Silvano Fashion Group

Annual / Quarterly Financial Statement • Feb 27, 2022

Company AS Silvano Fashion Group

Type Company Release

Category Management interim statement or quaterly financial report

Disclosure time 27 Feb 2022 23:59:00 +0200

Attachments:

• SFG consolidated interim financial report for Q4 and 12m of 2021 unaudited.pdf (http://oam.fi.ee/en/download?id=6088)

• SFG 2021.a. IV kvartali ja 12 kuu konsolideeritud vahearuanne auditeerimata.pdf (http://oam.fi.ee/en/download?id=6089)

Currency

Title

Silvano Fashion Group Consolidated Interim Financial Report for Q4 and 12m of 2021

Selected Financial Indicators

Summarized selected financial indicators of the Group for 12 months of 2021 compared to 12 months of 2020 and 31.12.2021 compared to 31.12.2020 were as follows:

-------------------------------------------------------------------------------
in thousands of EUR -------------------------------------------------------------------------------	12m 2021	12m 2020 Change
Revenue	46 686	38 479 21.3%
Gross Profit	25 410	23 209 9.5%
Operating profit	13 005	10 544 23.3%
EBITDA	16 242	14 111 15.1%
Net profit for the period	9 924	1 667 495.3%
Net profit attributable equity holders of the Parent company	9 031	1 347 570.5%
Earnings per share (EUR)	0.25	0.04 525.0%
Operating cash flow for the period	12 996	6 356 104.5%

---

in thousands of EUR		31.12.2021 31.12.2020 Change
------------------------------------------------------------------------------- Total assets	53 753	42 256	27.2%
Total current assets	40 331	29 597	36.3%
Total equity attributable to equity holders of the Parent company	34 148	24 504	39.4%
Cash and cash equivalents	17 098	8 980	90.4%
-------------------------------------------------------------------------------
Margin analysis, %	12m 2021	12m 2020 Change
------------------------------------------------------------------------------- Gross profit	54.4	60.3	-9.8%
Operating profit	27.9	27.4	1.8%
EBITDA	34.8	36.7	-5.2%
Net profit	21.3		4.3 395.3%
Net profit attributable to equity holders of the Parent company	19.3		3.5 451.4%
------------------------------------------------------------------------------- Financial ratios, %		31.12.2021 31.12.2020 Change
------------------------------------------------------------------------------- ROA	17.9		3.2 459.4%
ROE	28.7		5.6 412.5%
Price to earnings ratio (P/E)	7.8		41.7 -81.3%
Current ratio	4.3	3.4	26.5%
Quick ratio	2.1	1.3	61.5%

Financial performance

The Group`s sales amounted to 46 686 thousand EUR during 12 months of 2021, representing a 21.3% increase as compared to the same period of previous year. Overall, wholesale increased by 24.5%, measured in EUR.

The Group's gross profit during 12 months of 2021 amounted to 25 410 thousand EUR and increase by 9.5% compared to previous year. The gross margin during 12 months of 2021 decreased to 54.4%, from 60.3% in the respective period of

previous year. The cost of sold goods increased by 39.3%.

Consolidated operating profit for 12 months of 2021 amounted to 13 005 thousand EUR, compared to 10 544 thousand EUR in 12 months of 2020, increase by 23.3%. The consolidated operating profit margin was 27.9% for 12 months of 2021 (27.4 in 12 months of 2020). Consolidated EBITDA for 12 months of 2021 increased by 15.1% and amounted to 16 242 thousand EUR, which is 34.8% in margin terms (14 111 thousand EUR and 36.7% for 12 months of 2020).

Reported consolidated net profit attributable to equity holders of the Parent company for 12 months of 2021 amounted to 9 031 thousand EUR, compared to net profit of 1 347 thousand EUR in 12 months of 2020, net profit margin attributable to equity holders of the Parent company for 12 months of 2021 was 19.3% against 3.5% in 12 months of 2020.

Financial position

As of 31 December 2021 consolidated assets amounted to 53 753 thousand EUR representing increase by 27.2% as compared to the position as of 31 December 2020.

Trade and other receivables increased by 237 thousand EUR as compared to 31 December 2020 and amounted to 2 325 thousand EUR as of 31 December 2021. Inventory balance increased by 2 379 thousand EUR and amounted to 20 906 thousand EUR as of 31 December 2021.

Equity attributable to equity holders of the Parent company increased by 9 644 thousand EUR and amounted to 34 148 thousand EUR as of 31 December 2021. Current liabilities increased by 589 thousand EUR during 12 months of 2021.

Investments

During 12 months of 2021 the Group's investments into property, plant and equipment totalled 312 thousand EUR, in previous year same period 289 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 December 2021, the Group employed 1 602 employees, including 485 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 12 months of 2021 amounted to 9 388 thousand EUR (9 854 thousand EUR in 12 months of 2020). The remuneration of key management of the Group, including the key executives of all subsidiaries,

totalled 598 thousand EUR.

