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Apranga Group
Quarterly Report • Oct 29, 2024
2248_ir_2024-10-29_11fc5082-5c2e-45fa-a050-1e7602121c1e.pdf
Quarterly Report
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APB APRANGA The Consolidated Interim Report and Interim Consolidated Financial Statements For 9 months period ended 30 September 2024
(UNAUDITED)
APB APRANGA, Company's code 121933274, Ukmerges 362, Vilnius
| NAME OF THE COMPANY | Apranga APB |
|---|---|
| LEGAL FORM | Public limited liability company |
| DATE OF REFISTRATION | st March 1993 1 |
| 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 VĮ, Vilnius branch |
| TELEPHONE NUMBER | +370 5 239 08 08 |
| [email protected] | |
| INTERNET ADRESS | www.aprangagroup.com |
| MAIN ACTIVITIES | Retail trade of apparel |
| AUDITOR | ERNST & YOUNG BALTIC UAB |
T A B L E O F C O N T E N T
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
The retail turnover (including VAT) of Apranga Group reached EUR 251.4 million in 9 months 2024 and was by 8.7% higher than in 2023.
According to the data of the official statistics departments of Lithuania, Latvia and Estonia, the market of retail trade, except of motor vehicles and motorcycles, in the Baltic states in January-August generated approximately 26.2 billion EUR in revenues, similar to that of the same period in 2023 with a 0.1% increase.
The change of consumer prices in Baltic retail market in January-August 2024 compared to the corresponding period of the previous year averaged to around 1.4%. In this period the price index change in Lithuania was 0.9%, Latvia 0.9% and Estonia 3.7%. Consumer confidence index in the Euro area has been consistently increasing during the months of January-August 2024 and rose from -14.7 to -11.7(+3.0 p.). Despite minor fluctuations Baltic countries' consumer confidence index also shows upward trend. In Lithuania the index increased from 2.6 to 4.8 (+2.2 p.), Latvia from -13.2 to -8.2 (+5.0 p.), Estonia from -33.6 to - 33.2 (+0.4 p.).
The companies participating in the textile, clothing and footwear market of the Baltic states in the months of January-August 2024 generated 1.2 billion EUR revenue, by 0.3% higher compared to the corresponding period in 2023. The change of consumer prices index in the clothing and footwear industry in Baltic retail market in January-August 2024 compared to the corresponding period of the previous year averaged to around 1.2%. In this period the price index change in Lithuania was -0.8%, Latvia 2.6% and Estonia 1.8%. Lithuania remains the largest market of retail trade of textile, clothing and footwear in specialized stores in the Baltic countries, generating about 50% of the Baltic states market turnover.
The retail turnover of the Group's stores in 9 months 2024 by countries was as follows (EUR thousand, VAT included):
| Country | 9 months 2024 |
9 months 2023 |
9 months 2022 |
2024/2023, % | 2024/2022, % |
|---|---|---|---|---|---|
| Lithuania | 148 645 | 138 890 | 126 362 | 7,0% | 17,6% |
| Latvia | 64 898 | 55 694 | 50 480 | 16,5% | 28,6% |
| Estonia | 37 840 | 36 663 | 31 963 | 3,2% | 18,4% |
| Total: | 251 383 | 231 247 | 208 805 | 8,7% | 20,4% |
The retail turnover of the Group's stores in 9 months 2024 by countries was as follows (EUR thousand, VAT excluded)*:
| Country | 9 months 2024 |
9 months 2023 |
9 months 2022 |
2024/2023, % | 2024/2022, % |
|---|---|---|---|---|---|
| Lithuania | 123 062 | 114 767 | 104 451 | 7,2% | 17,8% |
| Latvia | 53 740 | 46 029 | 41 725 | 16,8% | 28,8% |
| Estonia | 31 217 | 30 547 | 26 636 | 2,2% | 17,2% |
| Total: | 208 019 | 191 343 | 172 813 | 8,7% | 20,4% |
*The difference between turnover (VAT excluded) shown in the Review of activity and stores income disclosed in Note 5 of the Financial statements is due to return of goods.
