6 MAY 2025 • COMPANY ANNOUNCEMENT 944
CVR NO. 285051 16 HAVNEHOLMEN 17-19 1561 COPENHAGEN V DENMARK • WWW.PANDORAGROUP.COM
INTERIM FINANCIAL REPORT
Q1 2025
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • CONTENTS
PAGE 2 OF 40
CONTENTS
HIGHLIGHTS
3
EQUITY STORY
4
EXECUTIVE SUMMARY
5
FINANCIAL HIGHLIGHTS
BUSINESS UPDATE
6
BUSINESS UPDATE
11
REVENUE REVIEW
15
PROFITABILITY
18
CASH FLOW & BALANCE SHEET
19
FINANCIAL GUIDANCE
23
SUSTAINABILITY
24
OTHER EVENTS
25
CONTACT
FINANCIAL STATEMENTS
26
FINANCIAL STATEMENTS
30
ACCOUNTING NOTES
40
DISCLAIMER
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • EQUITY STORY
PAGE 3 OF 40
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.
• We anticipate generating significant free cash flows, which, in line with our historic approach, will be fully
returned to shareholders, driving annual EPS growth in the mid-to-high teens.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
PANDORA DELIVERS 7% ORGANIC GROWTH IN Q1
FINANCIAL HIGHLIGHTS
• Pandora continues to execute on the Phoenix strategy, to position Pandora as a full jewellery brand and
consistently deliver solid financial results.
• Q1 2025 organic growth ended at 7%. This comprised of Like-for-like (LFL) growth of 6% and network expansion
of 4%. This was, as expected, partly offset by phasing of sell-in/other revenue.
• LFL growth in the US accelerated to 11%, the four European markets reported separately declined slightly to -2%
and Rest of Pandora remained solid at 8%. Overall LFL in Europe was 4% fuelled by double-digit growth in several
countries, including established markets like Spain and Portugal.
• The gross margin continued to strengthen and ended at 80.4%, up 110bp Y/Y despite headwind from commodities,
supported by pricing, efficiencies and less headwind from forward integration.
• Q1 2025 EBIT margin landed at 22.3%, up 30bp Y/Y.
• Leverage remains low at NIBD/EBITDA of 1.4x. Early February, Pandora initiated a new DKK 4.0 billion share
buyback programme.
• The above-mentioned factors helped contribute to 19% EPS growth in Q1 2025.
PHOENIX STRATEGY HIGHLIGHTS
• Whilst acknowledging the uncertain macroeconomic environment, Pandora will continue to leverage its Phoenix
strategy as the leading brand in the accessible jewellery segment with an attractive gifting proposition. Pandora
will continue to invest, focusing on driving growth through brand heat supported by an exciting product pipeline.
• In February 2025, Pandora launched a follow-up to its BE LOVE marketing campaign which aims to transform the
perception of Pandora into a full jewellery brand. The results continue to be visible in the numbers with LFL growth
in the “Core” segment in Q1 of 2% whilst the “Fuel with more” segment drove 12% LFL growth.
• Pandora’s brand-new online platform is off to an encouraging start with solid commercial metrics and an overall
positive impact on brand KPIs.
• Pandora is progressing well on actions to offset the increase in commodity prices. However, the recent
development in foreign exchange rates and commodity prices provide an additional 70bp headwind since end of
January 2025 and Pandora therefore currently expects an EBIT margin of “around 25%” in 2026. This excludes any
potential tariff impact.
2025 GUIDANCE AND CURRENT TRADING
• Pandora maintains the guidance for 2025 of “7-8% organic growth” while noting the elevated macro uncertainty.
The EBIT margin guidance for 2025 is updated to “around 24%” (previously “around 24.5%”), reflecting mainly the
latest foreign exchange headwinds. This excludes potential tariffs beyond the cost during the 90 days pause.
• Pandora is actively preparing for various scenarios related to the US tariffs and will provide an update as the
potential impact on the 2025 guidance and 2026 targets becomes clearer.
• Current trading in Q2 2025 shows underlying LFL growth at mid single-digit levels.
