Silvano Fashion Group Consolidated Interim Financial Report for Q4 and 12m of 2024 (unaudited)

Silvano Fashion Group Consolidated Interim Financial Report for Q4 and 12m of 2024 (unaudited)

Selected Financial Indicators

Summarized selected financial indicators of the Group for 12 months of 2024 compared to 12 months of 2023 and 31.12.2024 compared to 31.12.2023 were as follows:

in thousands of EUR	12m 2024	12m 2023	Change
Revenue	58 070	58 597	-0.9%
Gross Profit	34 278	33 743	1.6%
Operating profit	17 248	17 973	-4.0%
EBITDA	20 316	21 120	-3.8%
Net profit for the period	13 673	11 107	23.1%
Net profit attributable equity holders of the Parent company	12 366	9 927	24.6%
Earnings per share (EUR)	0,34	0,28	21.4%
Operating cash flow for the period	11 164	11 703	-4.6%
in thousands of EUR	31.12.2024	31.12.2023	Change
Total assets	84 489	72 252	16.9%
Total current assets	70 871	59 395	19.3%
Total equity attributable to equity holders of the Parent company	65 993	54 120	21.9%
Cash and cash equivalents	39 690	32 878	20.7%
Margin analysis, %	12m 2024	12m 2023	Change
Gross profit	59.0	57.6	2.4%
Operating profit	29.7	30.7	-3.3%
EBITDA	35.0	36.0	-2.8%
Net profit	23.5	19.0	23.7%
Net profit attributable to equity holders of the Parent company	21.3	16.9	26.0%
Financial ratios, %	31.12.2024	31.12.2023	Change
ROA	15.3	14.5	5.5%
ROE	20.0	20.2	-1.0%
Price to earnings ratio (P/E)	3.0	4.1	-26.8%
Current ratio	6.6	5.8	13.8%
Quick ratio	4.0	3.4	17.6%

Financial performance

The Group's sales amounted 58 070 thousand EUR during 12 months of 2024, representing a 0.9% 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 12 months of 2024 amounted to 34 278 thousand EUR and increase by 1.6% compared to previous year. The gross margin during 12 months of 2024 increased by 2.4% compared to 12 months of 2023. The cost of sold goods decreased by 4.3%.

Consolidated operating profit for 12 months of 2024 amounted to 17 248 thousand EUR, compared to 17 973 thousand EUR for 12 months of 2023, decrease by 4.0%. The consolidated operating profit margin was 29.7% for 12 months of 2024 (30.7% for 12 months of 2023). Consolidated EBITDA for 12 months of 2024 decreased by 3.8% and amounted to 20 316 thousand EUR, which is 35.0% in margin terms (21 120 thousand EUR and 36.0% for 12 months of 2023).

Reported consolidated net profit attributable to equity holders of the Parent company for 12 months of 2024 amounted 12 366 thousand EUR, compared to net profit of 9 927 thousand EUR for 12 months of 2023, net profit margin attributable to equity holders of the Parent company for 12 months of 2024 was 21.3% against net profit 16.9% for 12 months of 2023.

Financial position

As of 31 December 2024 consolidated assets amounted to 84 489 thousand EUR representing increase by 16.9% as compared to the position as of 31 December 2023.

Trade and other receivables decreased by 148 thousand EUR as compared to 31 December 2023 and amounted to 1 206 thousand EUR as of 31 December 2024. Inventory balance increased by 4 365 thousand EUR and amounted to 28 305 thousand EUR as of 31 December 2024.

Equity attributable to equity holders of the Parent company increased by 11 873 thousand EUR and amounted to 65 993 thousand EUR as of 31 December 2024. Current liabilities increased by 420 thousand EUR during 12 months of 2024.

Investments

During 12 months of 2024 the Group's investments into property, plant and equipment totalled 942 thousand EUR, in previous year same period 1 133 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 2024, the Group employed 1 655 employees, including 518 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 12 months of 2024 amounted 14 155 thousand EUR (13 266 thousand EUR in 12 months 2023). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 679 thousand EUR.

Decisions made by governing bodies during 12 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	31.12.2024	31.12.2023
		Unaudited	Audited
ASSETS
Current assets
Cash and cash equivalents	2	7 683	32 878
Short-term deposits over 3 months	2	32 007	0
Trade and other receivables	3	1 206	1 354
Prepayments and other tax receivables	3	1 603	1 115
Current loans granted		0	29
Other assets		67	79
Inventories	4	28 305	23 940
Total current assets		70 871	59 395
Non-current assets
Non-current receivables	8	271	292
Investments in associates		92	85
Investments in other shares		208	213
Deferred tax asset		3 347	2 155
Intangible assets		649	579
Investment property		837	899
Property, plant and equipment	5	8 214	8 634
Total non-current assets		13 618	12 857
TOTAL ASSETS		84 489	72 252
LIABILITIES AND EQUITY
Current liabilities
Current lease liabilities		2 252	2 162
Trade and other payables	6	7 031	7 377
Tax liabilities		1 423	747
Total current liabilities		10 706	10 286
Non-current liabilities
Deferred tax liability		715	736
Non-current lease liabilities		3 694	4 321
Non-current provisions		43	46
Total non-current liabilities		4 452	5 103
Total liabilities		15 158	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		-20 495	-20 002
Retained earnings		76 615	64 249
Total equity attributable to equity holders of the Parent company		65 993	54 120
Non-controlling interest		3 338	2 743
Total equity		69 331	56 863
TOTAL EQUITY AND LIABILITIES		84 489	72 252

