Selected Financial Indicators

Summarized selected financial indicators of the Group for Q1 of 2019 compared to Q1 of 2018 and 31.03.2019 compared to 31.12.2018 were as follows:

in thousands of EUR1Q 20191Q 2018Change
Revenue13 82016 157-14.5%
EBITDA3 1585 570-43.3%
Net profit for the period3 0804 062-24.2%
Net profit attributable equity holders of the Parent company3 0983 695-16.2%
Earnings per share (EUR)0,090,10-10.0%
Operating cash flow for the period2 5854 874-47.0%
    
in thousands of EUR31.03.201931.12.2018Change
Total assets51 41145 50413.0%
Total current assets32 30934 904-7.4%
Total equity attributable to equity holders of the Parent company30 27727 46210.3%
Cash and cash equivalents8 35013 603-38.6%
    
Margin analysis, %1Q 20191Q 2018Change
Gross profit46.757.6-18.9%
EBITDA22.934.5-33.6%
Net profit22.325.1-11.2%
Net profit attributable to equity holders of the Parent company22.422.9-2.2%
    
Financial ratios, %31.03.201931.12.2018Change
ROA15.622.9-31.9%
ROE24.634.7-29.1%
Price to earnings ratio (P/E)12.67.763.6%
Current ratio2.82.416.7%
Quick ratio1.21.20.0%

Financial performance

The Group`s sales amounted to 13 820 thousand EUR during Q1 of 2019, representing a 14.5% decrease as compared to the same period of previous year. Overall, wholesales decreased by 18.3%, measured in EUR.

The Group’s gross profit during Q1 of 2019 amounted to 6 455 thousand EUR and decrease by 30.7% compared to previous year. The gross margin during Q1 of 2019 decreased to 46.7%, from 57.6% in the respective period of previous year. The cost of sold goods increased by 7.5%.

Consolidated operating profit for Q1 of 2019 amounted to 2 322 thousand EUR, compared to 5 173 thousand EUR in Q1 of 2018, decrease 55.1%. The consolidated operating profit margin was 16.8% for Q1 of 2019 (32.0% in Q1 of 2018). Consolidated EBITDA for Q1 of 2019 decreased by 43.3% and amounted to 3 158 thousand EUR, which is 22.9% in margin terms (5 570 thousand EUR and 34.5% for Q1 of 2018).

Reported consolidated net profit attributable to equity holders of the Parent company for Q1 of 2019 amounted to    3 098 thousand EUR, compared to net profit of 3 695 thousand EUR in Q1 of 2018, net profit margin attributable to equity holders of the Parent company for Q1 of 2019 was 22.4% against 22.9% in Q1 of 2018.

Financial position

As of 31 March 2019 consolidated assets amounted to 51 411 thousand EUR representing an increase by 13.0% as compared to the position as of 31 December 2018.

Trade and other receivables increased by 1 366 thousand EUR as compared to 31 December 2018 and amounted to 5 014 thousand EUR as of 31 March 2019. Inventory balance increased by 1 298 thousand EUR and amounted to   18 943 thousand EUR as of 31 March 2019.

Equity attributable to equity holders of the Parent company increased by 2 815 thousand EUR and amounted to        30 277 thousand EUR as of 31 March 2019. Current liabilities decreased by 3 272 thousand EUR during Q1 of 2019.

Investments

Q1 of 2019 the Group’s investments into property, plant and equipment totalled 562 thousand EUR, in previous year same period 119 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 March 2019, the Group employed 2 025 employees, including 502 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2018 there were 2 073 employees, including 500 people in retail operations.

Total salaries and related taxes during Q1 of 2019 amounted to 3 350 thousand EUR (3 238 thousand EUR in Q1 of 2018). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 207 thousand EUR.

Decisions made by governing bodies after Q1 2019

On May 03, 2019 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions. 

  • The Meeting approved the 2018 Annual Report.
  • The Meeting decided to distribute dividends in the amount 0.20 EUR per share (record date 16.05.2019).

To pay to the entitled shareholders of AS Silvano Fashion Group as dividends EUR 0.20 per share as follows:
-       to pay dividends EUR 0.10 per share by 20 May 2019 latest ;

  •  to pay dividends EUR 0.10 per share by 10 October 2019 latest;
  • The Meeting decided to recall Mr. Ants Susi from the Supervisory Board of SFG. The authorities of Mr. Ants Susi as the member of the Supervisory Board of SFG shall be deemed to have expired as of May 3, 2019.
  • The Meeting decided to elect Triin Nellis as the new member of the Supervisory Board of SFG, whose term of office shall start on May 3, 2019 and expire on June 30, 2021.
  • The meeting decided to amend the remuneration policy of the supervisory board members, approved by the shareholders’ meeting on June 30, 2012 as follows:

   -    to assign monthly gross remuneration of 5,000 euros for the chairman of the supervisory board;
   -    to assign monthly gross remuneration of 2,000 euros for the supervisory board;

  • The meeting decided to amend section 2.2. of the Articles of Association and reinstate it in the following wording: “All shares of the Company are registered shares. The nominal value of a registered share is 0,20 (twenty) cents. A share grants 1 (one) vote at the General Meeting. “;
  • The meeting decided:

