Selected Financial Indicators
Summarized selected financial indicators of the Group for Q1 of 2020 compared to Q1 of 2019 and 31.03.2020 compared to 31.12.2019 were as follows:
| in thousands of EUR | 03m 2020 | 03m 2019 | Change |
| Revenue | 11 546 | 13 820 | -16.5% |
| Gross Profit | 7 146 | 6 455 | 10.7% |
| Operating profit | 3 152 | 2 322 | 35.7% |
| EBITDA | 4 248 | 3 158 | 34.5% |
| Net profit (loss) for the period | -1 440 | 3 080 | -146.8% |
| Net profit (loss) attributable equity holders of the Parent company | -1 406 | 3 098 | -145.4% |
| Earnings per share (EUR) | -0.04 | 0.09 | -144.4% |
| Operating cash flow for the period | 1 876 | 3 242 | -42.1% |
| in thousands of EUR | 31.03.2020 | 31.12.2019 | Change |
| Total assets | 41 682 | 46 309 | -10.0% |
| Total current assets | 25 866 | 27 123 | -4.6% |
| Total equity attributable to equity holders of the Parent company | 22 341 | 26 324 | -15.1% |
| Cash and cash equivalents | 6 350 | 5 152 | 23.3% |
| Margin analysis, % | 03m 2020 | 03m 2019 | Change |
| Gross profit | 61,9 | 46.7 | 32.5% |
| Operating profit | 27.3 | 16.8 | 62.5% |
| EBITDA | 36.8 | 22.9 | 60.7% |
| Net profit (loss) | -12.5 | 22.3 | -156.0% |
| Net profit (loss) attributable to equity holders of the Parent company | -12.2 | 22.4 | -154.5% |
| Financial ratios, % | 31.03.2020 | 31.12.2019 | Change |
| ROA | 13.5 | 22.2 | -39.2% |
| ROE | 24.2 | 38.9 | -37.8% |
| Price to earnings ratio (P/E) | 8.2 | 7.3 | 12.3% |
| Current ratio | 2.6 | 2.7 | -3.7% |
| Quick ratio | 0.9 | 0.8 | 12.5% |
Financial performance
The Group`s sales amounted to 11 546 thousand EUR during Q1 of 2020, representing a 16.5% decrease as compared to the same period of previous year. Overall, wholesales decreased by 22.3%, measured in EUR.
The Group’s gross profit during Q1 of 2020 amounted to 7 146 thousand EUR and increase by 10.7% compared to previous year. The gross margin during Q1 of 2020 increased to 61.9%, from 46.7% in the respective period of previous year. The cost of sold goods decreased by 40.3%.
Consolidated operating profit for Q1 of 2020 amounted to 3 152 thousand EUR, compared to 2 322 thousand EUR in Q1 of 2019, increase by 35.7%. The consolidated operating profit margin was 27.3% for Q1 of 2020 (16.8% in Q1 of 2019). Consolidated EBITDA for Q1 of 2020 increased by 34.5% and amounted to 4 248 thousand EUR, which is 36.8% in margin terms (3 158 thousand EUR and 22.9% for Q1 of 2019).
Reported consolidated net loss attributable to equity holders of the Parent company for Q1 of 2020 amounted to -1 406 thousand EUR, compared to net profit of 3 098 thousand EUR in Q1 of 2019, net profit (loss) margin attributable to equity holders of the Parent company for Q1 of 2020 was -12.2% against 22.4% in Q1 of 2019.
Financial position
As of 31 March 2020 consolidated assets amounted to 41 682 thousand EUR representing decrease by 10.0% as compared to the position as of 31 December 2019.
Trade and other receivables decreased by 318 thousand EUR as compared to 31 December 2019 and amounted to 2 292 thousand EUR as of 31 March 2020. Inventory balance decreased by 2 137 thousand EUR and amounted to 17 222 thousand EUR as of 31 March 2020.
Equity attributable to equity holders of the Parent company decreased by 3 983 thousand EUR and amounted to 22 341 thousand EUR as of 31 March 2020. Current liabilities decreased by 275 thousand EUR during Q1 of 2020.
Investments
During Q1 of 2020 the Group’s investments into property, plant and equipment totalled 96 thousand EUR, in previous year same period 562 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 2020, the Group employed 1 856 employees, including 506 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2019 there were 1 888 employees, including 503 people in retail operations.
Total salaries and related taxes during Q1 of 2020 amounted to 3 145 thousand EUR (3 350 thousand EUR in Q1 of 2019). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 210 thousand EUR.
