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Silvano Fashion Group
Interim / Quarterly Report • Aug 28, 2024
2224_ir_2024-08-28_cda976a3-644c-4859-b042-4b54c06d3740.pdf
Interim / Quarterly Report
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AS Silvano Fashion Group
Consolidated Interim Financial Report for Q2 and 6 months of 2024 (unaudited)
(translation of the Estonian original) *
Beginning of the reporting period 1 January 2024 End of the reporting period 30 June 2024 Business name AS Silvano Fashion Group Registration number 10175491 Legal address Tulika 17, 10613 Tallinn Telephone +372 684 5000 Fax +372 684 5300 E-mail [email protected] Website www.silvanofashion.com Core activities Design, manufacturing and distribution of women's lingerie
* This version of our report is a translation from the original, which was prepared in Estonian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
| Management Report 3 | |
|---|---|
| Declaration of the Management Board 11 | |
| Consolidated Statement of Financial Position 12 | |
| Consolidated Income Statement 13 | |
| Consolidated Statement of Comprehensive Income 13 | |
| Consolidated Statement of Cash Flows 14 | |
| Consolidated Statement of Changes in Equity 15 | |
| Notes to the Interim Report 16 | |
| Note 1 Summary of significant accounting policies 16 | |
| Note 2 Cash and cash equivalents 16 | |
| Note 3 Trade and other receivables 17 | |
| Note 4 Inventories 17 | |
| Note 5 Property, plant and equipment 18 | |
| Note 6 Trade and other payables 19 | |
| Note 7 Equity 19 | |
| Note 8 Earnings per share 19 | |
| Note 9 Revenue from contracts with customers 19 | |
| Note 10 Transactions with related parties 20 | |
| Note 11 Operating segments 20 |
Management Report
General information about AS Silvano Fashion Group
AS Silvano Fashion Group (hereinafter "the Group") is a holding company that controls group of entities involved in the design, manufacturing, wholesale, franchise and retail sales of Ladies lingerie. The Group's revenue is generated by sales of Milavitsa, Alisee, Aveline, Lauma Lingerie, Laumelle and Hidalgo brand products through wholesale channels, franchised sales and own retail operated via Milavitsa and Lauma Lingerie retail stores. Key sales markets for the Group are Russia, Belarus, other CIS countries and the Baltics.
The parent company of the Group is AS Silvano Fashion Group (hereinafter "the Parent company"), which is domiciled in Estonia. AS Silvano Fashion Group registered address is Tulika 17, Tallinn, Estonia.
The shares of the Group are listed on the Nasdaq OMX Tallinn Stock Exchange and on the Warsaw Stock Exchange.
As of 30 June 2024 the Group employed 1 625 people (as of 31 December 2023: 1 626 people).
The Group comprises of the following entities:
| Location | Main activity | Ownership interest 30.06.2024 |
Ownership interest 31.12.2023 |
|
|---|---|---|---|---|
| Parent company Silvano Fashion Group AS |
Estonia | Holding | ||
| Entities belonging to the | ||||
| Silvano Fashion Group: | ||||
| CJSC Silvano Fashion* | Russia | Retail and wholesale | 100% | 100% |
| LLC Silvano Fashion | Belarus | Retail and wholesale | 100% | 100% |
| LLC Silvano Fashion | Ukraine | Wholesale | 100% | 100% |
| Silvano Fashion SIA | Latvia | Retail | 100% | 100% |
| CJSC Milavitsa | Belarus | Manufacturing and wholesale | 85.02% | 85.02% |
| JSC Sewing firm Yunona | Belarus | Manufacturing and wholesale | 58.33% | 58.33% |
| LLC Gimil | Belarus | Manufacturing and wholesale | 100% | 100% |
| JSC Lauma Lingerie | Latvia | Manufacturing and wholesale | 100% | 100% |
| Alisee SARL | Monaco | Holding | 99% | 99% |
| JCS Metropolitan Trade | Russia | Holding | 100% | 100% |
| Company Milavitsa ** | ||||
| LLC Baltsped logistik | Belarus | Logistics | 50% | 50% |
* Silvano Fashion CJSC is 100% owned by Metropolitan Trade Company Milavitsa CJSC (same was effective as of 31.12.2023).
** Metropolitan Trade Company Milavitsa LLC is owned by AS Silvano Fashion Group and SIA Silvano Fashion, each holding 50% (same was effective as of 31.12.2023).
In addition, as of 30.06.2024 the subsidiary of AS Silvano Fashion Group, CJSC Milavitsa, had investment in associate LLC Trade house "Milavitsa "Novosibirsk with a 25% ownership interest (same was effective as of 31.12.2023).
Business environment and results
The Group's sales amounted to 30 145 thousand EUR during the 6 months of 2024, representing a 4.0% decrease as compared to the same period for the previous year. The Group's gross profit during the 6 months of 2024 amounted to 17 189 thousand EUR and decreased by 8.7% compared to 6 months of 2023. The Gross margin during the 6 months of 2024 decreased to 57.0% from 60.0% as compared to 6 months of 2023.
Consolidated operating profit for 6 months of 2024 decreased by 19.8% to 8 562 thousand EUR, compared to 10 681 thousand EUR for 6 months of 2023. Consolidated EBITDA for 6 months of 2024 decreased by 18.1% and was 10 055 thousand EUR, compared to 12 272 thousand EUR for 6 months of 2023.
Reported consolidated net profit for 6 months of 2024 amounted to 7 786 thousand EUR, as compared to net profit of 5 422 thousand EUR in the prior year's same period. Net profit attributable to equity holders of the Parent company for 6 months of 2024 amounted 7 053 thousand EUR.
