AS Silvano Fashion Group
Consolidated Interim Financial Report
for Q1 of 2024 (unaudited)
(translation of the Estonian original) *
Beginning of the reporting period | 1 January 2024 |
End of the reporting period | 31 March 2024 |
Business name | AS Silvano Fashion Group |
Registration number | 10175491 |
Legal address | Tulika 17, 10613 Tallinn |
Telephone | +372 684 5000 |
Fax | +372 684 5300 |
info@silvanofashion.com | |
Website | www.silvanofashion.com |
Core activities | Design, manufacturing and distribution of women's |
lingerie | |
Auditor | Ernst & Young Baltic AS |
- This version of our report is a translation from the original, which was prepared in Estonian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.
AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2024 | |
Contents | |
Management Report | 3 |
Declaration of the Management Board | 10 |
Consolidated Statement of Financial Position | 11 |
Consolidated Income Statement | 12 |
Consolidated Statement of Comprehensive Income | 12 |
Consolidated Statement of Cash Flows | 13 |
Consolidated Statement of Changes in Equity | 14 |
Notes to the Interim Report | 15 |
Note 1 Summary of significant accounting policies | 15 |
Note 2 Cash and cash equivalents | 15 |
Note 3 Trade and other receivables | 16 |
Note 4 Inventories | 16 |
Note 5 Property, plant and equipment | 17 |
Note 6 Trade and other payables | 18 |
Note 7 Equity | 18 |
Note 8 Earnings per share | 18 |
Note 9 Revenue from contracts with customers | 18 |
Note 10 Transactions with related parties | 19 |
Note 11 Operating segments | 19 |
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2024
Management Report
General information about AS Silvano Fashion Group
AS Silvano Fashion Group (hereinafter "the Group") is a holding company that controls group of entities involved in the design, manufacturing, wholesale, franchise and retail sales of Ladies lingerie. The Group's revenue is generated by sales of Milavitsa, Alisee, Aveline, Lauma Lingerie, Laumelle and Hidalgo brand products through wholesale channels, franchised sales and own retail operated via Milavitsa and Lauma Lingerie retail stores. Key sales markets for the Group are Russia, Belarus, other CIS countries and the Baltics.
The parent company of the Group is AS Silvano Fashion Group (hereinafter "the Parent company"), which is domiciled in Estonia. AS Silvano Fashion Group registered address is Tulika 17, Tallinn, Estonia.
The shares of the Group are listed on the Nasdaq OMX Tallinn Stock Exchange and on the Warsaw Stock Exchange. As of 31 March 2024 the Group employed 1 650 people (as of 31 December 2023: 1 626 people).
The Group comprises of the following entities:
Ownership | Ownership | |||
interest | interest | |||
Location | Main activity | 31.03.2024 | 31.12.2023 | |
Parent company | ||||
Silvano Fashion Group AS | Estonia | Holding | ||
Entities belonging to the | ||||
Silvano Fashion Group: | ||||
CJSC Silvano Fashion* | Russia | Retail and wholesale | 100% | 100% |
LLC Silvano Fashion | Belarus | Retail and wholesale | 100% | 100% |
LLC Silvano Fashion | Ukraine | Wholesale | 100% | 100% |
Silvano Fashion SIA | Latvia | Retail | 100% | 100% |
CJSC Milavitsa | Belarus | Manufacturing and wholesale | 85.02% | 85.02% |
JSC Sewing firm Yunona | Belarus | Manufacturing and wholesale | 58.33% | 58.33% |
LLC Gimil | Belarus | Manufacturing and wholesale | 100% | 100% |
JSC Lauma Lingerie | Latvia | Manufacturing and wholesale | 100% | 100% |
Alisee SARL | Monaco | Holding | 99% | 99% |
JCS Metropolitan Trade | Russia | Holding | 100% | 100% |
Company Milavitsa ** | ||||
LLC Baltsped logistik | Belarus | Logistics | 50% | 50% |
- Silvano Fashion CJSC is 100% owned by Metropolitan Trade Company Milavitsa CJSC (same was effective as of 31.12.2023).
