Silvano Fashion Group

Quarterly Report • May 20, 2022

Company	AS Silvano Fashion Group
Type	Company Release
Category	Other corporate action
Disclosure time	20 May 2022 16:00:00 +0300
Attachments:	- SFG consolidated interim report for Q1 of 2022 unaudited.pdf (http://oam.fi.ee/en/download?id=6518) - SFG 2022.a. I kvartali konsolideeritud vahearuanne, auditeermata.pdf (http://oam.fi.ee/en/download?id=6519)
Currency
Title	Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2022 (unaudited)
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%
the Parent company	Net profit (loss) attributable equity holders of	-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	-------------------------------------------------------------------------------			Change
	-------------------------------------------------------------------------------	31.03.2022 31.12.2021

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) Consolidated Statement of Comprehensive Income	8	-0,01	0,06
------------------------------------------------------------------------------- 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 Attributable to :		-1 488	2 793
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