Russia Economic Outlook
The Group's sales on the Russian market totalled 17 761 thousand EUR, decrease is 5.3% compared to 6 months of 2023. Local currency sales increased by 11.4% during 6 months of 2024 compared to the same 6 months of 2023. Group will focus on improving profitability of its retail business, we will also continue to expand our store chain there depending on the availability of reasonably priced sales areas. At the end of the reporting period, there were a total of 55 stores operated by the Group itself (as of 31 December 2023: 58 stores).
Belarus Economic Outlook
The Group's sales in Belarus in the 6 months of 2024 were 7 686 thousand EUR and decreased by 1.6% compared to the 6 months of 2023. Sales in local currency increased by 11.5% during the same period. At the end of the reporting period, there were a total of 60 stores operated by the Group itself (as of 31 December 2023: 59 stores).
Ukraine Economic Outlook
The Group's sales in Ukraine in the 6 months of 2024 were 61 thousand EUR and decreased by 39.0% compared to the 6 months of 2023.
Sales structure
Sales by markets
Group sales in its 2 major markets – Russia and Belarus– were 84.4% of its total sales. Measured in local currencies sales increase was accordingly – 11.4% in Russia, 11.5% in Belarus.
| 06m 2024 | 06m 2023 | Change Change, % | ||
|---|---|---|---|---|
| Russia, th RUB | 1 737 210 | 1 558 782 | 178 428 | 11.4% |
| Belarus, th BYN | 26 725 | 23 970 | 2 755 | 11.5% |
Group`s sales results by markets measured in EUR are presented below:
| 06m 2024 | 06m 2023 | Change, | Change, | 06m 2024, | 06m 2023, | |
|---|---|---|---|---|---|---|
| in thousands of EUR | EUR | % | % of sales | % of sales | ||
| Russia | 17 761 | 18 746 | -985 | -5.3% | 58.9% | 59.7% |
| Belarus | 7 686 | 7 809 | -123 | -1.6% | 25.5% | 24.9% |
| Ukraine | 61 | 100 | -39 | -39.0% | 0.2% | 0.3% |
| Baltics | 628 | 705 | -77 | -10.9% | 2.1% | 2.2% |
| Other markets | 4 009 | 4 047 | -38 | -0.9% | 13.3% | 12.9% |
| Total | 30 145 | 31 407 | -1 262 | -4.0% | 100.0% | 100.0% |
The majority of lingerie sales revenue during 6 months of 2024 in the amount 17 761 thousand EUR was generated in Russia, accounting for 58.9% of total sales. The second largest market was Belarus, where sales were 7 686 thousand EUR, contributing 25.5% of lingerie sales (both retail and wholesale).
| 06m 2024 | 06m 2023 | Change, | Change, | 06m 2024, | 06m 2023, | |
|---|---|---|---|---|---|---|
| in thousands of EUR | EUR | % | % of sales | % of sales | ||
| Wholesale | 18 821 | 20 283 | -1 462 | -7.2% | 62.4% | 64.6% |
| Retail | 11 289 | 11 107 | 182 | 1.6% | 37.5% | 35.3% |
| Other operations | 35 | 17 | 18 | 105.9% | 0.1% | 0.1% |
| Total | 30 145 | 31 407 | -1 262 | -4.0% | 100.0% | 100.0% |
Sales by business segments
During 6 months of 2024 wholesale revenue amounted to 18 821 thousand EUR, representing 62.4% of the Group's total revenue (6 months of 2023: 64.6%). The main wholesale regions were Russia and Belarus.
Our retail revenue increased by 1.6% and amounted 11 289 thousand EUR, this represents 37.5% of the Group`s total revenue.
Own & franchise store locations, geography
| Own | Franchise | Total | |
|---|---|---|---|
| Russia | 55 | 334 | 389 |
| Belarus | 60 | 0 | 60 |
| Baltics | 5 | 19 | 24 |
| Other regions | 0 | 86 | 86 |
| Total | 120 | 439 | 559 |
At the end of the reporting period the Group and its franchising partners operated 533 Milavitsa and 26 Lauma Lingerie brand stores, including 120 stores operated directly by the Group (as of 31 December 2023: 122 stores).
Selected Financial Indicators
Summarized selected financial indicators of the Group for 6 months of 2024 compared to 6 months of 2023 and 30.06.2024 compared to 31.12.2023 were as follows:
| in thousands of EUR | 06m 2024 | 06m 2023 | Change |
|---|---|---|---|
| Revenue | 30 145 | 31 407 | -4.0% |
| Gross Profit | 17 189 | 18 837 | -8.7% |
| Operating profit | 8 562 | 10 681 | -19.8% |
| EBITDA | 10 055 | 12 272 | -18.1% |
| Net profit for the period | 7 786 | 5 422 | 43.6% |
| Net profit attributable equity holders of the Parent company | 7 053 | 4 772 | 47.8% |
| Earnings per share (EUR) | 0,20 | 0,13 | 53.8% |
| Operating cash flow for the period | 4 137 | 10 802 | -61.7% |
| in thousands of EUR | 30.06.2024 | 31.12.2023 | Change |
| Total assets | 80 534 | 72 252 | 11.5% |
| Total current assets | 67 483 | 59 395 | 13.6% |
| Total equity attributable to equity holders of the Parent company |
61 433 | 54 120 | 13.5% |
| Cash and cash equivalents | 38 867 | 32 878 | 18.2% |
| Margin analysis, % | 06m 2024 | 06m 2023 | Change |
| Gross profit | 57,0 | 60,0 | -5.0% |
| Operating profit | 28,4 | 34,0 | -16.5% |
| EBITDA | 33,4 | 39,1 | -14.6% |
| Net profit | 25,8 | 17,3 | 49.1% |
| Net profit attributable to equity holders of the Parent company |
23,4 | 15,2 | 53.9% |
| Financial ratios, % | 30.06.2024 | 31.12.2023 | Change |
| ROA | 16,3 | 14,5 | 12.4% |
| ROE | 22,0 | 20,2 | 8.9% |
| Price to earnings ratio (P/E) | 3,1 | 4,1 | -24.4% |
| Current ratio | 6,4 | 5,8 | 10.3% |
| Quick ratio | 3,9 | 3,4 | 14.7% |
Underlying formulas:
EBITDA = net profit for the period + depreciation and amortisation + net finance income + income tax expense Gross profit margin = gross profit / revenue
EBITDA margin = EBITDA / revenue
Net profit margin = net profit / revenue
Net profit margin attributable to equity holders of the Parent company = net profit attributable to equity holders of the Parent company / revenue
ROA (return on assets) = net profit attributable to owners of the Company for the last 4 quarters/ average total assets
ROE (return on equity) = net profit attributable to owners of the Company for the last 4 quarters/ average equity attributable to equity holders of the Company
EPS (earnings per share) = net profit attributable to owners of the Company/ weighted average number of ordinary shares Price to earnings ratio = Share price at the end of reporting period/earnings per share, calculated based on the net profit attributable to owners of the Company for the last 4 quarters
Current ratio = current assets / current liabilities
Quick ratio = (current assets – inventories) / current liabilities
Financial performance
The Group`s sales amounted 30 145 thousand EUR during 6 months of 2024, representing a 4.0% decrease as compared to the same period of previous year. Overall, wholesale decreased by 7.2%, measured in EUR.
