Silvano Fashion Group Consolidated Interim Financial Report for Q3 and 9m of 2024 (unaudited)

Selected Financial Indicators

Summarized selected financial indicators of the Group for 9 months of 2024 compared to 9 months of 2023 and 30.09.2024 compared to 31.12.2023 were as follows:

in thousands of EUR	09m 2024	09m 2023	Change
Revenue	46 489	46 739	-0.5%
Gross Profit	27 232	28 078	-3.0%
Operating profit	14 452	16 267	-11.2%
EBITDA	16 724	18 630	-10.2%
Net profit for the period	10 705	8 842	21.1%
Net profit attributable equity holders of the Parent company	9 711	7 912	22.7%
Earnings per share (EUR)	0,27	0,22	22.7%
Operating cash flow for the period	11 251	15 369	-26.8%
in thousands of EUR	30.09.2024	31.12.2023	Change
Total assets	80 299	72 252	11.1%
Total current assets	67 978	59 395	14.5%
Total equity attributable to equity holders of the Parent company	63 741	54 120	17.8%
Cash and cash equivalents	40 888	32 878	24.4%
Margin analysis, %	09m 2024	09m 2023	Change
Gross profit	58.6	60.1	-2.5%
Operating profit	31.1	34.8	-10.6%
EBITDA	36.0	39.9	-9.8%
Net profit	23.0	18.9	21.7%
Net profit attributable to equity holders of the Parent company	20.9	16.9	23.7%
Financial ratios, %	30.09.2024	31.12.2023	Change
ROA	15.1	14.5	4.1%
ROE	19.9	20.2	-1.5%
Price to earnings ratio (P/E)	2.9	4.1	-29.3%
Current ratio	8.7	5.8	50.0%
Quick ratio	5.6	3.4	64.7%

Financial performance

The Group's sales amounted 46 489 thousand EUR during 9 months of 2024, representing a 0.5% decrease as compared to the same period of previous year. Overall, wholesale decreased by 4.9%, measured in EUR.

The Group's gross profit during 9 months of 2024 amounted to 27 232 thousand EUR and decrease by 3.0% compared to previous year. The gross margin during 9 months of 2024 decreased by 2.5% compared to 9 months of 2023. The cost of sold goods increased by 3.2%.

Consolidated operating profit for 9 months of 2024 amounted to 14 452 thousand EUR, compared to 16 267 thousand EUR for 9 months of 2023, decrease by 11.2%. The consolidated operating profit margin was 31.1% for 9 months of 2024 (34.8% for 9 months of 2023). Consolidated EBITDA for 9 months of 2024 decreased by 10.2% and amounted to 16 724 thousand EUR, which is 36.0% in margin terms (18 630 thousand EUR and 39.9% for 9 months of 2023).

Reported consolidated net profit attributable to equity holders of the Parent company for 9 months of 2024 amounted 9 711 thousand EUR, compared to net profit of 7 912 thousand EUR for 9 months of 2023, net profit margin attributable to equity holders of the Parent company for 9 months of 2024 was 20.9% against net profit 16.9% for 9 months of 2023.

Financial position

As of 30 September 2024 consolidated assets amounted to 80 299 thousand EUR representing increase by 11.1% as compared to the position as of 31 December 2023.

Trade and other receivables decreased by 16 thousand EUR as compared to 31 December 2023 and amounted to 1 338 thousand EUR as of 30 September 2024. Inventory balance increased by 647 thousand EUR and amounted to 24 587 thousand EUR as of 30 September 2024.

Equity attributable to equity holders of the Parent company increased by 9 621 thousand EUR and amounted to 63 741 thousand EUR as of 30 September 2024. Current liabilities decreased by 2 483 thousand EUR during 9 months of 2024.

Investments

During 9 months of 2024 the Group's investments into property, plant and equipment totalled 830 thousand EUR, in previous year same period 896 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 September 2024, the Group employed 1 668 employees, including 514 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 9 months of 2024 amounted 10 612 thousand EUR (9 964 thousand EUR in 9 months 2023). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 475 thousand EUR.

Decisions made by governing bodies during 09 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=en and Warsaw Stock Exchange, on the website of SFG https://www.silvanofashion.com/investors/company-announcements/ and in the newspaper Eesti Päevaleht.

On April 9, 2024 Silvano Fashion Group Extraordinary Meeting of Shareholders adopted the following decisions:

1.1. 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;

1.2. 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.

On the 29th of May 2024, AS Silvano Fashion Group proposed to the shareholders to adopt the resolutions of the annual general meeting of shareholders without convening the meeting.

The notice of the general meeting was published on May 29, 2024, in the information system NASDAQ OMX Tallinn https://view.news.eu.nasdaq.com/view?id=bc1ccceca27a9390039f730c2b2b98136&lang=en&src=listed

and Warsaw Stock Exchange, on the website of SFG https://www.silvanofashion.com/investors/company-announcements/ and in the daily newspaper Eesti Ekspress.

On June 20, 2024 Silvano Fashion Group held its regular Annual General Meeting of Shareholders. The Meeting adopted the following decisions:

1. To approve the 2023 Annual Report;
2. To left the net profit undistributed and to include the net profit of the financial year 2023 in retained earnings.

The decisions of the general meeting were published on the website of AS Silvano Fashion Group https://www.silvanofashion.com/investors/company-announcements/.