The retail turnover of the Group's stores in Q3 2024 by countries was as follows (EUR thousand, VAT included):
| Country | Q3 2024 | Q3 2023 | Q3 2022 | 2024/2023, % | 2024/2022, % |
|---|---|---|---|---|---|
| Lithuania | 52 231 | 49 160 | 48 236 | 6,2% | 8,3% |
| Latvia | 23 893 | 20 663 | 19 873 | 15,6% | 20,2% |
| Estonia | 13 688 | 13 783 | 13 004 | -0,7% | 5,3% |
| Total: | 89 812 | 83 606 | 81 113 | 7,4% | 10,7% |
The retail turnover of the Group's stores in Q3 2024 by countries was as follows (EUR thousand, VAT excluded):
| Country | Q3 2024 | Q3 2023 | Q3 2022 | 2024/2023, % | 2024/2022, % |
|---|---|---|---|---|---|
| Lithuania | 43 234 | 40 621 | 39 879 | 6,4% | 8,4% |
| Latvia | 19 783 | 17 077 | 16 424 | 15,8% | 20,5% |
| Estonia | 11 275 | 11 483 | 10 837 | -1,8% | 4,0% |
| Total: | 74 292 | 69 180 | 67 141 | 7,4% | 10,7% |
The online turnover of the Group's stores in 9 months 2024 was as follows (EUR thousand, VAT included):
| 9 months 2024 |
9 months 2023 |
9 months 2022 |
2024/2023, % | 2024/2022, % | |
|---|---|---|---|---|---|
| Online turnover | 32 906 | 26 361 | 23 770 | 24,8% | 38,4% |
| Relative weight in total turnover | 13,1% | 11,4% | 11,4% |
The online turnover of the Group's stores in 9 months 2024 was as follows (EUR thousand, VAT excluded):
| 9 months 2024 |
9 months 2023 |
9 months 2022 |
2024/2023, % | 2024/2022, % | |
|---|---|---|---|---|---|
| Online turnover | 27 676 | 21 795 | 19 700 | 27,0% | 40,5% |
| Relative weight in total turnover | 13,3% | 11,4% | 11,4% |
The Group's online turnover (with VAT) increased by 24.8% in 9 months 2024, and its relative weight in total turnover increased from 11.4% to 13.1% compared to the corresponding period of the previous year.
The retail turnover of the Group's stores in 9 months 2024 by chains was as follows (EUR thousand, VAT included):
| Chain | 9 months 2024 |
9 months 2023 |
9 months 2022 |
2024/2023, % | 2024/2022, % |
|---|---|---|---|---|---|
| Economy1 | 23 219 | 22 180 | 22 394 | 4,7% | 3,7% |
| Youth2 | 61 431 | 57 728 | 50 772 | 6,4% | 21,0% |
| Footwear | 3 034 | 3 225 | 3 501 | -5,9% | -13,3% |
| Business3 | 45 952 | 41 954 | 36 894 | 9,5% | 24,6% |
| Luxury4 | 23 118 | 22 069 | 20 734 | 4,8% | 11,5% |
| Zara | 84 097 | 74 293 | 64 235 | 13,2% | 30,9% |
| Outlets | 10 531 | 9 799 | 10 276 | 7,5% | 2,5% |
| Total | 251 383 | 231 247 | 208 805 | 8,7% | 20,4% |
1 Apranga, Tom Tailor, Orsay, Jack&Jones, Vero Moda;
2 Aprangos galerija, Moskito, Mango, Bershka, Pull & Bear, Stradivarius, Oysho, A|X Armani Exchange;
3 City, Massimo Dutti, Marella, Pennyblack, Coccinelle, Tommy Hilfiger, Zara Home, Calvin Klein Underwear, Liu Jo, MAX&Co., Calvin Klein; 4 Burberry, Emporio Armani, Boss, Ermenegildo Zegna, MaxMara, Weekend MaxMara, Marina Rinaldi, Mados linija, Nude, Sandro, Maje, Hugo.
