05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921
CVR NO. 285051 16 HAVNEHOLMEN 17-19 1561 COPENHAGEN V DENMARK • WWW.PANDORAGROUP.COM
INTERIM FINANCIAL REPORT
Q4 2024
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • CONTENTS
PAGE 2 OF 41
CONTENTS
HIGHLIGHTS
3
EQUITY STORY
4
EXECUTIVE SUMMARY
5
FINANCIAL HIGHLIGHTS
BUSINESS UPDATE
6
BUSINESS UPDATE
10
REVENUE REVIEW
14
PROFITABILITY
18
CASH FLOW & BALANCE SHEET
20
FINANCIAL GUIDANCE
23
SUSTAINABILITY
24
OTHER EVENTS
26
CONTACT
FINANCIAL STATEMENTS
27
FINANCIAL STATEMENTS
31
ACCOUNTING NOTES
41
DISCLAIMER
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • EQUITY STORY
PAGE 3 OF 41
EQUITY STORY
A STRONG BRAND WITH VAST GROWTH OPPORTUNITIES
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 was based on September 2023 foreign exchange rates and a silver price of USD 23.6 / oz. At the current spot price
of USD 30.5 / oz, Pandora confirms the target,
although currently pointing towards the low-end of the range.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • EXECUTIVE SUMMARY
PAGE 4 OF 41
EXECUTIVE SUMMARY
PANDORA DELIVERS 13% ORGANIC GROWTH IN 2024 – TARGETING 7-8% GROWTH
IN 2025
FY 2024 HIGHLIGHTS
• 2024 was another successful year for Pandora. Delivering on the Phoenix strategy, Pandora continued to elevate
itself as a full jewellery brand, driving more consumers into the brand.
• Revenue and EBIT increased by 13% to reach DKK 31.7 billion and DKK 8.0 billion, respectively.
• Organic growth ended at 13% (guidance of “11-12%”), comprising of like-for-like (LFL) of 7% and network expansion
of 5%.
• The gross margin continued to strengthen and ended at 79.8%, up 120bp Y/Y. The EBIT margin remained solid at
25.2% (guidance at “around 25%”). This helped drive 17% EPS growth to a new record-high of DKK 65.
• Strong progress on working capital drove cash conversion of 85%. Leverage ended at 1.1x NIBD/EBITDA.
• Proposed dividend of DKK 20 per share and a new share buyback programme of DKK 4.0 billion to be completed
no later than 30 January 2026.
Q4 2024 HIGHLIGHTS
• Growth remained solid through Q4 2024. Organic growth ended at 11%, comprising of LFL growth of 6% and
network expansion of 5%.
• Q4 LFL growth was driven by strong performance in the US of 9% and Rest of Pandora at 11%. Growth in key
markets in Europe was slower at 0%.
• The Q4 gross margin reached 79.8%, +50bp Y/Y, supported by pricing. In line with expectations, the Q4 EBIT
margin expanded by 70bp to reach 34.7%.
PHOENIX STRATEGY HIGHLIGHTS
• Pandora is making notable investments into its four major strategic Phoenix pillars which are collectively showing
encouraging results.
• The objective to restage the Pandora brand is visible in the numbers; LFL growth in the “Core” segment ended
2024 with 2% growth whilst the “Fuel with more” segment drove 22% growth. Q4 2024 saw a continuation of this
trend.
• After successful testing in Q4 2024, Pandora’s brand-new e-commerce platform is set to be rolled out globally
through 2025. The new platform looks to notably step up Pandora’s brand desirability.
• Based on a silver price of USD 30.5/oz as of January 27, 2025, Pandora re-confirms the EBIT margin target of 26-
27% by 2026, although currently pointing towards the low-end of the range.
2025 GUIDANCE AND CURRENT TRADING
• Initial guidance for 2025 is for “7-8% organic growth” and an EBIT margin of “around 24.5%”.
• Current trading in Q1 2025 shows LFL at high-single digit levels. This is somewhat flattered by a strong End of
Season Sale. Pandora continues to see underlying LFL trading being at healthy mid-single digit levels.
Alexander Lacik, President and CEO of Pandora, says:
“We are pleased with how we ended 2024, particularly given the challenging macroeconomic backdrop and a
competitive holiday period. Execution of our Phoenix strategy continued to drive the brand forward throughout the
entire year. In 2025, we target another year of solid and profitable growth and we have all actions lined up to continue
the strong development.”
DKK million
Q4 2024
Q4 2023
FY 2024
FY 2023
FY 2025
guidance
Revenue
11,973
10,820
31,680
28,136
Organic growth
11%
12%
13%
8%
7-8%
Like-for-Like, %
6%
9%
7%
6%
Operating profit (EBIT)
4,149
3,674
7,974
7,039
EBIT margin, %
34.7%
34.0%
25.2%
25.0%
Around 24.5%
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • FINANCIAL HIGHLIGHTS
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FINANCIAL HIGHLIGHTS
DKK million
Q4 2024
Q4 2023
FY 2024
FY 2023
FINANCIAL HIGHLIGHTS
Revenue
11,973
10,820
31,680
28,136
Organic growth, %
11%
12%
13%
8%
Like-for-like, %
6%
9%
7%
6%
Earnings before interest, tax, depreciation and
amortisation (EBITDA)
4,772
4,227
10,327
9,118
Operating profit (EBIT)
4,149
3,674
7,974
7,039
EBIT margin, %
34.7%
34.0%
25.2%
25.0%
Net financials
-347
-330
-1,048
-805
Net profit for the period
2,869
2,530
5,227
4,740
FINANCIAL RATIOS
Revenue growth, DKK, %
11%
10%
13%
6%
Revenue growth, local currency, %
11%
13%
14%
9%
Gross margin, %
79.8%
79.3%
79.8%
78.6%
EBITDA margin, %
39.9%
39.1%
32.6%
32.4%
EBIT margin, %
34.7%
34.0%
25.2%
25.0%
Effective tax rate, %
24.5%
24.4%
24.5%
24.0%
Equity ratio, %
20%
23%
20%
23%
NIBD to EBITDA, x
1.1
1.1
1.1
1.1
Return on invested capital (ROIC), %
1
46%
45%
46%
45%
Cash conversion incl. lease payments, %
124%
116%
85%
78%
Net working capital, % of last 12 months’ revenue
-1.7%
1.8%
-1.7%
1.8%
Capital expenditure, % of revenue
4.6%
5.4%
6.1%
5.8%
STOCK RATIOS
Total payout ratio (incl. share buyback), %
35%
30%
105%
136%
Dividend per share, proposed, DKK
20
18
20
18
Dividend per share, paid, DKK
-
-
18
16
Earnings per share, basic, DKK
35.6
29.6
64.8
55.5
Earnings per share, diluted, DKK
35.5
29.4
64.6
55.1
CONSOLIDATED BALANCE SHEET
Total assets
27,758
23,798
27,758
23,798
Invested capital
16,515
15,126
16,515
15,126
Net working capital
-549
510
-549
510
Net interest-bearing debt (NIBD)
11,008
9,770
11,008
9,770
Equity
5,508
5,355
5,508
5,355
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
5,725
4,821
8,721
7,384
Capital expenditure, total
553
582
1,919
1,624
Capital expenditure, property, plant and equipment
439
394
1,419
1,176
Free cash flows incl. lease payments
5,126
4,277
6,767
5,489
SUSTAINABILITY
Scope 1, 2 & 3 emissions, tonnes CO
2
equivalent
2
-
-
286,198
272,967
Share of renewable electricity, %
-
-
100%
87%
Recycled silver and gold, total, %
-
-
100%
97%
Leadership Team gender ratio, female/male, %
-
-
35/65
34/66
Total employees (end of period), number
-
-
41,326
37,142
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.
2
In 2024, we have reassessed Pandora’s calculation methodology and data for Scope 3 based on updated knowledge. This led to adjustments in total
emissions (tonnes CO
2
e), with an increase of 8,423 in 2023 (+3%).
For definitions of the performance measures used by Pandora, see note 5.6 Financial definitions to the consolidated
financial statements in the Annual Report 2024.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • BUSINESS UPDATE
PAGE 6 OF 41
BUSINESS UPDATE
DELIVERING ON THE PHOENIX STRATEGY – SOLID GROWTH AND PROFITABILITY
IN 2024
At the Capital Markets Day in 2023, 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. Through the course of 2024,
Pandora scaled up investments across its entire value chain to help set up Pandora for a consistent growth trajectory
and tap into the vast untapped growth opportunities. These investments are already yielding good results with Pandora
delivering 13% organic growth for 2024, including LFL growth of 7% and an EBIT margin of 25.2% - resulting in 17% EPS
growth for the year.
