Silvano Fashion Group

Interim / Quarterly Report • Aug 4, 2023

Company AS Silvano Fashion Group

Type Company Release

Category Management interim statement or quaterly financial report

Disclosure time 04 Aug 2023 23:59:00 +0300

Attachments:

• SFG consolidated interim report for Q2 and 6 months of 2023 unaudited.pdf (http://oam.fi.ee/en/download?id=7621)

• SFG 2023.a. II kvartali ja 6 kuu konsolideeritud vahearuanne auditeerimata.pdf (http://oam.fi.ee/en/download?id=7622)

Currency

Silvano Fashion Group Consolidated Interim Financial Report for Q2 and 6 months of 2023 Title

Selected Financial Indicators

Summarized selected financial indicators of the Group for 6 months of 2023 compared to 6 months of 2022 and 30.06.2023 compared to 31.12.2022 were as follows:

------------------------------------------------------------------------------- in thousands of EUR -------------------------------------------------------------------------------	06m 2023	06m 2022 Change
Revenue	31 407	26 370 19.1%
Gross Profit	18 837	12 885 46.2%
Operating profit	10 681	5 685 87.9%
EBITDA	12 272	7 355 66.9%
Net profit for the period	5 422	9 827 -44.8%
Net profit attributable equity holders of the Parent company	4 772	9 346 -48.9%
Earnings per share (EUR)	0.13	0.26 -50.0%
Operating cash flow for the period	10 802	5 070 113.1%

------------------------------------------------------------------------------- in thousands of EUR		30.06.2023 31.12.2022 Change
------------------------------------------------------------------------------- Total assets	67 842	63 991	6.0%
Total current assets	55 309	50 309	9.9%
Total equity attributable to equity holders of the Parent company	47 398	44 786	5.8%
Cash and cash equivalents	31 041	25 909	19.8%
-------------------------------------------------------------------------------
Margin analysis, % -------------------------------------------------------------------------------	06m 2023	06m 2022 Change
Gross profit	60.0	48.9	22.7%
Operating profit	34.0	21.6	57.4%
EBITDA	39.1	27.9	40.1%
Net profit	17.3		37.3 -53.6%
Net profit attributable to equity holders of the Parent company	15.2		35.4 -57.1%
------------------------------------------------------------------------------- Financial ratios, %		30.06.2023 31.12.2022 Change
------------------------------------------------------------------------------- ROA	10.8		19.0 -43.2%
ROE	15.6		28.1 -44.5%
Price to earnings ratio (P/E)	5.5	3.4	61.8%
Current ratio	5.8	5.1	13.7%
Quick ratio	3.6	2.8	28.6%

Financial performance

The Group`s sales amounted 31 407 thousand EUR during 6 months of 2023, representing a 19.1% increase as compared to the same period of previous year. Overall, retail increased by 20.6%, measured in EUR.

The Group's gross profit during 6 months of 2023 amounted to 18 837 thousand EUR and increase by 46.2% compared to previous year. The gross margin during 6

months of 2023 increased by 22.7% compared to 6 months of 2022. The cost of sold goods decreased by 6.8%.

Consolidated operating profit for 6 months of 2023 amounted to 10 681 thousand EUR, compared to 5 685 thousand EUR for 6 months of 2022, increase by 87.9%. The consolidated operating profit margin was 34.0% for 6 months of 2023 (21.6% for 6 months of 2022). Consolidated EBITDA for 6 months of 2023 increased by 66.9% and amounted to 12 272 thousand EUR, which is 39.1% in margin terms (7 355 thousand EUR and 27.9% for 6 months of 2022).

Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2023 amounted to 4 772 thousand EUR, compared to net profit of 9 346 thousand EUR for 6 months of 2022, net profit margin attributable to equity holders of the Parent company for 6 months of 2023 was 15.2% against net profit 35.4% for 6 months of 2022.

Financial position

As of 30 June 2023 consolidated assets amounted to 67 842 thousand EUR representing increase by 6.0% as compared to the position as of 31 December 2022.

Trade and other receivables increased by 1 195 thousand EUR as compared to 31 December 2022 and amounted to 3 321 thousand EUR as of 30 June 2023. Inventory balance decreased by 1 342 thousand EUR and amounted to 20 922 thousand EUR as of 30 June 2023.

Equity attributable to equity holders of the Parent company increased by 2 612 thousand EUR and amounted to 47 398 thousand EUR as of 30 June 2023. Current liabilities decreased by 288 thousand EUR during 6 months of 2023.

Investments

During 6 months of 2023 the Group's investments into property, plant and equipment totalled 708 thousand EUR, in previous year same period 100 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 2023, the Group employed 1 663 employees, including 527 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2022 there were 1 616 employees, including 499 people in retail operations.

Total salaries and related taxes during 6 months of 2023 amounted to 6 902 thousand EUR ( 5 641 thousand EUR in 6 months of 2022). The remuneration of key management of the Group, including the key executives of all subsidiaries,

totalled 296 thousand EUR.

