Q2 2O24
INTERIM FINANCIAL REPORT
12 August 2024 | Company Announcement No. 885
2
HIGHLIGHTS
02 Executive Summary
03 Financial Highlights
4
BUSINESS UPDATE
04 Business Update
07 Revenue Review
11 Profitability
15 Cash Flow & Balance Sheet
16 Financial Guidance
19 Sustainability
20 Other Events
22 Contact
23
FINANCIAL STATEMENTS
23 Financial Statements
27 Accounting Notes
37 Disclaimer
Our equity story
Pandora is the only global brand in the accessible luxury jewellery market. The Pandora brand has the highest
awareness in the jewellery market globally and owns the space of “jewellery with a meaning” in the minds of
consumers. This is the core competitive edge and the key reason for the strength of the financial algorithm.
Around this core competitive edge, the brand, Pandora has built a unique ecosystem with a vertically
integrated value chain from design and crafting to direct-to-consumer channels. This gives Pandora
unrivalled scale which drives cost advantages while allowing us to deliver a world-class consumer experience.
Pandora’s scale allows Pandora to offer jewellery at accessible price points while at the same time meeting
the highest quality standards. Pandora’s jewellery is hand-finished by skilled craftspeople and also meets
the highest sustainability standards in the industry.
The jewellery market has historically grown faster than GDP and remains highly fragmented, with global
brands set to outgrow the overall market. Pandora’s growth strategy, Phoenix, leverages the company’s
existing infrastructure to pursue numerous untapped growth opportunities and gain higher market share
across geographies and jewellery categories. With its proven financial algorithm, Pandora expects to
outgrow the market, targeting annual high-single digit organic growth while maintaining best-in-class
profitability. Thanks to its asset-light approach, the company also expects to continue to deliver significant
free cash flow, which – in line with history – will all be returned to shareholders and result in mid-to-high
teens EPS growth.
CONTENTS
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
12 AUGUST 2024 | INTERIM FINANCIAL REPORT Q2 2024 | COMPANY ANNOUNCEMENT No. 885 | page
2 | 37
EXECUTIVE SUMMARY
Pandora delivers 15% organic growth in Q2 – raises 2024 revenue guidance again
Financial highlights
• The Pandora brand keeps strengthening. This leads to higher traffic into the stores and drives revenue growth.
• Q2 2024 organic growth was 15%, comprising of Like-for-like (LFL) growth of 8%, network expansion of 6% and
1% phasing of sell-in to partners and other.
• LFL growth in key European markets remained solid at 10%, the US remained robust at 5% whilst Rest of Pandora
continued double-digit growth at 13%.
• The Q2 gross margin reached another all-time high of 80.2%, +210bp vs. Q2 2023, supported by Pandora’s
vertically integrated business model, price increases and cost efficiencies.
• The Q2 EBIT margin remained solid at 19.8%, -40bp vs. Q2 2023 as previously flagged, reflecting non-recurring
cost related to forward integration.
• Leverage remains low at a NIBD/EBITDA of 1.4x. As of August 9, Pandora has bought back DKK 2.0 billion worth
of shares as part of its DKK 4.0 billion share buyback programme.
Phoenix strategy highlights
• Pandora continued to invest across the value chain to drive brand desirability and transform the perception of
Pandora into a full jewellery brand. This includes, not the least, investments behind the “BE LOVE” marketing
campaign which continues to resonate with consumers.
• The “Core” segment delivered 1% LFL growth whilst the “Fuel with more” segment delivered 29% LFL growth.
• As part of the Phoenix strategy, Pandora is expanding into selected, new design aesthetics. During Q2 2024,
Pandora launched the PANDORA ESSENCE collection globally. Initial results have been encouraging.
• Combining Pandora’s value accretive network expansion strategy with consistent brand elevation, Pandora
opened its first ever global flagship store in Copenhagen, Pandora’s largest store to date globally.
2024 Guidance and current trading
• The organic growth guidance is upgraded to “9-12%” (previously “8-10%”). The EBIT margin guidance remains
unchanged at “around 25%”.
• Current trading in Q3 remains healthy with an underlying LFL growth at mid-single digit levels.
Alexander Lacik, President and CEO of Pandora, says:
“Our strategy continues to take Pandora to new heights despite general consumer spending being somewhat sluggish.
We have successfully started the journey to make Pandora known as a full jewellery brand, and our results show that
consumers like what they see. Thanks to our strong performance, we are again raising revenue guidance for 2024 and
look to the second half of the year with optimism.”
DKK million
Q2 2024
Q2 2023
H1 2024
H1 2023
FY 2023
FY 2024
guidance
Revenue
6,771
5,894
13,605
11,745
28,136
Organic growth
15%
5%
16%
3%
8%
9-12%
Like-for-Like, %
8%
2%
9%
1%
6%
Operating profit (EBIT)
1,338
1,188
2,845
2,445
7,039
EBIT margin, %
19.8%
20.2%
20.9%
20.8%
25.0%
Around 25%
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
12 AUGUST 2024 | INTERIM FINANCIAL REPORT Q2 2024 | COMPANY ANNOUNCEMENT No. 885 | page
3 | 37
FINANCIAL HIGHLIGHTS
DKK million
Q2 2024
Q2 2023
H1 2024
H1 2023
FY 2023
Financial highlights
Revenue
6,771
5,894
13,605
11,745
28,136
Organic growth, %
15%
5%
16%
3%
8%
Like-for-like, %
8%
2%
9%
1%
6%
Earnings before interest, tax, depreciation and
amortisation (EBITDA)
1,916
1,690
3,984
3,444
9,118
Operating profit (EBIT)
1,338
1,188
2,845
2,445
7,039
EBIT margin, %
19.8%
20.2%
20.9%
20.8%
25.0%
Net financials
-280
-171
-509
-265
-805
Net profit for the period
799
778
1,764
1,667
4,740
Financial ratios
Revenue growth, DKK, %
15%
4%
16%
4%
6%
Revenue growth, local currency, %
16%
7%
18%
5%
9%
Gross margin, %
80.2%
78.1%
79.8%
77.8%
78.6%
EBITDA margin, %
28.3%
28.7%
29.3%
29.3%
32.4%
EBIT margin, %
19.8%
20.2%
20.9%
20.8%
25.0%
Effective tax rate, %
24.5%
23.5%
24.5%
23.5%
24.0%
Equity ratio, %
16%
19%
16%
19%
23%
NIBD to EBITDA, x
1.4
1.3
1.4
1.3
1.1
Return on invested capital (ROIC), %
1
45%
44%
45%
44%
45%
Cash conversion incl. lease payments, %
94%
104%
38%
25%
78%
Net working capital, % of last 12 months’ revenue
6.0%
8.4%
6.0%
8.4%
1.8%
Capital expenditure, % of revenue
7.0%
6.8%
6.5%
5.7%
5.8%
Stock ratios
Total payout ratio (incl. share buyback), %
110%
186%
189%
259%
136%
Dividend per share, proposed, DKK
-
-
-
-
18
Dividend per share, paid, DKK
-
-
18
16
16
Earnings per share, basic, DKK
9.7
8.9
21.5
19.0
55.5
Earnings per share, diluted, DKK
9.7
8.8
21.4
18.9
55.1
Consolidated balance sheet
Total assets
24,797
22,112
24,797
22,112
23,798
Invested capital
17,478
15,609
17,478
15,609
15,126
Net working capital
1,812
2,265
1,812
2,265
510
Net interest-bearing debt (NIBD)
13,402
11,363
13,402
11,363
9,770
Equity
4,076
4,245
4,076
4,245
5,355
Consolidated statement of cash flows
Cash flows from operating activities
1,626
1,627
1,814
1,485
7,384
Capital expenditure, total
476
398
885
668
1,624
Capital expenditure, property, plant and equipment
331
312
583
477
1,176
Free cash flows incl. lease payments
1,255
1,230
1,069
616
5,489
1
Last 12 months’ EBIT in % of last 12 months’ average invested capital. The “Return on invested capital (ROIC), %” was updated in Q1 2024 from “Last 12 months’ EBIT
in % of invested capital” to “Last 12 months’ EBIT in % of last 12 months’ average invested capital” to present a more useful and less volatile KPI by switching to moving
annual total. All comparative periods have been restated.
For definitions of the performance measures used by Pandora, see note 5.6 Financial definitions to the consolidated
financial statements in the Annual Report 2023.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
12 AUGUST 2024 | INTERIM FINANCIAL REPORT Q2 2024 | COMPANY ANNOUNCEMENT No. 885 | page
4 | 37
BUSINESS UPDATE
The journey towards a full jewellery brand continues - Phoenix delivers another strong quarter
Q2 2024 was the fourth consecutive quarter with double-digit organic growth, despite a still challenging global
backdrop for consumers. The performance reflects the relevance of and good execution on the Phoenix strategy.
Pandora remains only at the beginning of its journey towards transforming the perception of Pandora into a full
jewellery brand but has already seen the consumer responding with an increase in traffic across the physical stores
and online. As one of the few true global players in the global accessible luxury jewellery market, Pandora continues
to benefit from the shift towards strong brands in a largely fragmented industry.
The 15% organic growth in Q2 2024 was supported by both strong LFL growth at 8% and network expansion at 6%.
On top of that, there was a 1% contribution from phasing of sell-in to partners and other. Profitability continued to
be supported by Pandora’s strong earnings model and another historical high gross margin surpassing the 80%
threshold for the first time ever. In Europe, key markets continued to deliver solid results, achieving 10% LFL growth.
This was, still, largely driven by particularly strong performance in Germany, whilst broader market weakness
continued to weigh on the other key European markets. In the US, LFL remained robust at 5% and well ahead of a soft
jewellery market. Rest of Pandora delivered another double-digit quarter with 13% LFL with good broad-based
growth across many countries.