The Group's gross profit during 6 months of 2024 amounted to 17 189 thousand EUR and decrease by 8.7% compared to previous year. The gross margin during 6 months of 2024 decreased by 5.0% compared to 6 months of 2023. The cost of sold goods increased by 3.1%.
Consolidated operating profit for 6 months of 2024 amounted to 8 562 thousand EUR, compared to 10 681 thousand EUR for 6 months of 2023, decrease by 19.8%. The consolidated operating profit margin was 28.4% for 6 months of 2024 (34.0% for 6 months of 2023). Consolidated EBITDA for 6 months of 2024 decreased by 18.1% and amounted to 10 055 thousand EUR, which is 33.4% in margin terms (12 272 thousand EUR and 39.1% for 6 months of 2023).
Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2024 amounted to 7 053 thousand EUR, compared to net profit of 4 772 thousand EUR for 6 months of 2023, net profit margin attributable to equity holders of the Parent company for 6 months of 2024 was 23.4% against net profit 15.2% for 6 months of 2023.
Financial position
As of 30 June 2024 consolidated assets amounted to 80 534 thousand EUR representing increase by 11.5% as compared to the position as of 31 December 2023.
Trade and other receivables increased by 358 thousand EUR as compared to 31 December 2023 and amounted to 1 712 thousand EUR as of 30 June 2024. Inventory balance increased by 1 922 thousand EUR and amounted to 25 862 thousand EUR as of 30 June 2024.
Equity attributable to equity holders of the Parent company increased by 7 313 thousand EUR and amounted to 61 433 thousand EUR as of 30 June 2024. Current liabilities increased by 267 thousand EUR during 6 months of 2024.
Investments
During 6 months of 2024 the Group's investments into property, plant and equipment totalled 476 thousand EUR, in previous year same period 708 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 2024, the Group employed 1 625 employees, including 507 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2023 there were 1 626 employees, including 500 people in retail operations.
Total salaries and related taxes during 6 months of 2024 amounted to 7 117 thousand EUR ( 6 902 thousand EUR in 6 months 2023). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 305 thousand EUR.
Decisions made by governing bodies during 06 months 2024
On the 19th of March 2024, the AS Silvano Fashion Group proposed to the shareholders to adopt the resolution of the extraordinary general meeting of shareholders stated below without convening the meeting.
The notice of the general meeting was published on March 19, 2024, in the information system NASDAQ OMX Tallinn https://view.news.eu.nasdaq.com/view?id=b77cafc430f1ac23a81813069a95a15cd&lang=en and Warsaw Stock Exchange, on the website of SFG https://www.silvanofashion.com/investors/company-announcements/ and in the newspaper Eesti Päevaleht.
On April 9, 2024 Silvano Fashion Group Extraordinary Meeting of Shareholders adopted the following decisions:
1.1. To appoint the auditing company Ernst & Young Baltic AS (registry code 10877299, located at Rävala puiestee 4, 10143 Tallinn) as the auditor of AS Silvano Fashion Group;
AS Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6 months of 2024
1.2. To authorize the Management Board of AS Silvano Fashion Group to enter into an audit service agreement with the auditing company AS Ernst & Young Baltic for auditing the economic activities of AS Silvano Fashion Group 2023.
On the 29th of May 2024, 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 29, 2024, in the information system NASDAQ OMX Tallinn https://view.news.eu.nasdaq.com/view?id=bc1ccceca27a9390039f730c2b2b98136&lang=en&src=listed and Warsaw Stock Exchange, on the website of SFG https://www.silvanofashion.com/investors/companyannouncements/ and in the daily newspaper Eesti Ekspress.
On June 20, 2024 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions:
-
- Approved the 2023 Annual Report;
-
- Left the net profit undistributed and included the net profit of the financial year 2023 in retained earnings.
The decisions of the general meeting was published on the website of AS Silvano Fashion Group https://www.silvanofashion.com/investors/company-announcements/.
Shares of AS Silvano Fashion Group
As of 30 June 2024 registered share capital of AS Silvano Fashion Group amounted to 3 600 thousand EUR divided into 36 000 000 ordinary shares with a nominal value of 0.10 EUR each. The share register is electronic and maintained at the Estonian Central Register of Securities. The Company has been listed on Nasdaq OMX Tallinn Stock Exchange main list (since 21.11.2006) and on Warsaw Stock Exchange (since 23.07.2007).