The year ended on a solid note for Pandora with Q4 2024 marking the sixth consecutive quarter of double-digit organic
growth. Pandora benefitted from strong execution across the holiday period which drove positive traffic, despite a
highly promotional external environment and a tough comparison base which was boosted last year by various social
media activations. Whilst Pandora continued to scale up investments into its value chain through the year, Pandora
ended the year with strong profitability at 34.7%, +70bp Y/Y in Q4 2024, supported by a still strong gross margin
around 80%.
The 11% organic growth in Q4 2024 was supported by solid LFL growth at 6% and network expansion at 5%. LFL growth
was driven by strong growth in the US of 9%, helped by solid execution around the holiday period. In Europe, LFL
growth in key markets slowed to 0% with the markets of France and Italy facing some country specific challenges,
albeit being more than offset by still strong growth in Germany of 28%. Rest of Pandora continued to deliver another
double-digit quarter of 11% LFL with growth remaining relatively broad based.
By channel, growth was predominantly driven by online which saw 20% revenue growth, and increased by 2pp share
of business, landing at 27% in Q4 2024. Pandora’s own stores continued to outperform partner stores in Q4 2024 with
Pandora’s physical network delivering a 6pp better LFL than partners.
In Q4 2024, Pandora's gross margin reached 79.8%, +50bp Y/Y. The increase came despite a 90bp combined headwind
from commodities and foreign exchange, reflecting price increases and efficiencies at the crafting facilities and a lower
headwind Y/Y from forward integration. Pandora notes that through the quarter, consumer activity was more
concentrated around the promotional events, particularly Black Friday, driving a slight drag on the gross margin.
INVESTING TO DRIVE BRAND DESIRABILITY, NEW E-COMMERCE PLATFORM SET TO GO LIVE GLOBALLY
Driving Pandora towards its full jewellery brand promise, Pandora is scaling up investments across the entire value
chain. These include marketing, design, the store network and technology - with the non-stop focus being to drive
brand desirability. Through the year, Pandora’s major brand KPIs continued to track positively which also indicate that
the consumer awareness of Pandora’s broader jewellery offering is steadily increasing. In marketing, during Q4 2024
Pandora continued to leverage its “BE LOVE” campaign which has been driving the initial phase of the restaging of the
Pandora brand. Pandora’s holiday campaign 2024 continued to build off this core message and featured some of the
global brand ambassadors, including Halle and Chloe Bailey alongside Pamela Anderson. As in previous quarters,
Pandora continued to be present across cultural events which included being the Principal Partner for The Fashion
Awards 2024 in the UK.
Elsewhere, through the course of 2023 and 2024, Pandora has been investing in enhancing its already successful e-
commerce platform. Whilst the current e-commerce platform has been successful in driving a strong online presence
for the brand, Pandora has now taken this a step further with a significant elevation which centres on bringing the
brand to life online for consumers in a much more immersive experience. The clear aim is to drive brand desirability.
The new platform was tested over Q4 2024 in Italy and Canada with initial results being encouraging. Major commercial
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • BUSINESS UPDATE
PAGE 7 OF 41
metrics for the new e-commerce platform have been at least in-line with the previous platform and, importantly, the
consumer interaction with the new branded content has been higher. Pandora will be rolling out the new platform
globally in phases from Q1 2025, with all markets expected to be live by the end of Q2 2025.
GROWING THE “CORE” WHILE “FUELLING WITH MORE”
Pandora continued to leverage the new marketing message from Pandora’s BE LOVE campaign to help drive growth
across its two segments. In Q4 2024, the Core segment delivered 2% LFL growth whilst the Fuel with more segment
drove 13% LFL growth, in-line with the strategic intent. Across the two segments Pandora looks to cater for a wide
range of design aesthetics, with the specific collection focus in any given year depending on creative innovation,
various marketing campaigns and consumer trends, all with a unified goal of consistently targeting existing and new
consumers and driving overall growth in the two segments. During 2024, Pandora launched its brand-new 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. In Q4 2024, PANDORA
ESSENCE drove total revenue of DKK 232 million. This is despite a greater commercial focus in the holiday season
towards the established platforms and overall represents good progress for a new collection. Encouragingly, broadly
half of the revenue generated by PANDORA ESSENCE is still estimated to be generated by consumers who are new to
the Pandora brand.
For the year, Pandora Lab-Grown Diamonds ended with DKK 315 million revenue with LFL growth of 43%. Pandora
continues to play a significant role in democratising diamonds for consumers and has also seen a tangible positive halo
effect on the brand from adding the collection to the portfolio. While growth is expected to continue, the global roll-
out will proceed at a slower pace than originally anticipated. The DKK 1 billion revenue target set at the CMD in 2023
remains a key ambition, though it is now expected to be achieved beyond 2026. For 2025, Pandora will continue to
take learnings forward and has exciting plans for its new Microfine Diamonds range.
REVENUE BY SEGMENT
DKK million
Q4 2024
Q4 2023
Like-
for-Like
Share of
Revenue
FY 2024
FY 2023
Like-
for-Like
Share of
revenue
Core
8,784
8,180
2%
73%
23,542
21,951
2%
74%
- Moments
7,462
6,880
3%
62%
19,934
18,369
3%
63%
- Collabs
964
965
-5%
8%
2,564
2,681
-9%
8%
- ME
358
335
2%
3%
1,044
900
13%
3%
Fuel with more
3,189
2,640
13%
27%
8,139
6,186
22%
26%
- Timeless
2,527
2,117
11%
21%
6,339
4,787
22%
20%
- Signature
304
407
-27%
3%
910
1,129
-21%
3%
- PANDORA ESSENCE
1
232
2
-
2%
574
5
-
2%
- Pandora Lab-Grown Diamonds
127
113
18%
1%
315
265
43%
1%
Total revenue
11,973
10,820
6%
100%
31,680
28,136
7%
100%
1
PANDORA ESSENCE was launched in Q2 2024 following a pilot in the Netherlands in 2023.
NETWORK EXPANSION CONTINUES AT A GOOD PACE
In Q4 2024, Pandora delivered an incremental revenue contribution from network expansion of 5%, driven by the
opening of concept stores and Pandora owned shop-in-shops over the past 12 months. The full year organic growth
contribution from network expansion also landed at 5% with total net concept store openings of 137, in-line with the
guidance of 125-150 and total net Pandora owned shop-in-shops at 99, compared to the guidance of 50-75. As has
been the case in the past, 2024 was no exception to the value creation Pandora sees from its network expansion
strategy with EBIT margins reaching 35-40% in a new store already in year 1, driving a rapid payback of investment.
Given the value accretion on margins and returns, Pandora continues its plans to expand the network with 400-500
targeted net openings through 2024-2026. In FY 2025, Pandora targets net 50-75 concept store openings. The lower
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • BUSINESS UPDATE
PAGE 8 OF 41
net concept store openings in 2025 reflect efforts to optimise the store network in China, anticipating closures of at
least 50 concept stores. These closures will have minimal impact on Pandora's organic growth in the year with growth
attributed from network expansion still expected to be 3%. For Pandora owned shop-in-shops, Pandora currently plans
around 25 openings.
Pandora continues to see its stores as a key part of the branded experience for consumers and continues to invest
behind this. During Q4 2024, Pandora’s Holiday 2024 store window campaign captured the enchantment of a Nordic
winter, inspired by the cherished tradition of the advent calendar. Each scene bought to life a snowy landscape,
juxtaposed with the warmth and joy found behind every door and window. Inside, a signature Pandora pink interior
was revealed, reinforcing the brand’s distinctive identity. As such, Pandora continues to upgrade its store format with
the roll-out of the new store concept. By the end of 2024, Pandora has a total of 425 stores in the new concept across
its markets. The roll-out is a long-term investment and a multiyear journey, aiming to enable Pandora’s positioning as
a full jewellery brand while elevating brand desirability. Pandora continues to see encouraging signs from performance
of its new store concept with particularly good execution of the entire new wall spaces across the holiday season,
allowing for more selling stations across Pandora’s diverse collections. Pandora is targeting around 1,375-1,425 stores
in the new concept by the end of 2026.
DESPITE ADVERSE MOVEMENTS IN COMMODITY PRICES, PANDORA CONFIRMS 2026 MARGIN TARGET
At the Capital Markets Day in 2023, Pandora announced new financial targets including a 26-27% EBIT margin by 2026.
The target was 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 30.5 per ounce as per January 27, 2025. All else equal, and when combined with the current gold
price and foreign exchange rates, this represents a material headwind of around 270bp to the EBIT margin target for
2026.