Alexander Lacik, President and CEO of Pandora, says:
“We are pleased with how we’ve started the year, especially given the very high volatility in the world around us. We
do not control the external factors, but we do control how we execute on an already proven strategy that is growing
our business. As we remain agile to the environment around us, there’s no change in our strategic plans and long-term
vision for making Pandora the go-to destination for high quality, branded jewellery.”
DKK million
Q1 2025
Q1 2024
FY 2024
FY 2025
guidance
Revenue
7,347
6,834
31,680
Organic growth
7%
18%
13%
7-8%
Like-for-Like, %
6%
11%
7%
Operating profit (EBIT)
1,641
1,507
7,974
EBIT margin, %
22.3%
22.0%
25.2%
Around 24%
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • FINANCIAL HIGHLIGHTS
PAGE 5 OF 40
FINANCIAL HIGHLIGHTS
DKK million
Q1 2025
Q1 2024
FY 2024
FINANCIAL HIGHLIGHTS
Revenue
7,347
6,834
31,680
Organic growth, %
7%
18%
13%
Like-for-like, %
6%
11%
7%
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
2,265
2,067
10,327
Operating profit (EBIT)
1,641
1,507
7,974
EBIT margin, %
22.3%
22.0%
25.2%
Net financials
-238
-229
-1,048
Net profit for the period
1,101
965
5,227
FINANCIAL RATIOS
Revenue growth, DKK, %
8%
17%
13%
Revenue growth, local currency, %
7%
19%
14%
Gross margin, %
80.4%
79.4%
79.8%
EBITDA margin, %
30.8%
30.3%
32.6%
EBIT margin, %
22.3%
22.0%
25.2%
Effective tax rate, %
21.5%
24.5%
24.5%
Equity ratio, %
14%
17%
20%
NIBD to EBITDA, x
1.4
1.3
1.1
Return on invested capital (ROIC), %
1
45%
45%
46%
Cash conversion incl. lease payments, %
-48%
-12%
85%
Net working capital, % of last 12 months’ revenue
4.2%
6.9%
-1.7%
Capital expenditure, % of revenue
5.6%
6.0%
6.1%
STOCK RATIOS
Total payout ratio (incl. share buyback), %
234%
255%
105%
Dividend per share, proposed, DKK
-
-
20
Dividend per share, paid, DKK
20
18
18
Earnings per share, basic, DKK
14.0
11.8
64.8
Earnings per share, diluted, DKK
14.0
11.8
64.6
CONSOLIDATED BALANCE SHEET
Total assets
26,448
23,993
27,758
Invested capital
18,306
16,605
16,515
Net working capital
1,338
2,017
-549
Net interest-bearing debt (NIBD)
14,474
12,643
11,008
Equity
3,833
3,961
5,508
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
-289
188
8,721
Capital expenditure, total
409
409
1,919
Capital expenditure, property, plant and equipment
309
252
1,419
Free cash flows incl. lease payments
-782
-187
6,767
1
Last 12 months’ EBIT in % of last 12 months’ average invested capital.
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.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • BUSINESS UPDATE
PAGE 6 OF 40
BUSINESS UPDATE
STARTING 2025 WELL WITH SOLID GROWTH AND STRONG PROFITABILITY
Over the past five years, Pandora has been executing through various macroeconomic challenges, guided by its
Phoenix strategy. Despite the lacklustre macroeconomic environment, Pandora has consistently delivered solid LFL
growth and strong profitability. Today, Pandora stands as a company with a strong foundation and a unique, vertically
integrated business model which is underpinned by a strong and trusted brand that is consistently appealing to more
consumers globally. Pandora also operates in an attractive and growing market of branded jewellery where the overall
category has shown resilience through cycles due to its gifting proposition. At the Capital Markets Day (CMD) 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 – execution on this strategic vision is continuing at full speed
and yielding positive results.
Q1 2025 was another proof point of the strategic direction chosen with the Phoenix strategy, demonstrating that
Pandora can compound growth through strong execution. Organic growth came in at 7% which comprised of still solid
LFL growth of 6% and network expansion of 4% but partly offset by the expected negative temporary drag from the
phasing of sell-in/other. Geographically, LFL growth was strong in the US at 11% which was driven by good growth in
traffic whilst in Europe, the four markets disclosed separately delivered -2% LFL growth with the normalisation in
Germany and ongoing challenges in Italy impacting growth. Overall LFL in Europe was 4% fuelled by double-digit
growth in several countries, including established markets like Spain and Portugal. Rest of Pandora remained healthy
at 8% LFL growth with growth remaining relatively broad based.