The retail turnover of the Group's stores in 9 months 2024 by chains was as follows (EUR thousand, VAT excluded):
| Chain | 9 months 2024 |
9 months 2023 |
9 months 2022 |
2024/2023, % | 2024/2022, % |
|---|---|---|---|---|---|
| Economy1 | 19 166 | 18 355 | 18 528 | 4,4% | 3,4% |
| Youth2 | 50 745 | 47 733 | 41 148 | 6,3% | 23,3% |
| Footwear | 2 504 | 2 669 | 2 898 | -6,2% | -13,6% |
| Business3 | 37 963 | 34 711 | 30 528 | 9,4% | 24,4% |
| Luxury4 | 19 474 | 18 267 | 18 032 | 6,6% | 8,0% |
| Zara | 69 392 | 61 508 | 53 179 | 12,8% | 30,5% |
| Outlets | 8 775 | 8 099 | 8 500 | 8,3% | 3,2% |
| Total | 208 019 | 191 343 | 172 813 | 8,7% | 20,4% |
In 9 months 2024, Apranga Group opened 5 new stores, renovated 11 stores and closed 4 stores. The net capital expenditure of the retail chain expansion, renovation and modernization amounted to EUR 7.1 million in 9 months 2024 (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 | 30 09 2024 | 30 09 2023 | 30 09 2022 | 2024/2023, % | 2024/2022, % |
|---|---|---|---|---|---|
| Lithuania | 102 | 97 | 100 | 5,2% | 2,0% |
| Latvia | 44 | 43 | 44 | 2,3% | 0,0% |
| Estonia | 24 | 24 | 23 | 0,0% | 4,3% |
| Total: | 170 | 164 | 167 | 3,7% | 1,8% |
The number of stores by chains was as follows:
| Chain | 30 09 2024 | 30 09 2023 | 30 09 2022 | 2024/2023, % | 2024/2022, % |
|---|---|---|---|---|---|
| Economy | 20 | 18 | 21 | 11,1% | -4,8% |
| Youth | 45 | 48 | 47 | -6,3% | -4,3% |
| Footwear | 9 | 9 | 10 | 0,0% | -10,0% |
| Business | 44 | 40 | 40 | 10,0% | 10,0% |
| Luxury | 34 | 31 | 30 | 9,7% | 13,3% |
| Zara | 9 | 9 | 10 | 0,0% | -10,0% |
| Outlets | 9 | 9 | 9 | 0,0% | 0,0% |
| Total | 170 | 164 | 167 | 3,7% | 1,8% |
The total area of stores by countries was as follows (thousand sq. m):
| Country | 30 09 2024 | 30 09 2023 | 30 09 2022 | 2024/2023, % | 2024/2022, % |
|---|---|---|---|---|---|
| Lithuania | 50,3 | 48,9 | 51,0 | 2,8% | -1,4% |
| Latvia | 27,9 | 27,9 | 26,4 | -0,1% | 5,5% |
| Estonia | 13,4 | 13,2 | 13,1 | 1,2% | 2,0% |
| Total: | 91,5 | 90,0 | 90,5 | 1,7% | 1,1% |
The total sales area operated by the Group has increased by 1.7% or by 1.5 thousand sq. m during the last 12 months until 30 September 2024.
In addition to the key figures defined or specified in the applicable IFRS financial reporting framework, the Group also provides key financial ratios derived from or based on the prepared financial statements. These are known as Alternative Performance Measures (APM). Definitions of APM are provided on the Group's website. In table below are stated few APM.
The Group has earned EUR 15.2 million of profit before income tax in 9 months 2024, while profit before taxes amounted to EUR 15.8 million in 9 months of 2023 (decreased by 4.1%).