Consolidated Statement of Financial Position

------------------------------------------------------------------------------- in thousands of EUR				Note 31.12.2021 31.12.2020
-------------------------------------------------------------------------------		Unaudited		Audited
ASSETS
Current assets
Cash and cash equivalents	2		17 098	8 980
Current loans granted			2		2
Trade and other receivables	3		2 325	2 088
Inventories	4		20 906	18 527
Total current assets			40 331	29 597
Non-current assets
Long-term receivables			262		249
Investments in associates			80		57
Investments in other shares			262		238
Deferred tax asset			1 226	1 032
Intangible assets			535		374
Investment property			1 086	1 018
Property, plant and equipment	5		9 971	9 691
Total non-current assets			13 422	12 659
TOTAL ASSETS			53 753	42 256

LIABILITIES AND EQUITY

Current liabilities
Short-term borrowings		0		400
Short-term lease liabilities		2 193		2 121
Trade and other payables	6	6 504		5 583
Tax liabilities		671		675
Total current liabilities		9 368		8 779
Non-current liabilities
Deferred tax liability		1 746		500
Long-term borrowings		0		400
Long-term lease liabilities		4 727		4 707
Long-term provisions		51		52
Total non-current liabilities		6 524		5 659
Total liabilities		15 892		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		-18 251	-18 864
Retained earnings		42 526		33 140
Total equity attributable to equity holders of the Parent company		34 148		24 504
Non-controlling interest		3 713		3 314

Total equity	37 861	27 818
TOTAL EQUITY AND LIABILITIES	53 753	42 256
Consolidated Income Statement

------------------------------------------------------------------------------- in thousands of EUR	Note	4Q 2021		4Q 2020		12m 2021 12m 2020
-------------------------------------------------------------------------------			Unaudited Unaudited Unaudited				Audited
------------------------------------------------------------------------------- Revenue from contracts with customers	9	9 795		8 720	46 686		38 479
Cost of goods sold		-5 480		-3 608	-21 276		-15 270
Gross Profit		4 315		5 112	25 410		23 209
Distribution expenses		-2 120		-1 940	-8 573		-8 548
Administrative expenses		-892		-911	-3 555		-3 779
Other operating income		-407		113	406		336
Other operating expenses		-216		-200	-683		-674
Operating profit		680		2 174	13 005		10 544
Currency exchange income/(expense)		158		324	1 565		-6 062
Other finance income/(expenses)		-116		-83	-432		-428
Net finance income		42		241	1 133		-6 490
Profit (loss) from associates using equity method		13		4	19		1
Profit before tax		735		2 419	14 157		4 055
Income tax expense		-1 329		-1 950	-4 233		-2 388

Profit for the period		-594	469	9 924	1 667
Attributable to :
Equity holders of the Parent company		-531	347	9 031	1 347
Non-controlling interest		-63	122	893	320
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	0.01	0.25	0.04
------------------------------------------------------------------------------- in thousands of EUR	Note	4Q 2021	4Q 2020		12m 2021 12m 2020
-------------------------------------------------------------------------------				Unaudited Unaudited Unaudited	Audited
Profit for the period		-594	469	9 924	1 667
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods :
Exchange differences on translation of foreign operations		161	-437	869	-3 187
Total other comprehensive income for the period		161	-437	869	-3 187
Total comprehensive income (loss) for the period		-433	32	10 793	-1 520
Attributable to :

Equity holders of the Parent company	-353	318		9 644	-1 820
Non-controlling interest	-80	-286		1 149	300
Consolidated Statement of Cash Flows
------------------------------------------------------------------------------- in thousands of EUR		Note	12m 2021 12m 2020
-------------------------------------------------------------------------------			Unaudited		Audited
Cash flow from operating activities
Profit for the period				9 924	1 667
Adjustments for:
Depreciation and amortization of non-current assets				3 237	3 567
Share of profit of equity accounted investees				-19	-1
Gains/Losses on the sale of property, plant and equipment				24	9
Net finance income / costs				-1 133	450
Provision for impairment losses on trade receivables				-1	20
Provision for inventories				187	202
Provision for benefits to employees				0	52
Income tax expense				4 233	2 388
Change in inventories				-1 979	832
Change in trade and other receivables				-237	427
Change in trade and other payables				917	-1 512
Interest paid				-2	-9
Income tax paid				-2 155	-1 736
Net cash flow from operating activities				12 996	6 356

Cash flow from investing activities
Interest received	19	13
Dividends received	0	46
Proceeds from disposal of property, plant and equipment	143	75
Acquisition of property, plant and equipment	-312	-289
Acquisition of intangible assets	-147	-110
Net cash flow from investing activities	-297	-265
Cash flow from financing activities
Acquisition of non-controlling interests	0	-26
Proceeds from borrowings	0	800
Repayment of borrowings	-800	0
Payment of principal portion of lease liabilities	-2 402	-2 003
Interest paid on lease liabilities	-450	-492
Dividends paid	-750	-413
Net cash flow from financing activities	-4 402	-2 134
Net increase in cash and cash equivalents	8 297	3 957
Cash and cash equivalents at the beginning of period	8 980	5 152
Effect of translation to presentation currency	75	0
Effect of exchange rate fluctuations on cash held	-254	-129
Cash and cash equivalents at the end of period	17 098	8 980

AS Silvano Fashion Group

Phone: +372 6845 000 Email: info@silvanofashon.com