Consolidated Income Statement

in thousands of EUR	Note	4Q 2024	4Q 2023	12m 2024	12m 2023
		Unaudited	Unaudited	Unaudited	Audited
Revenue from contracts with customers	9	11 581	11 858	58 070	58 597
Cost of goods sold		-4 535	-6 193	-23 792	-24 854
Gross Profit		7 046	5 665	34 278	33 743
Distribution expenses		-2 637	-2 501	-11 360	-10 572
Administrative expenses		-1 441	-1 198	-4 981	-4 501
Other operating income		91	92	269	286
Other operating expenses		-263	-352	-958	-983
Operating profit		2 796	1 706	17 248	17 973
Currency exchange income/(expense)		-458	237	-873	-3 345
Other finance income/(expenses)		455	93	856	-93
Net finance income/(expenses)		-3	330	-17	-3 438
Profit (loss) from associates using equity method		-2	5	14	24
Profit before tax		2 791	2 041	17 245	14 559
Income tax expense		177	224	-3 572	-3 452
Profit for the period		2 968	2 265	13 673	11 107
Attributable to:
Equity holders of the Parent company		2 655	2 015	12 366	9 927
Non-controlling interest		313	250	1 307	1 180
Earnings per share from profit attributable to equity holders of the Parent company, both basic and diluted (EUR)	8	0,07	0,06	0,34	0,28

Consolidated Statement of Comprehensive Income

in thousands of EUR	Note	4Q 2024	4Q 2023	12m 2024	12m 2023
		Unaudited	Unaudited	Unaudited	Audited
Profit for the period		2 968	2 265	13 673	11 107
Other comprehensive income (loss) that will be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign operations		-445	-2 799	-602	-2 520
Total other comprehensive income for the period		-445	-2 799	-602	-2 520
Total comprehensive income (loss) for the period		2 523	-534	13 071	8 587
Attributable to:
Equity holders of the Parent company		2 252	1 625	11 873	9 334
Non-controlling interest		271	-2 159	1 198	-747

Consolidated Statement of Cash Flows

in thousands of EUR	Note	12m 2024	12m 2023
Cash flow from operating activities		Unaudited	Audited
Profit for the period		13 673	11 107
Adjustments for:
Depreciation and amortization of non-current assets	11,13	3 068	3 147
Impairment losses of non-current assets
Share of profit of equity accounted investees		-14	-24
Gains/Losses on the sale of property, plant and equipment	13	7	1
Net finance income / costs		17	3 438
Provision for impairment losses on trade receivables	5,19	-18	54
Provision for inventories	9	91	1 198
Income tax expense	14	3 572	3 452
Change in inventories	9	-4 365	-7 845
Change in trade and other receivables	8,14	-271	-839
Change in trade and other payables	8,14	280	2 530
Interest paid		-54	0
Income tax paid		-4 822	-4 516
Net cash flow from operating activities		11 164	11 703
Cash flow from investing activities
Interest received		1 391	601
Dividends received		8	11
Purchase of other financial investments		-31 800	0
incl purchase of deposits with maturities greater than 3 months		-31 800	0
Proceeds from disposal of property, plant and equipment	13	22	39
Loans granted		0	-19
Proceeds from repayments of loans granted		29	0
Acquisition of property, plant and equipment	13	-942	-1 133
Acquisition of intangible assets	11	-147	-144
Net cash flow from investing activities		-31 439	-645
Cash flow from financing activities
Proceeds from borrowings	8	4 000	0
Repayment of borrowings	8	-4 000	0
Payment of principal portion of lease liabilities		-2 318	-2 307
Interest paid on lease liabilities		-739	-688
Dividends paid		-603	-692
Net cash flow from financing activities		-3 660	-3 687
Net increase/decrease in cash and cash equivalents		-23 935	7 371
Change of deposits with maturities greater than 3 months		32 007	0
Total change		8 072	7 371
Cash and cash equivalents at the beginning of period	7	32 878	25 909
Effect of translation to presentation currency		-1 095	-845
Effect of exchange rate fluctuations on cash held	7	-165	443
Cash and cash equivalents at the end of period		7 683	32 878
Deposits with maturities greater than 3 months at the end of period		32 007	0
Total at the end of the period		39 690	32 878

AS Silvano Fashion Group
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