Selected Financial Indicators
Summarized selected financial indicators of the Group for 6 months of 2017 compared to 6 months of 2016 and 30.06.2017 compared to 31.12.2016 were as follows:
in thousands of EUR 6m 2017 6m 2016 Change -------------------------------------------------------------------------------- Revenue 32 810 30 595 7,2% EBITDA 8 094 11 218 -27,8% Net profit for the period 5 702 6 133 -7,0% Net profit attributable equity holders of the 5 434 5 986 -9,2% Parent company Earnings per share (EUR) 0,15 0,16 -6,3% Operating cash flow for the period 4 716 8 708 -45,8% in thousands of EUR 30.06.2017 31.12.2016 Change -------------------------------------------------------------------------------- Total assets 56 592 56 145 0,8% Total current assets 44 358 42 677 3,9% Total equity attributable to equity holders of 37 112 43 402 -14,5% the Parent company Cash and cash equivalents 24 933 22 303 11,8% Margin analysis, % 6m 2017 6m 2016 Change -------------------------------------------------------------------------------- Gross profit 49,5 56,3 -12,1% EBITDA 24,7 36,7 -32,7% Net profit 17,4 20,0 -13,1% Net profit attributable equity holders of the 16,6 19,6 -15,5% Parent company Financial ratios, % 30.06.2017 31.12.2016 Change -------------------------------------------------------------------------------- ROA 9,8 14,7 -33,3% ROE 13,2 19,6 -32,7% Price to earnings ratio (P/E) 18,2 13,2 37,9% Current ratio 2,7 4,9 -44,9% Quick ratio 1,7 3,0 -43,3%
Consolidated Statement of Financial Position
in thousands of EUR Note 30.06.2017 31.12.2016 -------------------------------------------------------------------------------- ASSETS Current assets Cash and cash equivalents 24 933 22 303 Current loans granted 2 19 Trade and other receivables 2 3 709 4 168 Inventories 3 15 714 16 187 Total current assets 44 358 42 677 Non-current assets Long-term receivables 250 21 Investments in associates 28 19 Available-for-sale investments 342 369 Deferred tax asset 977 1 012 Intangible assets 212 291 Investment property 996 1 091 Property, plant and equipment 4 9 429 10 665 Total non-current assets 12 234 13 468 TOTAL ASSETS 56 592 56 145 LIABILITIES AND EQUITY Current liabilities Trade and other payables 5 14 871 6 894 Tax liabilities 1 636 1 857 Total current liabilities 16 507 8 751 Non-current liabilities Deferred tax liability 9 37 Total non-current liabilities 9 37 Total liabilities 16 516 8 788 Equity Share capital 6 11 100 11 100 Share premium 10 787 10 787 Treasury shares 6 -2 520 -998 Statutory reserve capital 1 306 1 306 Revaluation reserve 710 710 Unrealised exchange rate differences -13 970 -10 968 Retained earnings 29 699 31 465 Total equity attributable to equity holders of the 37 112 43 402 Parent company Non-controlling interest 2 964 3 955 Total equity 40 076 47 357 TOTAL EQUITY AND LIABILITIES 56 592 56 145
Consolidated Income Statement
in thousands of EUR Note 2Q 2Q 6m 2017 6m 2016 2017 2016 -------------------------------------------------------------------------------- Revenue 8 18 268 17 237 32 810 30 595 Cost of goods sold -8 804 -7 694 -16 563 -13 371 Gross Profit 9 464 9 543 16 247 17 224 Distribution expenses -3 285 -2 215 -6 159 -4 230 Administrative expenses -1 284 -1 144 -2 559 -2 265 Other operating income 112 86 155 169 Other operating expenses -292 -306 -562 -558 Operating profit 4 715 5 964 7 122 10 340 Currency exchange income/(expense) 2 073 -975 875 -2 494 Other finance income/(expenses) 39 36 106 101 Net financial income 2 112 -939 981 -2 393 Profit (loss) from associates using 3 0 12 0 equity method Profit before tax and gain/(loss) on net 6 830 5 025 8 115 7 947 monetary position Income tax expense -1 237 -1 006 -2 413 -1 814 Profit for the period 5 593 4 019 5 702 6 133 Attributable to: Equity holders of the Parent company 5 383 3 827 5 434 5 986 Non-controlling interest 210 192 268 147 Earnings per share from profit 7 0,15 0,10 0,15 0,16 attributable to equity holders of the Parent company, both basic and diluted (EUR)
Business environment and results
The Group's sales amounted to 32 810 thousand EUR during 6 months of 2017, representing a 7.2% increase as compared to the same period of previous year. The Group's gross profit during 6 months of 2017 amounted to 16 247 thousand EUR and decreased by 5.7% compared to 6 months of 2016. Gross margin during 6 months of 2017 decreased to 49.5% from 56.3% in the respective to 6 months of 2016.
