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Apranga Group Interim / Quarterly Report 2020
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Interim / Quarterly Report
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APRANGA
GROUP
APB APRANGA The Consolidated Interim Report and Interim Consolidated Financial Statements For the Twelve months period ended 31 December 2020
(UNAUDITED)
INFORMATION ABOUT COMPANY
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
NAME OF THE COMPANY
Apranga APB
LEGAL FORM
Public limited liability company
DATE OF REFISTRATION
1st March 1993
CODE OF COMPANY
121933274
SHARE CAPITAL
EUR 16 034 668.40
REGISTERED OFFICE
Ukmerges 362, LT-14311 Vilnius, Lithuania
NAME OF REGISTER OF LEGAL ENTITIES
Registrų centras VJ, Vilnius branch
TELEPHONE NUMBER
+370 5 239 08 08
E-MAIL
[email protected]
INTERNET ADDRESS
www.aprangagroup.com
MAIN ACTIVITIES
Retail trade of apparel
AUDITOR
ERNST & YOUNG BALTIC UAB
26 February 2021
Vilnius
TABLE OF CONTENT
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
1 ACTIVITY REPORT 4-8
2 FINANCIAL STATEMENTS 9-12
2.1 Statements of comprehensive income
2.2 Statements of financial position
2.3 Statements of changes in equity
2.4 Statements of cash flows
3 NOTES TO THE FINANCIAL STATEMENTS 13-16
ACTIVITY REPORT
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
ACTIVITY REPORT
The retail turnover (including VAT) of Apranga Group reached EUR 204.2 million in 12 months 2020 or by 17.6% less than in the same period of 2019. In 2020, the retail turnover of Apranga Group in Lithuania was EUR 118.3 million and decreased by 19.8% year-on-year. In 2020, the retail turnover of Apranga Group in Latvia was EUR 52.4 million and decreased by 11.8% year-on-year, in Estonia has made EUR 33.5 million and decreased by 18.5% year-on-year.
Based on the Government of the Republic of Lithuania act regarding quarantine declaration, from 16th March 2020 until 18th April 2020 all Apranga Group stores in Lithuania were closed due to epidemic coronavirus (COVID-19) infection (stores in supermarkets were closed until 25th April 2020). Also, according to the resolution of the Government of the Republic of Estonia, all Group stores operating in shopping malls in Estonia were closed from 27th March 2020 until 11th May 2020. From 28th March 2020 until 16th May 2020, stores in Latvia operating in shopping malls could not work on weekends. Also, from 16th December 2020, all the Group's stores in Lithuania are temporarily closed. In Latvia, the stores are temporarily closed from 19th December 2020 (until then, from 14th November 2020, trading on weekends was prohibited in Latvia). These temporary store closures had a significant impact on the Group's generated turnover, earned profit and, accordingly, financial performance.
According to EUROSTAT data, the retail trade (except of motor vehicles, motorcycles and fuel) in Baltic States in 12 months 2020 grew in all three Baltic countries - from 1% to 5%. Retail sales grew the least in Latvia (+1%) and the highest in Estonia (+5%). The growth rates of retail trade in the 4th quarter of 2020 were very high in Lithuania (+7%) and Estonia (+7%). In Latvia, meanwhile, retail trade even declined in the last quarter of 2020 (-1%). European Union (28 countries) retail trade in 12 months 2020 increased by 0.3% (in the corresponding period of 2019 it grew by 2.7%).
The retail turnover of the Group's stores in 12 months of 2020 by countries was as follows (EUR thousand, VAT included):
| Country | 12 months 2020 | 12 months 2019 | 12 months 2018 | 2020/2019, % | 2020/2018, % |
|---|---|---|---|---|---|
| Lithuania | 118 336 | 147 470 | 133 811 | -19,8% | -11,6% |
| Latvia | 52 377 | 59 363 | 52 671 | -11,8% | -0,6% |
| Estonia | 33 532 | 41 124 | 40 158 | -18,5% | -16,5% |
| Total: | 204 245 | 247 957 | 226 640 | -17,6% | -9,9% |
The retail turnover of the Group's stores by countries during the 4th quarter of 2020 was (EUR thousand, VAT included):
| Country | Q4 2020 | Q4 2019 | Q4 2018 | 2020/2019, % | 2020/2018, % |
|---|---|---|---|---|---|
| Lithuania | 30 619 | 44 258 | 39 977 | -30,8% | -23,4% |
| Latvia | 13 774 | 17 269 | 14 516 | -20,2% | -5,1% |
| Estonia | 9 355 | 10 992 | 10 601 | -14,9% | -11,8% |
| Total: | 53 748 | 72 519 | 65 094 | -25,9% | -17,4% |
The online turnover of the Group's stores in 12 months of 2020 was as follows (EUR thousand, VAT included):
| 12 months 2020 | 12 months 2019 | 2020/2019, % | |
|---|---|---|---|
| Online turnover | 24 950 | 9 579 | 2.6 times |
| Relative weight in total turnover | 12,2% | 3,9% |
The Group's online turnover increased 2.6 times in 12 months of 2020, and its relative weight in total turnover increased from 3.9% to 12.2% compared to the corresponding period of the previous year. Online turnover increased particularly significantly due to the temporary closure of physical stores during the quarantine period caused by COVID-19.
