Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6 months of 2022 (unaudited)

Silvano Fashion Group

Selected Financial Indicators

Summarized selected financial indicators of the Group for 6 months of 2022 compared to 6 months of 2021 and 30.06.2022 compared to 31.12.2021 were as follows:

in thousands of EUR

06m 2022

06m 2021

Change

Revenue

26 370

23 225

13.5%

Gross Profit

12 885

13 661

-5.7%

Operating profit

5 685

7 941

-28.4%

EBITDA

7 355

9 533

-22.9%

Net profit for the period

9 827

6 696

46.8%

Net profit attributable equity holders of the Parent company

9 346

6 031

55.0%

Earnings per share (EUR)

0.26

0.17

52.9%

Operating cash flow for the period

5 070

8 055

-37.1%

in thousands of EUR

30.06.2022

31.12.2021

Change

Total assets

63 778

53 753

18.7%

Total current assets

48 491

40 331

20.2%

Total equity attributable to equity holders of the Parent company

42 604

34 148

24.8%

Cash and cash equivalents

20 491

17 098

19.8%

Margin analysis, %

06m 2022

06m 2021

Change

Gross profit

48.9

58.8

-16.8%

Operating profit

21.6

34.2

-36.8%

EBITDA

27.9

41.0

-32.0%

Net profit

37.3

28.8

29.5%

Net profit attributable to equity holders of the Parent company

35.4

26.0

36.2%

Financial ratios, %

30.06.2022

31.12.2021

Change

LONG

22.4

17.9

25.1%

ROE

34.4

28.7

19.9%

Price to earnings ratio (P/E)

2.6

7.8

-66.7%

Current ratio

5.7

4.3

32.6%

Quick ratio

2.8

2.1

33.3%

Financial performance

The Group`s sales amounted to 26 370 thousand EUR during 6 months of 2022, representing a 13.5% increase compared to the same period of the previous year. Overall, retail increased by 21.3%, measured in EUR.

The Group’s gross profit during 6 months of 2022 amounted to 12 885 thousand EUR and decreased by 5.7% compared to previous year. The gross margin during 6 months of 2022 decreased to 48.9%, from 58.8% in the respective period of the previous year. The cost of sold goods increased by 41.0%.

Consolidated operating profit for 6 months of 2022 amounted to 5 685 thousand EUR, compared to 7 941 thousand EUR in 6 months of 2021, decrease by 28.4%. The consolidated operating profit margin was 21.6% for 6 months of 2022 (34.2% in 6 months of 2021). Consolidated EBITDA for 6 months of 2022 decreased by 22.9% and amounted to 7 355 thousand EUR, which is 27.9% in margin terms (9 533 thousand EUR and 41.0% for 6 months of 2021).

Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2022 amounted to 9 346 thousand EUR, compared to net profit of 6 031 thousand EUR in 6 months of 2021, net profit margin attributable to equity holders of the Parent company for 6 months of 2022 was 35.4% against net profit 26.0% in 6 months of 2021.

Financial position

As of 30 June 2022 consolidated assets amounted to 63 778 thousand EUR representing increase by 18.7% as compared to the position as of 31 December 2021.

Trade and other receivables increased by 897 thousand EUR as compared to 31 December 2021 and amounted to 3 222 thousand EUR as of 30 June 2022. Inventory balance increased by 3 861 thousand EUR and amounted to 24 767 thousand EUR as of 30 June 2022.

Equity attributable to equity holders of the Parent company increased by 8 456 thousand EUR and amounted to 42 604 thousand EUR as of 30 June 2022. Current liabilities decreased by 839 thousand EUR during 6 months of 2022.

Investments

During 6 months of 2022 the Group’s investments in property, plant and equipment totaled 100 thousand EUR, in previous year same period 120 thousand EUR. Investments were made mainly into opening and renovating own stores, as well as into equipment and facilities to maintain effective production for future periods.

Personnel

As of 30 June 2022, the Group employed 1,607 employees, including 503 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 6 months of 2022 amounted to 5 641 thousand EUR (4 745 thousand EUR in 6 months of 2021). The remuneration of key management of the Group, including the key executives of all subsidiaries, totaled 319 thousand EUR.