By channel, growth was predominantly driven by online which saw 18% LFL growth in Q1 2025. Pandora’s own physical
network delivered 3% LFL in Q1 2025.
Profitability remained strong in Q1 2025 supported by Pandora's high gross margin which reached 80.4%, +110bp Y/Y.
The increase came despite a -80bp 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,
in line with previous expectations, that the headwind from commodities and foreign exchange will gradually increase
through the course of the year.
INVESTING TO DRIVE BRAND DESIRABILITY, NEW ONLINE PLATFORM SEEING ENCOURAGING RESULTS
Pandora continues to make good progress on its promise of becoming known as a full jewellery brand. Strategic
investments across marketing, design, the store network, and digital platforms remain focused on one overarching
objective: driving brand desirability and, thereby, driving more consumers into the brand.
In Q1 2025, Pandora launched the next phase of its global BE LOVE campaign, featuring a refined visual identity and a
new, emotionally resonant creative direction. Showcasing Pandora’s most iconic pieces, the campaign introduces a
new cast of brand faces, featuring actress Winona Ryder, supermodel Iman and models Vittoria Ceretti, Karen Elson,
He Cong and Ugbad Abdi, amongst others. Captured by some of the industry’s most renowned creatives, the campaign
is shot by Fabien Baron and Craig McDean, with product photography by Raymond Meir. Pandora leveraged its BE
LOVE message strongly through Valentine’s Day, the main gifting moment in Q1, which performed well and
underpinned the brand’s emotional relevance and strength in occasion-based purchasing. The success of the campaign
and associated collections further highlights Pandora’s ability to connect meaningfully with consumers through both
message and product.
Meanwhile, the transformation of Pandora’s online experience continues. Following successful pilots in Italy and Canada
in late 2024, the rollout of the new global platform began in Q1 2025. Early market launches, including the US and
Australia, have shown promising engagement, with branded content interaction outpacing the previous platform and
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • BUSINESS UPDATE
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key commercial metrics performing at or above expectations. The new platform offers a significantly more immersive
and brand-led shopping experience, aligned with Pandora’s ambition to further elevate digital touchpoints. The global
rollout is progressing as planned, with all markets expected to be live by the end of Q2 2025.
GROWING THE “CORE” WHILE “FUELLING WITH MORE”
Consistent with previous quarters, Pandora’s strong brand momentum continued to fuel growth across both strategic
segments, further reinforcing its position as a full jewellery brand. In Q1 2025, the Core segment delivered 2% LFL, while
the Fuel with More segment achieved 12% LFL — fully in-line with the company’s strategic objective.
Together, the two segments cater to a broad spectrum of design preferences, with specific collection focus in a given
year shaped by creative innovation, targeted marketing, and evolving consumer trends. The overarching goal remains
clear: to engage both existing and new consumers, and to drive sustainable growth across the two segments. To further
fuel brand and design momentum across its portfolio, Pandora has an attractive product line-up for the remainder of
2025, covering new design aesthetics in its Core.
REVENUE BY SEGMENT
DKK million
Q1 2025
Q1 2024
Like-
for-Like
Share of
Revenue
Core
5,298
5,015
2%
72%
- Moments
4,376
4,231
0%
60%
- Collabs
672
560
19%
9%
- ME
249
224
6%
3%
Fuel with more
2,049
1,819
12%
28%
- Timeless
1,636
1,523
7%
22%
- Signature
172
232
-24%
2%
- PANDORA ESSENCE
1
151
1
-
2%
- Pandora Lab-Grown Diamonds
90
63
43%
1%
Total revenue
7,347
6,834
6%
100%
1
PANDORA ESSENCE was launched in Q2 2024 following a pilot in the Netherlands in 2023.
