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%
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=bc3e622810054b7a49a4f706f81ac5 ...

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: [phone]
Email: [e-mail]

Attachment

• SFG consolidated interim report for Q3 and 9m of 2023 unaudited