Consolidated Statement of Financial Position
| in thousands of EUR | Note | 31.03.2020 | 31.12.2019 |
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 6 350 | 5 152 | |
| Current loans granted | 2 | 2 | |
| Trade and other receivables | 2 | 2 292 | 2 610 |
| Inventories | 3 | 17 222 | 19 359 |
| Total current assets | 25 866 | 27 123 | |
| Non-current assets | |||
| Long-term receivables | 265 | 334 | |
| Investments in associates | 63 | 82 | |
| Available-for-sale investments | 262 | 321 | |
| Deferred tax asset | 1 589 | 905 | |
| Intangible assets | 374 | 423 | |
| Investment property | 705 | 869 | |
| Property, plant and equipment | 4 | 12 558 | 16 252 |
| Total non-current assets | 15 816 | 19 186 | |
| TOTAL ASSETS | 41 682 | 46 309 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Short-term finance lease obligations | 1 614 | 2 362 | |
| Trade and other payables | 5 | 6 909 | 6 899 |
| Tax liabilities | 1 352 | 889 | |
| Total current liabilities | 9 875 | 10 150 | |
| Non-current liabilities | |||
| Deferred tax liability | 0 | 14 | |
| Long-term finance lease obligations | 6 116 | 6 333 | |
| Long-term provisions | 50 | 61 | |
| Total non-current liabilities | 6 166 | 6 408 | |
| Total liabilities | 16 041 | 16 558 | |
| Equity | |||
| Share capital | 6 | 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 | -18 274 | -15 697 | |
| Retained earnings | 30 387 | 31 793 | |
| Total equity attributable to equity holders of the Parent company | 22 341 | 26 324 | |
| Non-controlling interest | 3 300 | 3 427 | |
| Total equity | 25 641 | 29 751 | |
| TOTAL EQUITY AND LIABILITIES | 41 682 | 46 309 |
Consolidated Income Statement
| in thousands of EUR | Note | 1Q 2020 | 1Q 2019 |
| Revenue | 8 | 11 546 | 13 820 |
| Cost of goods sold | -4 400 | -7 365 | |
| Gross Profit | 7 146 | 6 455 | |
| Distribution expenses | -2 734 | -2 905 | |
| Administrative expenses | -1 122 | -1 092 | |
| Other operating income | 59 | 66 | |
| Other operating expenses | -197 | -202 | |
| Operating profit | 3 152 | 2 322 | |
| Currency exchange income/(expense) | -4 730 | 2 031 | |
| Other finance income/(expenses) | -125 | -110 | |
| Net financial income (loss) | -4 855 | 1 921 | |
| Profit (loss) from associates using equity method | 0 | 1 | |
| Profit (loss) before tax | -1 703 | 4 244 | |
| Income tax expense | 263 | -1 164 | |
| Profit (loss) for the period | -1 440 | 3 080 | |
| Attributable to : | |||
| Equity holders of the Parent company | -1 406 | 3 098 | |
| Non-controlling interest | -34 | -18 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 7 | -0,04 | 0,09 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | 1Q 2020 | 1Q 2019 |
| Profit (loss) for the period | -1 440 | 3 080 | |
| Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods | -2 225 | -171 | |
| Attributable to : | |||
| Equity holders of the Parent company | -2 577 | -283 | |
| Non-controlling interest | 352 | 112 | |
| Total comprehensive income (loss) for the period | -3 665 | 2 909 | |
| Attributable to : | |||
| Equity holders of the Parent company | -3 983 | 2 815 | |
| Non-controlling interest | 318 | 94 |
Consolidated Statement of Cash Flows
| in thousands of EUR | 03m 2020 | 03m 2019 |
| Cash flow from operating activities | ||
| Profit (loss) for the period | -1 440 | 3 080 |
| Adjustments for: | ||
| Depreciation and amortization of non-current assets | 1 096 | 836 |
| Share of profit of equity accounted investees | 0 | -1 |
| (Gains)/ losses on the sale of property, plant and equipment | 2 | 11 |
| Net finance income / costs | 305 | -1 921 |
| Provision for inventories | 1 | 0 |
| Provision for long-term benefits | 0 | 2 |
| Income tax expense | -263 | 1 164 |
| Change in inventories | 2 137 | -1 298 |
| Change in trade and other receivables | 243 | -1 484 |
| Change in trade and other payables | -86 | 1 635 |
| Change in finance lease obligations | 0 | 1 377 |
| Income tax paid | -119 | -159 |
| Net cash from operating activities | 1 876 | 3 242 |
| Cash flow from investing activities | ||
| Interest received | 5 | 3 |
| Proceeds from disposal of property, plant and equipment | 28 | 36 |
| Proceeds from repayments of loans granted | 0 | 6 |
| Acquisition of property, plant and equipment | -96 | -562 |
| Acquisition of intangible assets | -50 | -75 |
| Acquisition of shares of a subsidiary | -26 | 0 |
| Net cash used in/from investing activities | -139 | -592 |
| Cash flow from financing activities | ||
| Repayment of finance lease | -682 | -657 |
| Interest paid on finance lease | -136 | 0 |
| Reduction of share capital | 0 | -7 200 |
| Net cash used in/ from financing activities | -818 | -7 857 |
| Increase in cash and cash equivalents | 919 | -5 207 |
| Cash and cash equivalents at the beginning of period | 5 152 | 13 603 |
| Effect of exchange rate fluctuations on cash held | 279 | -46 |
| Cash and cash equivalents at the end of period | 6 350 | 8 350 |
Jarek Särgava
AS Silvano Fashion Group
Member of the Board
Phone: +372 6845 000
Email: info@silvanofashon.com
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