ACTIVITY REPORT
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
The retail turnover of the Group's stores by chains in 12 months of 2020 was as follows (EUR thousand, VAT included):
| Chain | 12 months 2020 | 12 months 2019 | 12 months 2018 | 2020/2019, % | 2020/2018, % |
|---|---|---|---|---|---|
| Economy^{1} | 23 240 | 31 991 | 30 488 | -27,4% | -23,8% |
| Youth^{2} | 47 585 | 57 571 | 48 679 | -17,3% | -2,2% |
| Footwear | 3 893 | 6 660 | 6 421 | -41,5% | -39,4% |
| Business^{3} | 38 216 | 44 802 | 39 562 | -14,7% | -3,4% |
| Luxury^{4} | 22 512 | 23 416 | 21 983 | -3,9% | 2,4% |
| Zara | 59 872 | 72 507 | 68 331 | -17,4% | -12,4% |
| Outlets | 8 926 | 11 010 | 11 176 | -18,9% | -20,1% |
| Total | 204 245 | 247 957 | 226 640 | -17,6% | -9,9% |
1 Apranga, Promod, s.Oliver, Tom Tailor, Orsay;
2 Aprangos galerija, Moskito, Mango, Bershka, Pull & Bear, Stradivarius, Desigual, Oysho;
3 City, Massimo Dutti, Strelison, Marella, Pennyblack, Coccinelle, Tommy Hilfiger, Zara Home, Karen Millen, Calvin Klein Underwear, Liu Jo;
4 Burberry, Emporio Armani, Hugo Boss, Ermenegildo Zegna, MaxMara, Weekend MaxMara, A|X Armani Exchange, Marina Rinaldi, Mados linija, Nude, Sandro, Maje, Hugo.
In 12 months 2020, the turnover of all chains decreased significantly due to the imposed trade restrictions. And although the turnover of Luxury chain decreased by only 3.9%, such a relatively small decrease in turnover was significantly influenced by the sharp increase in online sales of prestige goods via the international Farfetch platform. After eliminating online sales, the drop in turnover in the physical stores of the Luxury chain was 18.2%.
In 12 months 2020, Apranga Group opened 5 stores, renovated 7 stores, and closed 12 stores.
The net capital expenditure to the retail chain expansion amounted to EUR 4.4 million in 12 months of 2020 (see Note 4 "Investments into non-current assets"). Investments (acquisitions) by segments are disclosed in Note 3 ("Segment information"). The Group is not engaged in activities related to research and experimental development, except to the extent of process improvement. Group uses the latest technology and the latest technology processes that meet environmental standards and help reduce the negative impact on the environment.
The number of stores by countries was as follows:
| Country | 31 12 2020 | 31 12 2019 | 31 12 2018 | 2020/2019, % | 2020/2018, % |
|---|---|---|---|---|---|
| Lithuania | 104 | 108 | 111 | -3,7% | -6,3% |
| Latvia | 48 | 50 | 42 | -4,0% | 14,3% |
| Estonia | 27 | 28 | 29 | -3,6% | -6,9% |
| Total: | 179 | 186 | 182 | -3,8% | -1,6% |
The number of stores by chains was as follows:
| Chain | 31 12 2020 | 31 12 2019 | 31 12 2018 | 2020/2019, % | 2020/2018, % |
|---|---|---|---|---|---|
| Economy | 31 | 33 | 32 | -6,1% | -3,1% |
| Youth | 45 | 49 | 45 | -8,2% | 0,0% |
| Footwear | 13 | 14 | 14 | -7,1% | -7,1% |
| Business | 41 | 42 | 42 | -2,4% | -2,4% |
| Luxury | 30 | 28 | 29 | 7,1% | 3,4% |
| Zara | 11 | 11 | 11 | 0,0% | 0,0% |
| Outlets | 8 | 9 | 9 | -11,1% | -11,1% |
| Total | 179 | 186 | 182 | -3,8% | -1,6% |
The total sales area operated by the Group has decreased by 1.3% or by 1.2 thousand sq. m during the year period until 31 December 2020.