EBITDA of the Group was EUR 31.2 million in 9 months 2024, while the Group had EBITDA of EUR 31.0 million in the same period of 2023 (increased by 0.5%). EBITDA margin has decreased from 16.1% to 14.9% during the year.
| Main Group Indicators | 9 months 2024 |
9 months 2023 |
9 months 2022 |
|---|---|---|---|
| Net sales | 209 450 | 192 574 | 173 630 |
| Net sales in foreign markets | 85 430 | 76 878 | 68 644 |
| Gross profit | 94 065 | 88 756 | 78 114 |
| Gross margin, % | 44,9% | 46,1% | 45,0% |
| Operating profit (loss) | 16 271 | 16 660 | 14 247 |
| Operating profit margin, % | 7,8% | 8,7% | 8,2% |
| EBT | 15 194 | 15 848 | 13 486 |
| EBT margin, % | 7,3% | 8,2% | 7,8% |
| Profit (loss) for the period | 12 550 | 13 037 | 11 232 |
| Profit for the period margin, % | 6,0% | 6,8% | 6,5% |
| EBITDA | 31 196 | 31 044 | 28 341 |
| EBITDA margin, % | 14,9% | 16,1% | 16,3% |
| Return on equity (end of the period), % | 19,9% | 21,8% | 19,4% |
| Return on assets (end of the period), % | 7,8% | 8,1% | 7,4% |
| Net debt to equity, % | -11,1% | -12,3% | -31,1% |
| Current ratio, times | 1,5 | 1,5 | 1,5 |
In 9 months 2024, the Group's gross profit grew slower than the sales. The Group's gross profit margin, compared to the same period last year, decreased from 46.1% to 44.9% due to more active sales promotions and higher level of goods inventory.
The operating expenses of the Group totaled to EUR 77.8 million in 9 months 2024 and increased by 7.9%, comparing to the same period 2023 (sales increased by 8.8% for comparison).
| Main Group Indicators | 9 months 2024 |
9 months 2023 |
Change |
|---|---|---|---|
| Net sales | 209 450 | 192 574 | 8,8% |
| Net sales in foreign markets | 85 430 | 76 878 | 11,1% |
| Gross profit | 94 065 | 88 756 | 6,0% |
| Operating (expenses) | (77 794) | (72 096) | 7,9% |
| Operating profit (loss) | 16 271 | 16 660 | -2,3% |
| EBT | 15 194 | 15 848 | -4,1% |
| Profit (loss) for the period | 12 550 | 13 037 | -3,7% |
| EBITDA | 31 196 | 31 044 | 0,5% |
The Group's level of inventories during the last 12 months until 30 September 2024 increased by 6.2% to EUR 60.2 million. Company's inventories increased by 9.2%.
The number of employees during the last 12 months until 30 September 2024 in the Group has increased by 56 to 2 248 (2.6%) and has increased in Company by 51 to 773 (7.1%).
The price of the Company shares in 9 months 2024 increased by 6% from EUR 2.66 per share to EUR 2.82 per share. The maximum share price during 9 months period was EUR 3.06 per share, minimum share price - EUR 2.67 per share. The market capitalization of the Company increased from EUR 147 million at the beginning of the year to EUR 156 million at the end of September 2024. The weighted average price of 1 share during the reporting period was EUR 2.86. Company's share turnover was EUR 4.9 million in 9 months 2024. The share price during the last 12 months increased from EUR 2.65 to EUR 2.82 per share, or by 6%.
