Q3 2O24
INTERIM FINANCIAL REPORT
06 November 2024 | Company Announcement No. 900
CONTENTS
2
HIGHLIGHTS
02 Equity Story
03 Executive Summary
04 Financial Highlights
5
BUSINESS UPDATE
05 Business Update
08 Revenue Review
12 Profitability
16 Cash Flow & Balance Sheet
17 Financial Guidance
20 Sustainability
21 Other Events
23 Contact
24
FINANCIAL STATEMENTS
24 Financial Statements
28 Accounting Notes
38 Disclaimer
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
2 | 38
THE PANDORA EQUITY STORY
A strong brand in an attractive category
• Pandora stands as the sole global brand in accessible luxury jewellery, owning the distinct position of “jewellery
with a meaning” with consumers worldwide.
• The jewellery market has historically outpaced GDP growth and remains highly fragmented, with global brands
expected to grow faster than the overall market.
• Pandora holds the highest brand awareness in the industry.
An asset-light, fully integrated business model
• Our asset-light business model benefits from a unique fully vertically integrated ecosystem - from design and
crafting to a vast distribution network.
• This integration provides unrivalled scale and, together with our brand strength, drives our strong margin profile
and high returns.
Unique growth opportunities
• There are numerous untapped growth opportunities within our existing business model across various
geographies, jewellery categories, and designs.
• The essence of our growth strategy is to shift the perception of Pandora to a full jewellery brand and leverage
our existing infrastructure.
A resilient, sustainable business
• Sustainability is an integral part of our business and we are progressing toward some of the most ambitious
sustainability targets in the industry, spearheading the use of recycled silver and gold, and lab-grown diamonds.
Driving mid-to-high-teens EPS growth
• We expect to outgrow the jewellery market, targeting annual high-single digit organic growth, while maintaining
best-in-class profitability with a gross margin around 80% and an EBIT margin increasing from around 25%
today to 26-27% in 2026*.
• We anticipate generating significant free cash flow, which, in line with our historic approach, will be fully
returned to shareholders, driving annual EPS growth in the mid-to-high teens.
*The EBIT margin target for 2026 is based on September 2023 FX rates and a silver price of USD 23.6 / oz
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
3 | 38
EXECUTIVE SUMMARY
Pandora delivers 11% organic growth in Q3
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.
A
lexander 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%
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
4 | 38
FINANCIAL HIGHLIGHTS
DKK million
Q3 2024
Q3 2023
9M 2024
9M 2023
FY 2023
Financial highlights
Revenue
6,103
5,572
19,707
17,316
28,136
Organic growth, %
11%
11%
15%
5%
8%
Like-for-like, % 7% 9% 8% 3% 6%
Earnings before interest, tax, depreciation and
amortisation (EBITDA) 1,571 1,447
5,555 4,891 9,118
Operating profit (EBIT)
980
920
3,825
3,365
7,039
EBIT margin, %
16.1%
16.5%
19.4%
19.4%
25.0%
Net financials
-193
-211
-701
-476
-805
Net profit for the period
595
543
2,358
2,210
4,740
Financial ratios
Revenue growth, DKK, %
10%
6%
14%
4%
6%
Revenue growth, local currency, %
12%
11%
16%
7%
9%
Gross margin, % 80.1% 79.0% 79.9% 78.2% 78.6%
EBITDA margin, %
25.7%
26.0%
28.2%
28.2%
32.4%
EBIT margin, %
16.1%
16.5%
19.4%
19.4%
25.0%
Effective tax rate, %
24.5%
23.5%
24.5%
23.5%
24.0%
Equity ratio, %
14%
15%
14%
15%
23%
NIBD to EBITDA, x
1.5
1.5
1.5
1.5
1.1
Return on invested capital (ROIC), %
1
44%
43%
44%
43%
45%
Cash conversion incl. lease payments, %
58%
65%
43%
36%
78%
Net working capital, % of last 12 months’ revenue
5.9%
9.2%
5.9%
9.2%
1.8%
Capital expenditure, % of revenue
7.9%
6.7%
6.9%
6.0%
5.8%
Stock ratios
Total payout ratio (incl. share buyback), %
193%
249%
190%
256%
136%
Dividend per share, proposed, DKK - - - - 18
Dividend per share, paid, DKK
-
-
18
16
16
Earnings per share, basic, DKK
7.3
6.3
29.1
25.6
55.5
Earnings per share, diluted, DKK
7.3
6.3
29.0
25.5
55.1
Consolidated balance sheet
Total assets
25,529
23,126
25,529
23,126
23,798
Invested capital
18,013
16,228
18,013
16,228
15,126
Net working capital
1,812
2,498
1,812
2,498
510
Net interest-bearing debt (NIBD)
14,498
12,707
14,498
12,707
9,770
Equity
3,515
3,521
3,515
3,521
5,355
Consolidated statement of cash flows
Cash flows from operating activities
1,181
1,078
2,996
2,563
7,384
Capital expenditure, total
481
374
1,365
1,042
1,624
Capital expenditure, property, plant and equipment
398
305
980
782
1,176
Free cash flows incl. lease payments
572
597
1,640
1,213
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 a moving
annual average. 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
06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
5 | 38
BUSINESS UPDATE
Executing on the full jewellery brand vision
At the Capital Markets Day in October last year, Pandora highlighted its vision to transform the perception of the
brand into a full jewellery brand in the accessible luxury market and thereby accelerate revenue growth. Realising this
vision entails scaling up investments across the entire value chain, none more so than in driving desirability of the
Pandora brand. As the only global player in the accessible luxury jewellery market, Pandora continues to benefit from
the shift towards strong brands in a largely fragmented industry with a large runway for growth ahead. Relentless
execution on this vision is yielding positive results – Q3 2024 was the fifth consecutive quarter with double-digit
organic growth despite the overall jewellery market growth remaining tepid across most markets. The Phoenix
strategy continued to drive positive traffic into stores, despite a particularly tough comparison base from last year
which was boosted by viral trends across social media platforms. Also, despite the increased investments across the
group, Pandora’s profitability remains solid, helped by still record-high gross margins at above 80%. This all helped
drive double-digit EPS growth of 17% in the quarter, in line with Pandora’s mid-term target of a mid to high-teens
growth CAGR in EPS.
The 11% organic growth in Q3 2024 was supported by strong LFL growth at 7% and network expansion at 5%. As
expected, there was a small drag of 1% from phasing of sell-in to partners and other. In Europe, LFL growth in key
markets was 4%. This was, still, heavily driven by particularly strong performance in Germany which delivered a very
strong 42% LFL growth. Elsewhere, growth was weighed down by Italy which delivered -8% LFL growth. In the US, LFL
remained solid at 6% and ahead of a generally soft jewellery market. Rest of Pandora delivered another double-digit
quarter with 14% LFL with solid broad-based growth across many countries.
By channel, growth remained particularly strong in the online channel which grew by 20% LFL, representing an 18%
share of revenue in the quarter. Pandora’s own stores continued to outperform partner stores in Q3 2024 with
Pandora’s physical network delivering 5% LFL vs. partners at 0%.
Pandora's gross margin remained above 80% for the second quarter in a row, reaching 80.1%, a 110bp increase
compared to Q3 2023, underpinning Pandora’s ability to leverage its vertically integrated value chain. The gross
margin increase was driven by favourable pricing, efficiencies at the crafting facilities and channel mix. These factors
more than offset the drag from foreign exchange and commodities of around -40bp. The combined drag from foreign
exchange and commodities is expected to increase in Q4 2024 to around 110bp.
Investments across the value chain are elevating brand desirability
As part of the Phoenix strategy, and to drive Pandora towards its full jewellery brand promise, Pandora is scaling up
investments across the entire value chain. These include marketing, design, the store network to technology. In
marketing, Pandora continues investing in Pandora’s brand restaging and in particular the new “BE LOVE” campaign
which has recruited new and returning customers into the brand whilst also gradually improving major brand KPIs.