In response to the increase in silver prices, Pandora implemented a 5% price increase in October 2024 and kicked-off
a group wide cost programme in Q4 2024. Based on the results of the price increase in October 2024, Pandora plans
further pricing action in 2025 and 2026.
An initial assessment of the cost opportunities shows that Pandora can drive further EBIT margin benefit from 2026
onwards, on top of the cost efficiencies already embedded in the CMD EBIT margin target for 2026. Cost reductions
are expected to be seen across several areas, including store operations, procurement, distribution and logistics,
simplification and removal of overlaps etc.
Based on these mitigating actions and based on a silver price of around USD 30.5 and current foreign exchange rates,
Pandora confirms the EBIT margin target of 26-27% in 2026, although currently pointing towards the low-end of the
range.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • BUSINESS UPDATE
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2026 EBIT MARGIN TARGET AT A SILVER PRICE OF USD 30.5/oz
%-p impact (approximation)
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. As of Q4 2024, Pandora has returned to its usual hedging practice with 70% of the Group’s
expected silver and gold consumption for the next 12 months being hedged. Adjusting for the time-lag from production
through inventories to sales, this means that the P&L for 2025 is 91% hedged at a silver price of USD 29.
On a year-on-year basis, at the current spot price of silver, gold and foreign exchange, the combined EBIT margin
headwind in 2025 vs 2024, before any mitigation, is 210bp. The incremental, additional headwind in 2026 – on top of
the 210bp - is 50bp.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • REVENUE REVIEW
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REVENUE REVIEW
SOLID END TO 2024 WITH DOUBLE-DIGIT ORGANIC GROWTH IN Q4
Pandora delivered solid organic growth of 11% in Q4 2024, driven by LFL growth of 6% and network expansion of 5%.
Sell-in and other was neutral in the quarter.
The Core segment delivered a robust LFL of 2% whilst the Fuel with more segment delivered 13% LFL growth. Growth
in Fuel with more continue to be driven by the strong performance of Timeless which delivered a LFL of 11% despite
comping last year’s viral trends across social media platforms.
Pandora continues to benefit from a strong omni-channel setup, and in Q4 and in particular during peak trading, the
online channel performed exceptionally well and represented 27% of revenue in the quarter. Meanwhile, Pandora
continues to expand its physical footprint with an emphasis on an owned and operated network, adding 137 net concept
stores and 99 Pandora owned shop-in-shops over the past twelve months, contributing 5% to revenue in the quarter.
Forward integration also continues to support total revenue growth with 36 stores acquired over the past 12 months,
contributing around 1% to revenue growth in Q4 2024. Foreign exchange rates represented a net headwind of around
1%, mainly driven by the depreciation of the Mexican and Argentinian peso partially offset by the strengthened USD
post the US presidential election as well as a stronger British pound.
The revenue growth can be illustrated as follows:
Q4 2024 GROWTH COMPOSITION VS. Q4 2023
%-p growth (approximation), DKK million
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REVIEW OF REVENUE BY KEY MARKET
SOLID GROWTH THROUGH PEAK TRADING DRIVEN BY BRAND MOMENTUM
In Q4 2024, Pandora delivered a solid performance with LFL of 6%. The LFL growth was supported by strong execution
across the holiday period where the external environment was highly promotional, being influenced by a compressed
trading calendar with Black Friday closer to Christmas leading to a more competitive environment in the shorter run-
up to Christmas. Pandora continued to leverage its strong brand campaign and attractive collections to ensure it
remained top of consumer minds throughout the important period whilst also tactically responding in a few markets
to the higher promotional activity. Organic growth was further boosted by network expansion, with new stores opening
in multiple countries across the globe.
US
LFL growth in the US accelerated sequentially to a strong 9% in Q4. This was fuelled by solid execution around Black
Friday and marketing investments which are yielding good results. The organic growth came in at 13%, driven by the
momentum generated from new store openings over the past 12 months. LFL growth in the wholesale channel was
flattish and the performance gap between Pandora’s own stores and the wholesale channel thereby persisted in Q4.
KEY MARKETS IN EUROPE
The key markets in Europe delivered LFL growth of 0%, with the sequential decline partly driven by the expected
normalisation of the exceptional performance in Germany but also weak performance in France and Italy. In Germany,
brand momentum remains strong and LFL ended at 28% in Q4, driven by strong performance across the two segments.
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 -3% amidst a highly promotional environment around Black Friday and Christmas
trading. Pandora continued to focus on increasing the desirability of the brand, driving growth across its segments and
improving in-store execution.
Italy generated LFL of -10% and France slowed sequentially to -14% LFL, both markets being impacted by weaker
traffic. Whilst performance in these markets is negatively impacted by ongoing macroeconomic challenges and an
intense promotional environment, the performance remains unsatisfactory. Across both markets, Pandora will invest
more into the brand driving cultural relevance and brand heat at a local level, including earned media.
Combined LFL growth across all European markets was 4% with other markets such as Spain, Portugal, Austria, Czech
Republic, Switzerland and Netherlands driving double-digit LFL growth (disclosed in Rest of Pandora as usual).
AUSTRALIA AND CHINA
Australia delivered LFL growth of -4% in Q4 2024 with the low consumer sentiment and subdued purchasing power
impacting overall performance.
Pandora will continue to optimise execution to drive its full jewellery brand offering.
The performance in China continues to be challenged ending at -10% LFL in the quarter. Pandora remains committed
to build the brand in China and is currently considering the next steps on the journey. During 2025, the store network
will be optimised with an anticipated closure of at least 50 stores. The closures have minimal impact on the growth
from network expansion in 2025.
REST OF PANDORA
Rest of Pandora reported another double-digit quarter, achieving 11% LFL. The strong growth remains broad-based
with many markets such as Spain, Portugal, Austria, Czech Republic, Switzerland and the Netherlands reporting double
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • REVENUE REVIEW
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digit LFL growth. Network expansion continues across many markets in Rest of Pandora and organic growth reached
21% in Q4 2024.
QUARTERLY REVENUE DEVELOPMENT BY KEY MARKET
DKK million
Q4 2024
Q4 2023
Like-for-like
Organic growth
Share of revenue
US
3,713
3,190
9%
13%
31%
China
104
116
-10%
-12%
1%
UK
1,640
1,627
-3%
-3%
14%
Italy
879
921
-10%
-5%
7%
Australia
486
461
-4%
5%
4%
France
456
502
-14%
-9%
4%
Germany
839
662
28%
27%
7%
Total key markets
8,117
7,479
3%
6%
68%
Rest of Pandora
3,856
3,341
11%
21%
32%
Total revenue
11,973
10,820
6%
11%
100%
YEAR-TO-DATE REVENUE DEVELOPMENT BY KEY MARKET
DKK million
FY 2024
FY 2023
Like-for-like
Organic growth
Share of revenue
US
9,709
8,306
8%
14%
31%
China
416
564
-21%
-25%
1%
UK
3,929
3,821
-2%
0%
12%
Italy
2,478
2,540
-7%
-3%
8%
Australia
1,094
1,120
-4%
-2%
3%
France
1,217
1,196
-5%
2%
4%
Germany
2,206
1,527
45%
44%
7%
Total key markets
21,050
19,075
4%
9%
66%
Rest of Pandora
10,630
9,062
13%
23%
34%
Total revenue
31,680
28,136
7%
13%
100%
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • REVENUE REVIEW
PAGE 13 OF 41
REVIEW OF NETWORK DEVELOPMENT
EXPANSION OF PANDORA’S GLOBAL NETWORK CONTINUES AHEAD OF PLAN
During the fourth quarter of 2024, Pandora added a net of 54 concept stores and 62 Pandora owned shop-in-shops to
the network. In total, Pandora has added net 137 concept stores and 99 Pandora owned shop-in-shops over the course
of 2024. The concept store openings have been relatively broad-based geographically, whilst the shop-in-shop
openings have been concentrated in Japan and Mexico. Network expansion has added 5 percentage points to organic
growth in Q4 and for the full year, and on top of that, forward integration has 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. In FY 2025, Pandora targets net 50-75
concept store openings, and around 25 Pandora owned shop-in-shops net openings.