Pandora is capitalising on higher traffic across all touchpoints, with in particular strong momentum for the online
channel, which grew by 19% LFL, representing a 20% share of revenue in the quarter. Pandora’s own stores continued
to outperform partner stores in Q2 2024 with Pandora’s physical network delivering 6% LFL vs. partners at 0%.
Pandora's gross margin reached an all-time high of 80.2%, a 210bp increase compared to Q2 2023, underpinning
Pandora’s unique business model and vertically integrated value chain. The gross margin increase was driven by
favourable pricing, efficiencies at the crafting facilities and channel mix. There was also some support from combined
commodity and foreign exchange movements of 30bp. The combined tailwind from foreign exchange and
commodities seen in H1 2024 is expected to gradually turn through the remainder of the year to become a net
headwind in H2 2024.
Investments across the value chain are delivering on the restaging of the brand, consistently driving brand heat
Pandora continued to invest to drive the restaging of the brand which carries the strategic aim of elevating brand
desirability and showcasing Pandora’s identity as a full jewellery brand. Investments cover the entire value chain,
including across marketing, the store network, technology and data and its people. Building on the initial success of
Pandora’s new “BE LOVE” marketing campaign, Pandora continued to be active through powerful media engagements
and social media activations across the quarter. Whilst still early days, “BE LOVE” continues to build on its initial
success through attracting more customers into the Pandora brand, driven by growth across both new cross-
generational customer acquisition and increasing returning customers. Major brand KPIs, such as unaided awareness
and consideration, have shown an initial positive response.
In May 2024, Pandora began construction of the new DKK 1 billion crafting facility in Binh Duong Province, Vietnam.
This facility will support long-term growth, create 7,000 jobs, and produce up to 60 million pieces of jewellery annually
using 100% renewable energy and recycled silver and gold.
In June 2024, Pandora relocated the EMEA distribution centre to a new location in Hamburg, Germany. The
distribution centre is double the size of the old facilities and covers 11,000 m2 of storage, packaging, distribution
and office space.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
12 AUGUST 2024 | INTERIM FINANCIAL REPORT Q2 2024 | COMPANY ANNOUNCEMENT No. 885 | page
5 | 37
Growing the “Core” while “Fuelling with more” – in line with the strategy
Leveraging the new marketing message from Pandora’s “BE LOVE” campaign, Pandora continued to see good growth
across its diverse collections. The Core segment delivered 1% LFL growth, where Moments remained at a healthy 3%
and Pandora ME delivered another strong quarter at 14% LFL growth. Growth in the Core segment was somewhat
weighed down by a decline in Collabs of -14%, impacted by prior year comparatives which benefitted from the
“Disney 100” years collection. The Fuel with more segment continued to deliver strong growth at 29% LFL. Notably,
the Timeless collection continues to excel with another strong quarter at 29% LFL growth, despite tougher
comparatives.
During the quarter, Pandora Lab-Grown Diamonds generated revenue of DKK 61 million with LFL growth of 88%.
Growth continued to be supported by the expansion of the assortment in Q3 2023, set to annualise its initial positive
impact in August 2024. As noted previously, Pandora’s Lab-Grown Diamonds have had a positive halo effect on the
Pandora brand and thereby the other collections with consideration to purchase any piece of Pandora jewellery having
increased since Pandora’s expanded presence in the Lab-Grown Diamond category. Pandora continued to invest
behind its marketing and PR efforts here with Pamela Anderson, one of Pandora’s global brand ambassadors, wearing
bespoke Pandora Lab-Grown Diamonds during her Met Gala debut in May. The Diamonds were created for the
occasion by Pandora’s creative directors and consisted of almost 200 carats of white and pink lab-grown diamonds.
Global roll-out of Pandora’s newest collection – PANDORA ESSENCE
As part of the Capital Markets Day 2023, Pandora noted that it would strategically broaden its product assortment
to cater to new design aesthetics, targeting both existing and new consumers. On May 15
th
, Pandora announced the
global launch of its newest collection, PANDORA ESSENCE. The collection expands into the aesthetic space of organic,
fluid and natural which constitutes 17% of the global jewellery market where Pandora previously had very limited
presence. The new contemporary and sculptural collection is inspired by the beauty and simplicity of organic shapes
from nature. The 50-piece collection is designed to be worn every day, all day, and features rings, necklaces and a
great variety of earrings. PANDORA ESSENCE is crafted with high-quality materials like sterling silver, 14K plated gold,
and cultured pearls. In Q2 2024, the collection delivered DKK 172 million revenue, including DKK 96 million from the
initial sell-in to partners, with all regions noting an encouraging response to the collection with the gold and pearl
designs resonating particularly well.
REVENUE BY SEGMENT
DKK million
Q2 2024
Q2 2023
Like-for-
Like
Share of
Revenue
H1 2024
H1 2023
Like-for-
Like
Share of
revenue
Core
5,108
4,764
1%
75%
10,123
9,403
2%
74%
- Moments
4,346
4,025
3%
64%
8,577
7,885
3%
63%
- Collabs
526
545
-14%
8%
1,085
1,155
-14%
8%
- ME
236
194
14%
3%
460
362
20%
3%
Fuel with more
1,663
1,130
29%
25%
3,482
2,342
31%
26%
- Timeless
1,225
880
29%
18%
2,748
1,829
36%
20%
- Signature
205
218
-13%
3%
437
447
-11%
3%
- PANDORA ESSENCE
1
172
-
-
3%
173
-
-
1%
- Pandora Lab-Grown Diamonds
61
32
88%
1%
124
66
88%
1%
Total revenue
6,771
5,894
8%
100%
13,605
11,745
9%
100%
1
PANDORA ESSENCE was launched in 2024 following a successful pilot in the Netherlands in 2023.
Network expansion drives solid, profitable growth – Pandora opens first flagship store in Copenhagen
In Q2 2024, Pandora had incremental revenue contribution from network expansion of 6%, driven by the net opening
of 143 concept stores and 112 Pandora owned shop-in-shops over the past 12 months. Network expansion is low
risk, while being accretive to margins and returns. As such, Pandora continues its plans to expand the network with
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
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Financial
statements
Accounting
notes
12 AUGUST 2024 | INTERIM FINANCIAL REPORT Q2 2024 | COMPANY ANNOUNCEMENT No. 885 | page
6 | 37
400-500 targeted net openings through 2024-2026. For FY 2024, Pandora now targets net 100-150 concept store
openings (previously “75-125”) and 50-75 (previously “25-50”) new Pandora owned shop-in-shops.
Within the quarter, Pandora combined its successful network expansion strategy with its aim of elevating brand
desirability through opening its first global flagship store in Copenhagen. Located in central Copenhagen, the store
spans 500 square metres across two floors and is Pandora’s largest store to date. The flagship store brings home the
unique Pandora experience which centres on jewellery with a meaning and is brought to life as consumers can
experience a style studio to curate their own jewellery looks and take advantage of other bespoke services. Pandora
will expand the flagship store concept to a few, selected major cities across the World.
Capital Markets Day 2023 – confirming the 2026 EBIT margin target despite higher silver prices
At the Capital Markets Day in 2023, Pandora announced new financial targets including a 26-27% EBIT margin by
2026. The target was set based on a silver price of USD 23.5 per ounce. Since April 2024, silver prices have increased
to a spot price of around USD 27 per ounce as per August 6, 2024. All else equal, and when combined with the current
gold price and foreign exchange rates, this represents an incremental net headwind of around 140bp to the EBIT
margin target for 2026. This will impact the EBIT margin gradually from Q1 2025 onwards.
Pandora has identified actions to offset the headwind and therefore confirms the EBIT margin target of 26-27%.
Actions includes pricing and a number of cost initiatives. In the event of further silver price increases, Pandora will
investigate additional potential mitigating actions.
Pandora normally hedges silver on an ongoing basis, typically resulting in a 9-12 months delayed impact on the EBIT
margin from changes in the spot price. The 2024 price has therefore been almost fully hedged already at USD 23.9
per ounce and the recent increase in silver prices has no or limited impact on the guided margin in 2024. Since the
end of March 2024, Pandora has temporarily paused the hedging of silver in response to the higher silver prices.
As communicated at the Capital Markets Day in 2023, the EBIT margin expansion towards the 26-27% target in 2026
is expected to materialize towards the latter part of the 2024-2026 target period.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
12 AUGUST 2024 | INTERIM FINANCIAL REPORT Q2 2024 | COMPANY ANNOUNCEMENT No. 885 | page
7 | 37
REVENUE REVIEW
Double-digit revenue growth driven by strong LFL and network expansion
In Q2, Pandora delivered organic growth of 15%, which was driven by LFL growth of 8% and network expansion of 6%.
On top of that, there was a 1% contribution from phasing of sell-in to partners and other.
In the Core segment, LFL growth was stable at 1%. Performance was weighed down by a -2pp drag from collaborations
related to last year’s comparatives which benefitted from the “Disney 100” years collection. The Fuel with more
segment delivered 29% LFL growth, driven by the continued strong performance of Timeless, with growth
contribution also from both Lab-grown Diamonds and the new PANDORA ESSENCE collection.
Forward integration continues to support total revenue growth with Pandora acquiring 8 concepts stores in Canada
in Q2. This brings the total number of acquired concept stores in H1 2024 to 29, and the total revenue contribution
from forward integration to 1% in Q2 2024. Foreign exchange rates represented a net headwind of 1%, driven by the
continued weakening of the Turkish lira.