Pandora further amplified brand buzz around the campaign by being active across many cultural moments in the
quarter such as the fashion weeks in London, Paris, Milan and Copenhagen. Elsewhere, Pandora’s new flagship store
in Copenhagen, which combines the network expansion strategy with brand elevation, was well received by local and
international tourists. 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.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
6 | 38
Growing the “Core” while “Fuelling with more”
As seen in previous quarters, Pandora continued to leverage the new marketing message from Pandora’s “BE LOVE”
campaign which is driving growth across Pandora’s collections. The Core segment delivered 2% LFL growth, where
Moments remained at a healthy 2% and Pandora ME delivered another strong quarter at 21% LFL growth. Collabs,
which delivered -6% LFL growth, remains a small drag largely reflecting tougher prior year comparatives due to the
“Disney 100” collection. Meanwhile, the Fuel with more segment delivered strong LFL growth at 21% despite running
into the tougher comparatives from the previous year. The Timeless collection continued to hold on to strong
momentum at 18% LFL growth. During the quarter, Pandora Lab-Grown Diamonds generated revenue of DKK 64
million with LFL growth of 34%. As previously flagged, growth in this collection is now annualising last year’s
assortment expansion which took place in Q3 2023. During the quarter, Pandora launched its new Microfine
Diamonds range which showcases micro lab-grown diamonds across new product designs and have shown an
encouraging response from consumers due to the beautiful designs and accessible pricing.
PANDORA ESSENCE off to an encouraging start
As part of the design strategy, Pandora will strategically broaden its product assortment to cater to new design
aesthetics, targeting both existing and new consumers. After gradually being launched in Q2 2024, the new PANDORA
ESSENCE collection was available across all markets in Q3 2024. 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. PANDORA ESSENCE is crafted with high-quality materials like sterling silver, 14K plated gold, and
cultured pearls. In Q3 2024, the collection delivered DKK 169 million revenue, with broadly half of the revenue being
generated by consumers who are new to the Pandora brand. The collection is also generating good buzz through social
media channels with various influencers showcasing the gold bangles and pearls to generate ongoing collection
excitement.
REVENUE BY SEGMENT
DKK million Q3 2024 Q3 2023
Like-for-
Like
Share of
Revenue 9M 2024 9M 2023
Like-for-
Like
Share of
revenue
Core
4,634 4,368 2% 76% 14,758 13,770 2% 75%
- Moments
3,895 3,604 2% 64% 12,472 11,489 3% 63%
- Collabs
514 561 -6% 8% 1,600 1,717 -11% 8%
- ME
226 202 21% 4% 686 565 20% 3%
Fuel with more
1,468 1,204 21% 24% 4,950 3,546 28% 25%
- Timeless
1,065 841 18% 17% 3,813 2,669 30% 19%
- Signature
170 275
-32%
3% 607 722 -18% 3%
- PANDORA ESSENCE
1
169 3 - 3% 342 3 -
2%
- Pandora Lab-Grown Diamonds
64 86 34% 1% 188 152 66% 1%
Total revenue 6,103 5,572 7% 100% 19,707 17,316 8% 100%
1
PANDORA ESSENCE was launched in Q2 2024 following a pilot in the Netherlands in 2023.
Personalising the consumer experience driving incremental revenue growth
Pandora’s commitment to personalization and customer-centric initiatives continue to drive success across key areas.
The engraving service is resonating strongly with consumers and creates significant buzz on social media channels. In
the quarter, Pandora’s engraving service grew more than +100% Y/Y with roughly 1,250 machines installed globally
and targeting at least 1,450 stores offering engraving services by the end of 2024. In addition, the launch of “Pandora
Cares”, a two-year extended warranty service available in physical stores in the US since 29 January 2024, has reached
DKK 69 million in sales YTD with a 12% share of transactions.
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06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
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Network expansion continues at a good pace
In Q3 2024, Pandora delivered an incremental revenue contribution from network expansion of 5%, driven by the net
opening of 155 concept stores and 106 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 400-500 targeted net openings through 2024-2026. For FY 2024, Pandora now targets net 125-150 concept
store openings (previously 100-150) and 50-75 (unchanged) new Pandora owned shop-in-shops.
At the same time, the roll-out of the new store concept Evoke continues with a total of 295 Evoke concept stores
globally by the end of Q3 2024. Pandora is targeting around 1,375-1,425 Evoke concept stores by the end of 2026.
The roll-out is a long-term investment and a multiyear journey, aimed to enable Pandora’s positioning as a full
jewellery brand while at the same time elevating brand desirability.
Recent adverse movements in commodity prices and foreign exchange rates – firm action being taken
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 23.6 per ounce. Since April 2024, silver prices have increased
to a spot price of around USD 33 per ounce as per November 4, 2024. All else equal, and when combined with the
current gold price and foreign exchange rates, this represents a material incremental headwind of around 360bp to
the EBIT margin target for 2026. This will impact the EBIT margin gradually from Q1 2025 onwards.
In response to the increase in silver prices during Q2 2024, Pandora initiated a number of mitigating actions including
a 5% price increase implemented in October 2024 and a number of additional cost actions. As communicated in the
Q2 2024 Interim Report, these actions would fully offset the 140bp headwind seen at that point in time (based on a
silver price of USD 27).
In response to the recent further increase in commodity prices, Pandora is taking immediate and firm action. This
includes further price increases beyond what has already been implemented in October 2024 and beyond the normal
annual 1-2% as well as the initiation of a group wide cost program with external support.
At this point in time, it is too early to conclude on the magnitude as well as the timing of the additional mitigating
actions to cover the remaining headwind of 220bp to the CMD EBIT margin target by 2026 of 26-27% (based on a
silver price of USD 33). An update will be provided at the FY 2024 announcement.
Pandora normally hedges silver on an ongoing basis 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 23.8 per ounce
and the recent increase in silver prices has no impact on the guided margin in 2024. Since the end of March 2024,
Pandora has temporarily paused further hedging of silver in response to the higher silver prices. Pandora has currently
hedged 39% of the silver and gold used for production in Q1 2025. Adjusting for the time-lag from production
through inventories to sales, this means that the P&L for Q1-Q3 2025 is roughly 50% hedged already. At the current
spot price of silver, gold and foreign exchange, the combined EBIT margin headwind in 2025, before any mitigation,
is 240bp.
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06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
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REVENUE REVIEW
Double-digit revenue growth driven by strong LFL and network expansion
In Q3 2024, Pandora delivered organic growth of 11%, which was driven by LFL growth of 7% and network expansion
of 5%. As expected, sell-in and other resulted in a 1% drag on organic growth in Q3 mainly driven by the soft
performance among multi-brand partners (which are not part of LFL), as well as phasing of sell-in. As already indicated
by the full year guidance, the drag from “Sell-in and Other” is expected to be at a similar level for Q4 2024 (for more
details, see guidance section).
In the Core segment, LFL growth was stable at 2%, with Moments growing at 2% LFL, driven by its robust base offering.
This continues to be somewhat offset by the performance in Collaborations reflecting tougher prior year
comparatives which benefitted from the “Disney 100” years collection. The Fuel with more segment delivered 21%
LFL growth, driven by the strong performance of Timeless which delivered a LFL of 18% despite comping last year’s
viral trends across social media platforms.
Forward integration continues to support total revenue growth with Pandora acquiring 1 concept store in the US in
Q3. This brings the total number of acquired concept stores over the past 12 months to 38, and the total revenue
contribution from forward integration to 1% in Q3 2024. Foreign exchange rates represented a net headwind of 2%,
driven by a weaker Mexican and Argentinian peso as well as the continued weakening of the Turkish lira.