STORE NETWORK
Number of points of sale
1
Q4 2024
Q3 2024
Q4 2023
Growth
Q4 2024
/Q3 2024
Growth
Q4 2024
/Q4 2023
Concept stores
2,788
2,734
2,651
54
137
- of which Pandora owned
2
2,088
2,033
1,869
55
219
- of which franchise owned
361
371
463
-10
-102
- of which third-party distribution
339
330
319
9
20
Other points of sale
3,997
3,924
4,035
73
-38
- of which Pandora owned
2
677
615
578
62
99
- of which franchise owned
3,072
3,009
3,144
63
-72
- of which third-party distribution
248
300
313
-52
-65
Total points of sale
6,785
6,658
6,686
127
99
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.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • PROFITABILITY
PAGE 14 OF 41
PROFITABILITY
EBIT MARGIN IN LINE WITH GUIDANCE, SUPPORTED BY GROSS MARGIN
Pandora delivered a full year EBIT margin of 25.2% in line with the guidance of around 25%. As anticipated, the EBIT
margin in Q4 2024 was strong, reaching 34.7%, supported by a strong gross margin. Supported also by the margin
accretive network expansion, pricing and a lower temporary drag from forward integration compared to last year, the
margin expanded by 70bp compared to last year. This was despite a combined headwind of 70bp from foreign
exchange rates and commodity prices.
As was implied by the guidance, the cost increases arising from inflation and salary increases were more than offset by
efficiencies and pricing in the quarter. Pandora continues to invest across the value chain to drive growth across the
Phoenix growth pillars, which include, among others, the restaging of the brand, and accelerating other initiatives in
digital and technology.
The temporary margin drag from buying back inventories in connection with forward integration represented a
headwind of -10bp in the quarter, down 60bp from last year. Foreign exchange rates represented a tailwind of 20bp,
which was more than offset by the -90bp headwind from commodities. The higher price of silver and gold is driving
the negative impact on commodities, while the tailwind on currency comes from the strengthening of the US dollar
and British pound, partly offset by a weakened Mexican Peso.
Q4 2024 EBIT MARGIN VS. Q4 2023
%-p growth (approximation)
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • PROFITABILITY
PAGE 15 OF 41
GROSS MARGIN
The gross margin for the full year strengthened to 79.8%, +120bp Y/Y, and was a continuation of the trend over the
past several years with pricing, efficiency gains and channel mix driving the improvement.
For Q4 2024, the gross margin also ended at 79.8%, +50bp above Q4 2023. The increase in the fourth quarter was
mainly driven by price increases, partly offset by salary increases and inflation, as well as being impacted by a higher
concentration of sales around Black Friday in 2024, where sales are typically more promotionally driven. Channel mix
added a +20bp positive impact compared to Q4 2023, driven by a higher revenue share from Pandora-owned stores.
This was partially offset by strong online performance, which carries a lower gross margin due to freight costs being
included in the cost of goods sold.
The impact from foreign exchange rates was broadly flat, whilst commodities drove a -90bp headwind vs. Q4 2023,
due to an increase in the price of silver and gold.
The gross margin is temporarily impacted by buying back inventory when doing forward integration. This represented
a net tailwind of 60bp compared to Q4 2023. Adjusting for forward integration, the underlying gross margin would
have been 79.9%. For FY 2024, Pandora's gross margin reflects a temporary -50bp impact from inventory buybacks
related to forward integration. This impact is expected to remain at the same level in 2025, resulting in no additional
drag relative to 2024.
Q4 2024 GROSS MARGIN VS. Q4 2023
%-p growth (approximation)
GROSS MARGIN AND GROSS
PROFIT
DKK million
Q4 2024
Q4 2023
Growth in
constant FX
FY 2024
FY 2023
Growth in
constant FX
Revenue
11,973
10,820
11%
31,680
28,136
14%
Cost of sales
-2,422
-2,241
9%
-6,391
-6,012
9%
Gross profit
9,551
8,579
12%
25,289
22,125
15%
Gross margin %
79.8%
79.3%
0.4%
79.8%
78.6%
1.0%
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • PROFITABILITY
PAGE 16 OF 41
OPERATING EXPENSES
In Q4 2024, operating expenses increased by 11% in constant exchange rates compared to Q4 2023, primarily driven
by the profitable network expansion. As expected, the increase was less pronounced than in prior quarters and in Q4
2024 the OPEX ratio was in fact slightly below last year.
Sales and distribution expenses increased by 15% in constant exchange rates. This increase mainly reflects the
expansion of the store network combined with forward integration. In total, Pandora added 318 owned and operated
stores to the network compared to Q4 2023 which alone drove around DKK 300 million additional expenses, equivalent
to a 120bp increase in sales and distribution expenses as a share of revenue vs. last year, partially offset by tailwinds
from foreign exchange and operating leverage. 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).
Marketing expenses increased by 5% in constant exchange rates vs Q4 2023, ending at 12.7% share of revenue. For the
full year, marketing expenses landed at 13.9%, around the mid-point of the guided 13-15% annual spend, and broadly in
line with last year but still representing an absolute increase of DKK 545 million. 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.
Administrative expenses increased 7% in constant exchange rates vs. Q4 last year, continuing to drive leverage on this
cost line as seen throughout 2024. For the full year, administrative expenses increased by 4% in local currency.
QUARTERLY OPERATING EXPENSES
DKK million
Q4 2024
Q4 2023
Growth in
constant FX
Share of
revenue
Q4 2024
Share of
revenue
Q4 2023
Sales and distribution expenses
-3,139
-2,790
15%
26.2%
25.8%
Marketing expenses
-1,525
-1,446
5%
12.7%
13.4%
Administrative expenses
-738
-668
7%
6.2%
6.2%
Total operating expenses
-5,402
-4,905
11%
45.1%
45.3%
YEAR-TO-DATE OPERATING EXPENSES
DKK million
FY 2024
FY 2023
Growth in
constant FX
Share of
revenue
FY 2024
Share of
revenue
FY 2023
Sales and distribution expenses
-10,450
-8,858
20%
33.0%
31.5%
Marketing expenses
-4,394
-3,849
15%
13.9%
13.7%
Administrative expenses
-2,471
-2,379
4%
7.8%
8.5%
Total operating expenses
-17,315
-15,086
16%
54.7%
53.6%
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • PROFITABILITY
PAGE 17 OF 41
FINANCIAL EXPENSES AND TAX
Net financials came in at a cost of DKK 347 million in Q4 2024 (Q4 2023: DKK 330 million) bringing the total to DKK
1,048 million in 2024 (FY 2023: DKK 805 million), compared to the guidance of DKK 950-1,000 million. Non-cash
foreign exchange rate adjustments on intercompany balances, combined with losses on foreign exchange rate hedging
contracts amounted to DKK 196 million. These line items depend entirely on the development in foreign exchange rates
and outside these technical factors, the underlying net financials in 2024 consisted of around DKK 850 million of
interest on debt, IFRS 16 related interest on lease contracts and fees.
Based on the current foreign exchange rates, Pandora expects net financial expenses in 2025 to be DKK 1,000-1,050
million. The guidance consists of around DKK 1,000 million interest on debt, IFRS 16 related interest and fees, and
around DKK 0-50 million loss on non-cash foreign exchange adjustments on intercompany balances and foreign
exchange hedging contracts.
The effective tax rate in Q4 2024 came in at 24.5%, broadly in line with Q4 2023. The full year 2024 effective tax rate
also ended at 24.5%, 50bp up from 2023. The increase compared to 2023 is, among others, driven by the Pillar Two
tax rules, taking effect in 2024.
EPS ended at DKK 64.8 for 2024, an increase of 17% from DKK 55.5 in 2023.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • CASH FLOW & BALANCE SHEET
PAGE 18 OF 41
CASH FLOW & BALANCE SHEET
HIGH CASH GENERATION – ENDING 2024 WITH NEGATIVE NET WORKING CAPITAL
Net working capital ended at only -1.7% of revenue in 2024 compared to +1.8% in 2023. The reduction was driven by
broad based improvements across most elements of working capital. Inventory management continued to be
particularly strong and despite a 13% increase in revenue for FY 2024, inventory ended up only 6% and therefore
declined as a percentage of revenue. Some of the improvement in net working capital should be considered a one-off
and by the end of 2025, Pandora expects net working capital to be between flat to a low single digit % of revenue.
Trade receivables continue to be at a healthy level and ended at 3.8% of revenue, down 100bp from Q4 2023 benefitting
from the intensified cash management leading to lower days sales outstanding (DSO) in among others Mexico, which
started to take effect in Q3 2024. The total DSO is 9 days for Q4 2024, down 2 days compared to Q4 2023. The
wholesale DSO were 34 days, slightly up compared to Q4 2024 due to temporary overdue payments from a partner,
which have since been resolved, as well as country mix. Retail DSO were down to 5 days, a reduction of 2 days
compared to Q4 2023.