The total area of stores by countries was as follows (thousand sq. m):
| Country | 31 12 2020 | 31 12 2019 | 31 12 2018 | 2020/2019, % | 2020/2018, % |
|---|---|---|---|---|---|
| Lithuania | 49,9 | 51,2 | 50,1 | -2,6% | -0,4% |
| Latvia | 27,0 | 26,8 | 18,2 | 1,0% | 48,3% |
| Estonia | 15,6 | 15,8 | 14,3 | -0,9% | 9,4% |
| Total: | 92,6 | 93,8 | 82,6 | -1,3% | 12,0% |
ACTIVITY REPORT
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
From 1 January 2019, the Company implemented a new International Financial Reporting Standard (IFRS) 16 "Leases". Due to the application of this standard, the Group's and Company's rent expenses decreased but depreciation and amortization charges and interest expenses increased. Accordingly, it also influenced the calculation of indicators.
The Group has earned EUR 5.7 million of profit before income tax in 12 months 2020, while profit before taxes amounted to EUR 11.0 million in 12 months of 2019 (the decrease by 48.3%).
Management estimates that due to the COVID-19 pandemic and the temporary closure of stores, the Group lost about EUR 58-60 million of turnover (including VAT) and did not earn about 5-6 million of profit before income tax in 2020.
EBITDA of the Group was EUR 27.1 million in 12 months 2020, and it was EUR 30.0 million in corresponding previous year period (-9.7%). EBITDA margin has increased from 14.6% to 15.8% during the year.
| Main Group Indicators | 12 months 2020 | 12 months 2019 | 12 months 2018 |
|---|---|---|---|
| Net sales | 171 110 | 205 005 | 187 207 |
| Net sales in foreign markets | 71 588 | 83 197 | 76 740 |
| Like-for-like sales, % | - | 5.4% | 0.4% |
| Gross profit | 71 979 | 89 210 | 81 010 |
| Gross margin, % | 42.1% | 43.5% | 43.3% |
| Operating profit (loss) | 6 754 | 11 929 | 9 199 |
| Operating profit margin, % | 3.9% | 5.8% | 4.9% |
| EBT | 5 686 | 10 994 | 9 266 |
| EBT margin, % | 3.3% | 5.4% | 4.9% |
| Profit (loss) for the period | 4 681 | 9 240 | 7 565 |
| Profit for the period margin, % | 2.7% | 4.5% | 4.0% |
| EBITDA | 27 104 | 30 031 | 15 563 |
| EBITDA margin, % | 15.8% | 14.6% | 8.3% |
| Return on equity (end of the period), % | 7.4% | 15.8% | 13.3% |
| Return on assets (end of the period), % | 3.0% | 6.0% | 9.6% |
| Net debt to equity, % | 72.5% | 109.1% | -10.4% |
| Current ratio, times | 2.0 | 1.4 | 2.7 |
| Main Group Indicators | Q4 2020 | Q4 2019 | Q4 2018 |
| --- | --- | --- | --- |
| Net sales | 45 201 | 59 766 | 53 755 |
| Net sales in foreign markets | 19 234 | 23 338 | 20 800 |
| Like-for-like sales, % | - | 4.2% | 0.1% |
| Gross profit | 19 220 | 26 977 | 24 817 |
| Gross margin, % | 42.5% | 45.1% | 46.2% |
| Operating profit (loss) | 564 | 4 090 | 3 435 |
| Operating profit margin, % | 1.2% | 6.8% | 6.4% |
| EBT | 304 | 3 744 | 3 423 |
| EBT margin, % | 0.7% | 6.3% | 6.4% |
| Profit (loss) for the period | 261 | 2 927 | 2 765 |
| Profit for the period margin, % | 0.6% | 4.9% | 5.1% |
| EBITDA | 5 709 | 9 113 | 4 950 |
| EBITDA margin, % | 12.6% | 15.2% | 9.2% |
| Return on equity (end of the period), % | 0.4% | 5.0% | 4.9% |
| Return on assets (end of the period), % | 0.2% | 1.9% | 3.5% |
| Net debt to equity, % | 72.5% | 109.1% | -10.4% |
| Current ratio, times | 2.0 | 1.4 | 2.7 |
The operating expenses of the Group totaled EUR 65.2 million in 12 months 2020 and decreased by 15.6%, comparing to the same period 2019. Thus, operating expenses decreased in line with sales, which dropped by 16.5%. The Group had EUR 0.5 million of debts to financial institutions at the end of the reporting period (EUR 0.8 million at 31 December 2019).