The revenue growth development can be illustrated as follows:
Q3 2024 growth composition vs. Q3 2023
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06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
9 | 38
REVIEW OF REVENUE BY KEY MARKET
Brand momentum drives solid growth in Q3 2024
In Q3 2024, Pandora delivered a strong performance, with traffic-led LFL of 7%, maintaining momentum despite
challenging comparatives from the previous year, which benefitted from a handful of viral trends across social media
platforms. Overall jewellery market growth remains tepid across most markets and recently heightened promotional
activity among competitors across some markets has been observed. For Pandora, marketing investments to enhance
brand desirability and to reposition Pandora as a full jewellery brand, supported by the ongoing success of the "BE
LOVE" multi-season campaign, remained active in attracting new consumers across markets. Organic growth was
further boosted by network expansion, with new stores opening in multiple countries across the globe.
US
LFL growth in the US remained robust at 6%, fuelled by among others marketing investments which are yielding good
results. The organic growth came in at 14%, driven by the momentum generated from new store openings over the
past 12 months. The organic growth for the first three quarters of 2024 was 15%. Despite a heavy external
promotional environment, the growth in Pandora US continues to be ahead of the broader market which remains
flattish to slightly down. LFL growth in the wholesale channel improved slightly on a sequential basis and was positive,
with the gap between performance in Pandora’s own physical retail and the wholesale channel narrowing in Q3.
Key markets in Europe
In line with expectations, the key markets in Europe delivered LFL growth of 4%, with the sequential decline driven
by some normalisation of the exceptional performance in Germany. Overall brand momentum in Germany remains
strong and LFL ended at 42% in Q3. The LFL in Germany remains traffic-led coupled with better execution resulting
in higher conversion across channels despite an overall more promotional market.
The UK delivered a negative LFL of -2%, outperforming a still challenging jewellery market which continues to be
impacted by dampened consumer sentiment. Pandora continued to focus on driving growth across its collections and
improving in-store execution.
Italy generated LFL of -8%. Whilst performance is negatively impacted by ongoing macroeconomic challenges, the
performance remains unsatisfactory. Pandora has noted that brand metrics, in particular consideration, is moving in
the right direction but this is yet to translate into higher traffic into the stores. Encouragingly, PANDORA ESSENCE is
off to a good start in Italy.
France delivered LFL of -1%. The market was slightly negatively impacted in the early part of the quarter owing to the
Olympics in Paris. Pandora’s performance was also impacted by softer traffic online relative to last year where viral
products boosted traffic in August and September. Organic growth in France ended in positive at 3% in Q3 2024,
driven by network optimisation. To further develop the store network and drive brand awareness closer to that of
other European key markets, Pandora continues to optimise its network in France.
Australia and China
Australia delivered LFL growth of -2% in Q3 2024, showing sequential improvement, supported in part by a successful
campaign for the PANDORA ESSENCE collection at Australian Fashion Week. While low consumer sentiment and
subdued purchasing power impacted overall performance, Pandora-operated physical stores outperformed partner
stores by 9 percentage points. This outperformance of multi-brand partners (which are not part of LFL) and comping
last year’s launch of the new Lab-grown diamonds collections both resulted in lower sell-in compared to last year,
and therefore had a negative impact on organic growth.
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06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
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The performance in China continues to be challenged ending at -33% LFL in the quarter. The quarter was partly
impacted by Pandora’s decision to reduce the promo level compared to prior years. Pandora is committed to
navigating the market's complexities and gradually build the brand in China and Pandora is currently considering the
next step on this journey.
Rest of Pandora
Rest of Pandora delivered ahead of expectations in the third quarter and reported another double-digit quarter,
achieving 14% LFL. The strong growth remains broad-based with established markets such as Spain and Poland
sustaining mid-teens LFL growth, while less penetrated markets like Netherlands, Portugal and Austria exhibited solid
double-digit LFL growth. Mexico delivered a strong 10% LFL in Q3 improving sequentially 12pp from Q2, with a strong
performance in July during end of season sale, and despite a heavy external promotional environment throughout
the quarter. As already flagged, Turkey continued to normalise from the extraordinary growth rates, but still posted
a solid double-digit LFL growth. Network expansion continues across many markets in Rest of Pandora and organic
growth reached 19% in Q3 2024.
QUARTERLY REVENUE DEVELOPMENT BY KEY MARKET
DKK million
Q3 2024
Q3 2023
Like-for-like
Organic growth
Share of revenue
US 1,796 1,566 6% 14% 29%
China
84 132 -33% -36% 1%
UK 740 729
-2% 0% 12%
Italy 466 496
-8% -7% 8%
Australia 195 221
-2% -13% 3%
France 227 220
-1% 3% 4%
Germany
431 301 42% 43% 7%
Total key markets 3,938 3,666
3% 7% 65%
Rest of Pandora 2,165 1,906 14% 19% 35%
Total revenue 6,103 5,572 7% 11% 100%
YEAR-TO-DATE REVENUE DEVELOPMENT BY KEY MARKET
DKK million
9M 2024
9M 2023
Like-for-like
Organic growth
Share of revenue
US 5,996 5,115 7% 15% 30%
China
313 449 -24% -28% 2%
UK 2,288 2,194
-1% 2% 12%
Italy 1,599 1,620
-5% -2% 8%
Australia 609 659
-4% -7% 3%
France 761 694
0% 10% 4%
Germany
1,367 865 58% 58% 7%
Total key markets 12,933 11,596
5% 10% 66%
Rest of Pandora 6,774 5,720 15% 24% 34%
Total revenue 19,707 17,316 8% 15% 100%
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REVIEW OF NETWORK DEVELOPMENT
Expansion of Pandora’s global network continued with 49 net openings in Q3 2024
During the third quarter of 2024, Pandora added a net of 39 concept stores and 10 Pandora owned shop-in-shops
to the network. The concept store openings have been relatively broad based geographically although North America
still constituted nearly half of the openings in the quarter. The shop-in-shop openings were concentrated in Japan
and US.
The network expansion drove revenue growth of 5% in Q3 2024. 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 its plans to
expand the network with 400-500 targeted net openings through 2024-2026. For FY 2024, Pandora now targets net
125-150 concept store openings (previously 100-150) and 50-75 (unchanged) new Pandora owned shop-in-shops.
Number of points of sale
1
Q3 2024 Q2 2024 Q3 2023
Growth
Q3 2024
/Q2 2024
Growth
Q3 2024
/Q3 2023
Concept stores 2,734 2,695 2,579 39 155
- of which Pandora owned
2
2,033 1,984 1,783 49 250
- of which franchise owned 371 391 486 -20 -115
- of which third-party distribution 330 320 310 10 20
Other points of sale 3,924 3,940 3,989 -16 -65
- of which Pandora owned
2
615 605 509 10 106
- of which franchise owned 3,009 3,038 3,159 -29 -150
- of which third-party distribution 300 297 321 3 -21
Total points of sale 6,658 6,635 6,568 23 90
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 on track, supported by a strong gross margin
Pandora remains on track to deliver an EBIT margin of around 25% in 2024. As already flagged and in line with previous
quarter, the EBIT margin in Q3 was slightly down ending at 16.1%, -40bp below Q3 2023. This was impacted by
headwinds from foreign exchange rates and commodity prices which turned from a 10bp tailwind in the previous
quarter to a -60bp headwind in the third quarter, partially offset by a lower temporary drag from inventory buybacks
in connection with forward integration. The headwind from foreign exchange rates and commodity prices is expected
to remain negative in the fourth quarter and become a -50bp drag on the full year.
In line with the previous quarters and the guidance, the elevated cost increases arising from inflation and in particular
salary increases continue to weigh on the margin and more than offset the price increases and efficiencies in the
quarter. Pandora continues to invest across the value chain to drive growth through among others the restaging of
the brand, and accelerating other initiatives in digital and technology.
