finance income (loss) | -2 574 | 345 | |
| Profit (loss) from associates using equity method | -13 | -6 | |
| Profit before tax | 634 | 3 624 | |
| Income tax expense | -827 | -1 060 | |
| Profit (loss) for the period | -193 | 2 564 | |
| Attributable to : | |||
| Equity holders of the Parent company | -266 | 2 261 | |
| Non-controlling interest | 73 | 303 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 8 | -0,01 | 0,06 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | 1Q 2022 | 1Q 2021 |
| Unaudited | Unaudited | ||
| Profit (loss) for the period | -193 | 2 564 | |
| Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods : | |||
| Exchange differences on translation of foreign operations | -1 295 | 229 | |
| Total other comprehensive income(loss) for the period | -1 295 | 229 | |
| Total comprehensive income (loss) for the period | -1 488 | 2 793 | |
| Attributable to : | |||
| Equity holders of the Parent company | -1 838 | 2 164 | |
| Non-controlling interest | 350 | 629 | |
Consolidated Statement of Cash Flows
| in thousands of EUR | Note | 03m 2022 | 03m 2021 |
| Unaudited | Unaudited | ||
| Cash flow from operating activities | |||
| Profit (loss) for the period | -193 | 2 564 | |
| Adjustments for: | |||
| Depreciation and amortization of non-current assets | 772 | 795 | |
| Share of profit of equity accounted investees | 13 | 6 | |
| Gains/Losses on the sale of property, plant and equipment | 2 | 0 | |
| Net finance income / costs | 2 574 | -604 | |
| Provision for inventories | 0 | 3 | |
| Receipt of government grants | 0 | 150 | |
| Movements in provisions and government grants | 0 | -98 | |
| Income tax expense | 827 | 1 060 | |
| Change in inventories | 2 199 | -1 124 | |
| Change in trade and other receivables | -772 | -208 | |
| Change in trade and other payables | -1 716 | 1 192 | |
| Interest paid | 0 | -2 | |
| Income tax paid | -563 | -145 | |
| Net cash flow from operating activities | 3 143 | 3 589 | |
| Cash flow from investing activities | |||
| Interest received | 3 | 4 | |
| Dividends received | 1 | 0 | |
| Proceeds from disposal of property, plant and equipment | 6 | 0 | |
| Loans granted | -7 | 0 | |
| Acquisition of property, plant and equipment | -60 | -78 | |
| Acquisition of intangible assets | -14 | -48 | |
| Net cash flow from investing activities | -71 | -122 | |
| Cash flow from financing activities | |||
| Repayment of borrowings | 0 | -800 | |
| Payment of principal portion of lease liabilities | -509 | -530 | |
| Interest paid on lease liabilities | -108 | -114 | |
| Net cash flow from financing activities | -617 | -1 444 | |
| Net increase in cash and cash equivalents | 2 455 | 2 023 | |
| Cash and cash equivalents at the beginning of period | 7 | 17 098 | 8 980 |
| Effect of translation to presentation currency | -2 428 | 0 | |
| Effect of exchange rate fluctuations on cash held | 7 | 99 | 21 |
| Cash and cash equivalents at the end of period | 17 224 | 11 024 |
AS Silvano Fashion Group
Phone: +372 6845 000
Email: info@silvanofashon.com
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