- Metropolitan Trade Company Milavitsa LLC is owned by AS Silvano Fashion Group and SIA Silvano Fashion, each holding 50% (same was effective as of 31.12.2023).
In addition, as of 31.03.2024 the subsidiary of AS Silvano Fashion Group, CJSC Milavitsa, had investment in associate LLC Trade house "Milavitsa "Novosibirsk with a 25% ownership interest (same was effective as of 31.12.2023).
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2024
Business environment and results
The Group's sales amounted to 13 904 thousand EUR during the Q1 of 2024, representing a 1.7% decrease as compared to the same period for the previous year. The Group's gross profit during the Q1 of 2024 amounted to 7 789 thousand EUR and decreased by 4.1% compared to Q1 of 2023. The Gross margin during the Q1 of 2024 decreased to 56.0% from 57.4% as compared to Q1 of 2023.
Consolidated operating profit for Q1 of 2024 decreased by 10.5% to 3 548 thousand EUR, compared to 3 963 thousand EUR for Q1 of 2023. Consolidated EBITDA for Q1 of 2024 decreased by 9.7% and was 4 298 thousand EUR, compared to 4 761 thousand EUR for Q1 of 2023.
Reported consolidated net profit for Q1 of 2024 amounted to 2 916 thousand EUR, as compared to net profit of 1 867 thousand EUR in the prior year's same period. Net profit attributable to equity holders of the Parent company for Q1 of 2024 amounted 2 554 thousand EUR.
Russia Economic Outlook
The Group's sales on the Russian market totalled 8 169 thousand EUR, decrease is 3.8% compared to Q1 of 2023. Local currency sales increased by 21.2% during Q1 of 2024 compared to the same Q1 of 2023. Group will focus on improving profitability of its retail business, we will also continue to expand our store chain there depending on the availability of reasonably priced sales areas. At the end of the reporting period, there were a total of 58 stores operated by the Group itself (as of 31 December 2023: 58 stores).
Belarus Economic Outlook
The Group's sales in Belarus in the Q1 of 2024 were 3 302 thousand EUR and decreased by 7.8% compared to the Q1 of 2023. Sales in local currency increased by 8.8% during the same period. At the end of the reporting period, there were a total of 59 stores operated by the Group itself (as of 31 December 2023: 59 stores).
Ukraine Economic Outlook
The Group's sales in Ukraine in the Q1 of 2024 were 18 thousand EUR and decreased by 61.7% compared to the Q1 of 2023.
Sales structure
Sales by markets
Group sales in its 2 major markets - Russia and Belarus- were 82.5% of its total sales. Measured in local currencies sales increase was accordingly - 21.2% in Russia, 8.8% in Belarus.
Q1 2024 | Q1 2023 | Change | Change, % | |
Russia, th RUB | 802 025 | 661 611 | 140 414 | 21.2% |
Belarus, th BYN | 11 508 | 10 580 | 928 | 8.8% |
Group`s sales results by markets measured in EUR are presented below:
Q1 2024 | Q1 2023 | Change, | Change, % | Q1 2024, | Q1 2023, | |
in thousands of EUR | EUR | % of sales | % of sales | |||
Russia | 8 169 | 8 495 | -326 | -3.8% | 58.8% | 60.1% |
Belarus | 3 302 | 3 582 | -280 | -7.8% | 23.7% | 25.3% |
Ukraine | 18 | 47 | -29 | -61.7% | 0.1% | 0.3% |
Baltics | 263 | 283 | -20 | -7.1% | 1.9% | 2.0% |
Other markets | 2 152 | 1 734 | 418 | 24.1% | 15.5% | 12.3% |
Total | 13 904 | 14 141 | -237 | -1.7% | 100.0% | 100.0% |
The majority of lingerie sales revenue during Q1 of 2024 in the amount 8 169 thousand EUR was generated in Russia, accounting for 58.8% of total sales. The second largest market was Belarus, where sales were 3 302 thousand EUR, contributing 23.7% of lingerie sales (both retail and wholesale).