Consolidated operating profit 6 months of 2017 decreased by 31.1% to 7 122 thousand EUR, compared to 10 340 thousand EUR in 6 months of 2016. Consolidated EBITDA for 6 months of 2017 decreased by 27.8% and was 8 094 thousand EUR, compared to 11 218 thousand EUR in 6 months of 2016.
Reported consolidated net profit for 6 months of 2017 amounted to 5 702 thousand EUR, decreasing by 7.0% compared to prior result of 6 133 thousand EUR. Net profit attributable to equity holders of the Parent company for 6 months of 2017 decreased by 9.2% and amounted to 5 434 thousand EUR.
Group's results for 6 months of 2017 were defined by continued challenges in economies of its major sales markets - Russia and Belarus. Group achieved growth in sales compared to 6 months of 2016, but gross margin and gross profit decreased compared to same period last year. The purchasing power in region's countries remains low; therefore, it is hard to see some kind of relatively fast recovery in growth rates of economies under discussion.
Russian statistics are slightly improving compared to 2016, the inflation rate is falling and currently stands at 2.30% for the 6 months of 2017 (3.30% for 6 months in 2016), the International Monetary Fund (IMF) expects Russia's economic growth in 2017 by 1.4%, but the purchasing power of the population in real terms is still falling.
Group's sales on Russian market totalled 18 318 thousand EUR, increase is 5.9% compared to 6 months of 2016. In local currency sales decreased by 16.6% during 6 months. Group's Russian subsidiary opened 5 stores during 6 months of 2017, total 32 own stores is now opened. 3 more stores were opened in July 2017. The Group will continue opening own stores. In addition to growing sales and better control of the market this allows further developing of retail concept of Group's brands to make it more attractive for us and our franchisee retail partners.
The Belarusian economy at the moment isn't demonstrating any signs of stabilization. Major factors behind this are believed to be unreformed economy (particularly public sector and state-controlled entities), delayed impact of recession in main trading partner -Russia, continued pressure on Belarusian rouble, low demand for consumption, high level of debts in economy. Share of problematic credits in banking sector is continuously growing, according to official statistics. Against this background, analysts predict that GDP will grow by only 0.2-0.4% in 2017. Consumer prices rose by 0.4% in June 2017 compared with the previous month. According to Belstat, the June increase was due to higher prices for services. Inflation since the beginning of the year was 3.4%, and for the 2nd quarter of 2017 1.7%. Analysts believe that inflation will average 10.3% in 2017.
Group's sales in Belarus in 6 months of 2017 were 9 332 thousand EUR and increasing 2.0% compared to 6 months of 2016. Sales in local currency decreased by 7.4% at the same period. In Belarus the Group will focus on improving profitability of its retail business, we will also continue to expand our store chain there depending on availability of reasonably priced sales areas. The Belarusian subsidiary of the Group opened 5 more stores during the 6 months of 2017, 2 more stores were opened in July 2017.
It is expected that the economy of Ukraine will return to positive growth in 2017., supported by improving consumer and investor confidence, gradually rising real incomes and a gradual easing of credit conditions. Analysts note GDP growth this year at 2.4%, and inflation before the end of 2017 - 9.3%.
Group's sales in Ukraine in 6 months of 2017 reached the level of 1 527 thousand EUR, which is 69.1% more than previous year same period. Sales in local currency increased by 72.6% during same period.
Financial performance
The Group's sales amounted to 32 810 thousand EUR during 6 months of 2017, representing a 7.2% increase as compared to the same period of previous year. Overall, wholesales decreased by 3.1% and retail sales increased by 40.2%, measured in EUR.