Network expansion remained on track and contributed positively to the margin in Q3. The margin contribution in this
particular quarter is due to a larger impact from closures within the wholesale channel than previous quarters.
The temporary margin drag from buying back inventories in connection with forward integration represented a
headwind of -40bp in the quarter, down 50bp from last year. Foreign exchange rates represented a headwind of -
10bp, and the headwind from commodities was -50bp. The higher price of silver and gold is driving the negative
impact on commodities, while the headwind on currency comes from the weakening of the Mexican Peso, Turkish Lira
and USD, partly offset by a lower Thai Baht.
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GROSS MARGIN
The gross margin in Q3 2024 was 80.1%, +110 bp above Q3 2023, underpinning the strength of Pandora’s vertically
integrated business model.
As in previous quarters, the increase in the gross margin is partly driven by price increases, as well as continued
efficiencies at the crafting facilities. This is partly offset by salary increases and inflation and, specifically in Q3 2024,
additional cost related to custom duties resulting in a net 30bp contribution. Channel mix contributed with +70bp
positive impact vs Q3 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 84.2% compared to Core with a gross margin of 78.7%.
The impact from foreign exchange rates was broadly flat (+10bp), whilst commodities drove a -50bp headwind vs.
Q3 2023, due to an increase in the price of silver and gold. This 40bp headwind compares to a 30bp tailwind last
quarter, Q2 2024.
The gross margin is temporarily impacted by buying back inventory when doing forward integration. This represented
a net tailwind of 50bp compared to Q3 2023. Adjusting for forward integration, the underlying gross margin improved
by +60bp to 80.5%.
GROSS MARGIN AND GROSS PROFIT
DKK million Q3 2024 Q3 2023
Growth in
constant FX 9M 2024 9M 2023
Growth in
constant FX
Revenue 6,103 5,572 12% 19,707 17,316
16%
Cost of sales -1,217 -1,168 7% -3,969 -3,771 9%
Gross profit 4,886 4,404 13% 15,738 13,546 18%
Gross margin % 80.1% 79.0% 1.0% 79.9% 78.2% 1.3%
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OPERATING EXPENSES
The operating expenses increased by 14% in constant exchange rates measured against Q3 2023 driven by the
profitable network expansion and the continued marketing investments behind the brand.
Sales and distribution expenses increased by 20% in constant exchange rates. This increase largely reflects the
expansion of the store network combined with forward integration. In total, Pandora added 356 owned and operated
stores to the network compared to Q3 2023 which alone drove DKK 250 million additional expenses, equivalent to a
160bp increase in sales and distribution expenses as a share of revenue vs last year. The expansion of the network is
accretive to the EBIT margin as the increase in sales and distribution expenses is offset by a higher gross margin and
leverage on other OPEX lines (Administrative and marketing expenses).
Investments in digital and IT (a.o. upgrade of
the online platform, engraving, implementation of a store workforce management system) accounted for a DKK 32
million increase (equivalent to a 60bp increase in the sale and distribution ratio). In Q4 2024, the increase in sales and
distribution expenses as a share of revenue is expected to be lower than YTD 2024 and mainly reflect the expansion
of the network.
Marketing expenses increased by 11% in constant exchange rates vs Q3 2023, growing in line with revenue and ending
at 14.8% share of revenue, in line with last year. Pandora remains committed to fuelling brand desire and investing in
marketing to accelerate the journey to transform the perception of Pandora into a full jewellery brand.
As in prior quarters, we saw operating leverage on administrative expenses in the quarter. Administrative expenses
decreased 2% in constant exchange rates vs. Q3 last year and decreased 110bp as a share of revenue. The decrease
in absolute terms is partly driven by a shift of digital and IT investments towards retail and online, which is a part of
sales and distribution expenses.
QUARTERLY OPERATING EXPENSES
DKK million
Q3 2024
Q3 2023
Growth in
constant FX
Share of
revenue
Q3 2024
Share of
revenue
Q3 2023
Sales and distribution expenses -2,449 -2,090 20% 40.1% 37.5%
Marketing expenses -903 -823 11% 14.8% 14.8%
Administrative expenses -553 -571 -2% 9.1% 10.2%
Total operating expenses -3,905 -3,484 14% 64.0% 62.5%
YEAR-TO-DATE OPERATING EXPENSES
DKK million
9M 2024
9M 2023
Growth in
constant FX
Share of
revenue
9M 2024
Share of
revenue
9M 2023
Sales and distribution expenses -7,311 -6,068 23% 37.1% 35.0%
Marketing expenses -2,869 -2,403 20% 14.6% 13.9%
Administrative expenses -1,733 -1,711 2% 8.8% 9.9%
Total operating expenses -11,913 -10,181 19% 60.5% 58.8%
FINANCIAL EXPENSES AND TAX
Net financials came in at a cost of DKK 193 million in Q3 2024, compared to DKK 211 million in Q3 2023. The majority
of the decrease is driven by two factors: i) a lower loss of DKK 7 million on foreign exchange hedging contracts in Q3
2024 compared to a loss of DKK 34 million in Q3 2023 and ii) non-cash foreign exchange rate adjustments on mainly
intercompany balances between group entities resulting in a gain of DKK 38 million in Q3 this year (DKK 2 million gain
in Q2 2023). These factors offset an increase in the underlying net financials which is mainly driven by DKK 30 million
higher IFRS16 related interest on lease contracts. Based on the current foreign exchange rates, Pandora expects total
net financial expenses in 2024 to be around DKK 950-1,000 million (previously around DKK 1,000 million). The
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guidance consists of around DKK 800 million interest on debt, IFRS 16 related interest and fees, which remains
broadly unchanged, and around DKK 150-200 million loss (previously around DKK 200 million) on foreign exchange
hedging contracts and non-cash foreign exchange adjustments on 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 Q3 2024 came in at 24.5%, up by 100bp compared to Q3 2023 and in line with the guidance.
The increase is driven by the Pillar Two tax rules, taking effect in 2024.
EPS was DKK 7.3 for the quarter, an increase of 17% from DKK 6.3 in Q3 2023.
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CASH FLOW & BALANCE SHEET
Continued improvement of net working capital
Net working capital came in at 5.9% of revenue, which was down by 330bp from 9.2% in Q3 2023. The reduction was
mainly driven by strong inventory management with inventories being flat in absolute terms versus Q3 last year,
despite a 10% increase in group revenues. This is driving a 180bp decrease in inventories as a percentage of revenue
compared to Q3 2023.
Trade receivables continue to be at a healthy level and ended at 2.5% of revenue, down 90bp from Q3 2023 following
intensified cash management leading to lower days sales outstanding (DSO) in among others Mexico. The total DSO
is 11 days for Q3 2024, down four days compared to Q3 2023. The wholesale DSO were 40 days, in line with Q3
2023. Retail DSO were down to 5 days, a reduction of two days compared to Q3 2023.
Efforts to improve net working capital is also visible in trade payables. Trade payables increased 100bp as a percent
of revenue to 9.7% by the end of Q3 2024. This is driven by a.o. continued efforts to renegotiate payment terms.
Cash conversion remained solid at 58%; the 7pp decrease compared to Q3 2023 was driven by planned investments
related to the profitable network expansion and store refits related to the roll-out of Evoke. The free cash flow was
DKK 0.6 billion, in line with last year.
CAPEX was DKK 0.5 billion in the quarter, equivalent to 7.9% of revenue, and up by DKK 0.1 billion versus Q3 2023. In
line with normal seasonality, the CAPEX ratio is expected to come back down in Q4, landing the full-year within the
guided range of 6-7% of revenue. The increase is driven by investments to fuel the expansion of the store network,
as well as Digital and Technology, not least the new ERP platform.