As of 30 June 2024 AS Silvano Fashion Group had 3 084 shareholders (as of 31 December 2023: 3 336 shareholders).
As of 30 June 2024 shareholders, whose interest in AS Silvano Fashion Group exceeded 5% included:
| Name | Number of shares | Shareholding |
|---|---|---|
| Major shareholders | 19 389 814 | 53.86% |
| BALTPLAST AS | 9 242 627 | 25.67% |
| AS SEB PANK CLIENTS | 8 000 000 | 22.22% |
| UNICREDIT BANK AUSTRIA AG | 2 147 187 | 5.96% |
| Other shareholders | 16 610 186 | 46.14% |
| Total number of shares | 36 000 000 | 100.00% |
As of 31 December 2023 shareholders, whose interest in AS Silvano Fashion Group exceeded 5% included:
| Name | Number of shares | Shareholding |
|---|---|---|
| Major shareholders | 19 262 985 | 53.50% |
| BALTPLAST AS | 9 115 798 | 25.32% |
| AS SEB PANK CLIENTS | 8 000 000 | 22.22% |
| UNICREDIT BANK AUSTRIA AG | 2 147 187 | 5.96% |
| Other shareholders | 16 737 015 | 46.50% |
| Total number of shares | 36 000 000 | 100.00% |
Share price development and turnover on the Tallinn Stock Exchange during 6 months of 2024 (EUR)
During 6 months of 2024 the highest and lowest prices of the AS Silvano Fashion Group` share on the Tallinn Stock Exchange were 1.188 EUR and 1.055 EUR, respectively
Share price development on the Warsaw Stock Exchange during 6 months of 2024(PLN)
During 6 months of 2024, the highest and lowest prices of the AS Silvano Fashion Group` share on the Warsaw Stock Exchange were 6.33 PLN and 4.51 PLN respectively.
Declaration of the Management Board
The Management Board of AS Silvano Fashion Group has reviewed and approved Consolidated Interim Financial Report for Q2 and 6 months of 2024 (hereinafter "the Interim Report").
Member of the Management Board confirms that according to his best knowledge the Interim Report gives a true and fair view of financial position of the Group, its financial performance and its cash flows in accordance with International Financial Reporting Standards, as adopted by EU, and IAS 34 "Interim Financial Reporting".
Furthermore, Member of the Management Board confirms that in his opinion the Interim Report provides a fair review of significant developments in the Group's activities that occurred during the reporting period and their impact and describes significant risks and uncertainties that may affect the Group during future reporting periods.
The Interim Report has not been audited or otherwise reviewed by the auditors.
Jarek Särgava Member of the Management Board August 23, 2024
___________________________
AS Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6 months of 2024
Consolidated Statement of Financial Position
| in thousands of EUR | Note | 30.06.2024 | 31.12.2023 |
|---|---|---|---|
| Unaudited | Audited | ||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 2 | 38 867 | 32 878 |
| Trade and other receivables | 3 | 1 712 | 1 354 |
| Prepayments and other tax receivables | 3 | 917 | 1 115 |
| Current loans granted | 20 | 29 | |
| Other assets | 105 | 79 | |
| Inventories | 4 | 25 862 | 23 940 |
| Total current assets | 67 483 | 59 395 | |
| Non-current assets | |||
| Non-current receivables | 297 | 292 | |
| Investments in associates | 109 | 85 | |
| Investments in other shares | 223 | 213 | |
| Deferred tax asset | 2 375 | 2 155 | |
| Intangible assets | 651 | 579 | |
| Investment property | 911 | 899 | |
| Property, plant and equipment | 5 | 8 485 | 8 634 |
| Total non-current assets | 13 051 | 12 857 | |
| TOTAL ASSETS | 80 534 | 72 252 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Current borrowings | 2 312 | 0 | |
| Current lease liabilities | 1 222 | 2 162 | |
| Trade and other payables | 6 | 4 933 | 7 377 |
| Tax liabilities | 2 086 | 747 | |
| Total current liabilities | 10 553 | 10 286 | |
| Non-current liabilities | |||
| Deferred tax liability | 773 | 736 | |
| Non-current lease liabilities | 4 751 | 4 321 | |
| Non-current provisions | 48 | 46 | |
| Total non-current liabilities | 5 572 | 5 103 | |
| Total liabilities | 16 125 | 15 389 | |
| 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 | -19 742 | -20 002 | |
| Retained earnings | 71 302 | 64 249 | |
| Total equity attributable to equity holders | |||
| of the Parent company | 61 433 | 54 120 | |
| Non-controlling interest | 2 976 | 2 743 | |
| Total equity | 64 409 | 56 863 | |
| TOTAL EQUITY AND LIABILITIES | 80 534 | 72 252 |
Consolidated Income Statement
| in thousands of EUR | Note | 2Q 2024 | 2Q 2023 | 06m 2024 | 06m 2023 |
|---|---|---|---|---|---|
| Unaudited Unaudited Unaudited Unaudited | |||||
| Revenue from contracts with customers | 9 | 16 241 | 17 266 | 30 145 | 31 407 |