ACTIVITY REPORT
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
| Main Group Indicators | 12 months 2020 | 12 months 2019 | Change |
|---|---|---|---|
| Net sales | 171 110 | 205 005 | -16.5% |
| Net sales in foreign markets | 71 588 | 83 197 | -14.0% |
| Gross profit | 71 979 | 89 210 | -19.3% |
| Operating (expenses) | (65 225) | (77 281) | -15.6% |
| Operating profit (loss) | 6 754 | 11 929 | -43.4% |
| EBT | 5 686 | 10 994 | -48.3% |
| Profit (loss) for the period | 4 681 | 9 240 | -49.3% |
| EBITDA | 27 104 | 30 031 | -9.7% |
| Main Group Indicators | Qs 2020 | Qs 2019 | Change |
| --- | --- | --- | --- |
| Net sales | 45 201 | 59 766 | -24.4% |
| Net sales in foreign markets | 19 234 | 23 338 | -17.6% |
| Gross profit | 19 220 | 26 977 | -28.8% |
| Operating (expenses) | (18 656) | (22 887) | -18.5% |
| Operating profit (loss) | 564 | 4 090 | -86.2% |
| EBT | 304 | 3 744 | -91.9% |
| Profit (loss) for the period | 261 | 2 927 | -91.1% |
| EBITDA | 5 709 | 9 113 | -37.4% |
The Group's level of inventories during the last 12 months decreased by 12.6% to EUR 35.1 million. Company's inventories decreased by 7.2%. Inventories declined due to timely stopped the purchases of new goods following the COVID-19 pandemic.
The number of employees during the year till 31 December 2020 in the Group has decreased by 411 to 1 956 (-17.4%) and has decreased in Company by 115 to 682 (-14.4%). During the 4th quarter 2020 the number of employees decreased by 101 (-4.9%) in the Group and decreased by 24 (-3.4%) in the Company. The decrease in the number of employees was due to the natural turnover of employees due to the specifics of the job and the reduction of the recruitment of new employees. The need for staff decreased due to the restructuring of the chain, the reduction of shopping center opening hours during the epidemic and the decrease in customer flows.
The price of the Company shares in 12 months 2020 decreased by 15% from EUR 2.11 per share to EUR 1.80 per share. The maximum share price for the 12 months period was EUR 2.29 per share, minimum share price - EUR 1.25 per share. The market capitalization of the Company decreased from EUR 117 million at the beginning of the year to EUR 100 million at the end of December 2020. The weighted average price of 1 share during the reporting period was EUR 1.65. Company's share turnover was EUR 8.6 million in 12 months 2020.
Apranga APB share price in 12 months period from 1st January 2020 to 31st December 2020:
ACTIVITY REPORT
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
Information about members of the Management board on 31 December 2020:
| Name, Surname | Position | Number of shares owned and part in the share capital | Election date | End of term |
|---|---|---|---|---|
| Darius Juozas Mockus | Chairman of the Board | - | 27 04 2018 | 27 04 2022 |
| Rimantas Perveneckas | Member of the Board, General Director | 800 770 | ||
| 1.45% | 27 04 2018 | 27 04 2022 | ||
| Ilona Simkuniene | Member of the Board, Purchasing Director | - | 27 04 2018 | 27 04 2022 |
| Ramunas Gaidamavicius | Member of the Board, Development Director | 5 000 | ||
| 0.01% | 27 04 2018 | 27 04 2022 | ||
| Vidas Lazickas | Member of the Board | 221 300 | ||
| 0.40% | 27 04 2018 | 27 04 2022 | ||
| Marijus Strončikas | Member of the Board | 4 450 | ||
| 0.01% | 27 04 2018 | 27 04 2022 |
STATEMENTS OF COMPREHENSIVE INCOME
2.1
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
STATEMENTS OF COMPREHENSIVE INCOME
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Note | 12 months 2020 | 12 months 2019 | 12 months 2020 | 12 months 2019 | |
| Revenue from contracts with customers | 5 | 171 110 | 205 005 | 67 264 | 85 307 |
| Cost of sales | (99 131) | (115 795) | (42 815) | (52 344) | |
| GROSS PROFIT | 71 979 | 89 210 | 24 449 | 32 963 | |
| Operating (expenses) | (65 463) | (77 626) | (24 471) | (30 299) | |
| Other income | 238 | 353 | 4 239 | 7 178 | |
| Net foreign exchange gain (loss) | - | (8) | - | (8) | |
| OPERATING PROFIT (LOSS) | 6 754 | 11 929 | 4 217 | 9 834 | |
| Finance income | 32 | 40 | 89 | 84 | |
| Finance (costs) | (1 100) | (975) | (481) | (482) | |