ROIC remains structurally high at 44% in Q3 2024, broadly in line with Q3 2023 at 43%. The 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.
NET WORKING CAPITAL
Share of preceding 12 months' revenue
Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023
Inventories 16.0% 14.9% 15.2% 14.8% 17.8%
Trade receivables 2.5% 2.8% 3.8% 4.8% 3.4%
Trade payables -9.7% -9.2% -9.2% -11.4% -8.7%
Other net working capital elements -2.9% -2.4% -2.9% -6.4% -3.3%
Total 5.9% 6.0% 6.9% 1.8% 9.2%
Balance Sheet
Non-current assets increased by DKK 2.5 billion compared to Q3 2023 to DKK 17.8 billion by the end of Q3 2024.
This was in large part driven by the network expansion increasing the right-of-use assets, as well as CAPEX (tangible
assets) related to the store network. Current assets were DKK 7.7 billion, in line with Q3 2023.
Net interest-bearing debt increased to DKK 14.5 billion, up from DKK 12.7 billion in Q3 2023. This corresponds to a
leverage of 1.5x, in line with Q3 2023, and in line with usual seasonality. The leverage has peaked, and will be 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). At the
end of Q3 2024, Pandora had DKK 7.1 billion in undrawn committed credit facilities.
Equity is DKK 3.5 billion, in line with Q3 2023. In the quarter, Pandora has bought back shares totalling DKK 1.1 billion,
bringing the year-to-date amount to DKK 3.0 billion.
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FINANCIAL GUIDANCE
Raising the low end of the organic growth guidance
Despite lingering macroeconomic uncertainties and, therefore, tepid growth in many jewellery markets, Pandora’s
strategic initiatives under Phoenix are on track and have continued to yield positive results. Following the
performance YTD, Pandora updates its financial guidance, raising the low end of the organic growth guidance. Pandora
is now targeting organic growth of 11-12% (previously 9-12%) and an EBIT margin around 25% (unchanged).
REVENUE GUIDANCE
The organic growth guidance can be illustrated as follows:
Pandora is expecting LFL growth of 6-7% (previously 5-7%). The guidance implies LFL growth of 2-5% in Q4 2024,
reflecting the weak and uncertain macroeconomic and geopolitical environment, whilst also accounting for the tough
comparative base from the prior year which was boosted by higher-than-usual social media activity. Continued
network expansion is expected to add around 5% growth (previously 4-5%) whilst sell-in and other factors, which
have contributed positively by around 1% to the organic growth YTD, is still expected to be around 0% for the full
year, implying a drag of around -1% for Q4 2024. This takes the total organic growth for the full year to 11-12%
(previously 9-12%). Finally, forward integration is expected to add around 1% revenue with revenue growth in local
currency ending at 12-13% (previously 10-13%).
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PROFITABILITY GUIDANCE
The EBIT margin guidance for 2024 is unchanged at around 25% and can be illustrated as follows:
The bridge above include a positive impact from the profitable expansion of Pandora’s store network, expected to
add 60bp.
The “Operating leverage, net of investments" is expected to be slightly positive, driven by the increase in the LFL
guidance compared to the original guidance. The operating leverage will continue to be largely re-invested into
initiatives supporting both future and current growth.
As outlined during the Capital Markets Day in 2023, Pandora is 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 store concept, personalised 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 operating 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.
2024 GUIDANCE – OTHER PARAMETERS
Pandora expects to open net 125-150 concept stores (previously 100-150) and 50-75 (unchanged) 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 and network expansion, digital initiatives and crafting facilities.
The effective tax rate is expected to be 24-25% as the Pillar Two tax rules, released by OECD, comes into effect in
2024.
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Pandora expects net financial expenses to be around DKK 950-1,000 million in 2024 (previously around DKK 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 38.
FOREIGN EXCHANGE AND COMMODITY ASSUMPTIONS AND IMPLICATIONS – AS OF 1 NOVEMBER 2024
Average 2023 Average 2024
2024 Y-Y
Financial Impact
USD/DKK
6.89 6.86
THB/DKK
0.20 0.19
GBP/DKK
8.57 8.79
AUD/DKK
4.58 4.54
MXN/DKK
0.39 0.38
CAD/DKK
5.11 5.02
TRY/DKK
0.30 0.21
CNY/DKK
0.97 0.96
Silver/USD (per ounce)
22.75 23.82
Gold/USD (per ounce)
1,840 1,985
REVENUE (DKK million) Approx. -500
EBIT (DKK million) Approx. -270
EBIT margin (foreign exchange) Approx. 0.0%
EBIT margin (commodities) Approx. -0.5%
CAPITAL STRUCTURE POLICY AND CASH DISTRIBUTION
At the end of Q3 2024, in line with expectations and usual seasonality, Pandora’s leverage peaked at 1.5x NIBD to
EBITDA, in line with Q3 2023. Pandora aims for a leverage ratio of approximately 1.2x NIBD to EBITDA by the end of
2024.
Pandora has paid out DKK 4.5 billion to shareholders during the first nine months of 2024, of which DKK 1.5 billion
came from an ordinary dividend of DKK 18 per share and DKK 3.0 billion was distributed via share buybacks (DKK 0.4
billion related to the 2023 programme ending in early February 2024). Pandora intends to buy back DKK 4.0 billion
worth of own shares over twelve months ending January 31, 2025, of which DKK 3.0 billion has been bought back as
of November 1, 2024.
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OTHER EVENTS
Pandora appoints Berta de Pablos-Barbier as CMO
Berta de Pablos-Barbier has 30 years of executive experience from global luxury and consumer goods brands. Most
recently, she served as the President & CEO of LVMH’s champagne brands Moët & Chandon, Dom Perignon and
Mercier, where she spearheaded new innovations that elevated the brands and led to record results. Prior to that she
was the Chief Growth Officer of Mars Wrigley and CMO of Lacoste, where she led the brand’s global repositioning.
She also brings experience from the jewellery industry from her time as VP of Marketing & Communications at Kering-
owned jeweller Boucheron. Her career has developed internationally across the US, UK, France, Spain, Russia and the
Middle East.
Pandora now crafts its jewellery with 100% recycled silver and gold
Following a transformation of its entire precious metals supply, Pandora is now crafting all jewellery with 100%
recycled silver and gold. By using recycled silver and gold instead of newly mined metals, Pandora avoids 58,000 tons
CO
2
per year.
Pandora’s net-zero climate goal validated by the Science Based Targets initiative
The leading corporate climate action organization Science Based Targets initiative (SBTi) announced on 11 July 2024
that is has validated Pandora’s target to become a net-zero business by 2040. This validation marks a significant
milestone in Pandora’s sustainability journey. It affirms the company's ambition to decarbonize at the pace and scale
required to align with the Paris Agreement’s goal of limiting global temperature rise to 1.5°C.
To reach net-zero, a company must cut emissions by at least 90% across its full value chain and use permanent carbon
removal to balance out any residual emissions. The verification follows SBTi's validation in 2021 of Pandora's target
to halve greenhouse gas emissions across its own operations and entire value chain by 2030.
FINANCIAL CALENDAR 2025
The expected dates for publication of financial announcements in 2025 for Pandora A/S are as follows:
05 February 2025 Annual Report 2024
05 February 2025 Remuneration Report 2024
12 March 2025 Annual General Meeting
07 May 2025 Interim Financial Report for the first quarter 2025
15 August 2025 Interim Financial Report for the second quarter 2025
05 November 2025 Interim Financial Report for the third quarter 2025
Any shareholder who proposes business to be transacted at the Annual General Meeting on Wednesday 12 March
2025 must submit the proposal(s) to the Board of Directors’ Secretariat no later than Tuesday 28 January 2025.