The revenue growth development can be illustrated as follows:
Q2 2024 growth composition vs. Q2 2023
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
12 AUGUST 2024 | INTERIM FINANCIAL REPORT Q2 2024 | COMPANY ANNOUNCEMENT No. 885 | page
8 | 37
REVIEW OF REVENUE BY KEY MARKET
Brand momentum drives solid growth in Q2 2024
Pandora’s strong performance in Q2 2024 continues to be driven by the brand momentum globally, manifesting in a
broad-based pick-up in traffic and allowing Pandora to drive market share gains in a still uncertain consumer
environment. Organic growth was strong at 15% and was supported by solid LFL growth of 8%. This performance
underscores the effectiveness of Pandora’s brand strategy, bolstered by the ongoing "BE LOVE" multi-season
marketing campaign, which has resonated with consumers, enhancing the desire for Pandora jewellery.
US
LFL growth in the US was robust and came in at 5% in Q2 2024. The organic growth came in at 14%, fuelled by the
momentum generated from new store openings over the past 12 months. The overall jewellery market sequentially
slowed in the second quarter, and the growth in Pandora US continues to be well ahead of the broader market which
remains flattish to slightly down. Brand momentum driven by the “BE LOVE” campaign coupled with the positive halo
effect from Pandora Lab- Grown diamonds continues to drive new customer acquisition within the Fuel with more
segment, particularly across the Timeless collection. LFL growth in the wholesale channel was flat in Q2. The gap
between performance in our own physical retail and the wholesale channel remains and was 5pp in Q2.
Key markets in Europe
The key markets in Europe delivered LFL growth of 10%, which continues to be fuelled by the performance in
Germany with 65% LFL growth. The brand momentum in Germany remains strong and drives up traffic. Execution was
also strong with the higher traffic being converted successfully.
The UK remains stable with LFL growth of 1%, performance still being ahead of the market which is being impacted
by dampened consumer sentiment. Pandora benefitted from an increase in traffic during the quarter, testament to
the improving strength of the Pandora brand despite the tough consumer backdrop.
Italy delivered LFL growth of -6%, in a market with sustained macroeconomic challenges which continues to have a
direct impact on the purchasing power of consumers. The decline in LFL was driven by softer traffic in stores, while
the online channel experienced growth in both traffic and LFL. The fuel with more segments continue to grow,
attracting new consumers into the brand.
France delivered a flat LFL of 0%. Performance continued to be hampered slightly by a drag from the wholesale
channel of 16pp in Q2 compared to Pandora’s own stores. To further develop the penetration of stores and drive
brand awareness closer to that of other European key markets, Pandora continues to expand its network. Organic
growth in France therefore reached 13% in Q2 2024, up from 12% in Q1.
Australia and China
Australia delivered LFL of -8% in Q2 2024. The consumer sentiment in Australia remains low and purchasing power
subdued and this impacted Pandora’s performance. Furthermore, the external promotional environment during the
end of season sale was elevated. The partner stores also provided a drag, being outperformed by 3pp by the retail
stores. LFL during base weeks, with no promotional activity in the market, was stronger (flat).
The performance in China was weak as anticipated ending at -23% LFL in the quarter. With the new management in
place in early 2024, Pandora is committed to navigating the market's complexities and driving positive change through
the gradual build of the brand in China.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
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Financial
statements
Accounting
notes
12 AUGUST 2024 | INTERIM FINANCIAL REPORT Q2 2024 | COMPANY ANNOUNCEMENT No. 885 | page
9 | 37
Rest of Pandora
Rest of Pandora reported another double-digit quarter, achieving 13% LFL. The solid growth remains broad-based
with established markets such as Spain and Poland sustaining mid-teens LFL growth, while less penetrated markets
like Netherlands, Portugal, Austria and Japan exhibited solid double-digit LFL growth. The sequential slowing from
18% LFL in Q1 was mainly driven by the expected normalisation of growth levels in Turkey and Mexico. Network
expansion continues across many markets in Rest of Pandora and organic growth reached 24% in Q2 2024.
QUARTERLY REVENUE DEVELOPMENT BY KEY MARKET
DKK million
Q2 2024
Q2 2023
Like-for-like
Organic growth
Share of revenue
US
2,173
1,834
5%
14%
32%
China
118
156
-23%
-23%
2%
UK
694
656
1%
4%
10%
Italy
568
584
-6%
-3%
8%
Australia
211
218
-8%
-3%
3%
France
261
231
0%
13%
4%
Germany
464
295
65%
57%
7%
Total key markets
4,490
3,972
5%
11%
66%
Rest of Pandora
2,281
1,922
13%
24%
34%
Total revenue
6,771
5,894
8%
15%
100%
YEAR-TO-DATE REVENUE DEVELOPMENT BY KEY MARKET
DKK million
H1 2024
H1 2023
Like-for-like
Organic growth
Share of revenue
US
4,201
3,549
7%
15%
31%
China
229
317
-20%
-25%
2%
UK
1,549
1,465
0%
3%
11%
Italy
1,133
1,123
-4%
0%
8%
Australia
414
438
-5%
-3%
3%
France
535
474
1%
13%
4%
Germany
936
564
66%
66%
7%
Total key markets
8,996
7,930
6%
12%
66%
Rest of Pandora
4,609
3,815
15%
26%
34%
Total revenue
13,605
11,745
9%
16%
100%
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
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REVIEW OF NETWORK DEVELOPMENT
Continued expansion of the Pandora network with 45 net openings in Q2 2024
During the second quarter of 2024, Pandora added a net of 25 concept stores and 20 Pandora owned shop-in-shops
to the network. The concept store openings have been geographically relatively broad-based, while the openings of
Pandora owned shop-in-shops have been concentrated around Latin America and Asia.
In Q2 2024, network expansion drove 6% of the revenue growth. On top of that, forward integration added 1% to
revenue growth.
Network expansion is low risk, while being accretive to margins and returns. As such, Pandora continues it plans to
expand the network with 400-500 targeted net openings through 2024-2026. For FY 2024, Pandora now targets net
100-150 concept store openings (previously “75-125”) and 50-75 (previously “25-50”) new Pandora owned shop-
in-shops.
Number of points of sale
1
Q2 2024
Q1 2024
Q2 2023
Growth
Q2 2024
/Q1 2024
Growth
Q2 2024
/Q2 2023
Concept stores
2,695
2,670
2,552
25
143
- of which Pandora owned
2
1,984
1,926
1,712
58
272
- of which franchise owned
391
412
533
-21
-142
- of which third-party distribution
320
332
307
-12
13
Other points of sale
3,940
3,965
3,975
-25
-35
- of which Pandora owned
2
605
585
493
20
112
- of which franchise owned
3,038
3,085
3,167
-47
-129
- of which third-party distribution
297
295
315
2
-18
Total points of sale
6,635
6,635
6,527
-
108
1
Please refer to note 11 Store network, concept store development in the accounting notes section for more details.
2
Pandora does not own any of the premises (land and buildings) where stores are operated. Pandora exclusively operates stores from leased premises.
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PROFITABILITY
EBIT margin in line with expectations – scaling up investments across the value chain
The EBIT margin in Q2 was 19.8%, -40bp below Q2 2023 reflecting a higher temporary drag from forward integration.
Excluding the temporary negative impact from forward integration, the EBIT margin was in line with last year.
In line with the strategy, Pandora continued to invest across the value chain to support the restaging of the brand as
well as accelerate other initiatives such as strengthening the presence in Asia. Accordingly, marketing expenses were
up 100bp as a percentage of sales compared to Q2 2023.
Network expansion and operating leverage contributed positively and offset the investments into driving the topline
whilst inflation and salary increases more than offset the price increases and efficiencies.
The temporary margin drag from buying back inventories in connection with forward integration represented a
headwind of -70bp in the quarter, up 40bp from last year. As mentioned above, excluding this, the underlying EBIT
margin is flat compared to last year despite the investments.
Foreign exchange represented a tailwind of 20bp, which was partially offset by the headwind from commodities of -
10bp. The increased price of silver and gold is driving the negative impact on commodities, while the tailwind on
currency comes from the weakening of the Thai baht and a stronger USD.
The net tailwind from foreign exchange rates and commodity prices is expected to turn in H2 2024 and become a -
50bp drag on the full year.
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GROSS MARGIN
The gross margin in Q2 2024 was 80.2%, continuing the upward trend with yet another record high and +210 bp above
Q2 2023, underpinning the strength of Pandora’s vertically integrated business model.
The increase was driven by the price increases, as well as continued efficiencies at the crafting facilities. Channel mix
contributed with +50bp positive impact vs Q2 2023, driven by the higher share of revenue generated by Pandora
owned and operated stores. Lastly product mix was also contributing positively, as Fuel with more has a larger share
of revenue with a gross margin of 84.0% compared to Core with a gross margin of 78.9%.
Foreign exchange rates provided a tailwind of +40bp, driven by the weakening of the THB and the strengthening of
the USD whilst commodities drove a -10bp headwind vs. Q2 2023, due to an increase in the price of silver and gold.
The gross margin was temporarily impacted by buying back inventory when doing forward integration. This
represented a net headwind of -40bp compared to Q2 2023. Adjusting for forward integration, the underlying gross
margin improved by +250bp to 80.9%.
GROSS MARGIN AND GROSS PROFIT
DKK million
Q2 2024
Q2 2023
Growth in
constant FX
H1 2024
H1 2023
Growth in
constant FX
Revenue
6,771
5,894
16%
13,605
11,745
18%
Cost of sales
-1,342
-1,289
8%
-2,752
-2,603
10%
Gross profit
5,429
4,606
19%
10,853
9,142
20%
Gross margin %
80.2%
78.1%
79.8%
77.8%
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OPERATING EXPENSES
The operating expenses increased by 21% in constant exchange rates measured against Q2 2023 driven by the
profitable network expansion and marketing investments behind the restaging of the brand.