Apranga APB share price in 12 months period from 1 st October 2023 to 30th September 2024:
Information about members of the Management board on 30 September 2024:
| 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 |
- - |
28 04 2022 | 27 04 2026 |
| Vidas Lazickas | Member of the Board | 265 138 0.48% |
28 04 2022 | 27 04 2026 |
| Ilona Šimkūnienė | Member of the Board, Purchasing Director |
- - |
28 04 2022 | 27 04 2026 |
| Ramūnas Gaidamavičius | Member of the Board, | 5 000 | ||
| Development Director |
0.01% | 28 04 2022 | 27 04 2026 | |
| Jonas Jokštys | Member of the Board, independent |
- - |
28 04 2022 | 27 04 2026 |
| Gintaras Juškauskas | Member of the Board, independent |
- - |
28 04 2022 | 27 04 2026 |
Millions
STATEMENTS OF COMPREHENSIVE INCOME
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Note | 9 months 2024 |
9 months 2023 |
9 months 2024 |
9 months 2023 |
|
| Revenue from contracts with customers Cost of sales |
5 | 209 450 (115 385) |
192 574 (103 818) |
75 698 (44 636) |
73 480 (43 170) |
| GROSS PROFIT | 94 065 | 88 756 | 31 062 | 30 310 | |
| Operating (expenses) Other income |
(77 854) 60 |
(72 114) 18 |
(28 091) 13 058 |
(27 115) 10 269 |
|
| OPERATING PROFIT (LOSS) | 16 271 | 16 660 | 16 029 | 13 464 | |
| Finance income | 276 | 189 | 348 | 198 | |
| Finance (costs) | (1 353) | (1 001) | ( 880) | ( 665) | |
| PROFIT (LOSS) BEFORE INCOME TAX | 15 194 | 15 848 | 15 497 | 12 997 | |
| Income tax (expense) | (2 644) | (2 811) | ( 434) | ( 488) | |
| PROFIT (LOSS) FOR THE PERIOD | 3 | 12 550 | 13 037 | 15 063 | 12 509 |
| Other comprehensive income | - | - | - | - | |
| TOTAL COMPREHENSIVE INCOME | 12 550 | 13 037 | 15 063 | 12 509 | |
| Total comprehensive income attributable to: Owners of the Company Non-controlling interests |
12 550 12 550 - |
13 037 13 037 - |
15 063 15 063 - |
12 509 12 509 - |
|
| Basic and diluted earnings per share (in EUR) | 0,23 | 0,24 | 0,27 | 0,23 |
STATEMENTS OF FINANCIAL POSITION
| ASSETS | GROUP | COMPANY | |||
|---|---|---|---|---|---|
| ASSETS | Note | 30 09 2024 |
31 12 2023 |
30 09 2024 |
31 12 2023 |
| Property, plant and equipment | 26 529 | 24 052 | 13 694 | 12 019 | |
| Intangible assets | 1 455 | 1 483 | 1 405 | 1 441 | |
| Investments in subsidiaries | - | - | 5 095 | 5 095 | |
| Prepayments | 131 | 142 | 66 | 63 | |
| Trade and other receivables | 1 038 | 528 | 80 | 80 | |
| Right-of-use assets | 57 089 | 58 785 | 24 162 | 24 455 | |
| Other financial assets | 2 600 | 2 600 | 2 600 | 2 600 | |
| Total non-current assets | 88 842 | 87 590 | 47 102 | 45 753 | |
| CURRENT ASSETS | |||||
| Inventories | 60 179 | 50 607 | 34 366 | 27 297 | |
| Prepayments | 3 100 | 1 525 | 2 271 | 1 524 | |
| Trade and other receivables | 1 810 | 2 638 | 10 314 | 10 482 | |
| Cash and cash equivalents | 6 965 | 17 665 | 4 260 | 7 974 | |
| Total current assets | 72 054 | 72 435 | 51 211 | 47 277 | |
| TOTAL ASSETS | 3 | 160 896 | 160 025 | 98 313 | 93 030 |
| EQUITY AND LIABILITIES | GROUP | COMPANY | |||
|---|---|---|---|---|---|
| EQUITY | Note | 30 09 2024 |
31 12 2023 |
30 09 2024 |
31 12 2023 |
| Ordinary shares Legal reserve Foreign currency translation reserve Retained earnings |
16 035 1 604 ( 53) 45 352 |
16 035 1 604 ( 53) 46 072 |
16 035 1 604 - 33 514 |
16 035 1 604 - 31 721 |
|
| Total equity | 62 938 | 63 658 | 51 153 | 49 360 | |
| NON-CURRENT LIABILITIES | |||||
