Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6 months of 2020 (unaudited)

Selected Financial Indicators

Summarized selected financial indicators of the Group for 6 months of 2020 compared to 6 months of 2019 and 30.06.2020 compared to 31.12.2019 were as follows:

in thousands of EUR	06m 2020	06m 2019	Change
Revenue	17 731	30 264	-41.4%
Gross Profit	10 575	15 493	-31.7%
Operating profit	3 983	7 061	-43.6%
EBITDA	5 931	8 789	-32.5%
Net profit for the period	870	7 203	-87.9%
Net profit attributable equity holders of the Parent company	745	6 922	-89.2%
Earnings per share (EUR)	0,02	0,19	-89.5%
Operating cash flow for the period	2 742	8 331	-67.1%
in thousands of EUR	30.06.2020	31.12.2019	Change
Total assets	42 916	46 309	-7.3%
Total current assets	26 877	27 123	-0.9%
Total equity attributable to equity holders of the Parent company	24 672	26 324	-6.3%
Cash and cash equivalents	6 352	5 152	23.3%
Margin analysis, %	06m 2020	06m 2019	Change
Gross profit	59.6	51.2	16.4%
Operating profit	22.5	23.3	-3.4%
EBITDA	33.4	29.0	15.2%
Net profit	4.9	23.8	-79.4%
Net profit attributable to equity holders of the Parent company	4.2	22.9	-81.6%
Financial ratios, %	30.06.2020	31.12.2019	Change
ROA	10.2	22.2	-54.1%
ROE	18.1	38.9	-53.5%
Price to earnings ratio (P/E)	13.3	7.3	82.2%
Current ratio	3.3	2.7	22.2%
Quick ratio	1.1	0.8	37.5%

Financial performance

The Group`s sales amounted to 17 731 thousand EUR during 6 months of 2020, representing a 41.4% decrease as compared to the same period of previous year. Overall, wholesales decreased by 44.8%, measured in EUR.

The Group’s gross profit during 6 months of 2020 amounted to 10 575 thousand EUR and decrease by 31.7% compared to previous year. The gross margin during 6 months of 2020 increased to 59.6%, from 51.2% in the respective period of previous year. The cost of sold goods decreased by 51.6%.

Consolidated operating profit for 6 months of 2020 amounted to 3 983 thousand EUR, compared to 7 061 thousand EUR in 6 months of 2019, decrease by 43.6%. The consolidated operating profit margin was 22.5% for 6 months of 2020 (23.3% in 6 months of 2019). Consolidated EBITDA for 6 months of 2020 decreased by 32.5% and amounted to 5 931 thousand EUR, which is 33.4% in margin terms (8 789 thousand EUR and 29.0% for 6 months of 2019).

Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2020 amounted to 745 thousand EUR, compared to net profit of 6 922 thousand EUR in 6 months of 2019, net profit margin attributable to equity holders of the Parent company for 6 months of 2020 was 4.2% against 22.9% in 6 months of 2019.

Financial position

As of 30 June 2020 consolidated assets amounted to 42 916 thousand EUR representing decrease by 7.3% as compared to the position as of 31 December 2019.

Trade and other receivables decreased by 332 thousand EUR as compared to 31 December 2019 and amounted to    2 278 thousand EUR as of 30 June 2020. Inventory balance decreased by 1 114 thousand EUR and amounted to     18 245 thousand EUR as of 30 June 2020.

Equity attributable to equity holders of the Parent company decreased by 1 652 thousand EUR and amounted to            24 672 thousand EUR as of 30 June 2020. Current liabilities decreased by 2 093 thousand EUR during 6 months of 2020.

Investments

During 6 months of 2020 the Group’s investments into property, plant and equipment totalled 133 thousand EUR, in previous year same period 1 096 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 June 2020, the Group employed 1 784 employees, including 491 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 6 months of 2020 amounted to 5 008 thousand EUR (6 702 thousand EUR in 6 months of 2019). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 389 thousand EUR.