Consolidated Statement of Financial Position

in thousands of EUR

Note

30.06.2022

31.12.2021

Unaudited

Audited

ASSETS

Current assets

Cash and cash equivalents

2

20 491

17 098

Current loans granted

11

2

Trade receivables and other assets

3

3 222

2 325

Inventories

4

24 767

20 906

Total current assets

48 491

40 331

Non-current assets

Non-current receivables

410

262

Investments in associates

101

80

Investments in other shares

283

262

Deferred tax assets

1 616

1 226

Intangible assets

599

535

Investment property

1 158

1 086

Property, plant and equipment

5

11 120

9 971

Total non-current assets

15 287

13 422

TOTAL ASSETS

63 778

53 753

LIABILITIES AND EQUITY

Current liabilities

Current lease liabilities

1 701

2 193

Trade and other payables

6

4 795

6 504

Tax liabilities

2 033

671

Total current liabilities

8 529

9 368

Non-current liabilities

Deferred tax liability

2 152

1 746

Non-current lease liabilities

6 073

4 727

Non-current provisions

55

51

Total non-current liabilities

8 280

6 524

Total liabilities

16 809

15 892

Equity

Share capital

7

3 600

3 600

Share premium

4 967

4 967

Statutory reserve capital

1 306

1 306

Unrealized exchange rate differences

-19 141

-18 251

Retained earnings

51 872

42 526

Total equity attributable to equity holders of the Parent company

42 604

34 148

Non-controlling interest

4 365

3 713

Total equity

46 969

37 861

TOTAL EQUITY AND LIABILITIES

63 778

53 753

Consolidated Income Statement

in thousands of EUR

Note

2Q 2022

2Q 2021

06m 2022

06m 2021

Unaudited

Unaudited

Unaudited

Unaudited

Revenue from contracts with customers

9

15 334

12 960

26 370

23 225

Cost of goods sold

-8 967

-5 541

-13 485

-9 564

Gross Profit

6 367

7 419

12 885

13 661

Distribution expenses

-2 776

-2 094

-5 027

-4 204

Administrative expenses

-1 090

-903

-2 042

-1 788

Other operating income

129

385

219

566

Other operating expenses

-166

-151

-350

-294

Operating profit

2 464

4 656

5 685

7 941

Currency exchange income/(expense)

8 455

605

5 985

1 060

Other financial income/(expenses)

-126

-106

-230

-216

Net financial income (loss)

8 329

499

5 755

844

Profit (loss) from associates using equity method

2

5

-11

-1

Profit (loss) before tax

10 795

5 160

11 429

8 784

Income tax expense

-775

-1 028

-1 602

-2 088

Profit (loss) for the period

10 020

4 132

9 827

6 696

Attributable to :

Equity holders of the Parent company

9 612

3 770

9 346

6 031

Non-controlling interest

408

362

481

665

Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR)

8

0.27

0,10

0.26

0.17

Consolidated Statement of Comprehensive Income

in thousands of EUR

Note

2Q 2022

2Q 2021

06m 2022

06m 2021

Unaudited

Unaudited

Unaudited

Unaudited

Profit for the period

10 020

4 132

9 827

6 696

Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods :

Exchange differences on translation of foreign operations

576

40

-719

269

Total other comprehensive income (loss) for the period

576

40

-719

269

Total comprehensive income (loss) for the period

10 596

4 172

9 108

6 965

Attributable to :

Equity holders of the Parent company

10 294

3 829

8 456

5 993

Non-controlling interest

302

343

652

972

Consolidated Statement of Cash Flows

in thousands of EUR

Note

06m 2022

06m 2021

Unaudited

Unaudited

Cash flow from operating activities

Profit for the period

9 827

6 696

Adjustments for:

Depreciation and amortization of non-current assets

1 670

1 592

Share of profit of equity accounted investees

11

1

Gains/Losses on the sale of property, plant and equipment

1

0

Net finance income / costs

-2 000

-596

Provision for inventories

3

4

Receipt of government grants

0

450

Movements in provisions and government grants

0

-394

Income tax expense

1 602

2 088

Change in inventories

-3 861

-1 469

Change in trade and other receivables

-897

-289

Change in trade and other payables

-347

639

Interest paid

0

-2

Income tax paid

-939

-665

Net cash flow from operating activities

5 070

8 055

Cash flow from investing activities

Interest received

12

9

Dividends received

3

0

Proceeds from disposal of property, plant and equipment

8

18

Loans granted

-9

0

Acquisition of property, plant and equipment

-100

-120

Acquisition of intangible assets

-42

-82

Net cash flow from investing activities

-128

-175

Cash flow from financing activities

Repayment of borrowings

0

-800

Payment of principal portion of lease liabilities

-1 137

-1 135

Interest paid on lease liabilities

-246

-224

Dividends paid

0

-717

Net cash flow from financing activities

-1 383

-2 876

Net increase in cash and cash equivalents

3 559

5 004

Cash and cash equivalents at the beginning of the period

17 098

8 980

Effect of exchange rate fluctuations on cash held

-166

38

Cash and cash equivalents at the end of the period

20 491

14 022

AS Silvano Fashion Group
Phone: +372 6845 000
Email: [email protected]

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