NETWORK EXPANSION ON TRACK – PREDICTABLE AND VALUE-ACCRETIVE
In Q1 2025, Pandora saw net 10 store closures, in line with plan and prior guidance with the store openings in Q1 2025
specifically impacted by the closure of 10 concept stores in China and phasing of openings through the year. The
closures in China are part of a strategic network optimisation effort in the country which will continue throughout 2025.
Despite the net closures in Q1 2025 specifically, network expansion over the past 12 months continued to deliver a solid
contribution to topline growth, with an incremental organic revenue impact of 4%. Pandora sees significant value from
its network expansion strategy with a solid topline contribution and 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 still targets net 50-75 concept store openings. The
lower net concept store openings in 2025 reflect efforts to optimise the store network in China, anticipating closures
of at least 50 concept stores. The closures in China will have minimal impact on Pandora's organic growth with growth
attributed from network expansion still expected to be 3%. For Pandora operated shop-in-shops, Pandora plans around
net 25 openings.
One highlight in the quarter was the opening of Pandora’s fourth concept store on Oxford Street, London — one of the
world’s busiest shopping destinations. The store showcases Pandora’s newest store concept, aiming to positioning
Pandora as a full jewellery brand while elevating brand desirability. The rollout of the new store concept remains on
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • BUSINESS UPDATE
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track, targeting approximately 1,375–1,425 stores in the new concept by the end of 2026. By the end of Q1 2025,
Pandora had 477 stores operating under the new format, up from 425 by the end of 2024.
LEVERAGING PHOENIX DURING HEIGHTENED MACROECONOMIC UNCERTAINTY
The current tariff discussions drive both elevated macroeconomic uncertainty – and thereby elevated recession risk –
as well as elevated cost and margin uncertainty. Pandora remains well-positioned to navigate these challenges with a
resilient business model and a proven strategic approach. During COVID-19 and the recent subdued consumer
environment since 2022, Pandora prepared early, remained committed to its long-term strategy, and continued to
invest in brand, people and growth. As a result, Pandora emerged stronger, gaining market share and reinforcing its
competitive position.
Today, that same disciplined strategy is being applied. Pandora continues to invest selectively in strategic areas and
driving its key competitive advantages, which includes unmatched scale and a strong, trusted brand. With a best-in-
class margin structure, high cash flow generation, and low financial leverage Pandora enters any period of prolonged
uncertainty with the unique flexibility to both manage risk and pursue growth opportunities. Pandora has exciting
marketing campaigns planned for the remaining part of the year which are set to be backed up by a strong product
pipeline which touches the core brand strength of Pandora – jewellery with a meaning.
It is also worth noting that gifting, which represents around 60% of Pandora’s business, has historically proven resilient
during periods of economic uncertainty. In challenging times, consumers tend to gravitate toward trusted, established
brands - further reinforcing Pandora’s position as a leader in accessible luxury.
Stress testing confirms that even in severe economic scenarios, Pandora will remain highly profitable and continue to
generate excess cash which will be returned to shareholders. With a clear strategic focus and operational agility, and
not least a brand that is stronger than ever, Pandora remains well-positioned to deliver sustainable value through a
potentially volatile period.
UPDATE ON THE RECENTLY ANNOUNCED US TARIFFS – PLANNING FOR VARIOUS SCENARIOS
On 2 April 2025, the US government announced additional tariffs on imported goods. This impacts Pandora in relation
to products imported to the US and originating from Thailand, China, Vietnam, India and several other countries.
Since then, Pandora notes the decision by the US government on 9 April 2025 to pause these additional tariffs by 90
days with, however, a 10% additional tariff effective already on several countries and a 145% tariff on China.
Anticipating potential tariffs, Pandora has been working on mitigating measures for a while and has now also
accelerated certain cost measures already planned. This includes switching sources of supply, e.g. for point-of-sales
materials used in the US, as well as shipping jewellery directly to Canada and Latin America rather than, as today,
through Pandora’s US distribution center.
Pandora is currently planning for a range of scenarios. Two potential scenarios and the associated high-level impacts
are listed below based on the current cost mitigation in place (i.e. excluding potential pricing):
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • BUSINESS UPDATE
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• Scenario 1. The current level of tariffs remain in place (10% on Thailand and 145% on China)
o DKK 250 million impact in 2025. Annualized impact thereafter DKK 300 million.
