Selected Financial Indicators
Summarized selected financial indicators of the Group for 12 months of 2017
compared to 12 months of 2016 and 31.12.2017 compared to 31.12.2016 were as
follows:
in thousands of EUR 12m 2017 12m 2016 Change
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Revenue 62 348 57 892 7.7%
EBITDA 15 735 18 430 -14.6%
Net profit for the period 11 393 7 896 44.3%
Net profit attributable equity holders of the 10 914 8 273 31.9%
Parent company
Earnings per share (EUR) 0.30 0.22 36.4%
Operating cash flow for the period 9 178 12 807 -28.3%
in thousands of EUR 31.12.2017 31.12.2016 Change
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Total assets 52 880 56 145 -5.8%
Total current assets 41 708 42 677 -2.3%
Total equity attributable to equity holders of 40 974 43 402 -5.6%
the Parent company
Cash and cash equivalents 21 230 22 303 -4.8%
Margin analysis, % 12m 2017 12m 2016 Change
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Gross profit 51.2 54.5 -6.1%
EBITDA 25.2 31.8 -20.8%
Net profit 18.3 13.6 34.6%
Net profit attributable to equity holders of the 17.5 14.3 22.4%
Parent company
Financial ratios, % 31.12.2017 31.12.2016 Change
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ROA 19.9 14.7 35.4%
ROE 27.1 19.6 38.3%
Price to earnings ratio (P/E) 9.5 13.2 -28.0%
Current ratio 4.7 4.9 -4.1%
Quick ratio 2.7 3.0 -10.0%
Financial performance
The Group's sales amounted to 62 348 thousand EUR during 12 months of 2017,
representing a 7.7% increase as compared to the same period of previous year.
Overall, wholesales decreased by 0.2% and retail sales increased by 28.9%,
measured in EUR.
The Group's reported gross profit margin during 12 months of 2017 continued to
improve decreasing to 51.2%, reported gross margin was 54.5% in the respective
period of previous year. Consolidated operating profit for 12 months of 2017
amounted to 13 948 thousand EUR, compared to 16 543 thousand EUR in 12 months
of 2016. The consolidated operating profit margin was 22.4% for 12 months of
2017 (28.6% in 12 months of 2016). Consolidated EBITDA for 12 months of 2017
was 15 735 thousand EUR, which is 25.2% in margin terms (18 430 thousand EUR
and 31.8% for 12 months of 2016).
Reported consolidated net profit attributable to equity holders of the Parent
company for 12 months of 2017 amounted to 10 914 thousand EUR, compared to net
profit of 8 273 thousand EUR in 12 months of 2016, net profit margin
attributable to equity holders of the Parent company for 12 months of 2017 was
17.5% against 14.3% in 12 months of 2016.
Financial position
As of 31 December 2017 consolidated assets amounted to 52 880 thousand EUR
representing an decrease by 5.8% as compared to the position as of 31 December
2016.
Trade and other receivables decreased by 1 452 thousand EUR as compared to 31
December 2016 and amounted to 2 716 thousand EUR as of 31 December 2017.
Inventory balance increased by 1 573 thousand EUR and amounted to 17 760
thousand EUR as of 31 December 2017.
Equity attributable to equity holders of the Parent company decreased by 2 428
thousand EUR and amounted to 40 974 thousand EUR as of 31 December 2017.
Current liabilities increased by 123 thousand EUR during 12 months of 2017.
Investments
During 12 months of 2017 the Group's investments into property, plant and
equipment totalled 1 226 thousand EUR, in previous year same period 888
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 December 2017, the Group employed 2 279 employees, including 506
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 12 months of 2017 amounted to 13 994
thousand EUR (11 630 thousand EUR in 12 months of 2016). The remuneration of
key management of the Group, including the key executives of all subsidiaries,
totalled 891 thousand EUR.
Decisions made by governing bodies during 12 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.
-- On October 31, 2017, the decrease of share capital of Silvano Fashion Group
AS was registered in the Commercial Register based on the resolutions
adopted by the General Meeting of Shareholders of the Company held on June
29, 2017. The new registered share capital of the Company is 10 800 000
euros, which is divided into 36 000 000 ordinary shares with nominal value
of 0.30 euros per share.