| Deferred tax liabilities Non-current lease liabilities Non-current employee benefits Total non-current liabilities |
2 131 46 874 233 49 238 |
2 301 47 629 194 50 124 |
472 19 639 233 20 344 |
366 19 765 194 20 325 |
|
| CURRENT LIABILITIES | |||||
| Borrowings Current lease liabilities Current income tax liability Trade and other payables Total current liabilities |
6 | - 13 762 1 455 33 503 48 720 |
- 14 306 579 31 358 46 243 |
9 140 5 605 319 11 752 26 816 |
6 360 5 616 320 11 049 23 345 |
| Total liabilities | 97 958 | 96 367 | 47 160 | 43 670 | |
| TOTAL EQUITY AND LIABILITIES | 160 896 | 160 025 | 98 313 | 93 030 |
STATEMENTS OF CHANGES IN EQUITY
| GROUP | Note | Share capital |
Legal reserve |
Translation reserve |
Retained earnings |
Total |
|---|---|---|---|---|---|---|
| Balance at 1 January 2023 | 16 035 | 1 604 | ( 53) | 44 781 | 62 367 | |
| Comprehensive income: Profit for the 9 months 2023 Total comprehensive income Transactions with owners: Dividends paid |
3 | - | - | - | 13 037 13 037 (15 482) |
13 037 13 037 (15 482) |
| Balance at 30 September 2023 | 16 035 | 1 604 | ( 53) | 42 336 | 59 922 | |
| Balance at 1 January 2024 | 16 035 | 1 604 | ( 53) | 46 072 | 63 658 | |
| Comprehensive income: Profit for the 9 months 2024 Total comprehensive income Transactions with owners: Dividends paid |
3 8 |
- | - | - | 12 550 12 550 (13 270) |
12 550 12 550 (13 270) |
| Balance at 30 September 2024 | 16 035 | 1 604 | ( 53) | 45 352 | 62 938 |
| COMPANY | Share capital |
Legal reserve |
Retained earnings |
Total | |
|---|---|---|---|---|---|
| Balance at 1 January 2023 | 16 035 | 1 604 | 32 004 | 49 643 | |
| Comprehensive income: Profit for the 9 months 2023 Total comprehensive income Transactions with owners: |
- | - | 12 509 12 509 |
12 509 12 509 |
|
| Dividends paid | (15 482) | (15 482) | |||
| Balance at 30 September 2023 | 16 035 | 1 604 | 29 031 | 46 670 | |
| Balance at 1 January 2024 | 16 035 | 1 604 | 31 721 | 49 360 | |
| Comprehensive income: Profit for the 9 months 2024 Total comprehensive income Transactions with owners: Dividends paid |
8 | - | - | 15 063 15 063 (13 270) |
15 063 15 063 (13 270) |
| Balance at 30 September 2024 | 16 035 | 1 604 | 33 514 | 51 153 |
STATEMENTS OF CASH FLOW
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | Note | 9 months 2024 |
9 months 2023 |
9 months 2024 |
9 months 2023 |
| Profit (loss) before income taxes | 15 194 | 15 848 | 15 497 | 12 997 | |
| ADJUSTMENTS FOR: | |||||
| Depreciation and amortization | 14 925 | 14 384 | 5 850 | 5 645 | |
| Write-down (reversal) of inventories to net realisable value Loss (gain) on disposal of property, plant and equipment |
(1 967) ( 10) |
(1 476) 11 |
270 ( 6) |
193 - |
|
| Write-off of property, plant and equipment | 27 | 114 | 27 | 1 | |
| Dividend income | ( 33) | - | (13 033) | (10 250) | |
| Interest expenses | 1 353 | 1 001 | 880 | 665 | |
| Total | 29 489 | 29 525 | 9 485 | 9 247 | |
| CHANGES IN OPERATING ASSETS AND LIABILITIES: | |||||
| Decrease (increase) in inventories | (7 605) | (13 798) | (7 339) | (9 446) | |
| Decrease (increase) in receivables | (1 511) | (1 788) | ( 693) | (2 385) | |
| Increase (decrease) in payables | 2 166 | 5 536 | 724 | 646 | |
| Cash generated from operations | 22 539 | 19 475 | 2 177 | (1 938) | |
| Income taxes paid | (1 938) | (1 914) | ( 329) | ( 590) | |
| Interest paid | (1 353) | (1 001) | ( 880) | ( 665) | |
| Net cash from operating activities | 19 248 | 16 560 | 968 | (3 193) | |