Proposal(s) must be sent by letter to Pandora A/S, Board of Directors’ Secretariat att.: Peter Ring, Havneholmen 17-
19, DK-1561 Copenhagen V, Denmark or by email to legal@pandora.net
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2024 YTD DEVELOPMENT
REVENUE
Total revenue increased by 16% in local currency to DKK 19,707 million in the first nine months of 2024 compared
to 2023. Organic growth was 15% reflecting sustained momentum and a strengthening of the brand.
Revenue from Pandora’s Core segment grew by 9% in local currency to DKK 14,758 million in the first nine months of
2024 from DKK 13,770 million in 2023. The segment “Fuel with more” saw revenue growth of 41% in local currency,
driven by strong performance of the Timeless collection.
GROSS PROFIT AND COSTS
Gross profit was DKK 15,738 million in the first nine months of 2024 (DKK 13,546 million in 2023), resulting in a gross
margin of 79.9% in 2024 vs. 78.2% in 2023. The Core segment generated a gross margin of 78.5% (2023: 77.5%),
while Fuel with more generated a gross margin of 83.9% (2023: 80.9%). The increase was driven by favourable channel
mix, pricing and product mix, as well as efficiencies at our crafting facilities.
Sales and distribution expenses increased to DKK 7,311 million in the first nine months of 2024 (DKK 6,068 million in
2023), corresponding to 37.1% of revenue in 2024 (35.0% in 2023). The increase is mainly the result of the profitable
expansion of the Pandora owned physical network.
Marketing expenses were DKK 2,869 million in the first nine months of 2024 (DKK 2,403 million in 2023), resulting in
a share of revenue of 14.6% in 2024 compared with 13.9% in 2023. The reason for the higher share of revenue is
related to investments behind the brand strategy - transforming the perception of Pandora into a full jewellery brand.
Administrative expenses ended at DKK 1,733 million in the first nine months of 2024 compared with DKK 1,711
million in 2023, corresponding to 8.8% of revenue in 2024, down from 9.9% in 2023.
EBIT
EBIT for the first nine months of 2024 was DKK 3,825 million, resulting in an EBIT margin of 19.4%, the same as in
2023.
NET FINANCIALS
Net financials amounted to a cost of DKK 701 million in the first nine months of 2024 vs. a cost of DKK 476 million in
2023. This reflects among others increased interest on debt, IFRS 16 related interest, fees etc, as well as foreign
exchanges rate adjustments and net realised losses on foreign exchange hedging contracts.
INCOME TAX EXPENSES
Income tax expenses were DKK 765 million in the first nine months of 2024 compared with DKK 679 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 nine months of 2024 was DKK 2,358 million vs. DKK 2,210 million in 2023.
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23 | 38
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/q3-2024
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 using only recycled silver and gold. Pandora is committed to leadership in sustainability and 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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06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
24 | 38
FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
DKK million Notes Q3 2024 Q3 2023 9M 2024 9M 2023 FY 2023
Revenue 3 6,103 5,572 19,707 17,316 28,136
Cost of sales -1,217 -1,168 -3,969 -3,771 -6,012
Gross profit 4,886 4,404 15,738 13,546 22,125
Sales, distribution and marketing expenses -3,352 -2,913 -10,180 -8,470 -12,707
Administrative expenses -553 -571 -1,733 -1,711 -2,379
Operating profit 980 920 3,825 3,365 7,039
Finance income 111 49 205 208 251
Finance costs -304 -259 -907 -684 -1,056
Profit before tax 788 709 3,123 2,889 6,234
Income tax expense -193 -167 -765 -679 -1,494
Net profit for the period 595 543 2,358 2,210 4,740
Earnings per share, basic, DKK 7.3 6.3 29.1 25.6 55.5
Earnings per share, diluted, DKK 7.3 6.3 29.0 25.5 55.1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
DKK million
Q3 2024 Q3 2023 9M 2024 9M 2023 FY 2023
Net profit for the period 595 543 2,358 2,210 4,740
Other comprehensive income:
Items that may be reclassified to profit/loss
for the period
Exchange rate adjustments of investments in
subsidiaries -184 111 -133 46 -149
Fair value adjustment of hedging instruments 125 -136 298 -385 -197
Tax on other comprehensive income, hedging
instruments, income/expense -9 31 -33 79 39
Items that may be reclassified to profit/loss
for the period, net of tax -68 7 131 -260 -308
Items not to be reclassified to profit/loss for
the period
Actuarial gain/loss on defined benefit plans,
net of tax -6 - -6 -21 -9
Items not to be reclassified to profit/loss for
the period, net of tax -6 - -6 -21 -9
Other comprehensive income, net of tax -74 7 125 -281 -317
Total comprehensive income for the period 521 550 2,484 1,929 4,423
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06 NOVEMBER 2024 | INTERIM FINANCIAL REPORT Q3 2024 | COMPANY ANNOUNCEMENT No. 900 | page
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CONSOLIDATED BALANCE SHEET
DKK million
Notes
2024
30 September
2023
30 September
2023
31 December
ASSETS
Goodwill 7 5,003 4,977 4,914
Brand 1,057 1,057 1,057
Distribution 1,034 1,040 1,039
Other intangible assets 969 678 790
Total intangible assets
Property, plant and equipment 3,169 2,550 2,746
Right-of-use assets 8 4,698 3,541 3,779
Deferred tax assets 1,632 1,317 1,260
Other financial assets 280 225 215
Total non-current assets 17,843 15,386 15,800
Inventories 4,898 4,824 4,166
Trade receivables 5 757 931 1,342
Right-of-return assets 51 37 55
Derivative financial instruments 4,12 369 43 87
Income tax receivable 174 185 103
Other receivables 763 872 849
Cash 676 848 1,397
Total current assets 7,687 7,740 7,998
Total assets
EQUITY AND LIABILITIES
Share capital 82 89 89
Treasury shares -2,189 -3,647 -4,353
Reserves 750 657 610
Proposed dividend - - 1,480
Retained earnings 4,871 6,422 7,530
Total equity 3,515 3,521 5,355
Provisions 488 378 408
Loans and borrowings 4,8 11,537 11,970 9,737
Deferred tax liabilities 280 138 164
Other payables 175 - 80
Total non-current liabilities 12,480 12,486 10,389
Provisions 22 18 23
Refund liabilities 554 464 721
Contract liabilities 186 177 185
Loans and borrowings 4,8 3,636 1,585 1,430
Derivative financial instruments 4,12 69 271 128
Trade payables 9 2,950 2,364 3,211
Income tax payable 950 1,079 583
Other payables 1,166 1,162 1,773
Total current liabilities 9,534 7,119 8,053
Total liabilities 22,014 19,605 18,443
Total equity and liabilities 25,529 23,126 23,798
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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 89 -4,353 642 -33 1,480 7,530 5,355
Net profit for the period - - - - - 2,358 2,358
Other comprehensive income, net of tax - - -88 229 - -15 125
Total comprehensive income for the period - - -88 229 - 2,343 2,484
Share-based payments - 208 - - - -65 143
Purchase of treasury shares - -2,996 - - - - -2,996
Cancellation of treasury shares -7 4,952 - - - -4,945 -
Dividend proposed - - - - -9 9 -
Dividend paid - - - - -1,471 - -1,471
Equity at 30 September 82 -2,189 554 196 - 4,871 3,515
2023
Equity at 1 January 96 -3,320 797 121 1,430 8,044 7,167
Net profit for the period - - - - - 2,210 2,210
Other comprehensive income, net of tax - - 40 -300 - -21 -281
Total comprehensive income for the period - - 40 -300 - 2,190 1,929
Share-based payments - 278 - - - -149 129
Purchase of treasury shares - -4,292 - - - - -4,292
Cancellation of treasury shares -7 3,687 - - - -3,680 -
Dividend proposed - - - - -18 18 -
Dividend paid - - - - -1,412 - -1,412
Equity at 30 September 89 -3,647 836 -179 - 6,422 3,521
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CONSOLIDATED STATEMENT OF CASH FLOWS
The above cannot be derived directly from the income statement and the balance sheet.
