Silvano Fashion Group (SFG1T) Q2 2024 earnings summary

Executive summary

• Revenue for 6M 2024 was €30.1m, down 4.0% year-over-year, with gross profit decreasing 8.7% to €17.2m.

• Net profit rose 43.6% to €7.8m, with EPS up 53.8% to €0.20, despite lower sales and margins.

• Russia and Belarus accounted for 84.4% of sales; local currency sales grew in both markets.

• Wholesale revenue declined 7.2%, while retail revenue increased 1.6% year-over-year.

• Store count slightly decreased to 120 directly operated stores at period end.

Financial highlights

• Gross margin fell to 57.0% from 60.0% year-over-year; operating margin dropped to 28.4% from 34.0%.

• EBITDA was €10.1m (down 18.1%), with EBITDA margin at 33.4%.

• Operating cash flow was €4.1m, down 61.7% from prior year.

• Total assets increased 11.5% to €80.5m; cash and equivalents rose 18.2% to €38.9m.

• Equity attributable to parent grew 13.5% to €61.4m.

Outlook and guidance

• Focus remains on improving retail profitability and expanding store chain in Russia, subject to market conditions.

• Continued investment in store openings, renovations, and production efficiency.