| PROFIT (LOSS) BEFORE INCOME TAX | 5 686 | 10 994 | 3 825 | 9 436 | |
| Income tax (expense) | (1 005) | (1 754) | (64) | (201) | |
| PROFIT (LOSS) FOR THE PERIOD | 3 | 4 681 | 9 240 | 3 761 | 9 235 |
| Other comprehensive income | - | - | - | - | |
| TOTAL COMPREHENSIVE INCOME | 4 681 | 9 240 | 3 761 | 9 235 | |
| Total comprehensive income attributable to: | 4 681 | 9 240 | 3 761 | 9 235 | |
| Owners of the Company | 4 681 | 9 240 | 3 761 | 9 235 | |
| Non-controlling interests | - | - | - | - | |
| Basic and diluted earnings per share (in EUR) | 0,08 | 0,17 | 0,07 | 0,17 |
STATEMENTS OF FINANCIAL POSITION
2.2
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
STATEMENTS OF FINANCIAL POSITION
| ASSETS | GROUP | COMPANY | |||
|---|---|---|---|---|---|
| ASSETS | Note | 31 12 2020 | 31 12 201 | 31 12 2020 | 31 12 2019 |
| Property, plant and equipment | 25 622 | 29 584 | 12 407 | 13 330 | |
| Intangible assets | 534 | 310 | 497 | 292 | |
| Investments in subsidiaries | - | - | 4 963 | 4 963 | |
| Prepayments | 1 465 | 940 | 230 | 200 | |
| Trade and other receivables | 4 | 4 | 4 | 4 | |
| Right-of-use assets | 61 616 | 68 596 | 22 489 | 26 031 | |
| Financial assets | 2 200 | 2 200 | 2 200 | 2 200 | |
| Total non-current assets | 91 441 | 101 634 | 42 790 | 47 020 | |
| CURRENT ASSETS | |||||
| --- | --- | --- | --- | --- | --- |
| Inventories | 35 073 | 40 106 | 19 594 | 21 122 | |
| Financial assets | 732 | 732 | 732 | 732 | |
| Prepayments | 1 110 | 1 391 | 1 080 | 1 056 | |
| Trade and other receivables | 2 048 | 2 135 | 11 932 | 13 355 | |
| Cash and cash equivalents | 26 216 | 6 712 | 19 863 | 4 557 | |
| Total current assets | 65 179 | 51 076 | 53 201 | 40 822 | |
| Non-current assets held for sale | 80 | 80 | 80 | 80 | |
| TOTAL ASSETS | 3 | 156 700 | 152 790 | 96 071 | 87 922 |
| EQUITY AND LIABILITIES | GROUP | COMPANY | |||
| --- | --- | --- | --- | --- | --- |
| EQUITY | Note | 31 12 2020 | 31 12 2019 | 31 12 2020 | 31 12 2019 |
| Ordinary shares | 16 035 | 16 035 | 16 035 | 16 035 | |
| Legal reserve | 1 604 | 1 604 | 1 604 | 1 604 | |
| Foreign currency translation reserve | (53) | (53) | - | - | |
| Retained earnings | 45 641 | 40 960 | 34 957 | 31 196 | |
| Total equity | 63 227 | 58 546 | 52 596 | 48 835 | |
| NON-CURRENT LIABILITIES | |||||
| --- | --- | --- | --- | --- | --- |
| Borrowings | 6 | 200 | 500 | 200 | 500 |
| Tax liabilities | 12 561 | - | 6 016 | - | |
| Deferred tax liabilities | 1 432 | 1 385 | 189 | 242 | |
| Non-current lease liabilities | 51 528 | 56 659 | 18 844 | 21 047 | |
| Non-current employee benefits | 126 | 186 | 126 | 186 | |
| Total non-current liabilities | 65 847 | 58 730 | 25 375 | 21 975 | |
| CURRENT LIABILITIES | |||||
| --- | --- | --- | --- | --- | --- |
| Borrowings | 6 | 300 | 300 | 8 468 | 4 025 |
| Current lease liabilities | 12 434 | 13 117 | 4 399 | 5 286 | |
| Current income tax liability | 444 | 199 | - | 82 | |
| Trade and other payables | 14 448 | 21 898 | 5 233 | 7 719 | |
| Total current liabilities | 27 626 | 35 514 | 18 100 | 17 112 | |
| Total liabilities | 93 473 | 94 244 | 43 475 | 39 087 | |
| TOTAL EQUITY AND LIABILITIES | 156 700 | 152 790 | 96 071 | 87 922 |
STATEMENTS OF CHANGES IN EQUITY
2.3
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
STATEMENTS OF CHANGES IN EQUITY
| GROUP | Note | Share capital | Legal reserve | Translation reserve | Retained earnings | Total |
|---|---|---|---|---|---|---|
| Balance at 31 December 2018 | 16 035 | 1 604 | ( 53) | 39 178 | 56 764 | |
| Effect of adoption of IFRS 16 Leases | ( 270) | ( 270) | ||||
| Balance at 1 January 2019 | 16 035 | 1 604 | ( 53) | 38 908 | 56 494 | |
| Comprehensive income: | ||||||
| Profit for the 12 months 2019 | 3 | 9 240 | 9 240 | |||
| Total comprehensive income | - | - | - | 9 240 | 9 240 | |
| Transactions with owners: | ||||||
| Dividends paid | (7 188) | (7 188) | ||||
| Balance at 31 December 2019 | 16 035 | 1 604 | ( 53) | 40 960 | 58 546 | |
| Comprehensive income: | ||||||
| Profit for the 12 months 2020 | 3 | 4 681 | 4 681 | |||
| Total comprehensive income | - | - | - | 4 681 | 4 681 | |
| Balance at 31 December 2020 | 16 035 | 1 604 | ( 53) | 45 641 | 63 227 | |