• Scenario 2. Resumption of the tariff levels announced on 2 April after the 90 days pause (e.g. 37% on Thailand)
and separately 145% on China
o DKK 500 million impact in 2025. Annualized impact thereafter DKK 900 million.
o On April 3 2025, Pandora announced an impact of up to DKK 1.2 billion p.a. before mitigation in this
scenario. The key difference to the DKK 900 million impact mentioned above is that Pandora now
expects to be able to ship directly to Canada and Latin America already early 2026.
• In both scenarios, Pandora will consider further price increases. The extent and timing of further price increases
to be determined based on the concrete circumstances.
Pandora will be monitoring the development closely, including discussions between the US and countries impacted by
the tariffs and will provide an update once the P&L impact is clearer. Given the uncertainty and ongoing negotiations
taking place between countries, Pandora’s current 2025 EBIT margin guidance only accounts for the incremental cost
associated with higher tariffs for the current 90 days negotiation period (around DKK 100 million). This also means that
neither of the above two scenarios have been fully factored into the 2025 EBIT margin guidance or updated CMD
target for 2026.
UPDATE ON CMD TARGET FOR THE EBIT MARGIN IN 2026
At the CMD in 2023, Pandora announced new financial targets including a 26-27% EBIT margin by 2026. Based on the
latest silver price of around USD 32 and current foreign exchange rates, the 2026 EBIT margin is currently expected to
be “around 25%”(excluding a potential tariff impact). The revised target includes 350bp of headwind from commodity
prices and foreign exchange rates, which compares to only 10bp of headwind in the original 2023 CMD target and is
an additional 70bp headwind since 5 February 2025. Pandora expects to be able to offset the majority through a
combination of pricing, cost efficiencies, and operating leverage.
Early April 2025, Pandora took advantage of the volatility in the commodity markets and hedged more of the silver
exposure related to the 2026 P&L. Consequently, Pandora has now hedged around 70% of the 2026 P&L exposure to
silver and gold. The average hedged silver price for the 2026 P&L is around 31 USD/oz. However, Pandora notes the
recent adverse movements in gold prices and foreign exchange rates which cause incremental headwinds with
particularly a weaker USD, but also an incremental depreciation of AUD, GBP, TRY and MXN, partially off-set by a
weaker THB.
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. In April 2025, another 4% price increase was implemented. The price
increases supports the margin target for 2026 by 180bp combined.
The cost programme is progressing well and is expected to contribute with a 50-100bp margin uplift in 2026. Cost
reductions are expected across several areas, including store operations, procurement, distribution and logistics,
simplification and removal of overlaps etc.
Over the past 5 years, Pandora has been able to successfully navigate through periods of high inflation, including
significant increases in commodity prices. This has been achieved through leveraging Pandora’s strong business model,
pricing and ongoing efficiencies as well as other factors. This has allowed Pandora to consistently operate with gross
margins close to 80% and EBIT margins of around 25%. As such, Pandora retains its ambition to deliver 26% EBIT
margin in the future, beyond 2026. Pandora will revert in due course on this topic.
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2026 EBIT MARGIN TARGET
Impact in pp (approximation)
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REVENUE REVIEW
ROBUST START TO 2025 WITH 6% LIKE-FOR-LIKE GROWTH
Pandora delivered solid organic growth of 7% in Q1 2025, driven by LFL growth of 6% and network expansion of 4%,
partly offset by a 3% drag from phasing of sell-in & other.
The Core segment delivered a stable 2% LFL, while Fuel with more contributed with 12% LFL growth. Despite being
up against a number of viral social media trends in Q1 2024 – with overall Pandora LFL of 11% in Q1 2024 - Timeless
generated 7% LFL, with PANDORA ESSENCE delivering a meaningful contribution as well.
Network expansion is ticking along as a part of the Phoenix strategy, adding net 101 concept stores and net 99 Pandora
operated shop-in-shops to the existing store network during the past 12 months. This addition contributed 4% revenue
growth in the quarter.