Consolidated Statement of Financial Position

------------------------------------------------------------------------------- in thousands of EUR		Note 30.06.2023 31.12.2022
-------------------------------------------------------------------------------		Unaudited		Audited
ASSETS
Current assets
Cash and cash equivalents	2		31 041	25 909
Trade and other receivables	3		2 031	1 044
Prepayments and other tax receivables	3		1 184	971
Current loans granted			25	10
Other assets			106	111
Inventories	4		20 922	22 264
Total current assets			55 309	50 309
Non-current assets
Non-current receivables			314	301
Investments in associates			78	82
Investments in other shares			228	259
Deferred tax asset			2 006	2 166
Intangible assets			575	585
Investment property			903	1 041
Property, plant and equipment	5		8 429	9 248
Total non-current assets			12 533	13 682
TOTAL ASSETS			67 842	63 991

LIABILITIES AND EQUITY
Current liabilities
Current lease liabilities		1 177	2 373
Trade and other payables	6	5 326	5 837
Tax liabilities		3 111	1 692
Total current liabilities		9 614	9 902
Non-current liabilities
Deferred tax liability		921	1 039
Non-current lease liabilities		4 790	4 041
Non-current provisions		36	41
Total non-current liabilities		5 747	5 121
Total liabilities		15 361	15 023
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		-21 569	-19 409
Retained earnings		59 094	54 322
Total equity attributable to equity holders of the Parent company		47 398	44 786
Non-controlling interest		5 083	4 182
Total equity		52 481	48 968

TOTAL EQUITY AND LIABILITIES 67 842 63 991

Consolidated Income Statement

------------------------------------------------------------------------------- in thousands of EUR	Note	2Q 2023	2Q 2022	06m 2023	06m 2022
-------------------------------------------------------------------------------				Unaudited Unaudited Unaudited Unaudited
Revenue from contracts with customers	9	17 266	15 334	31 407	26 370
Cost of goods sold		-6 553	-8 967	-12 570	-13 485
Gross Profit		10 713	6 367	18 837	12 885
Distribution expenses		-2 775	-2 776	-5 554	-5 027
Administrative expenses		-1 091	-1 090	-2 277	-2 042
Other operating income		59	129	116	219
Other operating expenses		-188	-166	-441	-350
Operating profit		6 718	2 464	10 681	5 685
Currency exchange income/(expense)		-1 492	8 455	-2 591	5 985
Other finance income/(expenses)		-29	-126	-185	-230
Net finance income		-1 521	8 329	-2 776	5 755
Profit (loss) from associates using equity method		8	2	12	-11
Profit before tax		5 205	10 795	7 917	11 429
Income tax expense		-1 650	-775	-2 495	-1 602

Profit for the period		3 555	10 020	5 422	9 827
Attributable to :
Equity holders of the Parent company		3 156	9 612	4 772	9 346
Non-controlling interest		399	408	650	481
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) Consolidated Statement of Comprehensive Income	8	0.09	0.27	0.13	0.26
------------------------------------------------------------------------------- in thousands of EUR	Note	2Q 2023	2Q 2022	06m 2023	06m 2022
-------------------------------------------------------------------------------			Unaudited Unaudited Unaudited Unaudited
Profit for the period		3 555	10 020	5 422	9 827
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods
Exchange differences on translation of foreign operations		-624	576	-1 384	-719
Total other comprehensive income for the period		-624	576	-1 384	-719
Total comprehensive income (loss) for the period		2 931	10 596	4 038	9 108
Attributable to :

Equity holders of the Parent company	2 029	10 294		2 612		8 456
Non-controlling interest	902	302		1 426		652
Consolidated Statement of Cash Flows
------------------------------------------------------------------------------- in thousands of EUR			Note 06m 2023		06m 2022
-------------------------------------------------------------------------------					Unaudited Unaudited
Cash flow from operating activities
Profit for the period				5 422		9 827
Adjustments for:
Depreciation and amortization of non-current assets				1 591		1 670
Share of profit of equity accounted investees				-12		11
Gains/Losses on the sale of property, plant and equipment				-11		1
Net finance income / costs				2 776		-2 000
Provision for impairment losses on trade receivables				-1		0
Provision for inventories				2		3
Income tax expense				2 495		1 602
Change in inventories				1 342		-3 861
Change in trade and other receivables				-1 195		-897
Change in trade and other payables				-125		-347
Income tax paid				-1 482		-939
Net cash flow from operating activities				10 802		5 070
Cash flow from investing activities
Interest received				172		12

Dividends received	11	3
Proceeds from disposal of property, plant and equipment	5	8
Loans granted	-15	-9
Acquisition of property, plant and equipment	-708	-100
Acquisition of intangible assets	-88	-42
Net cash flow from investing activities	-623	-128
Cash flow from financing activities
Payment of principal portion of lease liabilities	-1 118	-1 137
Interest paid on lease liabilities	-367	-246
Dividends paid	-525	0
Net cash flow from financing activities	-2 010	-1 383
Net increase in cash and cash equivalents	8 169	3 559
Cash and cash equivalents at the beginning of period	25 909	17 098
Effect of translation to presentation currency	-3 452	0
Effect of exchange rate fluctuations on cash held	415	-166
Cash and cash equivalents at the end of period	31 041	20 491
AS Silvano Fashion Group

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