Selected Financial Indicators
Summarized selected financial indicators of the Group for 12 months of 2017 compared to 12 months of 2016 and 31.12.2017 compared to 31.12.2016 were as follows:
in thousands of EUR | 12m 2017 | 12m 2016 | Change |
Revenue | 62 348 | 57 892 | 7.7% |
EBITDA | 15 735 | 18 430 | -14.6% |
Net profit for the period | 11 393 | 7 896 | 44.3% |
Net profit attributable equity holders of the Parent company | 10 914 | 8 273 | 31.9% |
Earnings per share (EUR) | 0.30 | 0.22 | 36.4% |
Operating cash flow for the period | 9 178 | 12 807 | -28.3% |
in thousands of EUR | 31.12.2017 | 31.12.2016 | Change |
Total assets | 52 880 | 56 145 | -5.8% |
Total current assets | 41 708 | 42 677 | -2.3% |
Total equity attributable to equity holders of the Parent company | 40 974 | 43 402 | -5.6% |
Cash and cash equivalents | 21 230 | 22 303 | -4.8% |
Margin analysis, % | 12m 2017 | 12m 2016 | Change |
Gross profit | 51.2 | 54.5 | -6.1% |
EBITDA | 25.2 | 31.8 | -20.8% |
Net profit | 18.3 | 13.6 | 34.6% |
Net profit attributable to equity holders of the Parent company | 17.5 | 14.3 | 22.4% |
Financial ratios, % | 31.12.2017 | 31.12.2016 | Change |
ROA | 19.9 | 14.7 | 35.4% |
ROE | 27.1 | 19.6 | 38.3% |
Price to earnings ratio (P/E) | 9.5 | 13.2 | -28.0% |
Current ratio | 4.7 | 4.9 | -4.1% |
Quick ratio | 2.7 | 3.0 | -10.0% |
Financial performance
The Group`s sales amounted to 62 348 thousand EUR during 12 months of 2017, representing a 7.7% increase as compared to the same period of previous year. Overall, wholesales decreased by 0.2% and retail sales increased by 28.9%, measured in EUR.
The Group’s reported gross profit margin during 12 months of 2017 continued to improve decreasing to 51.2%, reported gross margin was 54.5% in the respective period of previous year. Consolidated operating profit for 12 months of 2017 amounted to 13 948 thousand EUR, compared to 16 543 thousand EUR in 12 months of 2016. The consolidated operating profit margin was 22.4% for 12 months of 2017 (28.6% in 12 months of 2016). Consolidated EBITDA for 12 months of 2017 was 15 735 thousand EUR, which is 25.2% in margin terms (18 430 thousand EUR and 31.8% for 12 months of 2016).
Reported consolidated net profit attributable to equity holders of the Parent company for 12 months of 2017 amounted to 10 914 thousand EUR, compared to net profit of 8 273 thousand EUR in 12 months of 2016, net profit margin attributable to equity holders of the Parent company for 12 months of 2017 was 17.5% against 14.3% in 12 months of 2016.
Financial position
As of 31 December 2017 consolidated assets amounted to 52 880 thousand EUR representing an decrease by 5.8% as compared to the position as of 31 December 2016.
Trade and other receivables decreased by 1 452 thousand EUR as compared to 31 December 2016 and amounted to 2 716 thousand EUR as of 31 December 2017. Inventory balance increased by 1 573 thousand EUR and amounted to 17 760 thousand EUR as of 31 December 2017.
Equity attributable to equity holders of the Parent company decreased by 2 428 thousand EUR and amounted to 40 974 thousand EUR as of 31 December 2017. Current liabilities increased by 123 thousand EUR during 12 months of 2017.
Investments
During 12 months of 2017 the Group’s investments into property, plant and equipment totalled 1 226 thousand EUR, in previous year same period 888 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 2017, the Group employed 2 279 employees, including 506 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2016 there were 2 163 employees, including 480 people in retail operations.
Total salaries and related taxes during 12 months of 2017 amounted to 13 994 thousand EUR (11 630 thousand EUR in 12 months of 2016). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 891 thousand EUR.
Decisions made by governing bodies during 12 months 2017
On February 2, 2017 Silvano Fashion Group Extraordinary Meeting of Shareholders decided to change Silvano Fashion Group AS shareholders General Meeting decision from June 29, 2016 of its share buyback program terms and set the new maximum price at which Silvano Fashion Group AS may buy back its own shares within the own share buy-back programme is EUR 3.30 per share.
In connection with expiration of the term of the board member agreement, Kati Kusmin left the company from May 16, 2017. AS Silvano Fashion Group the Management Board continues with one member: Jarek Särgava.
On June 29, 2017 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted following decisions.
- The Meeting approved the 2016 Annual Report.
- The Meeting decided to distribute dividends in the amount 0.20 EUR per share (record date 13.07.2017, payment completed on 19.07.2017).
- The Meeting decided to re-appoint AS PricewaterhouseCoopers as the Group`s auditor for financial year 2017.
- The Meeting decided to cancel the 1 000 000 own shares acquired within the own share buy-back programme as approved by the shareholders of AS Silvano Fashion Group on 29th of June 2016;
- The Meeting decided to extend authority of the supervisory board member Mr. Toomas Tool for the next term of authority starting from 1 July 2017 till 30 June 2022.
- The Meeting decided to continue with the remuneration plan of the supervisory board members as approved by the annual general meeting held on 30 June 2012.