Efforts to improve net working capital is also visible in trade payables. Trade payables increased 90bp as a percent of
revenue to 12.3% by the end of Q4 2024. This is driven by a.o. continued efforts to renegotiate payment terms.
Cash conversion was strong in Q4 at 124%; the 7pp increase compared to Q4 2023 was driven by the improvement in
net working capital, as well as lower cash tax in Q4 2024 due to a different phasing of tax payments compared to prior
year. The free cash flow was DKK 5.1 billion, an increase of DKK 0.8 billion compared to last year.
CAPEX was DKK 0.6 billion in the quarter, broadly in line with Q4 2023 and equivalent to 4.6% of revenue. The full-
year CAPEX landed at DKK 1.9 billion, equivalent to 6.1% of revenue within the guided range of 6-7%, and up by DKK
0.3 billion compared to 2023. The increase for the full year is driven by investments to fuel the expansion and
refurbishment of the store network, as well as Digital and Technology (not least the new ERP platform), and
investments in the new crafting facility in Vietnam.
ROIC remains structurally high at 46%, broadly in line with last year. The high ROIC continues to be supported by the
investments in expanding our store network, as new stores are ROIC accretive on a run-rate basis.
NET WORKING CAPITAL
Share of preceding 12 months' revenue
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Inventories
14.0%
16.0%
14.9%
15.2%
14.8%
Trade receivables
3.8%
2.5%
2.8%
3.8%
4.8%
Trade payables
-12.3%
-9.7%
-9.2%
-9.2%
-11.4%
Other net working capital elements
-7.3%
-2.9%
-2.4%
-2.9%
-6.4%
Total
-1.7%
5.9%
6.0%
6.9%
1.8%
BALANCE SHEET
Non-current assets increased by DKK 2.7 billion to DKK 18.5 billion at the end of 2024, driven by network expansion
increasing the right-of-use-assets as well as CAPEX (property, plant and equipment) related to the store network.
Current assets were DKK 9.2 billion, an increase of DKK 1.2 billion compared to 2023. The increase relates to excess
cash on the balance sheet, largely due to a strategic shift in Pandora’s funding mix towards greater reliance on bond
issuances, reducing dependency on revolving credit facilities, alongside strong cash flow generation in the fourth
quarter.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • CASH FLOW & BALANCE SHEET
PAGE 19 OF 41
At the end of 2024, net interest-bearing debt amounted to DKK 11.0 billion, up from DKK 9.8 billion in 2023. This
corresponds to a leverage of 1.1x by the end of 2024, in line with 2023, remaining around the midpoint of the capital
structure policy range of 0.5x to 1.5x by year-end. At the end of 2024, Pandora had DKK 7.1 billion in undrawn
committed credit facilities.
At the end of 2024, equity in Pandora amounted to DKK 5.5 billion broadly in line with last year (2023: DKK 5.4 billion).
The increase is driven by net profit for the year, offset by pay out of ordinary dividend of DKK 1.5 billion and buy back
of own shares for a total of DKK 4.0 billion.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • FINANCIAL GUIDANCE
PAGE 20 OF 41
FINANCIAL GUIDANCE
TARGETING ANOTHER YEAR OF PROFITABLE GROWTH
The economic outlook for 2025 remains uncertain. Against this, Pandora made a strong start to the next chapter of its
Phoenix strategy, covering the 2024-2026 period, and will continue to execute on the strategy, striving to attract more
consumers to the brand.
Pandora is currently targeting organic growth of 7-8% and an EBIT margin of around 24.5%.
REVENUE GUIDANCE
The organic growth guidance can be illustrated as follows:
FY 2025 GROWTH COMPOSITION VS. FY 2024
%-p growth (approximation), DKK billion
Pandora is currently expecting LFL growth of 4-5%. This falls within the range identified at the Capital Markets Day in
2023 of 4-6% CAGR, albeit slightly lower at the higher end, reflecting the weak economic outlook. Continued network
expansion is expected to add 3%, taking the total organic growth to 7-8%. Finally, forward integration is expected to
add around 1% revenue with revenue growth in local currency ending at 8-9%.
PROFITABILITY GUIDANCE
The EBIT margin guidance can be illustrated as follows:
FY 2025 EBIT MARGIN VS. FY 2024
%-p growth (approximation)
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • FINANCIAL GUIDANCE
PAGE 21 OF 41
The EBIT margin guidance for 2025 reflects another year of compounding growth fuelled by investments across the
Phoenix growth pillars. Pandora targets strong profitability in 2025 and guides for an EBIT margin of around 24.5%,
broadly flattish vs 2024 despite the significant 210bp headwind from commodity prices and foreign exchange rates.
As Pandora continues the expansion of its profitable store network, a 40bp positive impact on the EBIT margin is
expected in 2025. The operating leverage from LFL growth is set to be re-invested into initiatives supporting both
future and current growth. These investments encompass various initiatives across the Phoenix growth pillars, such as
the restaging of the brand, the continued rollout of the new store concept, personalised experiences, both online and
offline, as well as efforts to establish Pandora as the go-to destination for lab-grown diamonds.
The combined impact of silver and gold prices as well as foreign exchange fluctuations is projected to be a drag of
210bp. Support from price adjustments and operational efficiencies which is expected to more than offset inflationary
pressures, including salary increases, helps mitigate the impact from higher silver prices and adverse foreign exchange
movements.
The headwinds from commodity prices and foreign exchange rates are expected to increase through the year. Tied to
that, the guided slight decline in the EBIT margin from 2024 to 2025 is expected to be more visible as we progress
through 2025. However, the exact quarterly development will depend on the timing of actions taken to mitigate these
effects, including pricing adjustments and cost-saving measures.
Lastly, the Group wide cost programme is expected to be self-funded in 2025, thereby representing no impact to the
2025 EBIT margin but expected to represent structural upside from 2026 onwards.
2025 GUIDANCE – OTHER PARAMETERS
Pandora expects to open net 50-75 concept stores and around 25 Pandora owned shop-in-shops net.
CAPEX is expected to end at around 7% share of revenue, as Pandora continues to scale up investments into the store
network with the roll-out of the new store concept and network expansion, digital initiatives and crafting facilities.
The effective tax rate is expected to be 24-25% in line with 2024. Pandora expects net financial expenses to be DKK
1,000-1,050 million in 2025. The guidance consists of around DKK 1,000 million interest on debt, IFRS 16-related interest
and fees, and around DKK 0-50 million loss on non-cash foreign exchange adjustments on intercompany balances and
foreign exchange hedging contracts. The latter depends entirely on the development in foreign exchange rates through
the year and will be updated on a regular basis.
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 forecasted in this report due to a variety of factors,
refer to the disclaimer on page 41.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • FINANCIAL GUIDANCE
PAGE 22 OF 41
CAPITAL STRUCTURE POLICY AND CASH DISTRIBUTION
At the end of 2024, Pandora’s leverage was 1.1x NIBD to EBITDA, in line with 2023 and remained around the midpoint
of the capital structure policy range of 0.5x to 1.5x by year-end.
Pandora aims for a leverage ratio of approximately 1.3x NIBD to EBITDA by the end of 2025. In line with the usual
seasonality of the business, leverage will increase through the year, peaking in Q3 2025, and then fall back by year-
end.
Pandora has paid out DKK 5.5 billion to shareholders in 2024, of which DKK 1.5 billion came from an ordinary dividend
of DKK 18 per share and DKK 4.0 billion was distributed via share buybacks. For 2025, Pandora proposes a total cash
distribution to shareholders of DKK 5.6 billion. Out of this, Pandora proposes to pay a dividend of DKK 20 per share
and a new share buyback amounting to DKK 4.0 billion which will commence on 6 February 2025 and be completed
no later than 30 January 2026.
FOREIGN EXCHANGE AND COMMODITY ASSUMPTIONS
AND IMPLICATIONS – AS OF 27 JANUARY 2025
Average 2024
Average 2025
2025 Y-Y
Financial
Impact
USD/DKK
6.89
7.09
THB/DKK
0.20
0.21
GBP/DKK
8.81
8.87
AUD/DKK
4.55
4.47
MXN/DKK
0.38
0.35
CAD/DKK
5.03
4.94
TRY/DKK
0.21
0.20
CNY/DKK
0.96
0.98
Silver/USD (per ounce)
23.77
28.55
Gold/USD (per ounce)
1,982
2,491
Revenue (DKK million)
Approx. 100
EBIT (DKK million)
Approx. -700
EBIT margin (foreign exchange)
Approx. -0.7%
EBIT margin (commodities)
Approx. -1.4%
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • SUSTAINABILITY
PAGE 23 OF 41
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • OTHER EVENTS
PAGE 24 OF 41
OTHER EVENTS
Pandora ranked among 100 most sustainable companies in the world at Davos
At the World Economic Forum in Davos, Switzerland, Pandora, the world’s largest jewellery brand, has been named as
one of the world’s 100 most sustainable companies in the esteemed annual ranking by Corporate Knights. The ranking
is based on an extensive analysis of 8,359 companies, each with more than USD 1 billion in revenue, on a range of
metrics covering sustainable business practices and respect for people and societies.