| Cost of goods sold | -6 841 | -6 553 | -12 956 | -12 570 | |
| Gross Profit | 9 400 | 10 713 | 17 189 | 18 837 | |
| Distribution expenses | -3 001 | -2 775 | -5 773 | -5 554 | |
| Administrative expenses | -1 191 | -1 091 | -2 454 | -2 277 | |
| Other operating income | 59 | 59 | 107 | 116 | |
| Other operating expenses | -253 | -188 | -507 | -441 | |
| Operating profit | 5 014 | 6 718 | 8 562 | 10 681 | |
| Currency exchange income/(expense) | 916 | -1 492 | 865 | -2 591 | |
| Other finance income/(expenses) | -56 | -29 | 72 | -185 | |
| Net finance income | 860 | -1 521 | 937 | -2 776 | |
| Profit (loss) from associates using equity method | -2 | 8 | 14 | 12 | |
| Profit before tax | 5 872 | 5 205 | 9 513 | 7 917 | |
| Income tax expense | -1 002 | -1 650 | -1 727 | -2 495 | |
| Profit for the period | 4 870 | 3 555 | 7 786 | 5 422 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 4 499 | 3 156 | 7 053 | 4 772 | |
| Non-controlling interest | 371 | 399 | 733 | 650 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted |
|||||
| (EUR) | 8 | 0,12 | 0,09 | 0,20 | 0,13 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | 2Q 2024 | 2Q 2023 | 06m 2024 | 06m 2023 |
|---|---|---|---|---|---|
| Unaudited Unaudited Unaudited Unaudited | |||||
| Profit for the period | 4 870 | 3 555 | 7 786 | 5 422 | |
| Other comprehensive income (loss) that will be | |||||
| reclassified to profit or loss in subsequent periods : | |||||
| Exchange differences on translation of foreign operations | 670 | -624 | 406 | -1 384 | |
| Total other comprehensive income for the period | 670 | -624 | 406 | -1 384 | |
| Total comprehensive income (loss) for the period | 5 540 | 2 931 | 8 192 | 4 038 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 5 049 | 2 029 | 7 313 | 2 612 | |
| Non-controlling interest | 491 | 902 | 879 | 1 426 |
Consolidated Statement of Cash Flows
| in thousands of EUR | Note | 06m 2024 | 06m 2023 |
|---|---|---|---|
| Unaudited | Unaudited | ||
| Cash flow from operating activities | |||
| Profit for the period | 7 786 | 5 422 | |
| Adjustments for: | |||
| Depreciation and amortization of non-current assets | 1 493 | 1 591 | |
| Share of profit of equity accounted investees | -14 | -12 | |
| Gains/Losses on the sale of property, plant and equipment | 10 | -11 | |
| Net finance income / costs | -937 | 2 776 | |
| Provision for impairment losses on trade receivables | 3 | -1 | |
| Provision for inventories | 1 | 2 | |
| Income tax expense | 1 727 | 2 495 | |
| Change in inventories | -1 922 | 1 342 | |
| Change in trade and other receivables | -358 | -1 195 | |
| Change in trade and other payables | -1 912 | -125 | |
| Interest paid | -48 | 0 | |
| Income tax paid | -1 692 | -1 482 | |
| Net cash flow from operating activities | 4 137 | 10 802 | |
| Cash flow from investing activities | |||
| Interest received | 482 | 172 | |
| Dividends received | 8 | 11 | |
| Proceeds from disposal of property, plant and equipment | 20 | 5 | |
| Loans granted | 0 | -15 | |
| Proceeds from repayments of loans granted | 9 | 0 | |
| Acquisition of property, plant and equipment | -476 | -708 | |
| Acquisition of intangible assets | -72 | -88 | |
| Net cash flow from investing activities | -29 | -623 | |
| Cash flow from financing activities | |||
| Proceeds from borrowings | 4 000 | 0 | |
| Repayment of borrowings | -1 700 | 0 | |
| Payment of principal portion of lease liabilities | -1 085 | -1 118 | |
| Interest paid on lease liabilities | -375 | -367 | |
| Dividends paid | -646 | -525 | |
| Net cash flow from financing activities | 194 | -2 010 | |
| Net increase in cash and cash equivalents | 4 302 | 8 169 | |
| Cash and cash equivalents at the beginning of period | 2 | 32 878 | 25 909 |
| Effect of translation to presentation currency | 1 837 | -3 452 | |
| Effect of exchange rate fluctuations on cash held | -150 | 415 | |
| Cash and cash equivalents at the end of period | 2 | 38 867 | 31 041 |
Consolidated Statement of Changes in Equity
| in ho ds f E U R t usa n o |
S ha re Ca ita l p |
S ha re Pr ium em |
Sta tut ory res erv e ita l cap |
ise Un l d rea ha ex c ng e rat e d i f fer en ces |
ine Re ta d ing ea rn s |
ity To ta l e q u ibu b le att ta to r ity ho lde f eq u rs o he Pa t t ren co mp an y |
No n ll ing ntr co o int st ere |
ity To ta l e q u |
|---|---|---|---|---|---|---|---|---|
| Ba lan 3 1 D mb 2 0 2 2 ( Au d ite d ) at ce as ece er |
3 6 0 0 |
4 9 6 7 |
1 3 0 6 |
-1 9 4 0 9 |
5 4 3 2 2 |
4 4 7 8 6 |
4 1 8 2 |
4 8 9 6 8 |
| Pro f it for he io d t p er |
0 | 0 | 0 | 0 | 4 7 7 2 |
