Selected Financial Indicators
Summarized selected financial indicators of the Group for Q1 of 2021 compared to Q1 of 2020 and 31.03.2021 compared to 31.12.2020 were as follows:
| in thousands of EUR | 1Q 2021 | 1Q 2020 | Change |
| Revenue | 10 265 | 11 546 | -11.1% |
| Gross Profit | 6 242 | 7 146 | -12.7% |
| Operating profit | 3 285 | 3 152 | 4.2% |
| EBITDA | 4 080 | 4 248 | -4.0% |
| Net profit for the period | 2 564 | -1 440 | 278.1% |
| Net profit attributable equity holders of the Parent company | 2 261 | -1 406 | 260.8% |
| Earnings per share (EUR) | 0,06 | -0,04 | 250.0% |
| Operating cash flow for the period | 3 589 | 1 876 | 91.3% |
| in thousands of EUR | 31.03.2021 | 31.12.2020 | Change |
| Total assets | 46 279 | 42 256 | 9.5% |
| Total current assets | 32 959 | 29 597 | 11.4% |
| Total equity attributable to equity holders of the Parent company | 26 668 | 24 504 | 8.8% |
| Cash and cash equivalents | 11 024 | 8 980 | 22.8% |
| Margin analysis, % | 1Q 2021 | 1Q 2020 | Change |
| Gross profit | 60,8 | 61,9 | -1.8% |
| Operating profit | 32,0 | 27,3 | 17.2% |
| EBITDA | 39,7 | 36,8 | 7.9% |
| Net profit | 25,0 | -12,5 | 300.0% |
| Net profit attributable to equity holders of the Parent company | 22,0 | -12,2 | 280.3% |
| Financial ratios, % | 31.03.2021 | 31.12.2020 | Change |
| ROA | 13,9 | 3,2 | 334.4% |
| ROE | 24,0 | 5,6 | 328.6% |
| Price to earnings ratio (P/E) | 9,5 | 41,7 | -77.2% |
| Current ratio | 3,2 | 3,4 | -5.9% |
| Quick ratio | 1,3 | 1,3 | -0.0% |
Financial performance
The Group`s sales amounted to 10 265 thousand EUR during Q1 of 2021, representing a 11.1% decrease as compared to the same period of previous year. Overall, retail decreased by 18.6%, measured in EUR.
The Group’s gross profit during Q1 of 2021 amounted to 6 242 thousand EUR and decrease by 12.7% compared to previous year. The gross margin during Q1 of 2021 decreased to 60.8%, from 61.9% in the respective period of previous year. The cost of sold goods decreased by 8.6%.
Consolidated operating profit for Q1 of 2021 amounted to 3 285 thousand EUR, compared to 3 152 thousand EUR in Q1 of 2020, increase by 4.2%. The consolidated operating profit margin was 32.0% for Q1 of 2021 (27.3% in Q1 of 2020). Consolidated EBITDA for Q1 of 2021 decreased by 4.0% and amounted to 4 080 thousand EUR, which is 39.7% in margin terms (4 248 thousand EUR and 36.8% for Q1 of 2020).
Reported consolidated net profit attributable to equity holders of the Parent company for Q1 of 2021 amounted to 2 261 thousand EUR, compared to net loss of – 1 406 thousand EUR in Q1 of 2020, net profit (loss) margin attributable to equity holders of the Parent company for Q1 of 2021 was 22.0% against -12.2% in Q1 of 2020.
Financial position
As of 31 March 2021 consolidated assets amounted to 46 279 thousand EUR representing increase by 9.5% as compared to the position as of 31 December 2020.
Trade and other receivables increased by 194 thousand EUR as compared to 31 December 2020 and amounted to 2 282 thousand EUR as of 31 March 2021. Inventory balance increased by 1 124 thousand EUR and amounted to 19 651 thousand EUR as of 31 March 2021.
Equity attributable to equity holders of the Parent company increased by 2 164 thousand EUR and amounted to 26 668 thousand EUR as of 31 March 2021. Current liabilities increased by 1 479 thousand EUR during Q1 of 2021.
Investments
During Q1 of 2021 the Group’s investments into property, plant and equipment totalled 78 thousand EUR, in previous year same period 96 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 2021, the Group employed 1 734 employees, including 510 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 Q1 of 2021 amounted to 2 359 thousand EUR (3 145 thousand EUR in Q1 of 2020). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 148 thousand EUR.
