Silvano Fashion Group (SFG1T) Q3 2024 earnings summary

Executive summary

• Revenue for 9M 2024 was €46.5M, down 0.5% year-over-year; net profit rose 21.1% to €10.7M.

• Gross margin declined to 58.6% from 60.1%; operating profit margin fell to 31.1%.

• Wholesale revenue decreased 4.9%, while retail revenue grew 7.1% year-over-year.

• Russia and Belarus accounted for 85.5% of total sales; local currency sales increased in both markets.

• Cash and cash equivalents increased 24.4% to €40.9M; total assets up 11.1% to €80.3M.

Financial highlights

• EBITDA for 9M 2024 was €16.7M, down 10.2% year-over-year.

• Net profit attributable to equity holders rose 22.7% to €9.7M; EPS increased to €0.27.

• Operating cash flow was €11.3M, a 26.8% decrease from the prior year.

• Gross profit margin was 58.6%; net profit margin 23.0%.

• ROA at 15.1%, ROE at 19.9%, and current ratio improved to 8.7.

Outlook and guidance

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

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