Consolidated Statement of Financial Position

in thousands of EUR	Note	30.09.2024	31.12.2023
		Unaudited	Audited
ASSETS
Current assets
Cash and cash equivalents	2	40 888	32 878
Trade and other receivables	3	1 338	1 354
Prepayments and other tax receivables	3	1 082	1 115
Current loans granted		0	29
Other assets		83	79
Inventories	4	24 587	23 940
Total current assets		67 978	59 395
Non-current assets
Non-current receivables		278	292
Investments in associates		99	85
Investments in other shares		211	213
Deferred tax asset		2 292	2 155
Intangible assets		637	579
Investment property		852	899
Property, plant and equipment	5	7 952	8 634
Total non-current assets		12 321	12 857
TOTAL ASSETS		80 299	72 252
LIABILITIES AND EQUITY
Current liabilities
Current lease liabilities		629	2 162
Trade and other payables	6	4 933	7 377
Tax liabilities		2 241	747
Total current liabilities		7 803	10 286
Non-current liabilities
Deferred tax liability		730	736
Non-current lease liabilities		4 920	4 321
Non-current provisions		45	46
Total non-current liabilities		5 695	5 103
Total liabilities		13 498	15 389
Equity
Share capital	7	3 600	3 600
Share premium		4 967	4 967
Statutory reserve capital		1 306	1 306
Unrealised exchange rate differences		-20 092	-20 002
Retained earnings		73 960	64 249
Total equity attributable to equity holders of the Parent company		63 741	54 120
Non-controlling interest		3 060	2 743
Total equity		66 801	56 863
TOTAL EQUITY AND LIABILITIES		80 299	72 252

Consolidated Income Statement

in thousands of EUR	Note	3Q 2024	3Q 2023	09m 2024	09m 2023
		Unaudited	Unaudited	Unaudited	Unaudited
Revenue from contracts with customers	9	16 344	15 332	46 489	46 739
Cost of goods sold		-6 301	-6 091	-19 257	-18 661
Gross Profit		10 043	9 241	27 232	28 078
Distribution expenses		-2 950	-2 517	-8 723	-8 071
Administrative expenses		-1 086	-1 026	-3 540	-3 303
Other operating income		71	78	178	194
Other operating expenses		-188	-190	-695	-631
Operating profit		5 890	5 586	14 452	16 267
Currency exchange income/(expense)		-1 280	-991	-415	-3 582
Other finance income/(expenses)		329	-1	401	-186
Net finance income		-951	-992	-14	-3 768
Profit (loss) from associates using equity method		2	7	16	19
Profit before tax		4 941	4 601	14 454	12 518
Income tax expense		-2 022	-1 181	-3 749	-3 676
Profit for the period		2 919	3 420	10 705	8 842
Attributable to:
Equity holders of the Parent company		2 658	3 140	9 711	7 912
Non-controlling interest		261	280	994	930
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR)		0,07	0,09	0,27	0,22

Consolidated Statement of Comprehensive Income

in thousands of EUR	Note	3Q 2024	3Q 2023	09m 2024	09m 2023
		Unaudited	Unaudited	Unaudited	Unaudited
Profit for the period		2 919	3 420	10 705	8 842
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign operations		-563	-672	-157	-2 055
Total other comprehensive income for the period		-563	-672	-157	-2 055
Total comprehensive income (loss) for the period		2 356	2 748	10 548	6 787
Attributable to:
Equity holders of the Parent company		2 308	2 612	9 621	5 224
Non-controlling interest		48	136	927	1 563

Consolidated Statement of Cash Flows

in thousands of EUR	Note	09m 2024	09m 2023
		Unaudited	Unaudited
Cash flow from operating activities
Profit for the period		10 705	8 842
Adjustments for:
Depreciation and amortization of non-current assets		2 272	2 363
Share of profit of equity accounted investees		-16	-19
Gains/Losses on the sale of property, plant and equipment		7	-3
Net finance income / costs		14	3 768
Provision for impairment losses on trade receivables		-1	-3
Provision for inventories		2	3
Income tax expense		3 749	3 676
Change in inventories		-647	1 387
Change in trade and other receivables		16	-507
Change in trade and other payables		-2 021	-1 067
Income tax paid		-2 829	-3 071
Net cash flow from operating activities		11 251	15 369
Cash flow from investing activities
Interest received		997	331
Dividends received		8	11
Proceeds from disposal of property, plant and equipment		21	9
Loans granted		0	-23
Proceeds from repayments of loans granted		29	0
Acquisition of property, plant and equipment		-830	-896
Acquisition of intangible assets		-112	-123
Net cash flow from investing activities		113	-691
Cash flow from financing activities
Proceeds from borrowings		4 000	0
Repayment of borrowings		-4 000	0
Payment of principal portion of lease liabilities		-1 659	-1 689
Interest paid on lease liabilities		-553	-521
Dividends paid		-610	-707
Net cash flow from financing activities		-2 822	-2 917
Net increase in cash and cash equivalents		8 542	11 761
Cash and cash equivalents at the beginning of period	2	32 878	25 909
Effect of translation to presentation currency		-404	-4 891
Effect of exchange rate fluctuations on cash held		-128	510
Cash and cash equivalents at the end of period		40 888	33 289

AS Silvano Fashion Group
Phone: [phone]
Email: [e-mail]