The Group's reported gross profit margin during 6 months of 2017 continued to improve decreasing to 49.5%, reported gross margin was 56.3% in the respective period of previous year. Consolidated operating profit for 6 months of 2017 amounted to 7 122 thousand EUR, compared to 10 340 thousand EUR in 6 months of 2016. The consolidated operating profit margin was 21.7% for 6 months of 2017 (33.8% in 6 months of 2016). Consolidated EBITDA for 6 months of 2017 was 8 094 thousand EUR, which is 24.7% in margin terms (11 218 thousand EUR and 36.7% for 6 months of 2016).
Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2017 amounted to 5 434 thousand EUR, compared to net profit of 5 986 thousand EUR in 6 months of 2016, net profit margin attributable to equity holders of the Parent company for 6 months of 2017 was 16.6% against 19.6% in 6 months of 2016.
Financial position
As of 30 June 2017 consolidated assets amounted to 56 592 thousand EUR representing an increase by 0.8% as compared to the position as of 31 December 2016.
Trade and other receivables decreased by 459 thousand EUR as compared to 31 December 2016 and amounted to 3 709 thousand EUR as of 30 June 2017. Inventory balance decreased by 473 thousand EUR and amounted to 15 714 thousand EUR as of 30 June 2017.
Equity attributable to equity holders of the Parent company decreased by 6 290 thousand EUR and amounted to 37 112 thousand EUR as of 30 June 2017. Current liabilities increased by 7 756 thousand EUR during 6 months of 2017.
Sales structure
Sales by markets
in thousands of EUR 6m 6m Change, Change, 6m 2017, % 6m 2016, % 2017 2016 EUR % of sales of sales Russia 18 318 17 303 1 015 5,9% 55,8% 56,6% Belarus 9 332 9 145 187 2,0% 28,4% 29,9% Ukraine 1 527 903 624 69,1% 4,7% 3,0% Baltics 799 883 -84 -9,5% 2,4% 2,9% Other markets 2 834 2 361 473 20,0% 8,6% 7,7% Total 32 810 30 595 2 215 7,2% 100,0% 100,0%
The majority of lingerie sales revenue during 6 months of 2017 in the amount of 18 318 thousand EUR was generated in Russia, accounting for 55.8% of total sales. The second largest market was Belarus, where sales reached 9 332 thousand EUR, contributing 28.4% of lingerie sales (both retail and wholesale). Volumes in Ukraine increased significantly to 1 527 thousand EUR, accounting for 4.7% of total sales
Sales by business segments
in thousands of EUR 6m 6m Change, Change, 6m 2017, % 6m 2016, % 2017 2016 EUR % of sales of sales Wholesale 22 519 23 245 -726 -3,1% 68,6% 76,0% Retail 10 229 7 297 2 932 40,2% 31,2% 23,9% Other operations 62 53 9 17,0% 0,2% 0,1% Total 32 810 30 595 2 215 7,2% 100,0% 100,0%
During 6 months of 2017 wholesale revenue amounted to 22 519 thousand EUR, representing 68.6% of the Group's total revenue (6 months of 2016: 76.0%). The main wholesale regions were Russia, Belarus, Kazakhstan and Ukraine.
Our retail revenue increased by 40.2% and amounted to 10 229 thousand EUR, this represents 31.2% of the Group's total revenue.
Own & franchise store locations, geography
Own Franchise Total Russia 32 373 405 Ukraine 0 50 50 Belarus 63 7 70 Baltics 7 28 35 Other regions 0 121 121 Total 102 579 681
At the end of the reporting period the Group and its franchising partners operated 630 Milavitsa and 51 Lauma Lingerie branded stores, including 102 stores operated directly by the Group.
Investments
During 6 months of 2017 the Group's investments into property, plant and equipment totalled 451 thousand EUR, in previous year same period 207 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 30 June 2017, the Group employed 2 264 employees, including 501 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 6 months of 2017 amounted to 5 720 thousand EUR (5 745 thousand EUR in 6 months of 2016). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 462 thousand EUR.
Decisions made by governing bodies during 6 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.