-- Consolidated Statement of Financial Position
-- | in thousands of EUR | Note | 31.12.2017 | 31.12.2016 |
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 21 230 | 22 303 | |
| Current loans granted | 2 | 19 | |
| Trade and other receivables | 2 | 2 716 | 4 168 |
| Inventories | 3 | 17 760 | 16 187 |
| Total current assets | 41 708 | 42 677 | |
| Non-current assets | |||
| Long-term receivables | 255 | 21 | |
| Investments in associates | 55 | 19 | |
| Available-for-sale investments | 320 | 369 | |
| Deferred tax asset | 900 | 1 012 | |
| Intangible assets | 217 | 291 | |
| Investment property | 920 | 1 091 | |
| Property, plant and equipment | 4 | 8 505 | 10 665 |
| Total non-current assets | 11 172 | 13 468 | |
| TOTAL ASSETS | 52 880 | 56 145 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Trade and other payables | 5 | 8 025 | 6 894 |
| Tax liabilities | 849 | 1 857 | |
| Total current liabilities | 8 874 | 8 751 | |
| Non-current liabilities | |||
| Deferred tax liability | 10 | 37 | |
| Long-term provisions | 52 | 0 | |
| Total non-current liabilities | 62 | 37 | |
| Total liabilities | 8 936 | 8 788 | |
| Equity | |||
| Share capital | 6 | 10 800 | 11 100 |
| Share premium | 8 567 | 10 787 | |
| Treasury shares | 6 | 0 | -998 |
| Statutory reserve capital | 1 306 | 1 306 | |
| Revaluation reserve | 710 | 710 | |
| Unrealised exchange rate differences | -15 588 | -10 968 | |
| Retained earnings | 35 179 | 31 465 | |
| Total equity attributable to equity holders of the Parent company | 40 974 | 43 402 | |
| Non-controlling interest | 2 970 | 3 955 | |
| Total equity | 43 944 | 47 357 | |
| TOTAL EQUITY AND LIABILITIES | 52 880 | 56 145 |
Consolidated Income Statement
| in thousands of EUR | Note | 4Q 2017 | 4Q 2016 | 12m 2017 | 12m 2016 |
| Revenue | 8 | 12 283 | 12 250 | 62 348 | 57 892 |
| Cost of goods sold | -5 589 | -5 987 | -30 435 | -26 333 | |
| Gross Profit | 6 694 | 6 263 | 31 913 | 31 559 | |
| Distribution expenses | -2 947 | -2 743 | -12 081 | -9 393 | |
| Administrative expenses | -1 197 | -1 365 | -4 937 | -4 846 | |
| Other operating income | 93 | 97 | 323 | 347 | |
| Other operating expenses | -458 | -335 | -1 270 | -1 124 | |
| Operating profit | 2 185 | 1 917 | 13 948 | 16 543 | |
| Currency exchange income/(expense) | 89 | -2 574 | 1 221 | -5 094 | |
| Other finance income/(expenses) | 29 | 5 | 176 | 149 | |
| Net financial income | 118 | -2 569 | 1 397 | -4 945 | |
| Profit (loss) from associates using equity method | 10 | 22 | 39 | 22 | |
| Profit before tax | 2 313 | -630 | 15 384 | 11 620 | |
| Income tax expense | -646 | -855 | -3 991 | -3 724 | |
| Profit for the period | 1 667 | -1 485 | 11 393 | 7 896 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 1 605 | -844 | 10 914 | 8 273 | |
| Non-controlling interest | 62 | -641 | 479 | -377 | |
| Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR) | 7 | 0,04 | -0,02 | 0,30 | 0,22 |
Consolidated Statement of Comprehensive Income
| in thousands of EUR | Note | 4Q 2017 | 4Q 2016 | 12m 2017 | 12m 2016 |
| Profit for the period | 1 667 | -1 485 | 11 393 | 7 896 | |
| Other comprehensive income for the period | |||||
| Exchange rate differences attributable to foreign operations | 43 | 4 685 | -5 183 | 5 486 | |
| Revaluation of PPE at FV | 0 | 1 065 | 0 | 1 065 | |
| Total other comprehensive income for the period | 43 | 5 750 | -5 183 | 6 551 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 112 | 5 053 | -4 620 | 5 981 | |
| Non-controlling interest | -69 | 697 | -563 | 571 | |
| Total comprehensive income for the period | 1 710 | 4 265 | 6 210 | 14 447 | |
| Attributable to : | |||||
| Equity holders of the Parent company | 1 717 | 4 209 | 6 294 | 14 253 | |
| Non-controlling interest | -7 | 56 | -84 | 194 |
Consolidated Statement of Cash Flows
| in thousands of EUR | 12m 2017 | 12m 2016 |
| Cash flow from operating activities | ||
| Profit for the period | 11 393 | 7 896 |
| Adjustments for: | ||
| Depreciation and amortization of non-current assets | 1 787 | 1 887 |
| Share of profit of equity accounted investees | -39 | -22 |
| (Gains)/ losses on the sale of PPE and IA | 7 | -32 |
| Net finance income / costs | -1 397 | 4 945 |
| Provision for impairment losses on trade receivables | -19 | 4 |
| Provision for long-term benefits | 52 | 0 |
| Income tax expense | 3 991 | 3 724 |
| Change in inventories | -1 573 | -717 |
| Change in trade and other receivables | 1 081 | 43 |
| Change in trade and other payables | -1 709 | -641 |
| Income tax paid | -4 396 | -4 280 |
| Net cash from operating activities | 9 178 | 12 807 |
| Cash flow from investing activities | ||
| Interest received | 127 | 123 |
| Dividends received | 1 | 3 |
| Proceeds from disposal of property, plant and equipment | 463 | 36 |
| Proceeds from repayments of loans granted | -17 | 0 |
| Acquisition of property, plant and equipment | -1 226 | -888 |
| Acquisition of intangible assets | -118 | -106 |
| Acquisition of shares of a subsidiary | 0 | -3 |
| Net cash used in/from investing activities | -770 | -835 |
| Cash flow from financing activities | ||
| Dividends paid | -8 101 | -9 220 |
| Acquisition of own shares | -1 522 | -1 846 |
| Net cash used in/ from financing activities | -9 623 | -11 066 |
| Increase in cash and cash equivalents | -1 215 | 906 |
| Cash and cash equivalents at the beginning of period | 22 303 | 21 274 |
| Effect of exchange rate fluctuations on cash held | 142 | 123 |
| Cash and cash equivalents at the end of period | 21 230 | 22 303 |
| Jarek Särgava AS Silvano Fashion Group Member of the Board Phone: +372 6845 000 E-mail: info@silvanofashion.com |