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2024 | ||||||
Sales by business segments | ||||||
Q1 2024 | Q1 2023 | Change, | Change, % | Q1 2024, | Q1 2023, | |
in thousands of EUR | EUR | % of sales | % of sales | |||
Wholesale | 9 123 | 9 112 | 11 | 0.1% | 65.6% | 64.4% |
Retail | 4 764 | 5 020 | -256 | -5.1% | 34.3% | 35.5% |
Other operations | 17 | 9 | 8 | 88.9% | 0.1% | 0.1% |
Total | 13 904 | 14 141 | -237 | -1.7% | 100.0% | 100,0% |
During Q1 of 2024 wholesale revenue amounted to 9 123 thousand EUR, representing 65.6% of the Group's total revenue (Q1 of 2023: 64.4%). The main wholesale regions were Russia and Belarus.
Our retail revenue decreased by 5.1% and amounted 4 764 thousand EUR, this represents 34.3% of the Group`s total revenue.
Own & franchise store locations, geography | ||||
Total | ||||
Own | Franchise | |||
Russia | 58 | 337 | 395 | |
Belarus | 59 | 0 | 59 | |
Baltics | 5 | 18 | 23 | |
Other regions | 0 | 89 | 89 | |
Total | 122 | 444 | 566 |
At the end of the reporting period the Group and its franchising partners operated 540 Milavitsa and 26 Lauma Lingerie brand stores, including 122 stores operated directly by the Group (as of 31 December 2023: 122 stores).
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2024
Selected Financial Indicators
Summarized selected financial indicators of the Group for Q1 of 2024 compared to Q1 of 2023 and 31.03.2024 compared to 31.12.2023 were as follows:
in thousands of EUR | Q1 2024 | Q1 2023 | Change |
Revenue | 13 904 | 14 141 | -1.7% |
Gross Profit | 7 789 | 8 124 | -4.1% |
Operating profit | 3 548 | 3 963 | -10.5% |
EBITDA | 4 298 | 4 761 | -9.7% |
Net profit for the period | 2 916 | 1 867 | 56.2% |
Net profit attributable equity holders of the Parent company | 2 554 | 1 616 | 58.0% |
Earnings per share (EUR) | 0.07 | 0.04 | 75.0% |
Operating cash flow for the period | 1 753 | 4 133 | -57.6% |
in thousands of EUR | 31.03.2024 | 31.12.2023 | Change |
Total assets | 78 038 | 72 252 | 8.0% |
Total current assets | 65 157 | 59 395 | 9.7% |
Total equity attributable to equity holders of the Parent | 56 384 | 54 120 | 4.2% |
company | |||
Cash and cash equivalents | 37 505 | 32 878 | 14.1% |
Margin analysis, % | Q1 2024 | Q1 2023 | Change |
Gross profit | 56.0 | 57.4 | -2.4% |
Operating profit | 25.5 | 28.0 | -8.9% |
EBITDA | 30.9 | 33.7 | -8.3% |
Net profit | 21.0 | 13.2 | 59.1% |
Net profit attributable to equity holders of the Parent company | 18.4 | 11.4 | 61.4% |
Financial ratios, % | 31.03.2024 | 31.12.2023 | Change |
ROA | 15.2 | 14.5 | 4.8% |
ROE | 20.9 | 20.2 | 3.5% |
Price to earnings ratio (P/E) | 3.7 | 4.1 | -9.8% |
Current ratio | 4.7 | 5.8 | -19.0% |
Quick ratio | 3.0 | 3.4 | -11.8% |
Underlying formulas:
EBITDA = net profit for the period + depreciation and amortisation + net finance income + income tax expense Gross profit margin = gross profit / revenue
EBITDA margin = EBITDA / revenue Net profit margin = net profit / revenue
Net profit margin attributable to equity holders of the Parent company = net profit attributable to equity holders of the Parent company / revenue
ROA (return on assets) = net profit attributable to owners of the Company for the last 4 quarters/ average total assets
ROE (return on equity) = net profit attributable to owners of the Company for the last 4 quarters/ average equity attributable to equity holders of the Company
EPS (earnings per share) = net profit attributable to owners of the Company/ weighted average number of ordinary shares Price to earnings ratio = Share price at the end of reporting period/earnings per share, calculated based on the net profit attributable to owners of the Company for the last 4 quarters
Current ratio = current assets / current liabilities
Quick ratio = (current assets - inventories) / current liabilities
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2024
Financial performance
The Group`s sales amounted 13 904 thousand EUR during Q1 of 2024, representing a 1.7% decrease as compared to the same period of previous year. Overall, retail decreased by 5.1%, measured in EUR.