Forward integration continues as well with Pandora acquiring 15 concept stores in the US and four concept stores in
Italy during the first quarter. The revenue contribution was less than 1%.
Foreign exchange rates largely evened out for the quarter. While the USD and GBP strengthened compared to Q1 2024,
a weakening of the MXN and TRY largely offset it.
The revenue growth can be illustrated as follows:
Q1 2025 GROWTH COMPOSITION VS. Q1 2024
Growth in pp (approximation), revenue in DKK million
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REVIEW OF REVENUE BY KEY MARKET
SOLID LFL GROWTH IN Q1 2025
In Q1 2025, Pandora achieved solid LFL growth of 6%. The growth was supported by strong performance through the
quarter and helped by a solid showing at Valentine’s Day and the End of Season Sale in January. The End of Season
Sale was slightly helped by a favourable calendar effect in January with the retail calendar for 2025 beginning on 30
December 2024 and thereby benefitting Q1 2025 with two additional days of End of Season Sales. The new BE LOVE
brand campaign featuring Winona Ryder as a new Pandora Brand Ambassador was well received and resonated well
with the Pandora brand and product offering. Organic growth was just 1pp higher than LFL, due to a 3pp drag from
above mentioned phasing of sell-in and other, including the calendar effect.
US
In the first quarter of 2025, the US accelerated sequentially to 11% LFL. This strong result was driven by continued
growth in traffic both into the stores and online, supported by improved execution around Valentine’s Day. As
expected, organic growth was in line with LFL at 12%, fuelled by new store openings during the past 12 months but
impacted by the phasing of sell-in/other. The partner channel performed well in the quarter, delivering LFL in line with
Pandora’s own stores, following two years with LFL being around 6pp lower on average.
KEY MARKETS IN EUROPE
Combined LFL growth across all European markets was 4% with several markets such as Spain and Portugal driving
strong LFL growth (disclosed in Rest of Pandora as usual). The four markets in Europe which are disclosed separately
delivered LFL growth of -2%, with the sequential deceleration driven by the anticipated normalisation of the
performance in Germany and still ongoing challenges in Italy. Meanwhile, France and the UK saw some improvement.
Germany delivered 1% LFL growth in Q1 2025. This was impacted by a particular tough comparison base last year, 67%
LFL growth in Q1 2024, which was boosted by viral trends. The consumer backdrop in Germany continues to remain
challenging.
In the UK, the LFL came in at 2%, with good performance around Mother’s Day in a market that remains highly
promotional. The focus remains to increase desirability of the brand, driving growth across segments and improving
in-store execution. Initial results on these efforts are yielding encouraging results.
The performance in Italy was largely unchanged from the previous quarter and remains unsatisfactory with LFL of -9%.
A deep dive diagnostic of the performance in Italy has now been finalised and, based on that, an action plan is being
developed. France delivered LFL of -6%, a small sequential improvement. The improvement in France was driven by
an immediate payoff from changes to the media plan.
AUSTRALIA AND CHINA
Australia generated LFL growth of 2% in Q1 2025. This was partially helped by an improvement in consumer sentiment
but also successful execution around Valentine’s Day. Pandora’s new online platform has been well received with good
commercial metrics.
The performance in China continues to be challenged ending at -11% LFL in the quarter. As part of the planned strategic
optimisation of the store network, the first step was taken in Q1 with the closure of 10 concept stores.
REST OF PANDORA
Rest of Pandora reported 8% LFL in the first quarter of 2025. The strong growth remains broad-based with many
markets such as Spain, Canada, Turkey, Portugal, the Netherlands and Chile reporting double-digit LFL growth.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • REVENUE REVIEW
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QUARTERLY REVENUE DEVELOPMENT BY KEY MARKET
DKK million
Q1 2025
Q1 2024
Like-for-like
Organic growth
Share of revenue
US
2,368
2,027
11%
12%
32%
China
96
110
-11%
-15%
1%
UK
864
854
2%
-1%
12%
Italy
508
565
-9%
-11%
7%
Australia
234
203
2%
17%
3%
France
255
274
-6%
-7%
3%
Germany
499
472
1%
6%
7%
Total key markets
4,823
4,506
4%
4%
66%
Rest of Pandora
2,523
2,328
8%
11%
34%
Total revenue
7,347
6,834
6%
7%
100%
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • REVENUE REVIEW
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REVIEW OF NETWORK DEVELOPMENT
PANDORA ADVANCES WITH NETWORK ACCORDING TO PLAN
During the first quarter of 2025, Pandora closed net 17 concept stores and added net 7 Pandora operated shop-in-
shops to the network. This is in line with expectations and impacted by planned closures in China and the phasing of
new openings this year. In total, Pandora has added net 101 concept stores and 99 Pandora operated shop-in-shops
during the past 12 months. The concept store openings have been relatively broad-based geographically. The shop-in-
shop openings have been concentrated around Latin America and Turkey.