The 25% increase in sales and distribution expenses is not least driven by the expansion of the store network and
forward integration, having added 384 Pandora owned and operated stores to the network compared to Q2 2023.
The resulting change of channel mix drives around 140bp increase in the Sales and Distribution expense as a share of
revenue vs Q2 2023. The increase in Sales and Distribution expenses driven by the changes to the network is more
than offset by a higher gross margin and leverage on other OPEX lines and thereby accretive to the EBIT margin.
The remaining increase in the Sales and Distribution expenses is driven by among others strategic Phoenix
investments in digital and IT (for example a store workforce management system, upgrade of the online platform),
depreciations related to the roll-out of Evoke as well as some one-off last year and phasing between quarters. The
YoY increase in the share of revenue is expected to remain elevated in Q3 2024 and then decrease again in Q4 2024.
Marketing expenses were up by 23% in constant exchange rates vs Q2 2023 equivalent to almost DKK 200 million.
This increase is related to the brand strategy, which aims to transform the perception of Pandora into a full jewellery
brand. The share of revenue was 15.7%, 1pp higher than Q2 2023.
Administrative expenses increased by only 3% in constant exchange rates vs. Q2 last year driving 110bp of leverage
on this line in the Profit & Loss statement.
QUARTERLY OPERATING EXPENSES
DKK million
Q2 2024
Q2 2023
Growth in
constant FX
Share of revenue
Q2 2024
Share of revenue
Q2 2023
Sales and distribution expenses
-2,441
-1,975
25%
36.1%
33.5%
Marketing expenses
-1,062
-864
23%
15.7%
14.7%
Administrative expenses
-588
-578
3%
8.7%
9.8%
Total operating expenses
-4,091
-3,417
21%
60.4%
58.0%
YEAR-TO-DATE OPERATING EXPENSES
DKK million
H1 2024
H1 2023
Growth in
constant FX
Share of revenue
H1 2024
Share of revenue
H1 2023
Sales and distribution expenses
-4,862
-3,978
24%
35.7%
33.9%
Marketing expenses
-1,966
-1,579
25%
14.5%
13.4%
Administrative expenses
-1,180
-1,140
4%
8.7%
9.7%
Total operating expenses
-8,008
-6,697
21%
58.9%
57.0%
FINANCIAL EXPENSES AND TAX
Net financials came in at a cost of DKK 280 million in Q2 2024, compared to DKK 171 million in Q2 2023. The majority
of the increase is non-structural and driven by two factors: i) net realised loss on foreign exchange hedging contracts
of DKK 49 million and ii) non-cash foreign exchange rate adjustments on mainly intercompany balances between
group entities resulted in a negative impact of DKK 46 million in Q2 this year (DKK 1 million gain in Q2 2023). The
underlying increase in net financials is mainly driven by DKK 29 million higher IFRS16 related interest on lease
payments. Based on above mentioned non-structural factors and based on the current foreign exchange rates,
Pandora expects total net financial expenses in 2024 to be around DKK 1,000 million (previously “DKK 950-1,000
million”). The guidance consists of around DKK 800 million interest on debt, IFRS 16 related interest, fees etc. and
around DKK 200 million loss on foreign exchange hedging contracts and non-cash foreign exchange adjustments on
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intercompany balances. The latter is subject to the usual movements in foreign exchange rates that Pandora is
exposed to and updated accordingly.
The effective tax rate in Q2 2024 came in at 24.5%, up by 100bp compared to Q2 2023 and in line with the guidance.
The increase is driven by the Pillar Two tax rules, taking effect in 2024.
EPS came in at DKK 9.7 for the quarter an increase of 9% from DKK 8.9 in Q2 2023.
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CASH FLOW & BALANCE SHEET
Improving net working capital
Net working capital was 6.0% of revenue in Q2 2024, down by 240bp from 8.4% in Q2 2023. The reduction was driven
mainly by inventory levels being flat versus Q2 2023 despite a 15% increase in group revenues. This, therefore,
resulted in a notable drop in inventories as a percentage of sales of 170bp compared to Q2 2023. Cash conversion
came in at 94% and remains strong, supported by the lower net working capital. The free cash flow was DKK 1.3 billion,
in line with last year.
CAPEX was DKK 0.5 billion in the quarter, equivalent to 7.0% of revenue, an increase from DKK 0.4 billion in Q2 2023
and in line with the guidance. The increase is driven by investments to fuel growth within the store network and within
Digital and Technology, not least the new ERP platform.
ROIC was 45% in Q2 2024, just above the Q2 2023 level of 44%. The structurally high ROIC continues to be supported
by the investments into expanding Pandora’s store network, as new Pandora stores are ROIC accretive on a run-rate
basis.
Trade receivables continue to be at a healthy level and in line with last year with total days sales outstanding (DSO)
down to 11 days, below the 12 days in Q2 2023. Wholesale DSO ended at 33 days compared to 35 days last quarter
and 30 days in Q2 2023. Retail DSO remain low at 7 days, unchanged from last year.
NET WORKING CAPITAL
Share of preceding 12 months' revenue
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Inventories
14.9%
15.2%
14.8%
17.8%
16.6%
Trade receivables
2.8%
3.8%
4.8%
3.4%
2.9%
Trade payables
-9.2%
-9.2%
-11.4%
-8.7%
-8.5%
Other net working capital elements
-2.4%
-2.9%
-6.4%
-3.3%
-2.6%
Total
6.0%
6.9%
1.8%
9.2%
8.4%
Balance Sheet
Non-current assets increased by DKK 2.3 billion compared to Q2 2023 to DKK 17.2 billion by the end of Q2 2024.
This was in larger part driven by the network expansion increasing the right-of-use assets, as well as CAPEX (tangible
assets) related to store refurbishments.
Current assets increased from DKK 7.2 billion in Q2 2023 to DKK 7.6 billion in Q2 2024. The increase is driven by
among others receivables related to derivatives (hedging).
Equity is DKK 4.1 billion, in-line with DKK 4.2 billion in Q2 2023. In the quarter, Pandora has bought back shares
totalling DKK 0.9 billion, bringing the year-to-date amount to DKK 1.9 billion.
Net interest-bearing debt increased to DKK 13.4 billion, up from DKK 11.4 billion in Q2 2023. This corresponds to a
leverage of 1.4x compared to a leverage of 1.3x last year. In line with usual seasonality, leverage is expected to peak
in Q3 and go above 1.5x before coming back down in Q4 to around 1.2x, ending 2024 well in line with the policy range
of 0.5-1.5x (end-of-year range). In the quarter, Pandora issued a EUR 500 million sustainability linked bond maturing
in 2030. At the end of Q2 2024, Pandora had DKK 6.3 billion in undrawn committed credit facilities.
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FINANCIAL GUIDANCE
Upgrading revenue guidance
Despite lingering macroeconomic uncertainties, Pandora’s strategic initiatives have continued to yield positive results.
Reflecting this strategic momentum, Pandora once again raises its organic growth guidance.
Pandora is now targeting organic growth of 9-12% (previously “8-10%”) and an EBIT margin around 25% (unchanged).
The new organic growth range reflects the strategic momentum, partly offset by the broader macroeconomic
environment. The low-end of the guidance would require a weakening of the macroeconomic climate relative to
today.
REVENUE GUIDANCE
The organic growth guidance can be illustrated as follows:
Pandora is currently expecting LFL growth of 5-7% (previously “4-6%”). The low-end of the LFL range would require
a weakening of the macroeconomic environment relative to today. Continued network expansion is expected to add
4-5% growth (previously “Around 4%”) to take the total organic growth to 9-12% (previously “8-10%”). Finally,
forward integration is expected to add around 1% revenue with revenue growth in local currency ending at 10-13%
(previously “9-11%”).
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PROFITABILITY GUIDANCE
The EBIT margin guidance for 2024 is unchanged at “Around 25%” and can be illustrated as follows:
The building blocks in the bridge above include a positive impact from the profitable expansion of Pandora’s store
network, expected to add 60bp (previously 50bp).
The “Operating leverage, net of investments" is now expected to be slightly positive (previously “Around 0%”), driven
by the increase in the LFL guidance. The operating leverage will continue to be largely re-invested into initiatives
supporting both future and current growth. Partly due to these investments and partly due to phasing of costs in
general, the EBIT margin in Q3 2024 is, as previously communicated, expected to be below last year.
As outlined during the Capital Markets Day in 2023, Pandora is committed to scaling up investments to seize current
and future growth opportunities. These investments encompass various initiatives such as the restaging of the brand,
the rollout of the Evoke 2.0 store concept, personalized experiences (both online and offline), as well as efforts to
establish Pandora as the go-to destination for Lab-Grown Diamonds. Consequently, while positive LFL growth yields
operational leverage, the impact of ongoing investments under the Phoenix strategy is expected to offset most of
the leverage in 2024.
Furthermore, inflationary pressures, including salary increases, are anticipated to be largely mitigated through price
adjustments and operational efficiencies. The combined impact of silver prices and foreign exchange fluctuations is
projected to be a drag of 50bp (previously “0bp”). The incremental drag is offset by among others higher leverage.
2024 GUIDANCE – OTHER PARAMETERS
Pandora expects to open net 100-150 concept stores (previously “75-125”) and 50-75 (previously “25-50”) owned
and operated other points of sales in 2024.
CAPEX is still expected to end at 6-7% share of revenue, as Pandora continues to scale up investments into the store
network with the roll-out of Evoke 2.0 and network expansion, digital initiatives and crafting facilities.
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The effective tax rate is expected to be 24-25% as the Pillar Two tax rules, released by OECD, comes into effect in
2024.
Pandora expects total net financial expenses to be around DKK 1,000 million in 2024 (previously “DKK 950-1,000
million”).