FINANCIAL CALENDAR 2025
The expected dates for upcoming financial announcements in 2025 for Pandora A/S are as follows:
12 Mar 2025 Annual General Meeting
07 May 2025 Interim Report Q1 2025
15 Aug 2025 Interim Report Q2 2025
05 Nov 2025 Interim Report Q3 2025
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • OTHER EVENTS
PAGE 25 OF 41
2024 DEVELOPMENT
1
Revenue
Total revenue increased by 14% in local currency to DKK 31,680 million in 2024. Organic growth was 13% reflecting the
strong brand momentum in 2024, as Pandora successfully took the first steps in repositioning Pandora as a full jewellery
brand.
Revenue from Pandora’s Core segment grew by 9% in local currency to DKK 23,542 million in 2024 from DKK 21,951
million in 2023. The segment “Fuel with more” saw revenue growth of 33% in local currency, driven by the continued
strong performance of the Timeless collection as well the addition of the PANDORA ESSENCE collection.
Gross profit and costs
Gross profit was DKK 25,289 million in 2024 (DKK 22,125 million in 2023), resulting in a record high gross margin of
79.8% in 2024 vs. 78.6% in 2023. This improvement was supported by favourable pricing, cost efficiencies and channel
mix, offsetting external pressures from commodity prices and foreign exchange rates. Within segments, the Core
segment generated a gross margin of 78.4% (2023: 77.8%), while Fuel with more generated a gross margin of 83.8%
(2023: 81.6%). While profitability in the Core segment is broadly in line with 2023, the increase in Fuel with more is
driven by among other product mix.
Sales and distribution expenses increased to DKK 10,450 million in 2024 (DKK 8,858 million in 2023), corresponding to
33.0% of revenue in 2024 (31.5% in 2023). The increase is mainly the result of the profitable expansion of the Pandora
owned physical network.
Marketing expenses increased by 15%, in line with our strategic focus on brand elevation, ending at DKK 4,394 million
in 2024 (DKK 3,849 million in 2023) and represented 13.9% of revenue, at the mid-point of our targeted range of 13-
15%.
Administrative expenses ended at DKK 2,471 million in 2024 compared with DKK 2,379 million in 2023, corresponding
to 7.8% of revenue in 2024, down from 8.5% in 2023 as a result of operating leverage.
EBIT
EBIT ended at DKK 7,974 million in 2024, resulting in an EBIT margin of 25.2%, broadly in line with 2023.
Net financials
Net financials amounted to a cost of DKK 1,048 million in 2024 compared to a cost of DKK 805 million in 2023. The
development was driven by, among other factors, increased interest on debt, IFRS 16-related interest, fees, as well as
adjustments for foreign exchange rates and net realised losses on foreign exchange hedging contracts.
Income tax expenses
Income tax expenses were DKK 1,699 million in 2024 compared with DKK 1,494 million in 2023. This implies an effective
tax rate for the Group of 24.5% in 2024, up from 24.0% in 2023, mainly due to the introduction of the Pillar Two tax
rules.
Net profit
Net profit in 2024 stood at DKK 5,227 million compared to DKK 4,740 million in 2023, reflecting steady operational
excellence amidst a challenging external environment. Earnings per share grew by 17% to a new high of DKK 65,
underscoring Pandora’s commitment to delivering shareholder value through sustainable and profitable growth.
1
See Performance review chapter in the Annual Report 2024 for further information.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • CONTACT
PAGE 26 OF 41
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-annual-report-2024
ABOUT PANDORA
their stories and passions through meaningful jewellery. Pandora jewellery is sold in more than 100 countries through
6,800 points of sale, including more than 2,700 concept stores.
Headquartered in Copenhagen , Denmark
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 31.7 billion (EUR 4.2 billion) in 2024.
CONTACT
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
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • FINANCIAL STATEMENTS
PAGE 27 OF 41
FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
DKK million
Notes
Q4 2024
Q4 2023
FY 2024
FY 2023
Revenue
3
Cost of sales
-2,422
-2,241
-6,391
-6,012
Gross profit
Sales, distribution and marketing expenses
-4,664
-4,237
-14,844
-12,707
Administrative expenses
-738
-668
-2,471
-2,379
Operating profit
Finance income
Finance costs
-390
-372
-1,297
-1,056
Profit before tax
Income tax expense
-933
-815
-1,699
-1,494
Net profit for the period
Earnings per share, basic, DKK
Earnings per share, diluted, DKK
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
DKK million
Q4 2024
Q4 2023
FY 2024
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
-195
-149
Fair value adjustment of hedging instruments
-246
-197
Tax on other comprehensive income, hedging
instruments, income/expense
-40
Items that may be reclassified to profit/loss for
the period, net of tax
-47
-308
Items not to be reclassified to profit/loss for
the period
Actuarial gain/loss on defined benefit plans, net
of tax
-6
-12
-9
Items not to be reclassified to profit/loss for
the period, net of tax
-6
-12
-9
Other comprehensive income, net of tax
-36
-317
Total comprehensive income for the period
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • FINANCIAL STATEMENTS
PAGE 28 OF 41
CONSOLIDATED BALANCE SHEET
DKK million
Notes
2024
31 December
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
Contract assets
Derivative financial instruments
4,12
Income tax receivable
Other receivables
Cash
Total current assets
Total assets
EQUITY AND LIABILITIES
Share capital
Treasury shares
-3,228
-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
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • FINANCIAL STATEMENTS
PAGE 29 OF 41
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
-22
Total comprehensive income for the period
Share-based payments
-4
Purchase of treasury shares
-4,036
-4,036
Cancellation of treasury shares
-7
-4,945
Dividend proposed
-1,568
Dividend paid
-1,471
-1,471
Equity at 31 December
-3,228
2023
Equity at 1 January
-3,320
Net profit for the period
Other comprehensive income, net of tax
-154
-154
-9
-317
Total comprehensive income for the period
-154
-154
Share-based payments
-103
Purchase of treasury shares
-4,998
-4,998
Cancellation of treasury shares
-7
-3,680
Dividend proposed
-1,462
Dividend paid
-1,412
-1,412
Equity at 31 December
-4,353
-33
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • FINANCIAL STATEMENTS
PAGE 30 OF 41
CONSOLIDATED STATEMENT OF CASH FLOWS
The above cannot be derived directly from the income statement and the balance sheet.
1
In 2024, Pandora performed a reclassification of DKK 2 million (2023: DKK 8 million) between "Change in payables and other liabilities"and "Other
non-cash adjustments" for presentation purposes. 2023 figures were restated accordingly. "Other non-cash adjustments" mainly comprise obligation
to restore leased property.
DKK million
Notes
Q4 2024
Q4 2023
FY 2024
FY 2023
Operating profit
Depreciation and amortisation
Share-based payments
Change in inventories
-126
Change in receivables
-450
-450
Change in payables and other liabilities
1
Other non-cash adjustments
1
-5
-44
-63
Finance income received
Finance costs paid
-226
-256
-922
-683
Income taxes paid
-992
-1,163
-1,738
-1,832
Cash flows from operating activities, net
Acquisitions of subsidiaries and activities,
net of cash acquired
6
-23
-37
-194
-349
Purchase of intangible assets
-97
-83
-343
-359
Purchase of property, plant and equipment
-396
-391
-1,336
-1,129
Change in other assets
-17
-29
Proceeds from sale of property, plant and equipment
Cash flows from investing activities, net
-531
-499
-1,889
-1,800
Dividend paid
-1,471
-1,412
Purchase of treasury shares
-997
-769
-4,013
-5,022
Proceeds from loans and borrowings
-2,098
-2,456
Repayment of loans and borrowings
-54
-260
-2,729
-3,321
Repayment of lease commitments
-312
-333
-1,162
-1,107
Cash flows from financing activities, net
-3,460
-3,818
-5,701
-4,935
Net increase/decrease in cash
Cash and cash equivalents, beginning of period
Exchange gains/losses on cash and cash equivalents
-35
-11
-61
Net increase/decrease in cash
Cash and cash equivalents, end of period
Cash balances
Overdrafts
-90
-214
-90
-214
Cash and cash equivalents, end of period
Cash flows from operating activities, net
- Finance income received
-5
-6
-19
-19
- Finance costs paid
Cash flows from investing activities, net
-531
-499
-1,889
-1,800
- Acquisition of subsidiaries and activities, net of cash acquired
Repayment of lease commitments
-312
-333
-1,162
-1,107
Free cash flows incl. lease payments
Unutilised committed credit facilities
4
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 31 OF 41
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 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 2024.