4 7 2 7 |
6 5 0 |
4 2 2 5 |
| Ot he hen ive inc for he io d t r c om p re s om e p er |
0 | 0 | 0 | -2 1 6 0 |
0 | -2 1 6 0 |
7 7 6 |
-1 3 8 4 |
| To l c he ive inc for he io d ta t om p re ns om e p er |
0 | 0 | 0 | -2 1 6 0 |
4 7 7 2 |
2 6 1 2 |
1 4 2 6 |
4 0 3 8 |
| Tr ion it h o ise d d ire ly in ity t ct an sac s w wn ers , r eco g n eq u |
||||||||
| D iv i den ds de lar d c e |
0 | 0 | 0 | 0 | 0 | 0 | -5 25 |
25 -5 |
| ion it ise ire in ity To ta l tr t h o d d ct ly an sac s w wn ers , r eco g n eq u |
0 | 0 | 0 | 0 | 0 | 0 | 25 -5 |
25 -5 |
| Ba lan 3 0 Ju 2 0 2 3 ( Un d ite d ) at ce as ne au |
3 6 0 0 |
4 9 6 7 |
1 3 0 6 |
-2 1 5 6 9 |
5 9 0 9 4 |
47 3 9 8 |
5 0 8 3 |
5 2 4 8 1 |
| 3 1 D 2 0 2 3 ( Au ite ) Ba lan at mb d d ce as ece er |
3 6 0 0 |
4 9 6 7 |
1 3 0 6 |
-2 0 0 0 2 |
6 4 2 4 9 |
4 1 2 0 5 |
2 7 4 3 |
6 8 6 3 5 |
| f it for he io d Pro t p er |
0 | 0 | 0 | 0 | 0 3 7 5 |
7 0 5 3 |
3 3 7 |
7 7 8 6 |
| Ot he hen ive inc for he io d t re e er r c om p s om p |
0 | 0 | 0 | 2 6 0 |
0 | 2 6 0 |
1 4 6 |
4 0 6 |
| To l c he ive inc for he io d ta t om p re ns om e p er |
0 | 0 | 0 | 2 6 0 |
7 0 5 3 |
7 3 1 3 |
8 7 9 |
8 1 9 2 |
| Tr ion it h o ise d d ire ly in ity t ct an sac s w wn ers , r eco g n eq u |
||||||||
| iv i den ds de lar d D c e |
0 | 0 | 0 | 0 | 0 | 0 | -6 4 6 |
-6 4 6 |
| To l tr ion it h o ise d d ire ly in ity ta t ct an sac s w wn ers , r eco g n eq u |
0 | 0 | 0 | 0 | 0 | 0 | -6 4 6 |
-6 4 6 |
| Ba lan 3 0 Ju 2 0 2 4 ( Un d ite d ) at ce as ne au |
3 6 0 0 |
4 9 6 7 |
1 3 0 6 |
-1 9 7 4 2 |
7 1 3 0 2 |
6 1 4 3 3 |
2 9 7 6 |
6 4 4 0 9 |
Notes to the Interim Report
Note 1 Summary of significant accounting policies
AS Silvano Fashion Group is a company registered in Estonia. This Interim Report of the Group is prepared for the reporting period ended 30 June 2024 and comprises parent company and its subsidiaries.
The principal accounting policies applied in the preparation of this Interim Report are set out below. The policies have been consistently applied to all the years presented unless otherwise stated.
The Interim Report has not been audited or reviewed by external auditors.
Basis for preparation
This Interim Report of AS Silvano Fashion Group for Q2 and 6 months 2024 ended on 30 June 2024 has been prepared in accordance with IAS 34 "Interim financial reporting" as adopted by the European Union. The Interim Report should be read in conjunction with the Annual Report for the financial year ended on 31 December 2023, which have been prepared in accordance with IFRS as adopted by the European Union.
This Interim Report is comprised in thousands of Euros (EUR).
The Group's performance is not significantly affected by any seasonal or cyclical factors. Nevertheless, revenue during vacation periods and holidays in CIS countries is usually higher compared to other periods.
New standards and interpretations
In additions to disclosures already made in the Annual Report for the financial year ended on 31 December 2023 there are no new IFRSs or IFRIC interpretations that are effective for the financial year beginning on or after 1 January 2024 and that would be expected to have a material impact on the Group.
Note 2 Cash and cash equivalents
| 30.06.24 Cash on hand 43 Current bank accounts in EUR 1 826 Current bank accounts in other currencies than EUR 1 116 Short-term bank deposits in EUR 35 200 Short-term bank deposits in other currencies than EUR 450 Cash in transit 232 Total 38 867 in thousands of EUR 30.06.24 31.12.23 Estonia 35 473 29 763 Latvia 383 61 Russia 1 434 943 Belarus 1 149 1 536 Ukraine 195 150 Monaco 233 425 Total 38 867 32 878 |
|||
|---|---|---|---|
| in thousands of EUR | 31.12.23 | ||
| 53 | |||
| 1 925 | |||
| 466 | |||
| 29 500 | |||
| 566 | |||
| 368 | |||
| 32 878 | |||
| in thousands of EUR | 30.06.24 | 31.12.23 |
|---|---|---|
| Trade accounts receivable from third parties | 1 657 | 1 301 |
| Trade accounts receivable from related parties | 0 | 0 |
| Receivables on services rended | 37 | 33 |
| Other receivables | 134 | 133 |
| 1 828 | 1 467 | |
| Allowance for expected credit losses | -116 | -113 |
| Total trade and other receivables | 1 712 | 1 354 |
| Prepayments and other tax receivables | ||
| Prepayments issued to suppliers | 354 | 409 |
| VAT recoverable | 561 | 704 |
| Other tax prepayments | 2 | 2 |
| Total prepayments and other tax | ||
| receivables | 917 | 1 115 |
Note 3 Trade receivables and other assets
The fair values of trade and other receivables are not materially different from the carrying values based on the expected discounted cash flows.
