Selected Financial Indicators

Summarized selected financial indicators of the Group for 9 months of 2018 compared to 9 months of 2017 and 30.09.2018 compared to 31.12.2017 were as follows:

in thousands of EUR 9m 2018 9m 2017 Change
Revenue 49 835 50 065 -0.5%
EBITDA 17 113 13 149 30.1%
Net profit for the period 10 767 9 726 10.7%
Net profit attributable equity holders of the Parent company 9 858 9 309 5.9%
Earnings per share (EUR) 0.27 0.26 3.8%
Operating cash flow for the period 10 752 9 661 11.3%
    
in thousands of EUR 30.09.2018 31.12.2017 Change
Total assets 43 609 52 880 -17.5%
Total current assets 33 203 41 708 -20.4%
Total equity attributable to equity holders of the Parent company 32 985 40 974 -19.5%
Cash and cash equivalents 13 098 21 230 -38.3%
    
Margin analysis, % 9m 2018 9m 2017 Change
Gross profit 57.1 50.4 13.3%
EBITDA 34.3 26.3 30.4%
Net profit 21.6 19.4 11.3%
Net profit attributable to equity holders of the Parent company 19.8 18.6 6.5%
    
Financial ratios, % 30.09.2018 31.12.2017 Change
ROA 23.4 19.9 17.6%
ROE 33.2 27.1 22.5%
Price to earnings ratio (P/E) 8.3 9.5 -12.6%
Current ratio 4.6 4.7 -2.1%
Quick ratio 2.3 2.7 -14.8%

Financial performance

The Group`s revenue amounted to 49 835 thousand EUR for 9 months of 2018, representing a 0.5% decrease as compared to the same period of previous year. Overall, wholesales decreased by 1.0% measured in EUR.

The Group’s reported gross profit margin for 9 months of 2018 continued to improve increasing to 57.1%, reported gross margin was 50.4% in the respective period of previous year. Consolidated operating profit for 9 months of 2018 amounted to 15 926 thousand EUR, compared to 11 763 thousand EUR in 9 months of 2017. The consolidated operating profit margin was 32.0% for 9 months of 2018 (23.5% in 9 months of 2017). Consolidated EBITDA for 9 months of 2018 was 17 113 thousand EUR, which is 34.3% in margin terms (13 149 thousand EUR and 26.3% for 9 months of 2017).

Reported consolidated net profit attributable to equity holders of the Parent company for 9 months of 2018 amounted to 9 858 thousand EUR, compared to net profit of 9 309 thousand EUR in 9 months of 2017, net profit margin attributable to equity holders of the Parent company for 9 months of 2018 was 19.8% against 18.6% in 9 months of 2017.

Financial position

As of 30 September 2018 consolidated assets amounted to 43 609 thousand EUR representing a decrease of 17.5% as compared to the position as of 31 December 2017.

Trade and other receivables increased by 776 thousand EUR as compared to 31 December 2017 and amounted to    3 492 thousand EUR as of 30 September 2018. Inventory balance decreased by 1 164 thousand EUR and amounted to 16 596 thousand EUR as of 30 September 2018.

Equity attributable to equity holders of the Parent company decreased by 7 989 thousand EUR and amounted to      32 985 thousand EUR as of 30 September 2018. Current liabilities decreased by 1 667 thousand EUR for 9 months of 2018.

Investments

During 9 months of 2018 the Group’s investments into property, plant and equipment totalled 497 thousand EUR, in previous year same period 590 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 September 2018, the Group employed 2 098 employees, including 503 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2017 there were 2 279 employees, including 506 people in retail operations.

Total salaries and related taxes for 9 months of 2018 amounted to 9 361 thousand EUR (10 730 thousand EUR in 9 months of 2017). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 594 thousand EUR.

Decisions made by governing bodies 9 months 2018

On January 12, 2018 Silvano Fashion Group Extraordinary Meeting of Shareholders decided to distribute additional dividends in the amount 0.30 EUR per share (record date 25.01.2018, payment completed on 29.01.2018).

On June 28, 2018 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions.

  • The Meeting approved the 2017 Annual Report.
  • The Meeting decided to distribute dividends in the amount 0.20 EUR per share (record date 16.07.2018, payment completed on 24.07.2018).
  • The Meeting decided to select audit company Ernst&Young Baltic AS as the auditor of AS Silvano Fashion Group 2018 and 2019 business activities.
  • The Meeting decided to extend authority of the Supervisory Board member Mr. Mart Mutso for the  
     next term of authority starting from 1 July 2018 till 30 June 2023.
  • The Meeting decided to amend the first sentence of Section 2.1 of the Articles of Association of the Company and approve the sentence of Section 2.1 in the following wording:the minimum amount of the share capital of the Company shall be EUR three million six hundred thousand(3,600,000) and the maximum amount of the share capital shall be EUR fourteen million four hundred thousand (14,400,000) and to amend the second sentence of Section 2.2 of the Articles of Association of the Company and approve the second sentence of Section 2.2 in the following wording:the nominal value of each share is 0.10 euros.
  • The Meeting decided to reduce the share capital of the Company by reducing the nominal value of the shares  by 0.20 EUR per share (record date 16.07.2018, to be paid out after the registration of the capital reduction is completed) and amend the Articles of Association accordingly.