The guidance contains forward-looking statements, which include estimates of financial performance and targets.
These statements are not guarantees of future performance and involve certain risks and uncertainties. Therefore,
actual future results and trends may differ materially from what is forecast in this report due to a variety of factors,
please also refer to the disclaimer on page 37.
FOREIGN EXCHANGE AND COMMODITY ASSUMPTIONS AND IMPLICATIONS – As of 06 August 2024
Average 2023
Average 2024
2024 Y-Y Financial
Impact
USD/DKK
6.89
6.87
THB/DKK
0.20
0.19
GBP/DKK
8.57
8.70
AUD/DKK
4.58
4.49
MXN/DKK
0.39
0.38
CAD/DKK
5.11
5.01
TRY/DKK
0.30
0.21
CNY/DKK
0.97
0.96
Silver/USD (per ounce)a
22.75
23.87
Gold/USD (per ounce)
1,840
1,993
REVENUE (DKK million)
Approx. -525
EBIT (DKK million)
Approx. -280
EBIT margin (foreign exchange)
Approx. 0.0%
EBIT margin (commodities)
Approx. -0.5%
CAPITAL STRUCTURE POLICY AND CASH DISTRIBUTION
At the end of Q2 2024, in line with expectations and usual seasonality, Pandora’s leverage was 1.4x NIBD to EBITDA,
broadly in line with Q2 2023 at 1.3x.
Pandora aims for a leverage ratio of approximately 1.2x NIBD to EBITDA by the end of 2024. In line with the usual
seasonality of the business, leverage will increase through the year, peaking in Q3 2024, and then fall back by year
end.
Pandora has paid out DKK 3.4 billion to shareholders in the first half of 2024, of which DKK 1.5 billion came from an
ordinary dividend of DKK 18 per share and DKK 1.9 billion was distributed via share buybacks (DKK 0.4 billion related
to the 2023 programme ending in early February 2024). Pandora intend to buy back DKK 4.0 billion worth of own
shares over twelve months ending January 31, 2025, of which DKK 2.0 billion has been bought back as of August 9,
2024.
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OTHER EVENTS
Investor and Analyst Days 2024
Pandora hosted Investor and Analyst Days on June 11-12 2024, showcasing Pandora’s Crafting & Supply facilities in
Thailand. During the visit, the leadership team presented a deep dive into Pandora’s vertically integrated business
model, showcasing its unmatched scale, speed and agility. Presentations and audio files can be accessed via the
following link: https://pandoragroup.com/investor/events-and-presentations/presentations
Pandora brings lab-grown diamonds to Denmark
In June, Pandora launched its lab-grown diamonds collection in Denmark, its home country, marking the first EU
market to offer these innovative diamonds. This launch, supported by the opening of Pandora’s first flagship store in
Copenhagen, aims to make diamond jewellery more accessible and sustainable. The diamonds are created using
renewable energy and set in recycled silver and gold, significantly reducing their carbon footprint compared to mined
diamonds. The new flagship store features a unique design and offers bespoke services, enhancing customer
experience.
Pandora successfully prices a EUR 500 million Sustainability-Linked Eurobond
During May, Pandora placed EUR 500 million senior unsecured sustainability-linked notes under its EMTN programme,
with strong investor demand peaking at over EUR 1.7 billion. The bonds, rated Baa2 by Moody’s and BBB by Standard
& Poor’s, where issued on May 31, 2024, at a fixed coupon of 3.875% per annum with maturity in 2030. The proceeds
will be used for refinancing and general corporate purposes, with the interest rate level on the bonds linked to
achieving specific sustainability targets.
Pandora breaks ground on new crafting facility in Vietnam
Pandora began constructing a new USD 150 million (DKK 1 billion) crafting facility in Binh Duong Province, Vietnam.
This facility will support long-term growth, create 7,000 jobs, and produce up to 60 million pieces of jewellery annually
using 100% renewable energy and recycled silver and gold. The facility aims to meet future demand and align with
Pandora’s sustainability goals, contributing to its objective of halving carbon emissions by 2030 and achieving net zero
by 2040.
FINANCIAL CALENDAR 2024
The expected dates for publication of financial announcements in 2024 for Pandora A/S are as follows:
06 November 2024 Interim Financial Report for the third quarter 2024
05 February 2025 Annual Report 2024
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2024 YTD DEVELOPMENT
REVENUE
Total revenue increase by 18% in local currency to DKK 13,605 million in the first half of 2024 compared to 2023.
Organic growth was 16% reflecting sustained momentum and a strengthening of the brand.
Revenue from Pandora’s Core segment grew by 9% in local currency to DKK 10,123 million in the first half of 2024
from DKK 9,403 million in 2023. The segment “Fuel with more” saw revenue growth of 50% in local currency, driven
by strong performance of the Timeless collection.
GROSS PROFIT AND COSTS
Gross profit was DKK 10,853 million in the first half of 2024 (DKK 9,142 million in 2023), resulting in a gross margin
of 79.8% in 2024 vs. 77.8% in 2023. The Core segment generated a gross margin of 78.4% (2023: 77.0%), while Fuel
with more generated a gross margin of 83.7% (2023: 81.4%). The increase was driven by favourable channel mix and
pricing, as well as efficiencies at our crafting facilities.
Sales and distribution expenses increased to DKK 4,862 million in the first half of 2024 (DKK 3,978 million in 2023),
corresponding to 35.7% of revenue in 2024 (33.9% in 2023). The increase is mainly the result of the profitable
expansion of the Pandora owned physical network.
Marketing expenses were DKK 1,966 million in the first half of 2024 (DKK 1,579 million in 2023), resulting in a share
of revenue of 14.5% in 2024 compared with 13.4% in 2023. The reason for the higher shares of revenue is related to
the brand strategy, which aims to transform the perception of Pandora into a full jewellery brand.
Administrative expenses ended at DKK 1,180 million in the first half of 2024 compared with DKK 1,140 million in
2023, corresponding to 8.7% of revenue in 2024, down from 9.7% in 2023.
EBIT
EBIT for the first half of 2024 was DKK 2,845 million, resulting in an EBIT margin of 20.9% vs. 20.8% in 2023.
NET FINANCIALS
Net financials amounted to a cost of DKK 509 million in the first half of 2024 vs. a cost of DKK 265 million in 2023.
This reflects among others increased interest rates on loans and store leases, as well as foreign exchanges rate
adjustments and net realised losses on foreign exchange hedging contracts.
INCOME TAX EXPENSES
Income tax expenses were DKK 572 million in the first half of 2024 compared with DKK 512 million in 2023, implying
an effective tax rate for the Group of 24.5% in 2024, up from 23.5% in 2023, due to the introduction of the Pillar
Two tax rules.
NET PROFIT
Net profit in the first half of 2024 was DKK 1,764 million vs. DKK 1,667 million in 2023.
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CONTACT
CONFERENCE CALL
A conference call for investors and financial analysts will be held today at 11.00 CET and can be joined online at
www.pandoragroup.com. The presentation for the call will be available on the website before the call.
The following numbers can be used by investors and analysts:
DK: +45 78 76 84 90
SE: +46 406 820 620
UK: +44 203 769 6819
US: +1 646 787 0157
PIN: 837462
Link to webcast: https://pandora-events.eventcdn.net/events/interim-financial-report-for-the-second-quarter-
of
ABOUT PANDORA
Pandora is the world’s largest jewellery brand. The company designs, manufactures and markets hand-finished
countries through 6,700 points of sale, including more than 2,600 concept stores.
Headquartered in Copenhagen , Denmark
facilities in Thailand. Pandora is committed to leadership in sustainability and is sourcing recycled silver and gold for
all of its jewellery, just as the company has set out to halve greenhouse gas emissions across its value chain by 2030.
Pandora is listed on the Nasdaq Copenhagen stock exchange and generated revenue of DKK 28.1 billion (EUR 3.8
billion) in 2023.