Note 4 Inventories
| in thousands of EUR | 30.06.24 | 31.12.23 |
|---|---|---|
| Raw and other materials | 3 855 | 6 501 |
| Work in progress | 1 480 | 1 321 |
| Finished goods | 17 760 | 14 220 |
| Other inventories | 2 767 | 1 898 |
| Total | 25 862 | 23 940 |
| in thousands of EUR | Other | |||||
|---|---|---|---|---|---|---|
| equipment | Right | Assets | ||||
| Land and | Plant and | and | of-use | under | ||
| buildings | equipment | fixtures | asset | construction | Total | |
| 31.12.2022 | ||||||
| Cost | 4 020 | 14 838 | 4 688 | 14 350 | 33 | 37 929 |
| Accumulated depreciation | -2 280 | -13 560 | -4 127 | -8 714 | 0 | -28 681 |
| Net book amount | 1 740 | 1 278 | 561 | 5 636 | 33 | 9 248 |
| Movements during 06m 2023 | ||||||
| Additions | 0 | 7 | 339 | 976 | 362 | 1 684 |
| Modification | 0 | 0 | 0 | 401 | 0 | 401 |
| Disposals | 0 | 0 | -16 | 0 | 0 | -16 |
| Reclassifications | 0 | 214 | 142 | 0 | -356 | 0 |
| Depreciation | -38 | -204 | -155 | -1 155 | 0 | -1 552 |
| Unrealised exchange rate differences | -204 | -147 | -121 | -859 | -5 | -1 336 |
| Closing net book amount | 1 498 | 1 148 | 750 | 4 999 | 34 | 8 429 |
| 30.06.2023 | ||||||
| Cost | 3 555 | 13 340 | 4 529 | 13 127 | 34 | 34 585 |
| Accumulated depreciation | -2 057 | -12 192 | -3 779 | -8 128 | 0 | -26 156 |
| Net book amount | 1 498 | 1 148 | 750 | 4 999 | 34 | 8 429 |
| 31.12.2023 | ||||||
| Cost | 3 242 | 12 775 | 4 464 | 13 470 | 6 | 33 957 |
| Accumulated depreciation | -1 941 | -11 648 | -3 697 | -8 037 | 0 | -25 323 |
| Net book amount | 1 301 | 1 127 | 767 | 5 433 | 6 | 8 634 |
| Movements during 06m 2024 | ||||||
| Additions | 0 | 0 | 100 | 326 | 376 | 802 |
| Modifications | 0 | 0 | 0 | 41 | 0 | 41 |
| Disposals | 0 | 0 | -30 | -34 | 0 | -64 |
| Transfers to Investment property | 14 | 14 | ||||
| Transfers and reclassification | 0 | 190 | 104 | 0 | -294 | 0 |
| Depreciation | -32 | -123 | -168 | -1 128 | 0 | -1 451 |
| Unrealised exchange rate differences | 59 | 53 | 45 | 349 | 3 | 509 |
| Closing net book amount | 1 342 | 1 247 | 818 | 4 987 | 91 | 8 485 |
| 30.06.2024 | ||||||
| Cost | 3 399 | 13 232 | 4 634 | 14 556 | 91 | 35 912 |
| Accumulated depreciation | -2 057 | -11 985 | -3 816 | -9 569 | 0 | -27 427 |
| Net book amount | 1 342 | 1 247 | 818 | 4 987 | 91 | 8 485 |
The Group didn't have any significant binding commitments to purchase property plant and equipment as of 30 June 2024.
| 30.06.24 | 31.12.23 |
|---|---|
| 2 883 | 5 349 |
| 612 | 669 |
| 742 | 552 |
| 581 | 422 |
| 115 | 385 |
| 4 933 | 7 377 |
Note 6 Trade and other payables
Fair values of trade and other payables are not materially different from book values due to short maturities.
Note 7 Equity
Shares
As of 30 June 2024 registered share capital of AS Silvano Fashion Group amounted to 3 600 thousand EUR divided into 36 000 000 shares with a nominal value of 0.10 EUR each (as of 31 December 2023, 3 600 thousand EUR 36 000 000 shares and 0.10 EUR nominal value, respectively). All shares of AS Silvano Fashion Group are ordinary shares and all are registered. Each ordinary share gives a shareholder one vote in General Meeting of Shareholders. No share certificates are issued for registered shares. The share register is electronic and maintained at the Estonian Central Depositary for Securities. All shares are fully paid shares.
As of 30 June 2024 AS Silvano Fashion Group had 3 084 shareholders (as of 31 December 2023: 3 336 shareholders).
Note 8 Earnings per share
The calculation of basic earnings per share for 6 months of 2024 (6 months of 2023) is based on profit attributable to owners and a weighted average number of ordinary shares.
| in thousands of shares | 06m 2024 | 06m 2023 |
|---|---|---|
| Number of ordinary shares at the beginning of the period | 36 000 | 36 000 |
| Effect of own shares held at the beginning of the period | 0 | 0 |
| Number of ordinary shares at the end of the period | 36 000 | 36 000 |
| Effect of own shares held at the end of the period | 0 | 0 |
| Weighted average number of ordinary shares for the Period |
36 000 | 36 000 |
| in thousands of EUR | 06m 2024 | 06m 2023 |
| Profit (loss)for the period attributable to equity holders of the Parent company |
7 053 | 4 772 |
| Basic earnings per share (EUR) | 0.20 | 0.13 |
| Diluted earnings per share (EUR) | 0.20 | 0.13 |
Diluted earnings per share do not differ from basic earnings per share as the Group has no financial instruments issued that could potentially dilute the earnings per share.
Note 9 Revenue from contracts with customers
| in thousands of EUR | 06m 2024 | 06m 2023 |
|---|---|---|
| Revenue from wholesale | 18 821 | 20 283 |
| Revenue from retail | 11 289 | 11 107 |
| Subcontracting and services | 31 | 17 |
| Other sales | 4 | 0 |
| Total | 30 145 | 31 407 |
Note 10 Transactions with related parties
The following parties are considered to be related;
- a) Shareholders owning, directly or indirectly, a voting power in the parent company or its significant subsidiaries that gives them significant influence over the parent company or its significant subsidiaries and companies under their control.
- b) Associates enterprises in which parent company or its subsidiaries have significant influence;
- c) Members of the Management Board and Supervisory Boards of parent company and its significant subsidiaries and their immediate family members and companies under their control or significant influence.