Consolidated Statement of Financial Position
| in thousands of EUR | Note | 31.03.2021 | 31.12.2020 |
| Unaudited | Audited | ||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 2 | 11 024 | 8 980 |
| Current loans granted | 2 | 2 | |
| Trade and other receivables | 3 | 2 282 | 2 088 |
| Inventories | 4 | 19 651 | 18 527 |
| Total current assets | 32 959 | 29 597 | |
| Non-current assets | |||
| Long-term receivables | 250 | 249 | |
| Investments in associates | 53 | 57 | |
| Investments in other shares | 245 | 238 | |
| Deferred tax asset | 1 071 | 1 032 | |
| Intangible assets | 426 | 374 | |
| Investment property | 1 039 | 1 018 | |
| Property, plant and equipment | 5 | 10 236 | 9 691 |
| Total non-current assets | 13 320 | 12 659 | |
| TOTAL ASSETS | 46 279 | 42 256 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Short-term borrowings | 0 | 400 | |
| Short-term lease liabilities | 1 881 | 2 121 | |
| Trade and other payables | 6 | 6 363 | 5 583 |
| Goverment Grants | 52 | 0 | |
| Tax liabilities | 1 962 | 675 | |
| Total current liabilities | 10 258 | 8 779 | |
| Non-current liabilities | |||
| Deferred tax liability | 531 | 500 | |
| Long-term borrowings | 0 | 400 | |
| Long-term lease obligations | 5 518 | 4 707 | |
| Long-term provisions | 54 | 52 | |
| Total non-current liabilities | 6 103 | 5 659 | |
| Total liabilities | 16 361 | 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 | 355 | 355 | |
| Unrealised exchange rate differences | -18 961 | -18 864 | |
| Retained earnings | 35 401 | 33 140 | |
| Total equity attributable to equity holders of the Parent company | 26 668 | 24 504 | |
| Non-controlling interest | 3 250 | 3 314 | |
| Total equity | 29 918 | 27 818 | |
| TOTAL EQUITY AND LIABILITIES | 46 279 | 42 256 |
Consolidated Income Statement
| in thousands of EUR | Note | Q1 2021 | Q1 2020 |
| Unaudited | Unaudited | ||
| Revenue from contracts with customers | 9 | 10 265 | 11 546 |
| Cost of goods sold | -4 023 | -4 400 | |
| Gross Profit | 6 242 | 7 146 | |
| Distribution expenses | -2 110 | -2 734 | |
| Administrative expenses | -885 | -1 122 | |
| Other operating income | 181 | 59 | |
| Other operating expenses | -143 | -197 | |
| Operating profit | 3 285 | 3 152 | |
| Currency exchange income/(expense) | 455 | -4 730 | |
| Other finance income/(expenses) | -110 | -125 | |
| Net financial income/(expenses) | 345 | -4 855 | |
| Profit (loss) from associates using equity method | -6 | 0 | |
| Profit before tax | 3 624 | -1 703 | |
| Income tax expense | -1 060 | 263 | |
| Profit for the period | 2 564 | -1 440 | |
| Attributable to : | |||
| Equity holders of the Parent company | 2 261 | -1 406 | |
| Non-controlling interest | 303 | -34 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 0.06 | -0.04 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | Q1 2021 | Q1 2020 |
| Unaudited | Unaudited | ||
| Profit for the period | 2 564 | -1 440 | |
| Other comprehensive income for the period | |||
| Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods : | |||
| Exchange differences on translation of foreign operations | 229 | -2 225 | |
| Total other comprehensive income for the period | 229 | -2 225 | |
| Total comprehensive income (loss) for the period | 2 793 | -3 665 | |
| Attributable to : | |||
| Equity holders of the Parent company | 2 164 | -3 983 | |
| Non-controlling interest | 629 | 318 | |
Consolidated Statement of Cash Flows
| in thousands of EUR | Note | 1Q 2021 | 1Q 2020 |
| Unaudited | Unaudited | ||
| Cash flow from operating activities | |||
| Profit for the period | 2 564 | -1 440 | |
| Adjustments for: | |||
| Depreciation and amortization of non-current assets | 795 | 1 096 | |
| Share of profit of equity accounted investees | 6 | 0 | |
| (Gains)/ losses on the sale of property, plant and equipment | 0 | 2 | |
| Net finance income / costs | -604 | 305 | |
| Provision for inventories | 3 | 1 | |
| Receipt of government grants | 150 | 0 | |
| Movements in provisions and government grants | -98 | 0 | |
| Income tax expense | 1 060 | -263 | |
| Change in inventories | -1 124 | 2 137 | |
| Change in trade and other receivables | -208 | 243 | |
| Change in trade and other payables | 1 192 | -86 | |
| Interest paid | -2 | 0 | |
| Income tax paid | -145 | -119 | |
| Net cash from operating activities | 3 589 | 1 876 | |
| Cash flow from investing activities | |||
| Interest received | 4 | 5 | |
| Proceeds from disposal of property, plant and equipment | 0 | 28 | |
| Acquisition of property, plant and equipment | -78 | -96 | |
| Acquisition of intangible assets | -48 | -50 | |
| Net cash flow from investing activities | -122 | -113 | |
| Cash flow from financing activities | |||
| Acquisition of non-controlling interests | 0 | -26 | |
| Repayment from borrowings | -800 | 0 | |
| Payment of principal portion of lease liabilities | -530 | -682 | |
| Interest paid on finance lease | -114 | -136 | |
| Net cash flow from financing activities | -1 444 | -844 | |
| Increase in cash and cash equivalents | 2 023 | 919 | |
| Cash and cash equivalents at the beginning of period | 8 980 | 5 152 | |
| Effect of exchange rate fluctuations on cash held | 21 | 279 | |
| Cash and cash equivalents at the end of period | 11 024 | 6 350 |
Jarek Särgava
AS Silvano Fashion Group
Member of the Board
Phone: +372 6845 000
Email: info@silvanofashon.com
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