  -   The share capital of SFG shall be increased by 3,600,000 EUR from 3,600,000 EUR to 7 200 000 EUR by   the increase of the nominal value of existing shares by 0,10 EUR per share, i.e. from 0.10 EUR to 0.20 EUR;  
  -    The share capital of SFG shall be increased via a bonus issue on the account of the share premium. The bonus issue shall be carried out on the basis of the 2018 annual report, that has been approved by the shareholders together with the decision on the distribution of profit. The bonus issue shall be carried out on the account of the share premium in the amount of 3,600,000 EUR. After the bonus issue, the new size of the share capital shall be 7,200,000 EUR that is divided into 36,000,000 shares with the nominal value of 0,20 EUR each share;
-  The list of shareholders who shall be entitled to participate in the bonus issue shall be fixed as at 17 May 2019 as at the end of the working day of the settlement system. The ex‑date is 16 May 2019; as of this date a person who acquired shares is not entitled to participate in the bonus issue. The increase of the nominal value of the shares shall take place immediately after the registration of the share capital increase with the Commercial Register.

Consolidated Statement of Financial Position

in thousands of EURNote31.03.201931.12.2018
ASSETS   
Current assets   
Cash and cash equivalents 8 35013 603
Current loans granted 28
Trade and other receivables25 0143 648
Inventories318 94317 645
Total current assets 32 30934 904
    
Non-current assets   
Long-term receivables 321292
Investments in associates 7064
Available-for-sale investments 316305
Deferred tax asset 1 4441 433
Intangible assets 324261
Investment property 873851
Property, plant and equipment415 7547 394
Total non-current assets 19 10210 600
TOTAL ASSETS 51 41145 504
    
LIABILITIES AND EQUITY   
Current liabilities   
Short-term finance lease obligations 1 3770
Trade and other payables57 95014 163
Tax liabilities 2 226662
Total current liabilities 11 55314 825
    
Non-current liabilities   
Deferred tax liability 67
Long-term finance lease obligations 6 5800
Long-term provisions 6361
Total non-current liabilities 6 64968
Total liabilities 18 20214 893
    
Equity   
Share capital63 6003 600
Share premium 8 5678 567
Statutory reserve capital 1 3061 306
Revaluation reserve 355355
Unrealised exchange rate differences -14 979-14 696
Retained earnings 31 42828 330
Total equity attributable to equity holders of the Parent company 30 27727 462
Non-controlling interest 2 9323 149
Total equity 33 20930 611
TOTAL EQUITY AND LIABILITIES 51 41145 504

Consolidated Income Statement

in thousands of EURNote1Q 20191Q 2018
Revenue813 82016 157
Cost of goods sold -7 365-6 849
Gross Profit 6 4559 308
    
Distribution expenses -2 905-2 938
Administrative expenses -1 092-1 065
Other operating income 6659
Other operating expenses -202-191
Operating profit 2 3225 173
    
Currency exchange income/(expense) 2 031-40
Other finance income/(expenses) -11024
Net financial income 1 921-16
    
Profit (loss) from associates using equity method 18
Profit before tax 4 2445 165
    
Income tax expense -1 164-1 103
    
Profit for the period 3 0804 062
Attributable to :   
  Equity holders of the Parent company 3 0983 695
  Non-controlling interest -18367
    
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR)70,090,10

Consolidated Statement of Comprehensive Income

in thousands of EURNote1Q 20191Q 2018
    
Profit for the period 3 0804 062
    
Exchange rate differences attributable to foreign operations -171-672
Attributable to :   
  Equity holders of the Parent company -283-617
  Non-controlling interest 112-55
    
Total comprehensive income for the period 2 9093 390
Attributable to :   
  Equity holders of the Parent company 2 8153 078
  Non-controlling interest 94312

Consolidated Statement of Cash Flows

in thousands of EUR1Q 20191Q 2018
Cash flow from operating activities  
Profit for the period3 0804 062
Adjustments for:  
  Depreciation and amortization of non-current assets836397
  Share of profit of equity accounted investees-1-8
  (Gains)/ losses on the sale of PPE and IA110
  Net finance income / costs-1 92116
  Provision for long-term benefits2-1
Income tax expense1 1641 103
Change in inventories-1 298-603
Change in trade and other receivables-1 484-1 027
Change in trade and other payables1 6351 195
Change in finance lease obligations1 3770
Income tax paid -159-260
Net cash from operating activities3 2424 874
   
Cash flow from investing activities  
Interest received314
Proceeds from disposal of property, plant and equipment360
Proceeds from repayments of loans granted60
Acquisition of property, plant and equipment-562-119
Acquisition of intangible assets-75-36
Net cash used in/from investing activities-592-141
   
Cash flow from financing activities  
Repayment of finance lease-6570
Dividends paid0-10 812
Reduction of share capital-7 2000
Net cash used in/ from financing activities-7 857-10 812
   
Change in cash and cash equivalents-5 207-6 079
Cash and cash equivalents at the beginning of period13 60321 230
Effect of exchange rate fluctuations on cash held-468
Cash and cash equivalents at the end of period8 35015 159

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

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