1
In Q3 2024, Pandora performed a reclassification between ‘change in payables and other liabilities’ and ‘other non-cash adjustments’ for presentation purposes. All
the comparative figures were restated accordingly.
DKK million
Notes Q3 2024 Q3 2023 9M 2024 9M 2023 FY 2023
Operating profit 980
Depreciation and amortisation 591 527 1,730 1,526 2,079
Share-based payments 19 30 117 84 105
Change in inventories -515 -196 -751 -375 210
Change in receivables 141 -270 556 506 56
Change in payables and other liabilities
1
Other non-cash adjustments
1
-10 - -40 -70 -63
Finance income received 7 4 15 14 19
Finance costs paid -155 -179 -695 -427 -683
Income taxes paid -109 -66 -747 -669 -1,832
Cash flows from operating activities, net 1,181 1,078 2,996 2,563 7,384
Acquisitions of subsidiaries and activities,
net of cash acquired 6 -7 -156 -172 -312 -349
Purchase of intangible assets -101 -107 -246 -277 -359
Purchase of property, plant and equipment -368 -286 -941 -738 -1,129
Change in other assets -8 -5 -12 24 37
Proceeds from sale of property, plant and equipment 4 - 12 1 -
Cash flows from investing activities, net -479 -553 -1,358 -1,301 -1,800
Dividend paid - - -1,471 -1,412 -1,412
Purchase of treasury shares -1,150 -1,353 -3,016 -4,253 -5,022
Proceeds from loans and borrowings 1,247 1,054 5,772 8,383 5,927
Repayment of loans and borrowings -746 - -2,675 -3,061 -3,321
Repayment of lease commitments -286 -259 -850 -774 -1,107
Cash flows from financing activities, net -935 -557 -2,241 -1,117 -4,935
Net increase/decrease in cash -233 -33 -603 144 649
Cash and cash equivalents, beginning of period 806 749 1,183 595 595
Exchange gains/losses on cash and cash equivalents -13 -4 -21 -26 -61
Net increase/decrease in cash -233 -33 -603 144 649
Cash and cash equivalents, end of period 559 713 559 713 1,183
Cash balances 676 848 676 848 1,397
Overdrafts -117 -135 -117 -135 -214
Cash and cash equivalents, end of period 559 713 559 713
Cash flows from operating activities, net 1,181 1,078 2,996 2,563 7,384
- Finance income received -7 -4 -15 -14 -19
- Finance costs paid 155 179 695 427 683
Cash flows from investing activities, net -479 -553 -1,358 -1,301 -1,800
- Acquisition of subsidiaries and activities, net of cash acquired 7 156 172 312 349
Repayment of lease commitments -286 -259 -850 -774 -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, while the other, Fuel with more, covers newer collections and
innovations.
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
Q3 2024
Revenue 4,634 1,468 6,103
Cost of sales -985 -232 -1,217
Gross profit 3,649 1,236 4,886
Gross margin, % 78.7% 84.2% 80.1%
Operating expenses -3,905
Consolidated operating profit (EBIT)
980
Profit margin (EBIT margin), % 16.1%
Q3 2023
Revenue 4,368 1,204 5,572
Cost of sales -925 -243 -1,168
Gross profit 3,443 961 4,404
Gross margin, % 78.8% 79.8% 79.0%
Operating expenses -3,484
Consolidated operating profit (EBIT)
920
Profit margin (EBIT margin), % 16.5%
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DKK million
Core
Fuel with more
Group
9M 2024
Revenue 14,758 4,950 19,707
Cost of sales -3,170 -799 -3,969
Gross profit 11,588 4,150 15,738
Gross margin, % 78.5% 83.9% 79,9%
Operating expenses -11,913
Consolidated operating profit (EBIT)
3,825
Profit margin (EBIT margin), % 19,4%
9M 2023
Revenue 13,770 3,546 17,316
Cost of sales -3,092 -679 -3,771
Gross profit 10,679 2,867 13,546
Gross margin, % 77.5% 80.9% 78.2%
Operating expenses -10,181
Consolidated operating profit (EBIT)
3,365
Profit margin (EBIT margin), % 19.4%
REVENUE BY SEGMENTS
DKK million Q3 2024 Q3 2023
Like-for-
like
Local
currency
growth
Share of
Revenue 9M 2024 9M 2023
Like-for-
like
Local
currency
growth
Share of
Revenue
Core 4,634 4,368 2% 8% 76% 14,758 13,770 2% 9% 75%
- Moments 3,895 3,604 2% 10% 64% 12,472 11,489 3% 11% 63%
- Collabs 514 561 -6% -7% 8% 1,600 1,717 -11% -6% 8%
- ME 226 202 21% 13% 4% 686 565 20% 23% 3%
Fuel with more 1,468 1,204 21% 24% 24% 4,950 3,546 28% 41% 25%
- Timeless 1,065 841 18% 29% 17% 3,813 2,669 30% 45% 19%
- Signature 170 275 -32% -36% 3% 607 772 -18% -14% 3%
- PANDORA ESSENCE
1
169 3 - - 3% 342 3 - - 2%
- Pandora Lab-Grown Diamonds 64 86 34% -25% 1% 188 152 66% 24% 1%
Total revenue 6,103 5,572 7% 12% 100% 19,707 17,316 8% 16% 100%
Goods transferred at a point in time 6,093 5,559 19,669 17,275
Services transferred over time
10
13
39
42
Total revenue 6,103 5,572 19,707 17,316
1
PANDORA ESSENCE was launched in 2024 following a pilot in the Netherlands in 2023.
REVENUE DEVELOPMENT IN KEY MARKETS
DKK million Q3 2024 Q3 2023
Like-for-
like
Local
currency
growth 9M 2024 9M 2023
Like-for-
like
Local
currency
growth
US 1,796 1,566 6% 16% 5,996 5,115 7% 17%
China 84 132 -33% -36% 313 449 -24% -28%
UK 740 729 -2% 0% 2,288 2,194 -1% 2%
Italy 466 496 -8% -6% 1,599 1,620 -5% -1%
Australia 195 221 -2% -13% 609 659 -4% -7%
France 227 220 -1% 3% 761 694 0% 10%
Germany 431 301 42% 43% 1,367 865 58% 58%
Total key markets 3,938 3,666 3% 7% 12,933 11,596 5% 11%
Rest of Pandora
2,165
1,906
14%
20%
6,774
5,720
15%
25%
Total revenue 6,103 5,572 7% 12% 19,707 17,316 8% 16%
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REVENUE DEVELOPMENT BY CHANNEL
DKK million
Q3 2024 Q3 2023
Organic
growth
Share of
Revenue 9M 2024 9M 2023
Organic
growth
Share of
Revenue
Pandora owned
1
retail
4,995 4,267
17% 82% 16,057 13,261 20% 81%
- of which concept stores
3,519 3,049
14% 58% 10,968 9,039 19% 56%
- of which online stores
1,090 877
26% 18% 3,832 3,163 23% 19%
- of which other points of sale
386 341
21% 6% 1,256 1,059 23% 6%
Wholesale
914 1,126
-12% 15% 3,036 3,539 -6% 15%
- of which concept stores
388 589
-23% 6% 1,266 1,818 -17% 6%
- of which other points of sale
526 537
0% 9% 1,770 1,721 6% 9%
Third-party distribution
194 178
6% 3% 614 516 17% 3%
Total revenue
6,103 5,572 11% 100% 19,707 17,316 15% 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 14.5 billion at the end of Q3 2024 (Q3
2023: DKK 12.7 billion) corresponding to a financial leverage of 1.5x (Q3 2023: 1.5x).