Consolidated Statement of Financial Position

in thousands of EUR	Note	30.06.2020	31.12.2019
ASSETS
Current assets
Cash and cash equivalents		6 352	5 152
Current loans granted		2	2
Trade and other receivables	2	2 278	2 610
Inventories	3	18 245	19 359
Total current assets		26 877	27 123
Non-current assets
Long-term receivables		281	334
Investments in associates		71	82
Available-for-sale investments		279	321
Deferred tax asset		1 405	905
Intangible assets		402	423
Investment property		746	869
Property, plant and equipment	4	12 855	16 252
Total non-current assets		16 039	19 186
TOTAL ASSETS		42 916	46 309
LIABILITIES AND EQUITY
Current liabilities
Short-term finance lease obligations		1 287	2 362
Trade and other payables	5	5 951	6 899
Tax liabilities		819	889
Total current liabilities		8 057	10 150
Non-current liabilities
Deferred tax liability		0	14
Long-term loans		200	0
Long-term finance lease obligations		6 518	6 333
Long-term provisions		53	61
Total non-current liabilities		6 771	6 408
Total liabilities		14 828	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		-18 094	-15 697
Retained earnings		32 538	31 793
Total equity attributable to equity holders of the Parent company		24 672	26 324
Non-controlling interest		3 416	3 427
Total equity		28 088	29 751
TOTAL EQUITY AND LIABILITIES		42 916	46 309

Consolidated Income Statement

in thousands of EUR	Note	2Q 2020	2Q 2019	06m 2020	06m 2019
Revenue	8	6 185	16 444	17 731	30 264
Cost of goods sold		-2 756	-7 406	-7 156	-14 771
Gross Profit		3 429	9 038	10 575	15 493
Distribution expenses		-1 713	-2 949	-4 447	-5 854
Administrative expenses		-811	-1 195	-1 933	-2 287
Other operating income		70	81	129	147
Other operating expenses		-144	-236	-341	-438
Operating profit		831	4 739	3 983	7 061
Currency exchange income/(expense)		2 174	439	-2 556	2 470
Other finance income/(expenses)		-109	-110	-234	-220
Net financial income		2 065	329	-2 790	2 250
Profit (loss) from associates using equity method		0	-1	0	0
Profit before tax		2 896	5 067	1 193	9 311
Income tax expense		-586	-944	-323	-2 108
Profit for the period		2 310	4 123	870	7 203
Attributable to:
Equity holders of the Parent company		2 151	3 824	745	6 922
Non-controlling interest		159	299	125	281
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR)	7	0,06	0,11	0,02	0,19

Consolidated Statement of Comprehensive Income

in thousands of EUR	Note	2Q 2020	2Q 2019	06m 2020	06m 2019
Profit for the period		2 310	4 123	870	7 203
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods		166	182	-2 059	11
Attributable to :
Equity holders of the Parent company		180	90	-2 397	-193
Non-controlling interest		-14	92	338	204
Total comprehensive income (loss) for the period		2 476	4 305	-1 189	7 214
Attributable to :
Equity holders of the Parent company		2 331	3 914	-1 652	6 729
Non-controlling interest		145	391	463	485

 

Consolidated Statement of Cash Flows

in thousands of EUR	06m 2020	06m 2019
Cash flow from operating activities
Profit for the period	870	7 203
Adjustments for:
Depreciation and amortization of non-current assets	1 948	1 728
(Gains)/ losses on the sale of property, plant and equipment	3	23
Net finance income / costs	212	-2 250
Provision for inventories	1	0
Provision for long-term benefits	0	3
Income tax expense	323	2 108
Change in inventories	1 114	-914
Change in trade and other receivables	219	-332
Change in trade and other payables	-1 210	1 105
Change in finance lease obligations	0	997
Income tax paid	-738	-1 340
Net cash from operating activities	2 742	8 331
Cash flow from investing activities
Interest received	7	4
Proceeds from disposal of property, plant and equipment	28	59
Proceeds from repayments of loans granted	0	6
Acquisition of property, plant and equipment	-133	-1 096
Acquisition of intangible assets	-67	-118
Acquisition of subsidiary net of cash acquired	-26	0
Net cash used in/from investing activities	-191	-1 145
Cash flow from financing activities
Proceeds from borrowings	200	0
Repayment of finance lease	-1 006	-1 114
Interest paid  on finance lease	-255	0
Dividends paid	-474	-3 919
Reduction of share capital	0	-7 200
Net cash used in/ from financing activities	-1 535	-12 233
Increase in cash and cash equivalents	1 016	-5 047
Cash and cash equivalents at the beginning of period	5 152	13 603
Effect of exchange rate fluctuations on cash held	184	-68
Cash and cash equivalents at the end of period	6 352	8 488

Jarek Särgava
AS Silvano Fashion Group
Member of the Board
Phone: [phone]
Email: [e-mail]

Attachment

• SFG Q2 2020 ENG