Network expansion added 4pp to organic growth in Q1, 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 (including at least 50 net closures in China), and around 25 Pandora operated shop-in-shops
net openings.
STORE NETWORK
Number of points of sale
1
Q1 2025
Q4 2024
Q1 2024
Growth
Q1 2025
/Q4 2024
Growth
Q1 2025
/Q1 2024
Concept stores
2,771
2,788
2,670
-17
101
- of which Pandora operated
2
2,113
2,088
1,926
25
187
- of which franchise operated
322
361
412
-39
-90
- of which third-party distribution
336
339
332
-3
4
Other points of sale
3,979
3,997
3,965
-18
14
- of which Pandora operated
2
684
677
585
7
99
- of which franchise operated
3,049
3,072
3,085
-23
-36
- of which third-party distribution
246
248
295
-2
-49
Total points of sale
6,750
6,785
6,635
-35
115
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.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • PROFITABILITY
PAGE 15 OF 40
PROFITABILITY
EBIT MARGIN IN LINE WITH GUIDANCE, SUPPORTED BY GROSS MARGIN
The EBIT margin in Q1 2025 improved Y/Y by +30bp, reaching 22.3%. The EBIT margin continues to be supported by
structural improvements to the gross margin via pricing and channel mix. The latter being driven by the margin
accretive network expansion. Furthmore, net operating leverage from LFL supported the margin by 60bp and
consequently the adjusted EBIT margin was roughly flat, despite the -80bp headwind from for foreign exchange rates
and commodity prices.
A lower temporary drag related to forward integration compared to last year supported the margin by +60bp partially
offset by phasing of sell-in which dragged the margin in the quarter by 40bp. These temporary factors are both
expected to reverse out and become net neutral for the full year.
Foreign exchange rates represented a slight tailwind of +10bp, which was more than offset by the -90bp headwind
from commodities. The combined headwind of these factors is expected to increase significantly from Q2 and remain
elevated for the rest of 2025 to form a full year 2025 headwind of 250bp.
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.
Q1 2025 EBIT MARGIN VS. Q1 2024
Margin impact in pp (approximation)
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • PROFITABILITY
PAGE 16 OF 40
GROSS MARGIN
The gross margin increased by +110bp Y/Y, landing at 80.4% in Q1 2025. The increase was mainly driven by last year’s
price increases as well as continued support from channel mix, driven by a higher revenue share from Pandora-operated
stores. The latter was partially offset by strong online performance, which carries a lower gross margin due to last-mile
freight costs partly absorbed by Pandora. Lastly product mix was also contributing positively, as Fuel with more has a
larger share of revenue with a gross margin of 83.9% compared to Core with a gross margin of 79.1%.
The impact from foreign exchange rates was broadly flat, whilst commodities drove a -80bp headwind vs. Q1 2024,
due to an increase in the price of silver and gold. Headwinds from commodity prices and foreign exchange rates are
expected to increase further already by Q2 2025 and remain elevated for the rest of 2025.
The gross margin is temporarily impacted by buying back inventory when doing forward integration. This represented
a net tailwind of 60bp compared to Q1 2024. Adjusting for forward integration, the underlying gross margin would
have been 80.7%. The full year impact of forward integration is expected to remain at the same level in 2025, resulting
in no additional drag relative to 2024.
