Financial highlights

• Pandora continues to execute on its Phoenix strategy and change the perception of Pandora into a full jewellery brand; investments across the value chain are elevating the brand and driving growth across collections.
• Q3 2024 organic growth was 11%, comprising of Like-for-like (LFL) growth of 7%, network expansion of 5% and -1% from phasing of sell-in to partners and other.
• LFL growth in key European markets came in at 4%, the US remained solid at 6% whilst Rest of Pandora continued double-digit growth at 14%.
• The Q3 gross margin reached 80.1%, +110bp vs. Q3 2023, supported by Pandora’s vertically integrated business model, price increases and cost efficiencies.
• The Q3 EBIT margin remained solid at 16.1%, -40bp vs. Q3 2023 as previously flagged, reflecting increased headwind from commodity prices and foreign exchange rates, among others.
• Leverage remains low at a NIBD/EBITDA of 1.5x. The combination of solid revenue growth and a sustained strong profitability helped drive 17% Y/Y EPS growth in Q3 2024.

Phoenix strategy highlights

• Pandora is scaling up investments across all four Phoenix strategy pillars of brand, design, markets and personalisation. The investments are yielding encouraging responses.
• The “Core” segment delivered 2% LFL growth whilst the “Fuel with more” segment delivered 21% LFL growth, in line with Pandora’s full jewellery brand vision.
• The PANDORA ESSENCE collection completed its first entire quarter after the global launch in mid-Q2 2024. The new organic, fluid and natural aesthetic is appealing well to consumers and drove revenue of DKK 169 million.
• Personalisation services are driving incremental growth. Engraving services, in particular, are gaining traction, growing more than +100% in Q3 2024 with roughly 1,250 engraving machines installed globally.
• Higher commodity prices drives a 360bp headwind to the 2026 EBIT margin target of 26-27%. Pandora confirms mitigating actions to cover at least 140bp of the headwind. Pandora is actively pursuing further mitigation.
  
  

2024 Guidance and current trading

• The organic growth guidance is lifted to 11-12% (the high end of the previous guidance at 9-12%). The EBIT margin guidance remains unchanged at around 25%.
• Current trading in October has seen LFL growth at mid-single-digit levels, in line with the underlying trends witnessed since the start of the year.

Alexander Lacik, President and CEO of Pandora, says:
“We are very pleased with our strong results this quarter, particularly in the context of the current macroeconomic backdrop. We are transforming the perception of Pandora into a full jewellery brand and unlocking the next chapter of our growth by attracting more consumers to our brand. Step by step we are capturing the many untapped opportunities, and we will continue to invest in our strategic growth initiatives.”        

DKK million	Q3 2024	Q3 2023	9M 2024	9M 2023	FY 2023	FY 2024 guidance
Revenue	6,103	5,572	19,707	17,316	28,136
Organic growth	11%	11%	15%	5%	8%	11-12%
Like-for-Like, %	7%	9%	8%	3%	6%
Operating profit (EBIT)	980	920	3,825	3,365	7,039
EBIT margin, %	16.1%	16.5%	19.4%	19.4%	25.0%	Around 25%

Attachments

• Pandora Q3 2024 Interim Report Company Announcement_No_900
• Pandora Appendix_Company Announcement_900