| COMPANY | Share capital | Legal reserve | Retained earnings | Total | ||
| --- | --- | --- | --- | --- | --- | |
| Balance at 31 December 2018 | 16 035 | 1 604 | 29 213 | 46 852 | ||
| Effect of adoption of IFRS 16 Leases | ( 64) | ( 64) | ||||
| Balance at 1 January 2019 | 16 035 | 1 604 | 29 149 | 46 788 | ||
| Comprehensive income: | ||||||
| Profit for the 12 months 2019 | 9 235 | 9 235 | ||||
| Total comprehensive income | - | - | 9 235 | 9 235 | ||
| Transactions with owners: | ||||||
| Dividends paid | (7 188) | (7 188) | ||||
| Balance at 31 December 2019 | 16 035 | 1 604 | 31 196 | 48 835 | ||
| Comprehensive income: | ||||||
| Profit for the 12 months 2020 | 3 761 | 3 761 | ||||
| Total comprehensive income | - | - | 3 761 | 3 761 | ||
| Balance at 31 December 2020 | 16 035 | 1 604 | 34 957 | 52 596 |
STATEMENTS OF CASH FLOW
2.4
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
STATEMENTS OF CASH FLOW
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | Note | 12 months 2020 | 12 months 2019 | 12 months 2020 | 12 months 2019 |
| Profit (loss) before income taxes | 5 686 | 10 994 | 3 825 | 9 436 | |
| ADJUSTMENTS FOR: | |||||
| Depreciation and amortization | 20 350 | 19 077 | 7 818 | 8 204 | |
| Impairment charge (reverse) | 1 816 | 205 | 785 | 30 | |
| Change in allowances for slow-moving inventories | 611 | 530 | 362 | 265 | |
| (Gain) on disposal of property, plant and equipment | (26) | (23) | (24) | (5) | |
| Write-off of property, plant and equipment | (7) | 64 | - | 39 | |
| Dividends income | (176) | (97) | (4 176) | (6 937) | |
| Interest expenses (income) | 1 068 | 935 | 392 | 398 | |
| Total | 29 322 | 31 685 | 8 982 | 11 430 | |
| CHANGES IN OPERATING ASSETS AND LIABILITIES: | |||||
| Decrease (increase) in inventories | 4 422 | (73) | 1 166 | 537 | |
| Decrease (increase) in receivables | (1 150) | (199) | (2 219) | (7 653) | |
| Increase (decrease) in payables | 5 050 | 2 314 | 3 469 | (203) | |
| Cash generated from operations | 37 644 | 33 727 | 11 398 | 4 111 | |
| Income taxes paid | (713) | (1 644) | (199) | (189) | |
| Interest paid | 886 | 855 | 267 | 362 | |
| Net cash from operating activities | 37 817 | 32 938 | 11 466 | 4 284 | |
| INVESTING ACTIVITIES | |||||
| --- | --- | --- | --- | --- | --- |
| Interest received | 32 | 40 | 89 | 84 | |
| Dividends received | 176 | 97 | 4 176 | 6 937 | |
| Loans granted | (12 800) | (47 500) | (30 042) | (78 607) | |
| Loans repayments received | 12 800 | 47 500 | 33 257 | 82 010 | |
| Purchases of PPE and intangible assets | 4 | (5 261) | (21 727) | (2 377) | (1 214) |
| Proceeds on disposal of PPE | 4 | 884 | 8 918 | 143 | 5 |
| Purchases of financial assets at fair value | - | (200) | - | (200) | |
| Investment in subsidiaries | - | - | - | (50) | |
| Net cash used in investing activities | (4 169) | (12 872) | 5 246 | 8 965 | |
| FINANCING ACTIVITIES | |||||
| --- | --- | --- | --- | --- | --- |
| Dividends paid | 1 | (7 183) | 1 | (7 183) | |
| Proceeds from borrowings | - | 14 018 | 17 927 | 69 210 | |
| Repayments of borrowings | (300) | (14 318) | (13 784) | (68 364) | |
| Repayments of lease liabilities | (13 845) | (12 880) | (5 550) | (5 474) | |
| Net cash from financing activities | (14 144) | (20 363) | (1 406) | (11 811) | |
| NET INCREASE (DECREASE) IN CASH AND BANK OVERDRAFTS | 19 504 | (297) | 15 306 | 1 438 | |
| --- | --- | --- | --- | --- | --- |
| CASH AND BANK OVERDRAFTS: | |||||
| AT THE BEGINNING OF THE PERIOD | 6 712 | 7 009 | 4 557 | 3 119 | |
| AT THE END OF THE PERIOD | 26 216 | 6 712 | 19 863 | 4 557 |
NOTES TO THE FINANCIAL STATEMENTS
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
NOTES TO INTERIM FINANCIAL STATEMENTS
1. General information
APB Apranga, (hereinafter "the Company"), was incorporated and commenced its operations in March 1993. The Company's main office is situated in Ukmerges 362, Vilnius, Lithuania. The Company has legal form of public limited liability company under the Law on Companies of Republic of Lithuania. The principal activity of the Company and its subsidiaries (hereinafter "the Group") is retail trade of apparel.