Jarek Särgava
Member of the Board
AS Silvano Fashion Group
Phone: +372 6845 000 E-mail: info@silvanofashion.com
Attachment:
https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=640352
Summarized selected financial indicators of the Group for 6 months of 2017 compared to 6 months of 2016 and 30.06.2017 compared to 31.12.2016 were as follows:
in thousands of EUR 6m 2017 6m 2016 Change -------------------------------------------------------------------------------- Revenue 32 810 30 595 7,2% EBITDA 8 094 11 218 -27,8% Net profit for the period 5 702 6 133 -7,0% Net profit attributable equity holders of the 5 434 5 986 -9,2% Parent company Earnings per share (EUR) 0,15 0,16 -6,3% Operating cash flow for the period 4 716 8 708 -45,8% in thousands of EUR 30.06.2017 31.12.2016 Change -------------------------------------------------------------------------------- Total assets 56 592 56 145 0,8% Total current assets 44 358 42 677 3,9% Total equity attributable to equity holders of 37 112 43 402 -14,5% the Parent company Cash and cash equivalents 24 933 22 303 11,8% Margin analysis, % 6m 2017 6m 2016 Change -------------------------------------------------------------------------------- Gross profit 49,5 56,3 -12,1% EBITDA 24,7 36,7 -32,7% Net profit 17,4 20,0 -13,1% Net profit attributable equity holders of the 16,6 19,6 -15,5% Parent company Financial ratios, % 30.06.2017 31.12.2016 Change -------------------------------------------------------------------------------- ROA 9,8 14,7 -33,3% ROE 13,2 19,6 -32,7% Price to earnings ratio (P/E) 18,2 13,2 37,9% Current ratio 2,7 4,9 -44,9% Quick ratio 1,7 3,0 -43,3%
Consolidated Statement of Financial Position
in thousands of EUR Note 30.06.2017 31.12.2016 -------------------------------------------------------------------------------- ASSETS Current assets Cash and cash equivalents 24 933 22 303 Current loans granted 2 19 Trade and other receivables 2 3 709 4 168 Inventories 3 15 714 16 187 Total current assets 44 358 42 677 Non-current assets Long-term receivables 250 21 Investments in associates 28 19 Available-for-sale investments 342 369 Deferred tax asset 977 1 012 Intangible assets 212 291 Investment property 996 1 091 Property, plant and equipment 4 9 429 10 665 Total non-current assets 12 234 13 468 TOTAL ASSETS 56 592 56 145 LIABILITIES AND EQUITY Current liabilities Trade and other payables 5 14 871 6 894 Tax liabilities 1 636 1 857 Total current liabilities 16 507 8 751 Non-current liabilities Deferred tax liability 9 37 Total non-current liabilities 9 37 Total liabilities 16 516 8 788 Equity Share capital 6 11 100 11 100 Share premium 10 787 10 787 Treasury shares 6 -2 520 -998 Statutory reserve capital 1 306 1 306 Revaluation reserve 710 710 Unrealised exchange rate differences -13 970 -10 968 Retained earnings 29 699 31 465 Total equity attributable to equity holders of the 37 112 43 402 Parent company Non-controlling interest 2 964 3 955 Total equity 40 076 47 357 TOTAL EQUITY AND LIABILITIES 56 592 56 145
Consolidated Income Statement
in thousands of EUR Note 2Q 2Q 6m 2017 6m 2016 2017 2016 -------------------------------------------------------------------------------- Revenue 8 18 268 17 237 32 810 30 595 Cost of goods sold -8 804 -7 694 -16 563 -13 371 Gross Profit 9 464 9 543 16 247 17 224 Distribution expenses -3 285 -2 215 -6 159 -4 230 Administrative expenses -1 284 -1 144 -2 559 -2 265 Other operating income 112 86 155 169 Other operating expenses -292 -306 -562 -558 Operating profit 4 715 5 964 7 122 10 340 Currency exchange income/(expense) 2 073 -975 875 -2 494 Other finance income/(expenses) 39 36 106 101 Net financial income 2 112 -939 981 -2 393 Profit (loss) from associates using 3 0 12 0 equity method Profit before tax and gain/(loss) on net 6 830 5 025 8 115 7 947 monetary position Income tax expense -1 237 -1 006 -2 413 -1 814 Profit for the period 5 593 4 019 5 702 6 133 Attributable to: Equity holders of the Parent company 5 383 3 827 5 434 5 986 Non-controlling interest 210 192 268 147 Earnings per share from profit 7 0,15 0,10 0,15 0,16 attributable to equity holders of the Parent company, both basic and diluted (EUR)
Business environment and results
The Group's sales amounted to 32 810 thousand EUR during 6 months of 2017, representing a 7.2% increase as compared to the same period of previous year. The Group's gross profit during 6 months of 2017 amounted to 16 247 thousand EUR and decreased by 5.7% compared to 6 months of 2016. Gross margin during 6 months of 2017 decreased to 49.5% from 56.3% in the respective to 6 months of 2016.