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. The interim financial report is presented in Danish kroner (DKK) and all
amounts are in millions unless otherwise stated.
Pandora presents financial measures in the interim financial report that are not defined according to IFRS Accounting
Standards. 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 Accounting Standards. For definitions of the
performance measures used by Pandora, see note 5.6 Financial definitions to the consolidated financial statements in
the Annual Report 2024.
New standards, interpretations and amendments adopted by Pandora
Pandora has adopted all new or amended IFRS Accounting Standards and interpretations (IFRS IC) 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 year.
The new standards that are not yet effective are not expected to have any material impact on Pandora, except for 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 ACCOUNTING STANDARD
s
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 2024 to
which we refer.
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 collectability. Fuel with more includes the Modern Classics
(Pandora Timeless and Pandora Signature accompanied by Pandora’s newest collection, PANDORA ESSENCE) and
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 32 OF 41
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
Q4 2024
Revenue
8,784
3,189
11,973
Cost of sales
-1,907
-515
-2,422
Gross profit
6,877
2,674
9,551
Gross margin, %
78.3%
83.8%
79.8%
Operating expenses
-5,402
Consolidated operating profit (EBIT)
4,149
Profit margin (EBIT margin), %
34.7%
Q4 2023
Revenue
8,180
2,640
10,820
Cost of sales
-1,783
-458
-2,241
Gross profit
6,397
2,182
8,579
Gross margin, %
78.2%
82.7%
79.3%
Operating expenses
-4,905
Consolidated operating profit (EBIT)
3,674
Profit margin (EBIT margin), %
34.0%
DKK million
Core
Fuel with more
Group
FY 2024
Revenue
23,542
8,139
31,680
Cost of sales
-5,077
-1,315
-6,391
Gross profit
18,465
6,824
25,289
Gross margin, %
78.4%
83.8%
79.8%
Operating expenses
-17,315
Consolidated operating profit (EBIT)
7,974
Profit margin (EBIT margin), %
25.2%
FY 2023
Revenue
21,951
6,186
28,136
Cost of sales
-4,875
-1,137
-6,012
Gross profit
17,076
5,049
22,125
Gross margin, %
77.8%
81.6%
78.6%
Operating expenses
-15,086
Consolidated operating profit (EBIT)
7,039
Profit margin (EBIT margin), %
25.0%
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 33 OF 41
REVENUE BY SEGMENTS
DKK million
Q4 2024
Q4 2023
Like-
for-like
Local
currency
growth
Share of
Revenue
FY 2024
FY 2023
Like-
for-like
Local
currency
growth
Share of
Revenue
Core
8,784
8,180
2%
8%
73%
23,542
21,951
2%
9%
74%
- Moments
7,462
6,880
3%
9%
62%
19,934
18,369
3%
10%
63%
- Collabs
964
965
-5%
0%
8%
2,564
2,681
-9%
-4%
8%
- ME
358
335
2%
7%
3%
1,044
900
13%
17%
3%
Fuel with more
3,189
2,640
13%
21%
27%
8,139
6,186
22%
33%
26%
- Timeless
2,527
2,117
11%
19%
21%
6,339
4,787
22%
33%
20%
- Signature
304
407
-27%
-23%
3%
910
1,129
-21%
-18%
3%
- PANDORA ESSENCE
1
232
2
-
-
2%
574
5
-
-
2%
- Pandora Lab-Grown Diamonds
127
113
18%
10%
1%
315
265
43%
18%
1%
Total revenue
11,973
10,820
6%
11%
100%
31,680
28,136
7%
14%
100%
Goods transferred at a point in
time
11,953
10,796
31,622
28,070
Services transferred over time
20
24
58
66
Total revenue
11,973
10,820
31,680
28,136
1
PANDORA ESSENCE was launched in 2024 following a pilot in the Netherlands in 2023.
REVENUE DEVELOPMENT
IN KEY MARKETS
DKK million
Q4 2024
Q4 2023
Like-
for-like
Local
currency
growth
FY 2024
FY 2023
Like-for-
like
Local
currency
growth
US
3,713
3,190
9%
14%
9,709
8,306
8%
16%
China
104
116
-10%
-12%
416
564
-21%
-25%
UK
1,640
1,627
-3%
-3%
3,929
3,821
-2%
0%
Italy
879
921
-10%
-5%
2,478
2,540
-7%
-3%
Australia
486
461
-4%
5%
1,094
1,120
-4%
-2%
France
456
502
-14%
-9%
1,217
1,196
-5%
2%
Germany
839
662
28%
27%
2,206
1,527
45%
44%
Total key markets
8,117
7,479
3%
7%
21,050
19,075
4%
9%
Rest of Pandora
3,856
3,341
11%
22%
10,630
9,062
13%
23%
Total revenue
11,973
10,820
6%
11%
31,680
28,136
7%
14%
REVENUE DEVELOPMENT BY CHANNEL
DKK million
Q4 2024
Q4 2023
Organic
growth
Share of
Revenue
FY 2024
FY 2023
Organic
growth
Share of
Revenue
Pandora owned
1
retail
10,079
8,772
14%
84%
26,135
22,034
18%
82%
- of which concept stores
6,076
5,376
11%
51%
17,045
14,415
16%
54%
- of which online stores
3,288
2,729
20%
27%
7,120
5,892
21%
22%
- of which other points of sale
714
668
15%
6%
1,970
1,727
20%
6%
Wholesale
1,648
1,829
-5%
14%
4,684
5,369
-6%
15%
- of which concept stores
668
854
-12%
6%
1,933
2,672
-15%
6%
- of which other points of sale
981
976
0%
8%
2,751
2,697
4%
9%
Third-party distribution
246
218
11%
2%
861
734
15%
3%
Total revenue
11,973
10,820
11%
100%
31.680
28,136
13%
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.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 34 OF 41
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 2024.
Net interest-bearing debt (NIBD), incl. capitalised leases amounted to DKK 11.0 billion at the end of Q4 2024 (Q4 2023:
DKK 9.8 billion) corresponding to a financial leverage of 1.1x (Q4 2023: 1.1x).
Liquidity risk
Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations when due.
1
Includes the EUR 500 million bond issued in May 2024 and the EUR 500 million bond issued in March 2023.
By year-end 2024, Pandora held DKK 2.4 billion in cash and short-term money market deposits, driven by the strategic
shift in Pandora’s funding mix towards greater reliance on bond issuances, reducing dependency on revolving credit
facilities. The year closed with DKK 8.0 billion in drawn debt, leaving DKK 7.1 billion available in undrawn, committed
credit facilities.
NOTE 5 – TRADE RECEIVABLES
NOTE 6 – BUSINESS COMBINATIONS
In 2024, Pandora took over 36 concept stores (12 concept stores in the US, 4 concept stores in Italy, 15 concept stores
in Canada and 5 concept stores in Brazil) in 10 business combinations. Net assets acquired mainly consisted of store
properties, inventories and related liabilities. The total purchase price for the acquisitions was DKK 183 million. Based
on the purchase price allocations, goodwill was DKK 98 million. Goodwill from the acquisitions was mainly related to
the synergies from converting the stores from wholesale and distribution to Pandora-owned retail. Among the goodwill
acquired, DKK 93 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.
Excluding the temporary drag on gross margin from inventory buybacks, incremental contribution to Group revenue
and net profit from acquisitions for the period 1 January – 31 December 2024 was DKK 124 million and DKK 28 million,
respectively. On a pro forma basis, if the acquisitions had been effective from 1 January 2024, the incremental
DKK million
2024
31 December
2023
31 December
Loans and borrowings, non-current
1
7,831
6,973
Lease liabilities, non-current
3,794
2,765
Loans and borrowings, current
397
313
Lease liabilities, current
1,379
1,116
Cash
-2,394
-1,397
Net interest-bearing debt
11,008
9,770
Unutilised committed credit facilities
7,087
4,472
DKK million
2024
31 December
2023
31 December
Receivables related to third-party distribution and wholesale
711
705
Receivables related to retail revenue
506
637
Total trade receivables
1,217
1,342
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 35 OF 41
contribution to Group revenue and net profit for the period 1 January – 31 December 2024 would have been
approximately DKK 146 million and DKK 31 million, respectively
1
.
