Silvano Fashion Group

Quarterly Report • Aug 6, 2021

Company AS Silvano Fashion Group

Type Company Release

Category Half-yearly financial report

Disclosure time 06 Aug 2021 17:00:00 +0300

Attachments:

• SFG consolidated interim financial report for Q2 and 6m of 2021 unaudited.pdf (http://oam.fi.ee/en/download?id=5684)
• SFG 2021.a. II kvartali ja 6k konsolideeritud vahearuanne auditeerimata.pdf (http://oam.fi.ee/en/download?id=5685)

Currency

Title

Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6m of 2021

Selected Financial Indicators

Summarized selected financial indicators of the Group for 6 months of 2021 compared to 6 months of 2020 and 30.06.2021 compared to 31.12.2020 were as follows:

-------------------------------------------------------------------------------
in thousands of EUR -------------------------------------------------------------------------------	06m 2021	06m 2020 Change
Revenue	23 225	17 731 31.0%
Gross Profit	13 661	10 575 29.2%
Operating profit	7 941	3 983 99.4%
EBITDA	9 533	5 931 60.7%
Net profit for the period	6 696	870 669.7%
Net profit attributable equity holders of the Parent company	6 031	745 709.5%
Earnings per share (EUR)	0,17	0,02 750.0%
Operating cash flow for the period	8 055	2 742 193.8%

---

in thousands of EUR		30.06.2021 31.12.2020 Change
------------------------------------------------------------------------------- Total assets	49 446	42 256	17.0%
Total current assets	36 381	29 597	22.9%
Total equity attributable to equity holders of the Parent company	30 497	24 504	24.5%
Cash and cash equivalents	14 022	8 980	56.1%
-------------------------------------------------------------------------------
Margin analysis, % -------------------------------------------------------------------------------	06m 2021	06m 2020 Change
Gross profit	58.8	59.6	-1.3%
Operating profit	34.2	22.5	52.0%
EBITDA	41.0	33.4	22.8%
Net profit	28.8		4.9 487.8%
Net profit attributable to equity holders of the Parent company	26.0		4.2 519.0%
------------------------------------------------------------------------------- Financial ratios, %		30.06.2021 31.12.2020 Change
------------------------------------------------------------------------------- ROA	23.7		3.2 640.6%
ROE	40.2		5.6 617.9%
Price to earnings ratio (P/E)	5.5		41.7 -86.8%
Current ratio	4.0	3.4	17.6%
Quick ratio	1.8	1.3	38.5%

Financial performance

The Group`s sales amounted to 23 225 thousand EUR during 6 months of 2021, representing a 31.0% increase as compared to the same period of previous year. Overall, wholesale increased by 40.1%, measured in EUR.

The Group's gross profit during 6 months of 2021 amounted to 13 661 thousand EUR and increase by 29.2% compared to previous year. The gross margin during 6 months of 2021 decreased to 58.8%, from 59.6% in the respective period of

previous year. The cost of sold goods increased by 33.7%.

Consolidated operating profit for 6 months of 2021 amounted to 7 941 thousand EUR, compared to 3 983 thousand EUR in 6 months of 2020, increase by 99.4%. The consolidated operating profit margin was 34.2% for 6 months of 2021 (22.5% in 6 months of 2020). Consolidated EBITDA for 6 months of 2021 increased by 60.7% and amounted to 9 533 thousand EUR, which is 41.0% in margin terms (5 931 thousand EUR and 33.4% for 6 months of 2020).

Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2021 amounted to 6 031 thousand EUR, compared to net profit of 745 thousand EUR in 6 months of 2020, net profit margin attributable to equity holders of the Parent company for 6 months of 2021 was 26.0% against 4.2% in 6 months of 2020.

Financial position

As of 30 June 2021 consolidated assets amounted to 49 446 thousand EUR representing increase by 17.0% as compared to the position as of 31 December 2020.

Trade and other receivables increased by 273 thousand EUR as compared to 31 December 2020 and amounted to 2 361 thousand EUR as of 30 June 2021. Inventory balance increased by 1 469 thousand EUR and amounted to 19 996 thousand EUR as of 30 June 2021.

Equity attributable to equity holders of the Parent company increased by 5 993 thousand EUR and amounted to 30 497 thousand EUR as of 30 June 2021. Current liabilities increased by 255 thousand EUR during 6 months of 2021.

Investments

During 6 months of 2021 the Group's investments into property, plant and equipment totalled 120 thousand EUR, in previous year same period 133 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 2021, the Group employed 1 696 employees, including 518 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2020 there were 1 744 employees, including 500 people in retail operations.

Total salaries and related taxes during 6 months of 2021 amounted to 4 745 thousand EUR (5 008 thousand EUR in 6 months of 2020). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 293 thousand EUR.