The Group's gross profit during Q1 of 2024 amounted to 7 789 thousand EUR and decrease by 4.1% compared to previous year. The gross margin during Q1 of 2024 decreased by 2.4% compared to Q1 of 2023. The cost of sold goods increased by 1.6%.
Consolidated operating profit for Q1 of 2024 amounted to 3 548 thousand EUR, compared to 3 963 thousand EUR for Q1 of 2023, decrease by 10.5%. The consolidated operating profit margin was 25.5% for Q1 of 2024 (28.0% for Q1 of 2023). Consolidated EBITDA for Q1 of 2024 decreased by 9.7% and amounted to 4 298 thousand EUR, which is 30.9% in margin terms (4 761 thousand EUR and 33.7% for Q1 of 2023).
Reported consolidated net profit attributable to equity holders of the Parent company for Q1 of 2024 amounted to 2 554 thousand EUR, compared to net profit of 1 616 thousand EUR for Q1 of 2023, net profit margin attributable to equity holders of the Parent company for Q1 of 2024 was 18.4% against net profit 11.4% for Q1 of 2023.
Financial position
As of 31 March 2024 consolidated assets amounted to 78 038 thousand EUR representing increase by 8.0% as compared to the position as of 31 December 2023.
Trade and other receivables increased by 925 thousand EUR as compared to 31 December 2023 and amounted to 2 279 thousand EUR as of 31 March 2024. Inventory balance increased by 91 thousand EUR and amounted to 24 031 thousand EUR as of 31 March 2024.
Equity attributable to equity holders of the Parent company increased by 2 264 thousand EUR and amounted to 56 384 thousand EUR as of 31 March 2024. Current liabilities increased by 3 473 thousand EUR during Q1 of 2024.
Investments
During Q1 of 2024 the Group's investments into property, plant and equipment totalled 278 thousand EUR, in previous year same period 314 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 2024, the Group employed 1 650 employees, including 518 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2023 there were 1 626 employees, including 500 people in retail operations.
Total salaries and related taxes during Q1 of 2024 amounted to 3 509 thousand EUR ( 3 492 thousand EUR in Q1 2023). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 163 thousand EUR.
Decisions made by governing bodies during 04 months 2024
On the 19th of March 2024, the AS Silvano Fashion Group proposed to the shareholders to adopt the resolution of the extraordinary general meeting of shareholders stated below without convening the meeting.
The notice of the general meeting was published on March 19, 2024, in the information system NASDAQ OMX Tallinn https://view.news.eu.nasdaq.com/view?id=b77cafc430f1ac23a81813069a95a15cd&lang=enand Warsaw Stock Exchange, on the website of SFG https://www.silvanofashion.com/investors/company-announcements/and in the daily newspaper Eesti Päevaleht.