At 31 December 2020 the Group consisted of the Company and 25 subsidiaries:
| Name | Country | Ownership interest in % 31.12.2020 | Ownership interest in % 31.12.2019 |
|---|---|---|---|
| UAB Apranga LT | Lithuania | 100% | 100% |
| UAB Apranga BPB LT | Lithuania | 100% | 100% |
| UAB Apranga PLT | Lithuania | 100% | 100% |
| UAB Apranga SLT | Lithuania | 100% | 100% |
| UAB Apranga MLT | Lithuania | 100% | 100% |
| UAB Apranga HLT | Lithuania | 100% | 100% |
| UAB Apranga OLT | Lithuania | 100% | 100% |
| UAB Apranga Ecom LT | Lithuania | 100% | 100% |
| SIA Apranga | Latvia | 100% | 100% |
| SIA Apranga LV | Latvia | 100% | 100% |
| SIA Apranga BPB LV | Latvia | 100% | 100% |
| SIA Apranga PLV | Latvia | 100% | 100% |
| SIA Apranga SLV | Latvia | 100% | 100% |
| SIA Apranga MLV | Latvia | 100% | 100% |
| SIA Apranga HLV | Latvia | 100% | 100% |
| SIA Apranga OLV | Latvia | 100% | 100% |
| SIA Apranga Ecom LV | Latvia | 100% | 100% |
| OU Apranga* | Estonia | 100% | 100% |
| OU Apranga Estonia | Estonia | 100% | 100% |
| OU Apranga BEE | Estonia | 100% | 100% |
| OU Apranga PB Trade | Estonia | 100% | 100% |
| OU Apranga ST Retail | Estonia | 100% | 100% |
| OU Apranga MDE | Estonia | 100% | 100% |
| OU Apranga HEST | Estonia | 100% | 100% |
| OU Apranga Ecom EE | Estonia | 100% | 100% |
¹ The Company directly owns 14.91% shares and indirectly through its subsidiary OU Apranga Estonia owns the rest 85.09% of shares.
All 55 291 960 ordinary shares of nominal value EUR 0.29 each (ISIN code LT0000102337) that comprise Company's share capital are listed on Baltic equity list of Nasdaq Vilnius Stock Exchange.
At 31 December 2020, the Company had 3 567 shareholders. Company's shareholders which owned or had under management more than 5% of share capital were:
| Shareholder | Enterprise code | Address | Number of shares | % of total ownership |
|---|---|---|---|---|
| UAB MG Baltic Investment | 123249022 | Jasinskio 16B, Vilnius, Lithuania | 34 442 189 | 62,3% |
| UAB Minvista | 110685692 | Jasinskio 16, Vilnius, Lithuania | 6 671 838 | 12,1% |
| Swedbank AS (Estonia) clients | 10060701 | Liivalaia 8 Tallinn, Estonia | 3 256 899 | 5,9% |
The ultimate parent company whose financial statements are available for public use is UAB Koncernas MG Baltic. The ultimate controlling individual of the Group is Mr. D. J. Mockus:
NOTES TO THE FINANCIAL STATEMENTS
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
2. Basis of preparation and summary of main accounting policies
The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU. The principle accounting policies applied in the preparation of Interim financial statements are the same to those applied in preparation of the Annual financial statements.
The financial statements for the period ended 31 December 2020 are not audited.
In the financial statements all figures are presented in thousands of euro, unless indicated otherwise.
3. Segment information
Management has determined the operating segments based on the reports reviewed by the General Director and other 6 Directors (responsible for managing, sales and marketing, human resources, purchases, development and finance) that are used to make strategic decisions.