Consolidated Statement of Financial Position

in thousands of EUR Note 30.09.2018 31.12.2017
ASSETS    
Current assets    
Cash and cash equivalents   13 098 21 230
Current loans granted   17 2
Trade and other receivables 2 3 492 2 716
Inventories 3 16 596 17 760
Total current assets   33 203 41 708
    
Non-current assets    
Long-term receivables   254 255
Investments in associates   66 55
Available-for-sale investments   308 320
Deferred tax asset   1 144 900
Intangible assets   277 217
Investment property   864 920
Property, plant and equipment 4 7 493 8 505
Total non-current assets   10 406 11 172
TOTAL ASSETS   43 609 52 880
      
LIABILITIES AND EQUITY    
Current liabilities    
Trade and other payables 5 5 579 8 025
Tax liabilities   1 628 849
Total current liabilities   7 207 8 874
    
Non-current liabilities    
Deferred tax liability   9 10
Long-term provisions   50 52
Total non-current liabilities   59 62
Total liabilities   7 266 8 936
    
Equity    
Share capital 6 10 800 10 800
Share premium   8 567 8 567
Statutory reserve capital   1 306 1 306
Revaluation reserve   710 710
Unrealised exchange rate differences   -15 435 -15 588
Retained earnings   27 037 35 179
Total equity attributable to equity holders of the Parent company   32 985 40 974
Non-controlling interest   3 358 2 970
Total equity   36 343 43 944
TOTAL EQUITY AND LIABILITIES   43 609 52 880

Consolidated Income Statement

in thousands of EUR Note 3Q 2018 3Q 2017 9m 2018 9m 2017
Revenue 8 16 302 17 255 49 835 50 065
Cost of goods sold   -7 205 -8 283 -21 367 -24 846
Gross Profit   9 097 8 972 28 468 25 219
          
Distribution expenses   -3 028 -2 975 -8 956 -9 134
Administrative expenses   -1 055 -1 181 -3 178 -3 740
Other operating income   71 75 197 230
Other operating expenses   -179 -250 -605 -812
Operating profit   4 906 4 641 15 926 11 763
          
Currency exchange income/(expense)   -1 679 257 -1 920 1 132
Other finance income/(expenses)   15 41 55 147
Net financial income   -1 664 298 -1 865 1 279
      
Profit (loss) from associates using equity method   6 17 18 29
Profit before tax 3 248 4 956 14 079 13 071
      
Income tax expense   -899 -932 -3 312 -3 345
           
Profit for the period   2 349 4 024 10 767 9 726
Attributable to :        
  Equity holders of the Parent company   2 201 3 875 9 858 9 309
  Non-controlling interest   148 149 909 417
          
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) 7 0.06 0.11 0.27 0.26

Consolidated Statement of Comprehensive Income

in thousands of EUR Note 3Q 2018 3Q 2017 9m 2018 9m 2017
      
Profit for the period   2 349 4 024 10 767 9 726
          
Exchange rate differences attributable to foreign operations   -197 -1 911 8 -5 226
Attributable to :          
  Equity holders of the Parent company   28 -1 730 153 -4 732
  Non-controlling interest   -225 -181 -145 -494
          
Total comprehensive income for the period   2 152 2 113 10 775 4 500
Attributable to :          
  Equity holders of the Parent company   2 229 2 145 10 011 4 577
  Non-controlling interest   -77 -32 764 -77

Consolidated Statement of Cash Flows

Consolidated Statement of Cash Flows   
in thousands of EUR 9m 2018 9m 2017
Cash flow from operating activities   
Profit for the period 10 767 9 726
Adjustments for:   
  Depreciation and amortization of non-current assets 1 187 1 386
  Share of profit of equity accounted investees -18 -29
  (Gains)/ losses on the sale of PPE and IA 22 6
  Net finance income / costs 1 865 -1 279
  Provision for impairment losses on trade receivables 1 0
  Provision for long-term benefits -2 0
Income tax expense 3 312 3 345
Change in inventories 1 164 1 833
Change in trade and other receivables -790 941
Change in trade and other payables - 4 032 -2 977
Income tax paid -2 724 -3 291
Net cash from operating activities 10 752 9 661
   
Cash flow from investing activities   
Interest received 26 110
Dividends received 3 1
Proceeds from disposal of property, plant and equipment 12 411
Acquisition of property, plant and equipment -497 -590
Acquisition of intangible assets -144 -84
Net cash used in/from investing activities -600 -152
   
Cash flow from financing activities   
Dividends paid -18 376 -8 098
Acquisition of own shares 0 -1 522
Net cash used in/ from financing activities -18 376 -9 620
   
Increase in cash and cash equivalents -8 224 -111
Cash and cash equivalents at the beginning of period 21 230 22 303
Effect of exchange rate fluctuations on cash held 92 -102
Cash and cash equivalents at the end of period 13 098 22 090

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

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