ACQUISITIONS
DKK million
FY 2024
FY 2023
Property, plant and equipment and right-of-use assets
85
144
Other non-current assets
1
-
Inventories
85
194
Other current assets
1
3
Assets acquired
172
341
Non-current liabilities
41
75
Payables
4
4
Other current liabilities
43
49
Liabilities assumed
88
128
Total identifiable net assets acquired
84
213
Goodwill arising on the acquisitions
98
143
Purchase consideration
183
356
Cash movements on acquisitions:
Consideration transferred regarding previous years
2
19
14
Deferred payment
3
-8
-21
Net cash flows on acquisitions
194
349
1
The incremental contribution to Group revenue and net profit is determined as the net of acquired retail revenue less the reduction in wholesale
revenue. Excluding the temporary drag on the margin from inventory buybacks, the contribution to the Group revenue and net profit from acquisitions
for the period 1 January - 31 December 2024 calculated according to IFRS 3 was DKK 309 million and DKK 125 million, respectively. On a proforma
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 - 31
December 2024, excluding the temporary drag on the margin from inventory buybacks, would have been approximately DKK 331 million and DKK 127
million, respectively.
2
The consideration of DKK 19 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 acquisitions in Portugal and Italy in 2022.
3
The deferred payment of DKK 8 million in 2024 relates mainly to the acquisitions in the US and Italy. In 2023, the deferred payment of DKK 21 million
relates mainly to the acquisition in Colombia.
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
31 December
2023
31 December
Cost at 1 January
4,914
4,822
Acquisition of subsidiaries and activities in the period
98
143
Exchange rate adjustments
114
-50
Cost at the end of the period
5,126
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 2024 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 2024.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 36 OF 41
NOTE 8 - ASSETS AND LIABILITIES RELATED TO LEASES
Pandora leases stores, offices, office equipment and cars.
Amounts recognised in the balance sheet:
RIGHT-OF-USE ASSETS
DKK million
2024
31 December
2023
31 December
Property
4,974
3,765
Other
23
14
Total right-of-use assets
4,997
3,779
Out of the total increase of DKK 1.2 billion in right-of-use-assets in the period 1 January to 31 December 2024, DKK 2.5
billion relates to renewals of lease contracts and new leases driven by network expansion, forward integration and a
new European Distribution Centre in Germany, partially offset by a decrease of DKK 1.3 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
31 December
2023
31 December
Non-current
3,794
2,765
Current
1,379
1,116
Total lease liabilities
5,173
3,880
Lease liabilities are recognised in loans and borrowings.
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 –
31 December 2024
1 January –
31 December 2023
Property
1,329
1,149
Other
14
14
Total depreciation on right-of-use assets for the period
1,343
1,163
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 –
31 December 2024
1 January –
31 December 2023
Interest expense
381
270
Total interest for the period
381
270
Costs recognised in the period for short-term and low-value leases were DKK 88 million (2023: DKK 67 million).
Expenses are recognised on a straight-line basis.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 37 OF 41
TOTAL CASH FLOWS RELATING TO LEASES
DKK million
1 January –
31 December 2024
1 January –
31 December 2023
Fixed lease payments
1,162
1,107
Interest payments
381
270
Variable leases
588
521
Short-term and low-value leases
88
67
Total cash flows relating to leases
2,219
1,965
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.
The programme does not extend payment terms beyond the original terms agreed. The payment terms for trade
payables within the supply chain financing programme range from 90–110 days, while the payment terms for trade
payables outside the programme average around 60 days. This is expected, as the programme is generally more
attractive to suppliers with longer payment terms.
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 362 million at 31 December 2024
(2023: DKK 82 million). Suppliers have received payment from the bank for all the liabilities under the supplier finance
arrangement.
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 2024.
NOTE 11 – STORE NETWORK, CONCEPT STORE DEVELOPMENT
1
Total concept stores
O&O concept stores
Number
of concept
stores
Q4 2024
Number
of concept
stores
Q3 2024
Number
of concept
stores
Q4 2023
Growth
Q4 2024
/ Q3 2024
Growth
Q4 2024
/Q4 2023
Number
of concept
stores
O&O
Q4 2024
Growth
O&O
stores
Q4 2024
/ Q3 2024
Growth
O&O
stores
Q4 2024
/Q4 2023
US
484
479
447
5
37
399
9
54
China
198
204
219
-6
-21
188
-5
-20
UK
222
219
221
3
1
221
3
6
Italy
186
184
175
2
11
160
2
20
Australia
134
128
127
6
7
76
5
25
France
127
123
126
4
1
118
8
20
Germany
138
137
135
1
3
138
2
5
Total key markets
1,489
1,474
1,450
15
39
1,300
24
110
Rest of Pandora
1,299
1,260
1,201
39
98
788
31
109
All markets
2,788
2,734
2,651
54
137
2,088
55
219
1
All markets with 10 or more concept stores can be found in the Excel appendix uploaded on www.pandoragroup.com.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 38 OF 41
NOTE 12 – COMMODITY HEDGING AND DERIVATIVES
During the first half of 2024 the silver price increased by more than 40%. In response, a strategic decision was made
to temporarily pause further hedging efforts to assess whether the price surge was temporary or likely to persist. The
hedging has been resumed in Q4 2024. As of the end of 2024, Pandora had hedged 70% 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.
HEDGED AND REALISED PURCHASE PRICES
(AT USE OF THE SILVER AND GOLD FOR PRODUCTION)
USD / OZ
Realised in
Q4 2024
Hedged
Q1 2025
Hedged
Q2 2025
Hedged
Q3 2025
Hedged
Q4 2025
Silver price
26.96
28.01
31.30
31.03
31.24
Gold price
2,403
2,462
2,636
2,708
2,733
Commodity hedge ratio (target), %
Realised
70-100%
70-90%
50-70%
30-50%
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
2024.
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 31 December 2024, which are expected to materially impact the Group’s financial position.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 39 OF 41
QUARTERLY OVERVIEW
DKK million
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Financial highlights
Revenue
11,973
6,103
6,771
6,834
10,820
Organic growth, %
11%
11%
15%
18%
12%
Like-for-like, %
6%
7%
8%
11%
9%
Earnings before interest, tax, depreciation and
amortisation (EBITDA)
4,772
1,571
1,916
2,067
4,227
Operating profit (EBIT)
4,149
980
1,338
1,507
3,674
EBIT margin, %
34.7%
16.1%
19.8%
22.0%
34.0%
Net financials
-347
-193
-280
-229
-330
Net profit for the period
2,869
595
799
965
2,530
FINANCIAL RATIOS
Revenue growth, DKK, %
11%
10%
15%
17%
10%
Revenue growth, local currency, %
11%
12%
16%
19%
13%
Gross margin, %
79.8%
80.1%
80.2%
79.4%
79.3%
EBITDA margin, %
39.9%
25.7%
28.3%
30.3%
39.1%
EBIT margin, %
34.7%
16.1%
19.8%
22.0%
34.0%
Effective tax rate, %
24.5%
24.5%
24.5%
24.5%
24.4%
Equity ratio, %
20%
14%
16%
17%
23%
NIBD to EBITDA, x
1.1
1.5
1.4
1.3
1.1
Return on invested capital (ROIC), %
1
46%
44%
45%
45%
45%
Cash conversion incl. lease payments, %
124%
58%
94%
-12%
116%
Net working capital, % of last 12 months’ revenue
-1.7%
5.9%
6.0%
6.9%
1.8%
Capital expenditure, % of revenue
4.6%
7.9%
7.0%
6.0%
5.4%
STOCK RATIOS
Total payout ratio (incl. share buyback), %
35%
193%
110%
255%
30%
CONSOLIDATED BALANCE SHEET
Total assets
27,758
25,529
24,797
23,993
23,798
Invested capital
16,515
18,013
17,478
16,605
15,126
Net working capital
-549
1,812
1,812
2,017
510
Net interest-bearing debt (NIBD)
11,008
14,498
13,402
12,643
9,770
Equity
5,508
3,515
4,076
3,961
5,355
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
5,725
1,181
1,626
188
4,821
Capital expenditure, total
553
481
476
409
582
Capital expenditure, property, plant and equipment
439
398
331
252
394
Free cash flows incl. lease payments
5,126
572
1,255
-187
4,277
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 2024.
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • ACCOUNTING NOTES
PAGE 40 OF 41
MANAGEMENT STATEMENT
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
05 FEBRUARY 2025 • COMPANY ANNOUNCEMENT 921 • INTERIM REPORT Q4 2024 • DISCLAIMER
PAGE 41 OF 41
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.