------------------------------------------------------------------------------- in thousands of EUR				Note 30.06.2021 31.12.2020
-------------------------------------------------------------------------------		Unaudited			Audited
------------------------------------------------------------------------------- ASSETS
Current assets
Cash and cash equivalents	2		14 022		8 980
Current loans granted			2		2
Trade and other receivables	3		2 361		2 088
Inventories	4		19 996		18 527
Total current assets			36 381		29 597
Non-current assets
Long-term receivables			268		249
Investments in associates			59		57
Investments in other shares			250		238
Deferred tax asset			1 091		1 032
Intangible assets			462		374
Investment property			1 053		1 018
Property, plant and equipment	5		9 882		9 691
Total non-current assets			13 065		12 659
TOTAL ASSETS			49 446		42 256

Consolidated Statement of Financial Position

LIABILITIES AND EQUITY

Current liabilities

Short-term borrowings		0	400
Short-term lease liabilities		1 283	2 121
Trade and other payables	6	5 815	5 583
Goverment Grants		56	0
Tax liabilities		1 880	675
Total current liabilities		9 034	8 779
Non-current liabilities
Deferred tax liability		584	500
Long-term borrowings		0	400
Long-term lease obligations		5 707	4 707
Long-term provisions		55	52
Total non-current liabilities		6 346	5 659
Total liabilities		15 380	14 438
Equity
Share capital	7	3 600	3 600
Share premium		4 967	4 967
Statutory reserve capital		1 306	1 306
Revaluation reserve		0	355
Unrealised exchange rate differences		-18 547	-18 864
Retained earnings		39 171	33 140
Total equity attributable to equity holders of the Parent company		30 497	24 504
Non-controlling interest		3 569	3 314

Total equity	34 066	27 818
--------------	--------	--------

TOTAL EQUITY AND LIABILITIES 49 446 42 256

Consolidated Income Statement

-------------------------------------------------------------------------------
in thousands of EUR	Note	2Q 2021	2Q 2020	06m 2021	06m 2020
-------------------------------------------------------------------------------				Unaudited Unaudited Unaudited Unaudited
------------------------------------------------------------------------------- Revenue from contracts with customers	9	12 960	6 185	23 225	17 731
Cost of goods sold		-5 541	-2 756	-9 564	-7 156
Gross Profit		7 419	3 429	13 661	10 575
Distribution expenses		-2 094	-1 713	-4 204	-4 447
Administrative expenses		-903	-811	-1 788	-1 933
Other operating income		385	70	566	129
Other operating expenses		-151	-144	-294	-341
Operating profit		4 656	831	7 941	3 983
Currency exchange
income/(expense)		605	2 174	1 060	-2 556
Other finance income/(expenses)		-106	-109	-216	-234
Net financial income		499	2 065	844	-2 790
Profit (loss) from associates using
equity method		5	0	-1	0
Profit before tax		5 160	2 896	8 784	1 193

Income tax expense		-1 028	-586	-2 088	-323
Profit for the period		4 132	2 310	6 696	870
Attributable to :
Equity holders of the Parent company		3 770	2 151	6 031	745
Non-controlling interest		362	159	665	125
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) Consolidated Statement of Comprehensive Income ------------------------------------------------------------------------------- in thousands of EUR	8 Note	0,10 2Q 2021	0,06 2Q 2020	0,17 06m 2021	0,02 06m 2020
-------------------------------------------------------------------------------			Unaudited Unaudited Unaudited Unaudited
------------------------------------------------------------------------------- Profit for the period		4 132	2 310	6 696	870
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods :
Exchange differences on translation of foreign operations		40	166	269	-2 059
Total other comprehensive income for the period		40	166	269	-2 059
Total comprehensive income (loss) for the period Attributable to :		4 172	2 476	6 965	-1 189

Equity holders of the Parent company	3 829	2 331		5 993		-1 652
Non-controlling interest	343	145		972		463
Consolidated Statement of Cash Flows
------------------------------------------------------------------------------- in thousands of EUR			06m 2021		06m 2020
-------------------------------------------------------------------------------					Unaudited Unaudited
------------------------------------------------------------------------------- Cash flow from operating activities
Profit for the period				6 696		870
Adjustments for:
Depreciation and amortization of non-current assets				1 592		1 948
Share of profit of equity accounted investees				1		0
(Gains)/ losses on the sale of property, plant and equipment				0		3
Net finance income / costs				-596		212
Provision for inventories				4		1
Receipt of government grants				450		0
Movements in provisions and government grants				-394		0
Income tax expense				2 088		323
Change in inventories				-1 469		1 114
Change in trade and other receivables				-289		219
Change in trade and other payables				639		-1 210
Interest paid				-2		0
Income tax paid				-665		-738
Net cash from operating activities				8 055		2 742

Cash flow from investing activities
Interest received	9	7
Proceeds from disposal of property, plant and equipment	18	28
Acquisition of property, plant and equipment	-120	-133
Acquisition of intangible assets	-82	-67
Net cash flow from investing activities	-175	-165
Cash flow from financing activities
Acquisition of non-controlling interests	0	-26
Proceeds from borrowings	0	200
Repayment of borrowings	-800	0
Payment of principal portion of lease liabilities	-1 135	-1 006
Interest paid on finance lease	-224	-255
Dividends paid	-717	-474
Net cash flow from financing activities	-2 876	-1 561
Increase in cash and cash equivalents	5 004	1 016
Cash and cash equivalents at the beginning of period	8 980	5 152
Effect of exchange rate fluctuations on cash held	38	184

Cash and cash equivalents at the end of period 14 022 6 352

Jarek Särgava AS Silvano Fashion Group Member of the Board Phone: +372 6845 000 Email: info@silvanofashon.com