For more information, please contact:
INVESTOR RELATIONS
Bilal Aziz
VP, Investor Relations & Treasury
+45 3137 9486
biazi@pandora.net
CORPORATE COMMUNICATIONS
Mads Twomey-Madsen
SVP, Corporate Communications & Sustainability
+45 2510 0403
madt@pandora.net
Adam Fuglsang
Director, Investor Relations
+45 6167 7425
adfug@pandora.net
Johan Melchior
VP, Media Relations & Public Affairs
+45 4060 1415
jome@pandora.net
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12 AUGUST 2024 | INTERIM FINANCIAL REPORT Q2 2024 | COMPANY ANNOUNCEMENT No. 885 | page
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FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
DKK million
Notes
Q2 2024
Q2 2023
H1 2024
H1 2023
FY 2023
Revenue
3
Cost of sales
-1,342
-1,289
-2,752
-2,603
-6,012
Gross profit
Sales, distribution and marketing expenses
-3,503
-2,839
-6,828
-5,557
-12,707
Administrative expenses
-588
-578
-1,180
-1,140
-2,379
Operating profit
Finance income
Finance costs
-327
-239
-603
-424
-1,056
Profit before tax
Income tax expense
-260
-239
-572
-512
-1,494
Net profit for the period
Earnings per share, basic, DKK
Earnings per share, diluted, DKK
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
DKK million
Q2 2024
Q2 2023
H1 2024
H1 2023
FY 2023
Net profit for the period
Other comprehensive income:
Items that may be reclassified to profit/loss
for the period
Exchange rate adjustments of investments in
subsidiaries
-29
-25
-66
-149
Fair value adjustment of hedging instruments
-282
-249
-197
Tax on other comprehensive income, hedging
instruments, income/expense
-29
-24
Items that may be reclassified to profit/loss
for the period, net of tax
-263
-267
-308
Items not to be reclassified to profit/loss for
the period
Actuarial gain/loss on defined benefit plans,
net of tax
-21
-21
-9
Items not to be reclassified to profit/loss for
the period, net of tax
-21
-21
-9
Other comprehensive income, net of tax
-284
-288
-317
Total comprehensive income for the period
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CONSOLIDATED BALANCE SHEET
DKK million
Notes
2024
30 June
2023
30 June
2023
31 December
ASSETS
Goodwill
7
Brand
Distribution
Other intangible assets
Total intangible assets
Property, plant and equipment
Right-of-use assets
8
Deferred tax assets
Other financial assets
Total non-current assets
Inventories
Trade receivables
5
Right-of-return assets
Derivative financial instruments
4,12
Income tax receivable
Other receivables
Cash
Total current assets
Total assets
EQUITY AND LIABILITIES
Share capital
Treasury shares
-1,092
-2,337
-4,353
Reserves
Proposed dividend
Retained earnings
Total equity
Provisions
Loans and borrowings
4,8
Deferred tax liabilities
Other payables
Total non-current liabilities
Provisions
Refund liabilities
Contract liabilities
Loans and borrowings
4,8
Derivative financial instruments
4,12
Trade payables
9
Income tax payable
Other payables
Total current liabilities
Total liabilities
Total equity and liabilities
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
DKK million
Share
capital
Treasury
shares
Translation
reserve
Hedging
reserve
Dividend
proposed
Retained
earnings
Total
equity
2024
Equity at 1 January
-4,353
-33
Net profit for the period
Other comprehensive income, net of tax
-9
Total comprehensive income for the period
Share-based payments
-80
Purchase of treasury shares
-1,888
-1,888
Cancellation of treasury shares
-7
-4,945
Dividend proposed
-9
Dividend paid
-1,471
-1,471
Equity at 30 June
-1,092
2023
Equity at 1 January
-3,320
Net profit for the period
Other comprehensive income, net of tax
-73
-195
-21
-288
Total comprehensive income for the period
-73
-195
Share-based payments
-185
Purchase of treasury shares
-2,980
-2,980
Cancellation of treasury shares
-7
-3,680
Dividend proposed
-18
Dividend paid
-1,412
-1,412
Equity at 30 June
-2,337
-74
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CONSOLIDATED STATEMENT OF CASH FLOWS
The above cannot be derived directly from the income statement and the balance sheet.
DKK million
Notes
Q2 2024
Q2 2023
H1 2024
H1 2023
FY 2023
Operating profit
Depreciation and amortisation
Share-based payments
Change in inventories
-76
-97
-236
-179
Change in receivables
Change in payables and other liabilities
-1,152
-1,741
Other non-cash adjustments
-111
-41
-125
-27
-55
Finance income received
Finance costs paid
-349
-133
-540
-249
-683
Income taxes paid
-277
-207
-638
-603
-1,832
Cash flows from operating activities, net
Acquisitions of subsidiaries and activities,
net of cash acquired
6
-49
-111
-165
-156
-349
Purchase of intangible assets
-106
-56
-145
-170
-359
Purchase of property, plant and equipment
-317
-226
-573
-452
-1,129
Change in other assets
-6
-4
Proceeds from sale of property, plant and equipment
Cash flows from investing activities, net
-472
-371
-878
-748
-1,800
Dividend paid
-1,471
-1,412
-1,412
Dividend paid – withholding tax
-361
-337
Purchase of treasury shares
-879
-1,451
-1,867
-2,900
-5,022
Proceeds from loans and borrowings
Repayment of loans and borrowings
-54
-1,929
-3,061
-3,321
Repayment of lease commitments
-293
-264
-564
-515
-1,107
Cash flows from financing activities, net
-892
-778
-1,306
-560
-4,935
Net increase/decrease in cash
-370
Cash and cash equivalents, beginning of period
Exchange gains/losses on cash and cash equivalents
-4
-17
-8
-23
-61
Net increase/decrease in cash
-370
Cash and cash equivalents, end of period
Cash balances
Overdrafts
-92
-106
-92
-106
-214
Cash and cash equivalents, end of period
Cash flows from operating activities, net
- Finance income received
-4
-5
-8
-10
-19
- Finance costs paid
Cash flows from investing activities, net
-472
-371
-878
-748
-1,800
- Acquisition of subsidiaries and activities, net of cash acquired
Repayment of lease commitments
-293
-264
-564
-515
-1,107
Free cash flows incl. lease payments
Unutilised committed credit facilities
4
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ACCOUNTING NOTES
NOTE 1 – Accounting policies
The unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34
- Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and adopted by the
European Union (EU) and additional Danish disclosure requirements for interim financial reporting of listed
companies.
The accounting policies applied are consistent with the accounting policies set out in the Annual Report 2023.
Due to rounding, numbers presented throughout this report may not add up precisely to the totals, and percentages
may not precisely reflect the absolute figures.
Pandora presents financial measures in the interim financial report that are not defined according to IFRS. Pandora
believes these non-GAAP measures provide valuable information to investors and Pandora’s management when
evaluating performance. Since other companies may calculate these differently from Pandora, they may not be
comparable to the measures used by other companies. These financial measures should therefore not be considered
to be a replacement for measures defined under IFRS. Besides the ”Return on invested capital (ROIC), %” which is
defined as last 12 months’ EBIT to last 12 months’ invested capital including goodwill, see note 5.6 Financial
definitions to the consolidated financial statements in the Annual Report 2023 for definitions of the performance
measures used by Pandora.
International tax reform – Pillar Two model rules
Pandora is subject to minimum tax primarily in respect of jurisdictions with corporate income tax rates lower than
15% or in which we receive tax incentives. Where qualifying domestic minimum taxes are implemented in applicable
jurisdictions, Pandora will pay the minimum tax in those jurisdictions. Where no qualifying domestic minimum tax has
been implemented, tax will be paid in Denmark. The majority of the minimum tax due is expected to relate to Thailand
where Pandora receives tax incentives as part of the investment agreement with the Board of Investment (BOI). The
impact of minimum tax is taken into account in tax expense for 2024.
New standards, interpretations and amendments adopted by Pandora
Pandora has adopted all new or amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which
are effective for the financial year beginning on 1 January 2024. The implementation of these new or amended
standards and interpretations had no material impact on the consolidated financial statements for the period. The
new standards that are not yet effective are not expected to have any material impact on Pandora, except of IFRS 18
Presentation and Disclosure in Financial statements, which was issued in April 2024 and will be effective from 2027,
impacting presentation and disclosure of the financial statements. Pandora is currently evaluating the potential
impact of this standard.
NOTE 2 – Management judgements and estimates under IFRS
In preparing the condensed consolidated interim financial statements, management makes various judgements,
accounting estimates and assumptions that form the basis of the presentation, recognition and measurement of
Pandora’s assets and liabilities.
All significant accounting estimates and judgements are consistent with the description in the Annual Report 2023
to which we refer.
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NOTE 3 – Segment and revenue information
Pandora’s activities are segmented into two reportable segments, each responsible for the end-to-end performance
of collections. One includes our Core collections (formerly referred to as Moments incl. Collabs), while the other, Fuel
with more (formerly referred to as Style), covers newer collections and innovations.
In Q3 2023, Pandora updated its collection structure by moving the Pandora ME collection from the Fuel with more
segment into the Core segment. The strategic reasoning centres around design aesthetics and categorisation of
jewellery to better align consumer synergies among collections, leading to a centralised platform for charms and
carriers. All the comparative figures have been restated to reflect the updated structure.
Core includes the charms and charm carriers which focus on the collectability. The Fuel with more segment includes
the Modern Classics (Pandora Timeless and Pandora Signature accompanied by Pandora’s newest collection,
PANDORA ESSENCE) and Pandora Lab-Grown Diamonds and targets both existing and new customers who may have
a different aesthetic preference than the Core jewellery design.
The two operating segments include all channels relating to the distribution and sale of Pandora products.
Management monitors the profitability of the operating segments separately for the purpose of making decisions
about resource allocation and performance management. Segment results are measured at gross profit as presented
in the table below.
Non-unit-driven revenue, comprising mainly franchise fees, is allocated proportionately to the different revenue
categories.
SEGMENT INFORMATION
DKK million
Core
Fuel with more
Group
Q2 2024
Revenue
5,108
1,663
6,771
Cost of sales
-1,076
-266
-1,342
Gross profit
4,032
1,397
5,429
Gross margin, %
78.9%
84.0%
80.2%
Operating expenses
-4,091
Consolidated operating profit (EBIT)
1,338
Profit margin (EBIT margin), %
19.8%
Q2 2023
1
Revenue
4,764
1,130
5,894
Cost of sales
-1,083
-206
-1,289
Gross profit
3,682
924
4,606
Gross margin, %
77.3%
81.8%
78.1%
Operating expenses
-3,417
Consolidated operating profit (EBIT)
1,188
Profit margin (EBIT margin), %
20.2%
1
In Q3 2023, Pandora moved the Pandora ME collection from Fuel with more to Core. Comparative figures for Q2 2023 were restated accordingly.
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DKK million
Core
Fuel with more
Group
H1 2024
Revenue
10,123
3,482
13,605
Cost of sales
-2,184
-568
-2,752
Gross profit
7,939
2,914
10,853
Gross margin, %
78.4%
83.7%
79.8%
Operating expenses
-8,008
Consolidated operating profit (EBIT)
2,845
Profit margin (EBIT margin), %
20.9%
H1 2023
1
Revenue
9,403
2,342
11,745
Cost of sales
-2,167
-436
-2,603
Gross profit
7,235
1,906
9,142
Gross margin, %
77.0%
81.4%
77.8%
Operating expenses
-6,697
Consolidated operating profit (EBIT)
2,445
Profit margin (EBIT margin), %
20.8%
1
In Q3 2023, Pandora moved the Pandora ME collection from Fuel with more to Core. Comparative figures for H1 2023 were restated accordingly.