- On October 31, 2017, the decrease of share capital of Silvano Fashion Group AS was registered in the Commercial Register based on the resolutions adopted by the General Meeting of Shareholders of the Company held on June 29, 2017. The new registered share capital of the Company is 10 800 000 euros, which is divided into 36 000 000 ordinary shares with nominal value of 0.30 euros per share.
- Consolidated Statement of Financial Position
-
in thousands of EUR Note 31.12.2017 31.12.2016 ASSETS Current assets Cash and cash equivalents 21 230 22 303 Current loans granted 2 19 Trade and other receivables 2 2 716 4 168 Inventories 3 17 760 16 187 Total current assets 41 708 42 677 Non-current assets Long-term receivables 255 21 Investments in associates 55 19 Available-for-sale investments 320 369 Deferred tax asset 900 1 012 Intangible assets 217 291 Investment property 920 1 091 Property, plant and equipment 4 8 505 10 665 Total non-current assets 11 172 13 468 TOTAL ASSETS 52 880 56 145 LIABILITIES AND EQUITY Current liabilities Trade and other payables 5 8 025 6 894 Tax liabilities 849 1 857 Total current liabilities 8 874 8 751 Non-current liabilities Deferred tax liability 10 37 Long-term provisions 52 0 Total non-current liabilities 62 37 Total liabilities 8 936 8 788 Equity Share capital 6 10 800 11 100 Share premium 8 567 10 787 Treasury shares 6 0 -998 Statutory reserve capital 1 306 1 306 Revaluation reserve 710 710 Unrealised exchange rate differences -15 588 -10 968 Retained earnings 35 179 31 465 Total equity attributable to equity holders of the Parent company 40 974 43 402 Non-controlling interest 2 970 3 955 Total equity 43 944 47 357 TOTAL EQUITY AND LIABILITIES 52 880 56 145 Consolidated Income Statement
in thousands of EUR Note 4Q 2017 4Q 2016 12m 2017 12m 2016 Revenue 8 12 283 12 250 62 348 57 892 Cost of goods sold -5 589 -5 987 -30 435 -26 333 Gross Profit 6 694 6 263 31 913 31 559 Distribution expenses -2 947 -2 743 -12 081 -9 393 Administrative expenses -1 197 -1 365 -4 937 -4 846 Other operating income 93 97 323 347 Other operating expenses -458 -335 -1 270 -1 124 Operating profit 2 185 1 917 13 948 16 543 Currency exchange income/(expense) 89 -2 574 1 221 -5 094 Other finance income/(expenses) 29 5 176 149 Net financial income 118 -2 569 1 397 -4 945 Profit (loss) from associates using equity method 10 22 39 22 Profit before tax 2 313 -630 15 384 11 620 Income tax expense -646 -855 -3 991 -3 724 Profit for the period 1 667 -1 485 11 393 7 896 Attributable to : Equity holders of the Parent company 1 605 -844 10 914 8 273 Non-controlling interest 62 -641 479 -377 Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) 7 0,04 -0,02 0,30 0,22 Consolidated Statement of Comprehensive Income
in thousands of EUR Note 4Q 2017 4Q 2016 12m 2017 12m 2016 Profit for the period 1 667 -1 485 11 393 7 896 Other comprehensive income for the period Exchange rate differences attributable to foreign operations 43 4 685 -5 183 5 486 Revaluation of PPE at FV 0 1 065 0 1 065 Total other comprehensive income for the period 43 5 750 -5 183 6 551 Attributable to : Equity holders of the Parent company 112 5 053 -4 620 5 981 Non-controlling interest -69 697 -563 571 Total comprehensive income for the period 1 710 4 265 6 210 14 447 Attributable to : Equity holders of the Parent company 1 717 4 209 6 294 14 253 Non-controlling interest -7 56 -84 194 Consolidated Statement of Cash Flows
in thousands of EUR 12m 2017 12m 2016 Cash flow from operating activities Profit for the period 11 393 7 896 Adjustments for: Depreciation and amortization of non-current assets 1 787 1 887 Share of profit of equity accounted investees -39 -22 (Gains)/ losses on the sale of PPE and IA 7 -32 Net finance income / costs -1 397 4 945 Provision for impairment losses on trade receivables -19 4 Provision for long-term benefits 52 0 Income tax expense 3 991 3 724 Change in inventories -1 573 -717 Change in trade and other receivables 1 081 43 Change in trade and other payables -1 709 -641 Income tax paid -4 396 -4 280 Net cash from operating activities 9 178 12 807 Cash flow from investing activities Interest received 127 123 Dividends received 1 3 Proceeds from disposal of property, plant and equipment 463 36 Proceeds from repayments of loans granted -17 0 Acquisition of property, plant and equipment -1 226 -888 Acquisition of intangible assets -118 -106 Acquisition of shares of a subsidiary 0 -3 Net cash used in/from investing activities -770 -835 Cash flow from financing activities Dividends paid -8 101 -9 220 Acquisition of own shares -1 522 -1 846 Net cash used in/ from financing activities -9 623 -11 066 Increase in cash and cash equivalents -1 215 906 Cash and cash equivalents at the beginning of period 22 303 21 274 Effect of exchange rate fluctuations on cash held 142 123 Cash and cash equivalents at the end of period 21 230 22 303
Jarek Särgava
AS Silvano Fashion Group
Member of the Board
Phone: +372 6845 000
E-mail: info@silvanofashion.com