Consolidated operating profit 6 months of 2017 decreased by 31.1% to 7 122 thousand EUR, compared to 10 340 thousand EUR in 6 months of 2016. Consolidated EBITDA for 6 months of 2017 decreased by 27.8% and was 8 094 thousand EUR, compared to 11 218 thousand EUR in 6 months of 2016.
Reported consolidated net profit for 6 months of 2017 amounted to 5 702 thousand EUR, decreasing by 7.0% compared to prior result of 6 133 thousand EUR. Net profit attributable to equity holders of the Parent company for 6 months of 2017 decreased by 9.2% and amounted to 5 434 thousand EUR.
Group's results for 6 months of 2017 were defined by continued challenges in economies of its major sales markets - Russia and Belarus. Group achieved growth in sales compared to 6 months of 2016, but gross margin and gross profit decreased compared to same period last year. The purchasing power in region's countries remains low; therefore, it is hard to see some kind of relatively fast recovery in growth rates of economies under discussion.
Russian statistics are slightly improving compared to 2016, the inflation rate is falling and currently stands at 2.30% for the 6 months of 2017 (3.30% for 6 months in 2016), the International Monetary Fund (IMF) expects Russia's economic growth in 2017 by 1.4%, but the purchasing power of the population in real terms is still falling.
Group's sales on Russian market totalled 18 318 thousand EUR, increase is 5.9% compared to 6 months of 2016. In local currency sales decreased by 16.6% during 6 months. Group's Russian subsidiary opened 5 stores during 6 months of 2017, total 32 own stores is now opened. 3 more stores were opened in July 2017. The Group will continue opening own stores. In addition to growing sales and better control of the market this allows further developing of retail concept of Group's brands to make it more attractive for us and our franchisee retail partners.
The Belarusian economy at the moment isn't demonstrating any signs of stabilization. Major factors behind this are believed to be unreformed economy (particularly public sector and state-controlled entities), delayed impact of recession in main trading partner -Russia, continued pressure on Belarusian rouble, low demand for consumption, high level of debts in economy. Share of problematic credits in banking sector is continuously growing, according to official statistics. Against this background, analysts predict that GDP will grow by only 0.2-0.4% in 2017. Consumer prices rose by 0.4% in June 2017 compared with the previous month. According to Belstat, the June increase was due to higher prices for services. Inflation since the beginning of the year was 3.4%, and for the 2nd quarter of 2017 1.7%. Analysts believe that inflation will average 10.3% in 2017.
Group's sales in Belarus in 6 months of 2017 were 9 332 thousand EUR and increasing 2.0% compared to 6 months of 2016. Sales in local currency decreased by 7.4% at the same period. In Belarus the Group will focus on improving profitability of its retail business, we will also continue to expand our store chain there depending on availability of reasonably priced sales areas. The Belarusian subsidiary of the Group opened 5 more stores during the 6 months of 2017, 2 more stores were opened in July 2017.
It is expected that the economy of Ukraine will return to positive growth in 2017., supported by improving consumer and investor confidence, gradually rising real incomes and a gradual easing of credit conditions. Analysts note GDP growth this year at 2.4%, and inflation before the end of 2017 - 9.3%.
Group's sales in Ukraine in 6 months of 2017 reached the level of 1 527 thousand EUR, which is 69.1% more than previous year same period. Sales in local currency increased by 72.6% during same period.
Financial performance
The Group's sales amounted to 32 810 thousand EUR during 6 months of 2017, representing a 7.2% increase as compared to the same period of previous year. Overall, wholesales decreased by 3.1% and retail sales increased by 40.2%, measured in EUR.