REVENUE BY SEGMENTS
DKK million
Q2 2024
Q2 2023
1
Like-for-
like
Local
currency
growth
Share of
Revenue
H1 2024
H1 2023
1
Like-for-
like
Local
currency
growth
Share of
Revenue
Core
5,108
4,764
1%
9%
75%
10,123
9,403
2%
9%
74%
- Moments
4,346
4,025
3%
10%
64%
8,577
7,885
3%
11%
63%
- Collabs
526
545
-14%
-3%
8%
1,085
1,155
-14%
-5%
8%
- ME
236
194
14%
23%
3%
460
362
20%
29%
3%
Fuel with more
1,663
1,130
29%
48%
25%
3,482
2,342
31%
50%
26%
- Timeless
1,225
880
29%
40%
18%
2,748
1,829
36%
52%
20%
- Signature
205
218
-13%
-5%
3%
437
447
-11%
-1%
3%
- PANDORA ESSENCE
2
172
-
-
-
3%
173
-
-
-
1%
- Pandora Lab-Grown Diamonds
61
32
88%
91%
1%
124
66
88%
86%
1%
Total revenue
6,771
5,894
8%
16%
100%
13,605
11,745
9%
18%
100%
Goods transferred at a point in time
6,756
5,880
13,576
11,716
Services transferred over time
15
14
29
29
Total revenue
6,771
5,894
13,605
11,745
1
In Q3 2023, Pandora moved the Pandora ME collection from Fuel with more to Core. Comparative figures for Q2 2023 and H1 2023 were restated accordingly.
2
PANDORA ESSENCE was launched in 2024 following a successful pilot in the Netherlands in 2023.
REVENUE DEVELOPMENT IN KEY MARKETS
DKK million
Q2 2024
Q2 2023
Like-for-like
Local currency
growth
H1 2024
H1 2023
Like-for-like
Local
currency
growth
US
2,173
1,834
5%
17%
4,201
3,549
7%
18%
China
118
156
-23%
-23%
229
317
-20%
-25%
UK
694
656
1%
4%
1,549
1,465
-
3%
Italy
568
584
-6%
-3%
1,133
1,123
-4%
1%
Australia
211
218
-8%
-3%
414
438
-5%
-3%
France
261
231
-
13%
535
474
1%
13%
Germany
464
295
65%
57%
936
564
66%
66%
Total top-7 markets
4,490
3,972
5%
12%
8,996
7,930
6%
13%
Rest of Pandora
2,281
1,922
13%
25%
4,609
3,815
15%
27%
Total revenue
6,771
5,894
8%
16%
13,605
11,745
9%
18%
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REVENUE DEVELOPMENT BY CHANNEL
DKK million
Q2 2024
Q2 2023
Organic
growth
Share of
Revenue
H1 2024
H1 2023
Organic
growth
Share of
Revenue
Pandora owned
1
retail
5,567
4,603
19%
82%
11,062
8,994
21%
81%
- of which concept stores
3,788
3,089
18%
56%
7,450
5,990
21%
55%
- of which online stores
1,345
1,141
19%
20%
2,742
2,285
21%
20%
- of which other points of sale
434
372
19%
6%
870
718
23%
6%
Wholesale
995
1,131
-2%
15%
2,122
2,414
-3%
16%
- of which concept stores
410
575
-12%
6%
878
1,229
-14%
6%
- of which other points of sale
585
555
9%
9%
1,244
1,185
8%
9%
Third-party distribution
209
161
27%
3%
420
337
23%
3%
Total revenue
6,771
5,894
15%
100%
13,605
11,745
16%
100%
1
Pandora does not own any of the premises (Land and buildings) where stores are operated. Pandora exclusively operates stores from leased premises.
The use of sales channels for the distribution of Pandora jewellery depends on the underlying market maturity and
varies within markets but is consistent when viewed between segments.
Due to the seasonal nature of the jewellery business, higher revenue and profits are historically realised in the
fourth quarter.
NOTE 4 – Financial risks
Pandora’s overall risk exposure and financial risks, including risks related to commodity prices, foreign currency, credit,
liquidity and interest rates, are described in the disclosures in note 4.4 Financial risks in the consolidated financial
statements in the Annual Report 2023.
Net interest-bearing debt (NIBD), incl. capitalised leases amounted to DKK 13.4 billion at the end of Q2 2024 (Q1
2024: DKK 12.6 billion) corresponding to a financial leverage of 1.4x (Q1 2024: 1.3x).
Liquidity risk
Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations when due.
In Q2 2024, Pandora issued a EUR 500 million sustainability linked bond maturing in 2030. The proceeds are used for
general corporate purposes and to repay a DKK 2.0 billion bridge loan. Further, DKK 850 million was drawn on short
term money market lines to optimise interest costs. At the end of Q2 2024, Pandora had DKK 6.3 billion in undrawn
committed credit facilities.
DKK million
2024
30 June
2023
31 December
Loans and borrowings, non-current
8,668
6,973
Lease liabilities, non-current
3,310
2,765
Loans and borrowings, current
1,041
313
Lease liabilities, current
1,280
1,116
Cash
-897
-1,397
Net interest-bearing debt
13,402
9,770
Unutilised committed credit facilities
6,340
4,472
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NOTE 5 – Trade receivables
NOTE 6 – Business combinations
In H1 2024, Pandora took over 29 concept stores (8 in the US, 4 in Italy, 15 in Canada and 2 in Brazil). Net assets
acquired mainly consisted of store properties, inventories and related liabilities. The total purchase price for the
acquisitions was DKK 164 million. Based on the purchase price allocations, goodwill was DKK 86 million. Goodwill from
the acquisitions was mainly related to the synergies from converting the stores from wholesale and distribution to
Pandora-owned retail. Of the goodwill acquired, DKK 84 million was deductible for income tax purposes.
Cost relating to the acquisitions was immaterial and has been recognised as operating expenses in the income
statement.
Pandora has updated its disclosures related to acquisitions in order to improve transparency and provide a direct link
to the performance impact from acquisitions to the Group income statement.
Excluding the temporary drag on gross margin from inventory buybacks, the incremental contribution to Group
revenue and net profit from acquisitions for the period 1 January – 30 June 2024 was DKK 40 million and DKK 8
million, respectively. On a pro forma basis, if the acquisitions had been effective from 1 January 2024, the incremental
contribution to Group revenue and net profit for the period 1 January – 30 June 2024, excluding the temporary drag
on gross margin from inventory buybacks, would have been approximately DKK 49 million and DKK 10 million
respectively
3
.
ACQUISITIONS
DKK million
H1 2024
FY 2023
Property, plant and equipment and right-of-use assets
61
144
Other non-current assets
1
-
Inventories
77
194
Other current assets
1
3
Assets acquired
140
341
Non-current liabilities
24
75
Payables
3
4
Other current liabilities
34
49
Liabilities assumed
62
128
Total identifiable net assets acquired
78
213
Goodwill arising on the acquisitions
86
143
Purchase consideration
164
356
Cash movements on acquisitions:
Consideration transferred regarding previous years
1
10
14
Deferred payment
2
-10
-21
Net cash flows on acquisitions
165
349
1
The consideration of DKK 10 million transferred during 2024 relates mainly to the acquisition in Colombia in 2023. The consideration of DKK 14 million transferred
during 2023 relates to the acquisition in Portugal and Italy in 2022.
2
The deferred payment of DKK 10 million relates mainly to the acquisitions in US and Italy in 2024. The deferred payment of DKK 21 million relates mainly to the
acquisition in Colombia in 2023.
DKK million
2024
30 June
2023
31 December
Receivables related to third-party distribution and wholesale
436
705
Receivables related to retail revenue
418
637
Total trade receivables
854
1,342
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3
The incremental contribution to Group revenue and net profit is deriving from the net of a) the retail revenue taken over and b) deducting the lost wholesale revenue.
Excluding the temporary drag on the margin from inventory buybacks, the contribution to Group revenue and net profit from acquisitions for the period 1 January –
30 June 2024 calculated according to IFRS 3 was DKK 100 million and DKK 40 million, respectively. On a pro forma basis, if the acquisitions had been effective from 1
January 2024, the IFRS 3 contribution to Group revenue and net profit for the period 1 January – 30 June 2024, excluding the temporary drag on the margin from
inventory buybacks, would have been approximately DKK 109 million and DKK 41 million respectively.
Business combinations after the reporting period
No business combinations to an extent of significance to Pandora took place after the reporting period.
NOTE 7 – Goodwill
DKK million
2024
30 June
2023
31 December
Cost at 1 January
4,914
4,822
Acquisition of subsidiaries and activities in the period
86
143
Exchange rate adjustments
70
-50
Cost at the end of the period
5,070
4,914
No impairment indication was identified based on the information regarding the market and the forecast. The latest
impairment test was carried out 31 December 2023 and the test confirmed a substantial headroom between the
carrying amount and the value in use. All the assumptions used are as described in the Annual Report 2023.
NOTE 8 – Assets and liabilities related to leases
Pandora leases stores, various offices, office equipment and cars.
Amounts recognised in the balance sheet:
RIGHT-OF-USE ASSETS
DKK million
2024
30 June
2023
31 December
Property
4,392
3,765
Other
18
14
Total right-of-use assets
4,454
3,779
Out of the total increase of DKK 0.7 billion in right-of-use-assets in the period 1 January to 30 June 2024, DKK 1.3
billion relates to renewals of lease contracts and new leases driven by network expansion, forward integration and a
new European Distribution Center in Germany, partially offset by a decrease of DKK 0.6 billion as a result of
depreciation and currency exchange movement. The development in right-of-use-assets is further affected by the
timing of renewals of lease contracts and new leases.