The Group's owners are legal and physical persons and no sole shareholder has control over the Group's activities. According to management's assessment, the prices applied in transactions with related parties did not differ significantly from the market terms.
| Sales of goods and services | ||
|---|---|---|
| in thousands of EUR | 06m 2024 | 06m 2023 |
| Associates | 239 | 297 |
| Total | 239 | 297 |
| Balances with related parties | ||
| in thousands of EUR | 30.06.2024 31.12.2023 | |
| Trade receivables from associates | 0 | 0 |
| Total | 0 | 0 |
| Benefits to key management of the group | ||
| in thousands of EUR | 06m 2024 | 06m 2023 |
| Remunerations and benefits | 305 | 296 |
Total 305 296
Note 11 Operating segments
The Group`s operating segments have been determined based on regular reports being monitored and analysed by Management and Supervisory Boards of the parent company on an on-going basis.
The Management and Supervisory Board consider the business primarily from the activity perspective, monitoring separately wholesale and retail activities.
- The wholesale segment includes purchasing and production of women's lingerie, and distribution to external wholesale customers and the retail segment. The Group's manufacturing facilities are located in Latvia and Belarus.
- The retail segment sells the lingerie through own retail network in Latvia, Belarus and Russia.
There is a strong integration between wholesale and retail segments. The accounting policies of reportable segments are the same. Management estimates that intersegment transactions have been done on arm's length basis.
Primary measures monitored by the Supervisory Board are segment revenues, segment EBITDA (which is defined as profit before depreciation, amortisation, net financial income, income tax expense and gain on net monetary position) and segment net profit. These measures are included in the internal management reports that are reviewed by the Management Board and the Supervisory Board. Segment EBITDA is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segment relative to other entities that operate within the industry.
Interest income and interest expenses are not core activities of operating segments and are not provided to management and are not evaluated by management as performance assessment criteria of segments' performance. Therefore, interest income and interest expenses are presented on net basis.
Unallocated revenues include revenues from services, commissions and rental income. Unallocated assets include cash and bank deposits not used in daily operations of either of the segments.
| Operating segments | 06m 2024 and as of 30.06.2024 | |||||
|---|---|---|---|---|---|---|
| in thousands of EUR | Lingerie retail |
Lingerie wholesale |
Total | segments Unallocated Eliminations | Total | |
| Revenue from external customers | 11 289 | 18 821 | 30 110 | 35 | 30 145 | |
| Intersegment revenues | 0 | -17 886 | -17 886 | -1 740 | 19 626 | 0 |
| EBITDA | 4 981 | 5 093 | 10 074 | -19 | 10 055 | |
| Amortization and depreciation | -1 045 | -287 | -1 332 | -161 | -1 493 | |
| Operating income, EBIT Profit from associates using equity |
3 936 | 4 806 | 8 742 | -180 | 0 | 8 562 |
| method | 0 | 14 | 14 | 0 | 14 | |
| Net financial income | -178 | 124 | -54 | 991 | 937 | |
| Income tax | -461 | -611 | -1 072 | -655 | -1 727 | |
| Net profit | 3 297 | 4 333 | 7 630 | 156 | 0 | 7 786 |
| Investments in associates | 0 | 109 | 109 | 0 | 109 | |
| Other operating segments assets | 15 295 | 26 807 | 42 102 | 38 323 | 80 425 | |
| Reportable segments liabilities | 8 062 | 6 176 | 14 238 | 1 887 | 16 125 | |
| Capital expenditures Number of employees as of reporting |
478 | 372 | 850 | 25 | 875 | |
| date | 507 | 1 016 | 1 523 | 102 | 1 625 | |
| Operating segments in thousands of EUR |
06m 2023 and as of 30.06.2023 | |||||
| Lingerie | Lingerie | Total |
| retail | wholesale | segments Unallocated Eliminations | Total | |||
|---|---|---|---|---|---|---|
| Revenue from external customers | 11 107 | 20 283 | 31 390 | 17 | 31 407 | |
| Intersegment revenues | 0 | -18 069 | -18 069 | -1 667 | 19 736 | 0 |
| EBITDA | 5 241 | 7 021 | 12 262 | 10 | 12 272 | |
| Amortization and depreciation | -1 083 | -260 | -1 343 | -248 | -1 591 | |
| Operating income, EBIT Profit from associates using equity |
4 158 | 6 761 | 10 919 | -238 | 0 | 10 681 |
| method | 0 | 12 | 12 | 0 | 12 | |
| Net financial income | -254 | -211 | -465 | -2 311 | -2 776 | |
| Income tax | -508 | -1 537 | -2 045 | -450 | -2 495 | |
| Net profit | 3 396 | 5 025 | 8 421 | -2 999 | 0 | 5 422 |
| Investments in associates | 0 | 78 | 78 | 0 | 78 | |
| Other operating segments assets | 4 316 | 33 426 | 37 742 | 30 022 | 67 764 | |
| Reportable segments liabilities | 1 005 | 12 080 | 13 085 | 2 276 | 15 361 | |
| Capital expenditures Number of employees as of reporting |
1 330 | 420 | 1 750 | 22 | 1 772 | |
| date | 527 | 1 030 | 1 557 | 106 | 1 663 |
Revenue and non-current assets breakdown by geographical areas
Revenues in the table below are based on the geographical location of customers; segment assets are based on the geographical location of the assets.
Geographical segments
| in thousands of EUR | Revenue 06m 2024 |
Revenue 06m 2023 |
Non-current assets 30.06.2024 |
Non-current assets 31.12.2023 |
|---|---|---|---|---|
| Russia | 17 761 | 18 746 | 3 346 | 3 638 |
| Belarus | 7 686 | 7 809 | 9 320 | 8 784 |
| Ukraine | 61 | 100 | 0 | 0 |
| Baltics | 628 | 705 | 360 | 410 |
| Other countries | 4 009 | 4 047 | 25 | 25 |
| Total | 30 145 | 31 407 | 13 051 | 12 857 |