| INVESTING ACTIVITIES | |||||
| Interest received | 276 | 189 | 348 | 198 | |
| Dividends received | 33 | - | 13 033 | 10 250 | |
| Loans granted Loans repayments received |
(89 000) 89 000 |
(47 000) 47 000 |
(108 281) 108 055 |
(50 938) 50 963 |
|
| Purchases of property, plant and equipment and intangible | 4 | (7 921) | (9 959) | (3 670) | (2 098) |
| assets Proceeds on disposal of property, plant and equipment |
831 | 2 691 | 154 | 3 | |
| Net cash from investing activities | (6 781) | (7 079) | 9 639 | 8 378 | |
| FINANCING ACTIVITIES | |||||
| Dividends paid | (13 252) | (15 492) | (13 252) | (15 492) | |
| Proceeds from borrowings | - | - | 101 505 | 66 599 | |
| Repayments of borrowings | - | - | (98 725) | (56 821) | |
| Payment of principal portion of lease liabilities | (9 915) | (9 577) | (3 849) | (3 666) | |
| Net cash from financing activities | (23 167) | (25 069) | (14 321) | (9 380) | |
| NET INCREASE (DECREASE) IN CASH | (10 700) | (15 588) | (3 714) | (4 195) | |
| CASH AND CASH EQUIVALENTS: | |||||
| AT THE BEGINNING OF THE PERIOD | 17 665 | 22 978 | 7 974 | 8 375 | |
| AT THE END OF THE PERIOD | 6 965 | 7 390 | 4 260 | 4 180 |
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 30 September 2024 the Group consisted of the Company and the following 100% owned subsidiaries:
| Name | Country | Ownership interest in % 30 09 2024 |
Ownership interest in % 31 12 2023 |
|---|---|---|---|
| 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.
The share capital of APB Apranga is EUR 16,034,668.40 and it is divided into 55,291,960 ordinary registered shares with a nominal value of EUR 0.29 each, where each share grants to its owner 1 vote (in total 55,291,960 voting shares), all shares are paid in full and give the owners equal rights. 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.
As of 30 September 2024, the Company had 7 169 shareholders (as per shareholders list prepared in accordance with SRD II directive). Company's shareholders that control over 5% votes in General Shareholder Meeting were as follows:
| Shareholder | Enterprise code |
Address | Number of shares |
% of total ownership |
|---|---|---|---|---|
| UAB MG Investment | 123249022 | Aukštaičių 7, Vilnius, Lithuania | 36 169 099 | 65,4% |
| UAB Minvista | 110685692 | Aukštaičių 7, Vilnius, Lithuania | 5 795 929 | 10,5% |
The ultimate parent company whose financial statements are available for public use is UAB MG grupė. The ultimate controlling individual of the Group is Mr. D. J. Mockus:
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 30 September 2024 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 9 months 2024 is as follows:
| 9 months 2024 |
Lithuania | Latvia | Estonia | Total | Inter company elimina tions |
Total in consolidated financial statements |
|---|---|---|---|---|---|---|
| Total segment revenue | 137 626 | 54 253 | 31 666 | 223 545 | - | |
| Inter-segment revenue | (13 600) | ( 216) | ( 279) | (14 095) | - | |
| Revenue from external customers (Note 5) |
124 026 | 54 037 | 31 387 | 209 450 | - | 209 450 |
| Gross profit margin | 44,4% | 45,1% | 46,5% | 44,9% | 44,9% | |
| Profit (loss) for the year | 8 250 | 2 912 | 1 388 | 12 550 | - | 12 550 |
| Total assets | 127 961 | 34 700 | 16 537 | 179 198 | (18 302) | 160 896 |
| Additions to non-current assets | 6 283 | 1 035 | 603 | 7 921 | - | 7 921 |
| 9 months 2023 |
Lithuania | Latvia | Estonia | Total | Inter company elimina tions |