Liquidity risk
Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations when due.
In Q3 2024, Pandora had DKK 2.1 billion drawn on short term money market lines to optimise interest costs, leaving
DKK 7.1 billion in undrawn committed credit facilities at the end of the quarter.
NOTE 5 – Trade receivables
DKK million
2024
30 September
2023
31 December
Loans and borrowings, non-current 8,003 6,973
Lease liabilities, non-current 3,535 2,765
Loans and borrowings, current 2,316 313
Lease liabilities, current 1,320 1,116
Cash -676 -1,397
Net interest-bearing debt 14,498 9,770
Unutilised committed credit facilities
7,083
4,472
DKK million
2024
30 September
2023
31 December
Receivables related to third-party distribution and wholesale 497 705
Receivables related to retail revenue 259 637
Total trade receivables 757 1,342
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NOTE 6 – Business combinations
In the first 9 months of 2024, Pandora took over 30 concept stores (9 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 171 million. Based on the purchase price allocations, goodwill was DKK 91 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 89 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.
From Q2 2024, 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 September 2024 was DKK 67 million and DKK
11 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 September 2024, excluding
the temporary drag on gross margin from inventory buybacks, would have been approximately DKK 80 million and
DKK 13 million respectively
3
.
ACQUISITIONS
DKK million 9M 2024 FY 2023
Property, plant and equipment and right-of-use assets 61 144
Other non-current assets 1 -
Inventories 80 194
Other current assets 1 3
Assets acquired 143 341
Non-current liabilities 24 75
Payables 3 4
Other current liabilities 35 49
Liabilities assumed 63 128
Total identifiable net assets acquired 80 213
Goodwill arising on the acquisitions 91 143
Purchase consideration 171 356
Cash movements on acquisitions:
Consideration transferred regarding previous years
1
11 14
Deferred payment
2
-10 -21
Net cash flows on acquisitions 172 349
1
The consideration of DKK 11 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.
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 September 2024 calculated according to IFRS 3 was DKK 167 million and DKK 64 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 September 2024, excluding the temporary drag on the
margin from inventory buybacks, would have been approximately DKK 180 million and DKK 66 million respectively.
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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 September
2023
31 December
Cost at 1 January 4,914 4,822
Acquisition of subsidiaries and activities in the period 91 143
Exchange rate adjustments -2 -50
Cost at the end of the period 5,003 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 September
2023
31 December
Property 4,681 3,765
Other 17 14
Total right-of-use assets 4,698 3,779
Out of the total increase of DKK 0.9 billion in right-of-use-assets in the period 1 January to 30 September 2024, DKK
1.9 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 1 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 September
2023
31 December
Non-current 3,535 2,765
Current 1,320 1,116
Total lease liabilities 4,855 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 September 2024
1 January –
30 September 2023
Property 970 849
Other 10 10
Total depreciation on right-of-use assets for the period 980 859
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 September 2024
1 January –
30 September 2023
Interest expense 274 189
Total interest for the period 274 189
Costs recognised in the period for short-term and low-value leases were DKK 66 million (2023: DKK 48 million).
Expenses are recognised on a straight-line basis.
TOTAL CASH FLOWS RELATING TO LEASES
DKK million
1 January –
30 September 2024
1 January –
30 September 2023
Fixed lease payments 850 774
Interest payments 274 189
Variable leases 385 321
Short-term and low-value leases 66 48
Total cash flows relating to leases 1,575 1,332
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 231 million at
30 September 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
Q3 2024
Number
of concept
stores
Q2 2024
Number
of concept
stores
Q3 2023
Growth
Q3 2024
/ Q2 2024
Growth
Q3 2024
/Q3 2023
Number
of concept
stores
O&O
Q3 2024
Growth
O&O
stores
Q3 2024
/ Q2 2024
Growth
O&O
stores
Q3 2024
/Q3 2023
US 479
465
437
14 42 390 16 58
China 204
208
227
-4 -23 193 -3 -23
UK 219
217
219
2 - 218 2 6
Italy 184
182
164
2 20 158 3 30
Australia 128
126
124
2 4 71 10 25
France 123
124 121
-1 2 110 1 27
Germany 137
136
134
1 3 136 2 5
Total key markets 1,474
1,458
1,426
16 48 1,276 31 128
Rest of Pandora 1,260
1,237 1,153
23 107 757 18 122
All markets 2,734
2,695
2,579
39 155 2,033 49 250
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, it was decided
to temporarily pause any further hedging. As of the end of Q3 2024, Pandora had hedged 25% of commodity
exposures for the next 12 months of production.
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 in the P&L is usually 2-7 months. Pandora has, therefore, hedged around 50%
of the P&L exposure for Q1-Q3 2025.
HEDGED AND REALISED PURCHASE PRICES (AT USE OF THE SILVER AND GOLD FOR PRODUCTION)
USD / OZ
Realised in
Q3 2024
Hedged
Q4 2024
Hedged
Q1 2025
Hedged
Q2 2025
Hedged
Q3 2025
Silver price 24.96 24.71 24.78 - -
Gold price 2,073 2,155 2,225 - -
Commodity hedge ratio (actual), % Realised 67% 39% 0% 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.
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 September 2024, which are expected to materially impact the Group’s financial position.
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QUARTERLY OVERVIEW
DKK million
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Financial highlights
Revenue 6,103 6,771 6,834 10,820 5,572
Organic growth, %
11%
15%
18%
12%
11%
Like-for-like, % 7% 8% 11% 9% 9%
Earnings before interest, tax, depreciation and
amortisation (EBITDA) 1,571 1,916 2,067 4,227 1,447
Operating profit (EBIT) 980 1,338 1,507 3,674 920
EBIT margin, %
16.1% 19.8% 22.0% 34.0% 16.5%
Net financials -193 -280 -229 -330 -211
Net profit for the period 595 799 965 2,530 543
Financial ratios
Revenue growth, DKK, % 10% 15% 17% 10% 6%
Revenue growth, local currency, % 12% 16% 19% 13% 11%
Gross margin, % 80.1% 80.2% 79.4% 79.3% 79.0%
EBITDA margin, % 25.7% 28.3% 30.3% 39.1% 26.0%
EBIT margin, % 16.1% 19.8% 22.0% 34.0% 16.5%
Effective tax rate, % 24.5% 24.5% 24.5% 24.4% 23.5%
Equity ratio, % 14% 16% 17% 23% 15%
NIBD to EBITDA, x 1.5 1.4 1.3 1.1 1.5
Return on invested capital (ROIC), %
1
44% 45% 45% 45% 43%
Cash conversion incl. lease payments, % 58% 94% -12% 116% 65%
Net working capital, % of last 12 months’ revenue 5.9% 6.0% 6.9% 1.8% 9.2%
Capital expenditure, % of revenue 7.9% 7.0% 6.0% 5.4% 6.7%
Stock ratios
Total payout ratio (incl. share buyback), % 193% 110% 255% 30% 249%
Consolidated balance sheet
T
otal assets 25,529 24,797 23,993 23,798 23,126
Invested capital 18,013 17,478 16,605 15,126 16,228
Net working capital 1,812 1,812 2,017 510 2,498
Net interest-bearing debt (NIBD) 14,498 13,402 12,643 9,770 12,707
Equity 3,515 4,076 3,961 5,355 3,521
C
onsolidated statement of cash flows
Cash flows from operating activities 1,181 1,626 188 4,821 1,078
Capital expenditure, total 481 476 409 582 374
Capital expenditure, property, plant and equipment 398 331 252 394 305
Free cash flows incl. lease payments 572 1,255 -187 4,277 597
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 a
moving annual average. 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