LEASE LIABILITIES
DKK million
2024
30 June
2023
31 December
Non-current
3,310
2,765
Current
1,280
1,116
Total lease liabilities
4,591
3,880
Lease liabilities are recognised in loans and borrowings.
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Amounts recognised in the income statement:
RECOGNISED DEPRECIATION ON RIGHT-OF-USE ASSETS CHARGED TO THE INCOME STATEMENT FOR THE PERIOD
DKK million
1 January –
30 June 2024
1 January –
30 June 2023
Property
634
556
Other
7
6
Total depreciation on right-of-use assets for the period
641
563
Depreciation mainly relates to leased stores and is presented in the sales, distribution and marketing expenses.
OTHER ITEMS RELATING TO LEASES
DKK million
1 January –
30 June 2024
1 January –
30 June 2023
Interest expense
176
121
Total interest for the period
176
121
Costs recognised in the period for short-term and low-value leases were DKK 44 million (2023 H1: DKK 31 million).
Expenses are recognised on a straight-line basis.
TOTAL CASH FLOWS RELATING TO LEASES
DKK million
1 January –
30 June 2024
1 January –
30 June 2023
Fixed lease payments
564
515
Interest payments
176
121
Variable leases
272
218
Short-term and low-value leases
44
31
Total cash flows relating to leases
1,056
885
Payments related to variable leases and short-term and low-value leases are not included in the lease liabilities.
NOTE 9 – Trade payables
The Group generally accepts that vendors sell off their receivables arising from the sale of goods and services to the
Group to a third party. Pandora has established a supply chain financing programme where vendors can sell off their
receivables from Pandora on attractive terms, based on invoices approved by Pandora, but at the bank's sole
discretion. Pandora is not directly or indirectly a party to these agreements. The amounts payable to suppliers
included in the supply chain financing programme are classified as trade payables in the balance sheet as well as in
the statement of cash flows (working capital within cash flows from operations) and amounted to DKK 149 million at
30 June 2024 (31 December 2023: DKK 82 million).
NOTE 10 – Contingent assets and liabilities
Reference is made to note 5.1 Contingent assets and liabilities to the consolidated financial statements in the Annual
Report 2023.
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NOTE 11 – Store network, concept store development
1
Total concept stores
O&O concept stores
Number
of concept
stores
Q2 2024
Number
of concept
stores
Q1 2024
Number
of concept
stores
Q2 2023
Growth
Q2 2024
/ Q1 2024
Growth
Q2 2024
/Q2 2023
Number
of concept
stores
O&O
Q2 2024
Growth
O&O
stores
Q2 2024
/ Q1 2024
Growth
O&O
stores
Q2 2024
/Q2 2023
US
465
457
427
8
38
374
8
74
China
208
212
231
-4
-23
196
-6
-22
UK
217
219
215
-2
2
216
1
16
Italy
182
175
160
7
22
155
7
31
Australia
126
124
124
2
2
61
6
15
France
124
123
122
1
2
109
7
27
Germany
136
135
132
1
4
134
1
5
Total key markets
1,458
1,445
1,411
13
47
1,245
24
146
Rest of Pandora
1,237
1,225
1,141
12
96
739
34
126
All markets
2,695
2,670
2,552
25
143
1,984
58
272
1
All markets with 10 or more concept stores can be found in the Excel appendix uploaded on www.pandoragroup.com.
NOTE 12 – Commodity hedging and derivatives
Normally, Pandora hedges around 70% of the Group’s expected silver and gold consumption based on a rolling 12-
month production plan. However, in response to the increase in silver and gold prices during Q2 2024, a strategic
decision was taken to temporarily pause any further hedging. As of the end of Q2 2024, Pandora had hedged 48% of
commodity exposures for the next 12 months of production and Pandora had not hedged any use of silver and gold
for production from Q2 2025 onwards.
The table below illustrates the timing of the hedges related to the purchase of silver and gold for production,
excluding the time-lag effect from inventory to cost of sales (when the product is sold). The time-lag from use in
production to impact on cost of sales is usually 2-7 months.
HEDGED AND REALISED PURCHASE PRICES (AT USE OF THE SILVER AND GOLD FOR PRODUCTION)
USD / OZ
Realised in
Q2 2024
Hedged
Q3 2024
Hedged
Q4 2024
Hedged
Q1 2025
Hedged
Q2 2025
Silver price
24.87
24.89
24.71
24.78
-
Gold price
2,023
2,093
2,155
2,225
-
Commodity hedge ratio (actual), %
Realised
92%
59%
38%
0%
Derivative financial instruments are measured at fair value and in accordance with level 2 in the fair value hierarchy
(IFRS 13). See note 4.5 Derivative financial instruments to the consolidated financial statements in the Annual Report
2023.
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NOTE 13 – Subsequent events
As described in section Other events in the Management review and in Note 6 Business Combinations, Pandora is not
aware of events after 30 June 2024, which are expected to materially impact the Group’s financial position.
QUARTERLY OVERVIEW
DKK million
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Financial highlights
Revenue
6,771
6,834
10,820
5,572
5,894
Organic growth, %
15%
18%
12%
11%
5%
Like-for-like, %
8%
11%
9%
9%
2%
Earnings before interest, tax, depreciation and
amortisation (EBITDA)
1,916
2,067
4,227
1,447
1,690
Operating profit (EBIT)
1,338
1,507
3,674
920
1,188
EBIT margin, %
19,8%
22.0%
34.0%
16.5%
20.2%
Net financials
-280
-229
-330
-211
-171
Net profit for the period
799
965
2,530
543
778
Financial ratios
Revenue growth, DKK, %
15%
17%
10%
6%
4%
Revenue growth, local currency, %
16%
19%
13%
11%
7%
Gross margin, %
80.2%
79.4%
79.3%
79.0%
78.1%
EBITDA margin, %
28.3%
30.3%
39.1%
26.0%
28.7%
EBIT margin, %
19.8%
22.0%
34.0%
16.5%
20.2%
Effective tax rate, %
24.5%
24.5%
24.4%
23.5%
23.5%
Equity ratio, %
16%
17%
23%
15%
19%
NIBD to EBITDA, x
1.4
1.3
1.1
1.5
1.3
Return on invested capital (ROIC), %
1
45%
45%
45%
43%
44%
Cash conversion incl. lease payments, %
94%
-12%
116%
65%
104%
Net working capital, % of last 12 months’ revenue
6.0%
6.9%
1.8%
9.2%
8.4%
Capital expenditure, % of revenue
7.0%
6.0%
5.4%
6.7%
6.8%
Stock ratios
Total payout ratio (incl. share buyback), %
110%
255%
30%
249%
186%
Consolidated balance sheet
Total assets
24,797
23,993
23,798
23,126
22,112
Invested capital
17,478
16,605
15,126
16,228
15,609
Net working capital
1,812
2,017
510
2,498
2,265
Net interest-bearing debt (NIBD)
13,402
12,643
9,770
12,707
11,363
Equity
4,076
3,961
5,355
3,521
4,245
Consolidated statement of cash flows
Cash flows from operating activities
1,626
188
4,821
1,078
1,627
Capital expenditure, total
476
409
582
374
398
Capital expenditure, property, plant and equipment
331
252
394
305
312
Free cash flows incl. lease payments
1,255
-187
4,277
597
1,230
1
Last 12 months’ EBIT in % of last 12 months’ average invested capital. The “Return on invested capital (ROIC), %“ was updated in Q1 2024 from “Last 12 months’
EBIT in % of invested capital“ to “Last 12 months’ EBIT in % of last 12 months’ average invested capital“ to present a more useful and less volatile KPI by switching to
moving annual total. All comparative periods have been restated.
For definitions of the performance measures used by Pandora, see note 5.6 Financial definitions to the
consolidated financial statements in the Annual Report 2023.
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MANAGEMENT STATEMENT
EXECUTIVE MANAGEMENT
BOARD
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DISCLAIMER
This Company announcement contains forward-looking statements, including, but not limited to, guidance,
expectations, strategies, objectives and statements regarding future events or prospects with respect to the
Company’s future financial and operating results. Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain
words such as "expect", "estimate", "intend", "will be", "will continue", "will result", "could", "may", "might" or any
variations of such words or other words with similar meanings. Forward-looking statements are subject to risks and
uncertainties that could cause the Company’s actual results to differ materially from the results discussed in such
forward-looking statements. Prospective information is based on management’s then current expectations or
forecasts. Such information is subject to the risk that such expectations or forecasts, or the assumptions underlying
such expectations or forecasts, may change. The Company assumes no obligation to update any such forward-looking
statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-
looking statements. Some important risk factors that could cause the Company’s actual results to differ materially
from those expressed in its forward-looking statements include, but are not limited to: economic and geopolitical
uncertainty (including interest rates and exchange rates), financial and regulatory developments, general changes in
market trends and end-consumer preferences, demand for the Company’s products, competition, the availability
and pricing of materials used by the Company, production and distribution-related issues, IT failures, litigation,
pandemics and other unforeseen factors. The nature of the Company’s business means that risk factors and
uncertainties may arise, and it may not be possible for management to predict all such risk factors, nor to assess the
impact of all such risk factors on the Company’s business or the extent to which any individual risk factor, or
combination of factors, may cause results to differ materially from those contained in any forward-looking statement.
Accordingly, forward-looking statements should not be relied on as a prediction of actual results.
Havneholmen 17-19 | DK-1561 Copenhagen V | Denmark | www.pandoragroup.com | Company reg. no.: 2850 5116