AS SILVANO FASHION GROUP AS Silvano Fashion Group
Consolidated Interim Financial Report
for Q1 of 2023 (unaudited)
(translation of the Estonian original) *
Beginning of the reporting period | 1 January 2023 |
End of the reporting period | 31 March 2023 |
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 2023 | |
Contents | |
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 | 17 |
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 2023
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 2023 the Group employed 1 643 people (as of 31 December 2022: 1 616 people).
The Group comprises of the following entities:
Ownership | Ownership | |||
interest | interest | |||
Location | Main activity | 31.03.2023 | 31.12.2022 | |
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 31.12.2022).
- Metropolitan Trade Company Milavitsa LLC is owned by AS Silvano Fashion Group and SIA Silvano Fashion, each holding 50% (same was effective as of 31.12.2022).
In addition, as of 31.03.2023 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 31.12.2022).
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2023
Business environment and results
The Group's sales amounted to 14 141 thousand EUR during the Q1 of 2023, representing a 28.1% increase as compared to the same period for the previous year. The Group's gross profit during the Q1 of 2023 amounted to 8 124 thousand EUR and increased by 24.6% compared to Q1 of 2022. The Gross margin during the Q1 of 2023 decreased to 57.4% from 59.1% as compared to Q1 of 2022.
Consolidated operating profit for Q1 of 2023 increased by 23.0% to 3 963 thousand EUR, compared to 3 221 thousand EUR for Q1 of 2022. Consolidated EBITDA for Q1 of 2023 increased by 19.2% and was 4 761 thousand EUR, compared to 3 993 thousand EUR for Q1 of 2022.
Reported consolidated net profit for Q1 of 2023 amounted to 1 867 thousand EUR, as compared to net loss of 193 thousand EUR in the prior year's same period. Net profit attributable to equity holders of the Parent company for Q1 of 2023 amounted 1 616 thousand EUR.
Russia Economic Outlook
The Group's sales on the Russian market totalled 8 495 thousand EUR, increase is 36.4% compared to Q1 of 2022. Local currency sales increased by 10.9% during Q1 of 2023 compared to the same Q1 of 2022. 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 52 stores operated by the Group itself (as of 31 December 2022: 49 stores).
Belarus Economic Outlook
The Group's sales in Belarus in the Q1 of 2023 were 3 582 thousand EUR and increased by 35.3% compared to the Q1 of 2022. Sales in local currency increased by 27.8% during the same period. At the end of the reporting period, there were a total of 58 stores operated by the Group itself (as of 31 December 2022: 59 stores).
Ukraine Economic Outlook
The Group's sales in Ukraine in the Q1 of 2023 were 47 thousand EUR and decreased by 78.8% compared to the Q1 of 2022.
Sales structure
Sales by markets
Group sales in its 2 major markets - Russia and Belarus- were 85.4% of its total sales. Measured in local currencies sales increase was accordingly - 10.9% in Russia, 27.8% in Belarus.
03m 2023 | 03m 2022 | Change | Change, % | |
Russia, th RUB | 661 611 | 596 486 | 65 125 | 10.9% |
Belarus, th BYN | 10 580 | 8 278 | 2 302 | 27.8% |
Ukraine, th UAH | 1 759 | 7 127 | -5 368 | -75.3% |
Group`s sales results by markets measured in EUR are presented below:
03m 2023 | 03m 2022 | Change, | Change, % | 03m 2023, | 03m 2022, | |
in thousands of EUR | EUR | % of sales | % of sales | |||
Russia | 8 495 | 6 228 | 2 267 | 36.4% | 60.1% | 56.4% |
Belarus | 3 582 | 2 648 | 934 | 35.3% | 25.3% | 24.0% |
Ukraine | 47 | 222 | -175 | -78.8% | 0.3% | 2.0% |
Baltics | 283 | 311 | -28 | -9.0% | 2.0% | 2.8% |
Other markets | 1 734 | 1 627 | 107 | 6.6% | 12.3% | 14.8% |
Total | 14 141 | 11 036 | 3 105 | 28.1% | 100.0% | 100.0% |
The majority of lingerie sales revenue during Q1 of 2023 in the amount 8 495 thousand EUR was generated in Russia, accounting for 60.1% of total sales. The second largest market was Belarus, where sales were 3 582 thousand EUR, contributing 25.3% of lingerie sales (both retail and wholesale).
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AS Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2023
Sales by business segments
03m 2023 | 03m 2022 | Change, | Change, % | 03m 2023, | 03m 2022, | |
in thousands of EUR | EUR | % of sales | % of sales | |||
Wholesale | 9 112 | 7 440 | 1 672 | 22.5% | 64.4% | 67.4% |
Retail | 5 020 | 3 584 | 1 436 | 40.1% | 35.5% | 32.5% |
Other operations | 9 | 12 | -3 | -25.0% | 0.1% | 0.1% |
Total | 14 141 | 11 036 | 3 105 | 28.1% | 100.0% | 100.0% |
During Q1 of 2023 wholesale revenue amounted to 9 112 thousand EUR, representing 64.4% of the Group's total revenue (Q1 of 2022: 67.4%). The main wholesale regions were Russia and Belarus.
Our retail revenue increased by 40.1% and amounted 5 020 thousand EUR, this represents 35.5% of the Group`s total revenue.
Own & franchise store locations, geography
Own | Franchise | Total | |
Russia | 52 | 326 | 378 |
Belarus | 58 | 0 | 58 |
Baltics | 6 | 21 | 27 |
Other regions | 0 | 89 | 89 |
Total | 116 | 436 | 552 |
At the end of the reporting period the Group and its franchising partners operated 519 Milavitsa and 33 Lauma Lingerie brand stores, including 116 stores operated directly by the Group (as of 31 December 2022: 114 stores).
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Silvano Fashion Group AS published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 13:36:03 UTC.