All financial information, including the measure of profit and total assets, is analyzed on a country basis. The segment information provided to the Directors for the reportable segments for the 12 months 2020 is as follows:
| 12 months 2020 | Lithuania | Latvia | Estonia | Total | Inter-company eliminations | Total in consolidated financial statements |
|---|---|---|---|---|---|---|
| Total segment revenue | 112 273 | 43 902 | 28 707 | 184 882 | - | |
| Inter-segment revenue | (13 812) | (461) | (560) | (14 833) | - | |
| Revenue from external customers (note 5) | 98 461 | 43 441 | 28 147 | 170 049 | - | 170 049 |
| Gross margin | 40,3% | 43,7% | 43,7% | 41,7% | 41,7% | |
| Profit (loss) for the year | 3 937 | 818 | (74) | 4 681 | - | 4 681 |
| Total assets | 121 965 | 33 717 | 20 440 | 176 122 | (19 422) | 156 700 |
| Additions to non-current assets | 3 123 | 1 688 | 466 | 5 277 | (16) | 5 261 |
NOTES TO THE FINANCIAL STATEMENTS
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
| 12 months 2019 | Lithuania | Latvia | Estonia | Total | Inter-company eliminations | Total in consolidated financial statements |
|---|---|---|---|---|---|---|
| Total segment revenue | 138 719 | 49 926 | 34 880 | 223 525 | - | |
| Inter-segment revenue | (17 289) | (987) | (622) | (18 898) | - | |
| Revenue from external customers | 121 430 | 48 939 | 34 258 | 204 627 | - | 204 627 |
| Gross margin | 43,0% | 44,0% | 43,9% | 43,6% | 43,6% | |
| Profit (loss) for the year | 7 009 | 1 655 | 576 | 9 240 | - | 9 240 |
| Total assets | 110 453 | 35 320 | 23 371 | 169 144 | (16 354) | 152 790 |
| Additions to non-current assets | 4 948 | 14 599 | 2 256 | 21 803 | (76) | 21 727 |
4. Investments into non-current assets
Net investments of the Group amounted to EUR 4.4 million in 12 months 2020. The Company's investments have reached EUR 2.2 million, daughter companies - EUR 2.2 million.
5. Income
For the 12 months 2020, revenue from contracts with customers consisted of the following:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 12 months 2020 | 12 months 2019 | 12 months 2020 | 12 months 2019 | |
| Stores income | 170 049 | 204 627 | 61 914 | 63 503 |
| Wholesale income | - | - | 930 | 16 597 |
| Management fees | - | - | 4 299 | 4 992 |
| Gain from disposal of PPE, net | - | - | - | - |
| Other income | 1 061 | 378 | 121 | 215 |
| Total revenue from contracts with customers | 171 110 | 205 005 | 67 264 | 85 307 |
6. Borrowings
In November 2019, the Company and SEB bank signed the amendments to the previously concluded credit line agreement. According to these amendments, the earlier credit line of EUR 20 000 thousand was increased to EUR 27 000 thousand. Credit repayment term was prolonged to 30 November 2021. The interests are paid for the amount used, and the interest rate is calculated as 1-3 months EURIBOR plus margin. There is fixed interest rate set for amount used for the issuance of guarantees and letters of credit.
In June 2020, the Company and LUMINOR bank signed the amendments to the previously concluded financial liability limit agreements. According to these amendments, credit repayment terms of both EUR 10 000 thousand and EUR 5 000 thousand (non-binding financial liabilities limit) limits were prolonged until 30 June 2021. For the drawdown amount of the overdraft a floating interest rate calculated as the 1-month EURIBOR plus margin is being paid. There is fixed interest rate set for amount used for the issuance of guarantees.
7. Guarantees and letters of credit
As of 31 December 2020, guarantees issued by the credit institutions on behalf of the Company to secure the obligations of its subsidiaries to their suppliers totaled EUR 14 171 thousand (31 December 2019: EUR 14 362 thousand). The letters of credit and guarantees provided to suppliers by the credit institutions on behalf of the Group as of 31 December 2020 amounted to EUR 15 863 thousand (31 December 2019: EUR 16 167 thousand).
As of 31 December 2020, the Company's guarantees issued to secure the obligations of its subsidiaries to their suppliers totaled EUR 818 thousand (31 December 2019: EUR 792 thousand).
NOTES TO THE FINANCIAL STATEMENTS
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
FOR THE TWELVE MONTHS PERIOD ENDED 31 DECEMBER 2020
(all tabular amounts are in EUR thousands unless otherwise stated)
8. Profit distribution
The Annual shareholders meeting of APB Apranga held on 30 April 2020 has resolved not to pay dividends for the year 2019.
9. Turnover and expansion plans in 2021
Due to the crisis caused by COVID-19, the approval of the Group's plans for 2021 by the Board is temporarily suspended until the trends of the coronavirus crisis are unclear and until the opening dates of the temporarily closed main stores in Lithuania and Latvia are unclear.
10. Alternative performance measures
With regard to the requirements of the European Securities and Markets Authority (ESMA) Guidelines on Alternative Performance Measures, Apranga APB provides an overview of the Alternative Performance Measures (APM) used, their definition and calculation on Apranga APB website at: http://aprangagroup.lt/en/investors/investor-relations/alternative-performancemeasures.