The Group's reported gross profit margin during 6 months of 2017 continued to improve decreasing to 49.5%, reported gross margin was 56.3% in the respective period of previous year. Consolidated operating profit for 6 months of 2017 amounted to 7 122 thousand EUR, compared to 10 340 thousand EUR in 6 months of 2016. The consolidated operating profit margin was 21.7% for 6 months of 2017 (33.8% in 6 months of 2016). Consolidated EBITDA for 6 months of 2017 was 8 094 thousand EUR, which is 24.7% in margin terms (11 218 thousand EUR and 36.7% for 6 months of 2016).
Reported consolidated net profit attributable to equity holders of the Parent company for 6 months of 2017 amounted to 5 434 thousand EUR, compared to net profit of 5 986 thousand EUR in 6 months of 2016, net profit margin attributable to equity holders of the Parent company for 6 months of 2017 was 16.6% against 19.6% in 6 months of 2016.
Financial position
As of 30 June 2017 consolidated assets amounted to 56 592 thousand EUR representing an increase by 0.8% as compared to the position as of 31 December 2016.
Trade and other receivables decreased by 459 thousand EUR as compared to 31 December 2016 and amounted to 3 709 thousand EUR as of 30 June 2017. Inventory balance decreased by 473 thousand EUR and amounted to 15 714 thousand EUR as of 30 June 2017.
Equity attributable to equity holders of the Parent company decreased by 6 290 thousand EUR and amounted to 37 112 thousand EUR as of 30 June 2017. Current liabilities increased by 7 756 thousand EUR during 6 months of 2017.
Sales structure
Sales by markets
in thousands of EUR 6m 6m Change, Change, 6m 2017, % 6m 2016, % 2017 2016 EUR % of sales of sales Russia 18 318 17 303 1 015 5,9% 55,8% 56,6% Belarus 9 332 9 145 187 2,0% 28,4% 29,9% Ukraine 1 527 903 624 69,1% 4,7% 3,0% Baltics 799 883 -84 -9,5% 2,4% 2,9% Other markets 2 834 2 361 473 20,0% 8,6% 7,7% Total 32 810 30 595 2 215 7,2% 100,0% 100,0%
The majority of lingerie sales revenue during 6 months of 2017 in the amount of 18 318 thousand EUR was generated in Russia, accounting for 55.8% of total sales. The second largest market was Belarus, where sales reached 9 332 thousand EUR, contributing 28.4% of lingerie sales (both retail and wholesale). Volumes in Ukraine increased significantly to 1 527 thousand EUR, accounting for 4.7% of total sales
Sales by business segments
in thousands of EUR 6m 6m Change, Change, 6m 2017, % 6m 2016, % 2017 2016 EUR % of sales of sales Wholesale 22 519 23 245 -726 -3,1% 68,6% 76,0% Retail 10 229 7 297 2 932 40,2% 31,2% 23,9% Other operations 62 53 9 17,0% 0,2% 0,1% Total 32 810 30 595 2 215 7,2% 100,0% 100,0%
During 6 months of 2017 wholesale revenue amounted to 22 519 thousand EUR, representing 68.6% of the Group's total revenue (6 months of 2016: 76.0%). The main wholesale regions were Russia, Belarus, Kazakhstan and Ukraine.
Our retail revenue increased by 40.2% and amounted to 10 229 thousand EUR, this represents 31.2% of the Group's total revenue.
Own & franchise store locations, geography
Own Franchise Total Russia 32 373 405 Ukraine 0 50 50 Belarus 63 7 70 Baltics 7 28 35 Other regions 0 121 121 Total 102 579 681
At the end of the reporting period the Group and its franchising partners operated 630 Milavitsa and 51 Lauma Lingerie branded stores, including 102 stores operated directly by the Group.
Investments
During 6 months of 2017 the Group's investments into property, plant and equipment totalled 451 thousand EUR, in previous year same period 207 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 30 June 2017, the Group employed 2 264 employees, including 501 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 6 months of 2017 amounted to 5 720 thousand EUR (5 745 thousand EUR in 6 months of 2016). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 462 thousand EUR.
Decisions made by governing bodies during 6 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.
Jarek Särgava
Member of the Board
AS Silvano Fashion Group
Phone: +372 6845 000 E-mail: info@silvanofashion.com
Attachment:
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