On April 9, 2024 Silvano Fashion Group Extraordinary Meeting of Shareholders adopted the following decisions:
- To appoint the auditing company Ernst & Young Baltic AS (registry code 10877299, located at Rävala puiestee 4, 10143 Tallinn) as the auditor of AS Silvano Fashion Group;
- To authorize the Management Board of AS Silvano Fashion Group to enter into an audit service agreement with the auditing company AS Ernst & Young Baltic for auditing the economic activities of AS Silvano Fashion Group 2023.
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2024
Shares of AS Silvano Fashion Group
As of 31 March 2024 registered share capital of AS Silvano Fashion Group amounted to 3 600 thousand EUR divided into 36 000 000 ordinary shares with a nominal value of 0.10 EUR each. The share register is electronic and maintained at the Estonian Central Register of Securities. The Company has been listed on Nasdaq OMX Tallinn Stock Exchange main list (since 21.11.2006) and on Warsaw Stock Exchange (since 23.07.2007).
As of 31 March 2024 AS Silvano Fashion Group had 3 235 shareholders (as of 31 December 2023: 3 336 shareholders).
As of 31 March 2024 shareholders, whose interest in AS Silvano Fashion Group exceeded 5% included:
Name | Number of shares | Shareholding |
Major shareholders | 19 262 985 | 53.50% |
BALTPLAST AS | 9 115 798 | 25.32% |
AS SEB PANK CLIENTS | 8 000 000 | 22.22% |
UNICREDIT BANK AUSTRIA AG | 2 147 187 | 5.96% |
Other shareholders | 16 737 015 | 46.50% |
Total number of shares | 36 000 000 | 100.00% |
As of 31 December 2023 shareholders, whose interest in AS Silvano Fashion Group exceeded 5% included:
Name | Number of shares | Shareholding |
Major shareholders | 19 262 985 | 53.50% |
BALTPLAST AS | 9 115 798 | 25.32% |
AS SEB PANK CLIENTS | 8 000 000 | 22.22% |
UNICREDIT BANK AUSTRIA AG | 2 147 187 | 5.96% |
Other shareholders | 16 737 015 | 46.50% |
Total number of shares | 36 000 000 | 100.00% |
Share price development and turnover on the Tallinn Stock Exchange during Q1 months of 2024 (EUR)
During Q1 months of 2024 the highest and lowest prices of the AS Silvano Fashion Group` share on the Tallinn Stock Exchange were 1.188 EUR and 1.062 EUR, respectively
1,25 | 50000 |
1,2 | 40000 |
1,15 | 30000 |
1,1 | 20000 |
1,05 | 10000 |
1 | 0 |
Volume | SFG1T share price |
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2024
110,00% |
100,00% |
90,00% |
SFG1T share price | OMXBBGI |
Share price development on the Warsaw Stock Exchange during Q1 of 2024(PLN)
During Q1 of 2024, the highest and lowest prices of the AS Silvano Fashion Group` share on the Warsaw Stock Exchange were 6.33 PLN and 4.89 PLN respectively.
8000
7000
6000
5000
4000
3000
2000
1000
0
7
6,5
6
5,5
5
4,5
4
3,5
Volume | SFG share price (WSE) |
120% |
110% |
100% |
90% |
80% |
SFG share price (WSE) | WIG 20 |
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2024
Declaration of the Management Board
The Management Board of AS Silvano Fashion Group has reviewed and approved Consolidated Interim Financial Report for Q1 of 2024 (hereinafter "the Interim Report").
Member of the Management Board confirms that according to his best knowledge the Interim Report gives a true and fair view of financial position of the Group, its financial performance and its cash flows in accordance with International Financial Reporting Standards, as adopted by EU, and IAS 34 "Interim Financial Reporting".
Furthermore, Member of the Management Board confirms that in his opinion the Interim Report provides a fair review of significant developments in the Group's activities that occurred during the reporting period and their impact and describes significant risks and uncertainties that may affect the Group during future reporting periods.
The Interim Report has not been audited or otherwise reviewed by the auditors.
___________________________
Jarek Särgava
Member of the Management Board May 18, 2024
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Silvano Fashion Group AS published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 06:20:32 UTC.