Total in consolidated financial statements |
|---|---|---|---|---|---|---|
| Total segment revenue | 130 486 | 46 866 | 31 139 | 208 491 | - | |
| Inter-segment revenue | (14 863) | ( 574) | ( 480) | (15 917) | - | |
| Revenue from external customers (Note 5) |
115 623 | 46 292 | 30 659 | 192 574 | - | 192 574 |
| Gross margin | 45,6% | 46,5% | 47,3% | 46,1% | 46,1% | |
| Profit (loss) for the year | 7 795 | 3 289 | 1 953 | 13 037 | - | 13 037 |
| Total assets | 122 961 | 39 797 | 20 843 | 183 601 | (23 410) | 160 191 |
| Additions to non-current assets | 4 533 | 4 923 | 503 | 9 959 | - | 9 959 |
4. Investments into non-current assets
Net investments of the Group amounted to EUR 7.1 million in 9 months 2024. The Company's investments amounted to EUR 3.5 million, daughter companies – EUR 3.6 million.
5. Income
For the 9 months 2024, revenue from contracts with customers consisted of the following:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Stores income | 209 435 | 192 160 | 57 026 | 54 113 |
| Wholesale income | 2 | - | 13 065 | 14 295 |
| Management fees | - | - | 5 536 | 4 731 |
| Other income | 13 | 414 | 71 | 341 |
| Total revenue from contracts with customers | 209 450 | 192 574 | 75 698 | 73 480 |
6. Borrowings
In August 2023, the Company and SEB bank signed the amendment to the previously concluded credit line agreement. According to the amendment, credit repayment term was prolonged to 31 May 2025. Credit limit remained at EUR 27 000 thousand. The interests are paid for the amount used, and the interest rate is calculated as 1 month EURIBOR plus margin. There is fixed interest rate set for amount used for the issuance of guarantees and letters of credit.
The Company and LUMINOR bank signed the amendment to the previously concluded non-binding credit limit agreement. According to the amendment, credit repayment term of EUR 5 000 thousand non-binding credit limit was prolonged for another year until 30 June 2025. 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 30 September 2024, guarantees issued by the credit institutions on behalf of the Company to secure the obligations of its subsidiaries to their goods suppliers totaled EUR 22 291 thousand (31 December 2023: EUR 15 447 thousand). The letters of credit and guarantees provided to goods suppliers by the credit institutions on behalf of the Group as of 30 September 2024 amounted to EUR 23 811 thousand (31 December 2023: EUR 16 718 thousand). Significantly increased retail turnover over the past several years led to the need to revise amounts of outstanding guarantees. The retail turnover increased by around 50% during the corresponding period. There were no new guarantees issued.
As of 30 September 2024, the Company's guarantees issued to secure the obligations of its subsidiaries to lessors of premises totaled EUR 455 thousand (31 December 2023: EUR 474 thousand).
8. Profit distribution
The Annual shareholders meeting of APB Apranga held on 30 April 2024 has resolved to pay EUR 13 270 thousand in dividends for the year 2023.
9. Operational plans
The Group plans to reach EUR 350 million turnover (including VAT) in 2024, or by 7% higher than 2023 turnover. Considering the actual results, investment forecast has been revised. In 2024, the Group will renovate or open 18 stores. The net investment will be around EUR 8 million.
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/alternativeperformance-measures .