Q1 2025 GROSS MARGIN VS. Q1 2024
Margin impact in pp (approximation)
GROSS MARGIN AND GROSS PROFIT
DKK million
Q1 2025
Q1 2024
Growth in constant FX
Revenue
7,347
6,834
7%
Cost of sales
-1,436
-1,410
1%
Gross profit
5,910
5,424
9%
Gross margin %
80.4%
79.4%
1.1%
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • PROFITABILITY
PAGE 17 OF 40
OPERATING EXPENSES
In Q1 2025, operating expenses increased by 9% in constant exchange rates compared to Q1 2024, driven by the
expansion of our highly profitable store network and increased marketing investments.
Sales and distribution expenses increased by 9% in constant exchange rates. This increase reflects the expansion of
the store network combined with forward integration. In total, Pandora added 286 stores to its own network compared
to Q1 2024 which alone drove around DKK 200 million additional operating expenses. 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 12% in constant exchange rates vs. Q1 2024, ending at 13.8% share of revenue. Pandora
remains committed to fuel brand desire and invest in marketing to accelerate the journey to transform the perception
of Pandora into a full jewellery brand.
Administrative expenses increased only 3% in constant exchange rates vs. Q1 2024, continuing to drive leverage on
this cost line.
QUARTERLY OPERATING EXPENSES
DKK million
Q1 2025
Q1 2024
Growth in
constant FX
Share of
revenue
Q1 2025
Share of
revenue
Q1 2024
Sales and distribution expenses
-2,641
-2,421
9%
35.9%
35.4%
Marketing expenses
-1,016
-904
12%
13.8%
13.2%
Administrative expenses
-613
-592
3%
8.3%
8.7%
Total operating expenses
-4,270
-3,917
9%
58.1%
57.3%
FINANCIAL EXPENSES AND TAX
Net financials came in at a cost of DKK 238 million in Q1 2025 (Q1 2024: DKK 229 million), reflecting the interest on
debt, IFRS 16 related interest on lease contracts and fees.
Non-cash foreign exchange rate adjustments on intercompany balances represented a drag of DKK 27 million and were
partially offset by a DKK 21 million gain on foreign exchange rate hedging contracts in the quarter. These line items
depend entirely on the development in foreign exchange rates.
Based on the current foreign exchange rates, Pandora expects net financial expenses in 2025 to be DKK 900-950
million (previously DKK 1,000-1,050 million). The guidance consists of around DKK 950 million interest on debt, IFRS
16 related interest and fees, and a net DKK 0-50 million gain on non-cash foreign exchange adjustments on
intercompany balances and foreign exchange hedging contracts.
The effective tax rate in Q1 2025 came in at 21.5% (Q1 2024: 24.5%). In Q1 2025, the Danish Tax Authorities signed a
bilateral advance pricing arrangement with the Australian taxation office, covering Pandora’s tax returns for 2022-
2024. As a result, there’s a one-off benefit of DKK 44 million to the effective tax rate and a one-off hit from accrued
non-deductible interest on net financial expenses in Q1 2025. Excluding the one-off benefit, the effective tax rate would
have been 24.3% in Q1 2025.
EPS ended at DKK 14.0 in Q1 2025, an increase of 19% from DKK 11.8 in Q1 2024.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • CASH FLOW & BALANCE SHEET
PAGE 18 OF 40
CASH FLOW & BALANCE SHEET
GOOD PROGRESS ON WORKING CAPITAL
Net working capital ended at 4.2% of revenue in Q1 2025 compared to 6.9% in Q1 2024. The Y/Y reduction is a
continuation of the broad-based improvements seen in 2024 across most elements of working capital. Inventory
management continues to be strong and despite a 8% increase in revenue in the quarter, inventory increased by only
4% and therefore declined as a percentage of revenue. Pandora still expects net working capital to be between flat to
a low single-digit % of revenue by the end of 2025.
Trade receivables continue to be at a healthy level and ended at 2.2% of revenue, down 160bp from Q1 2024 benefitting
from the intensified cash management that led to a lower number of days sales outstanding (DSO) in among others
Mexico, which started to take effect in Q3 2024. The wholesale DSO were 37 days, slightly up compared to Q1 2024.
Efforts to improve net working capital is also visible in trade payables. Trade payables increased 90bp as a percent of
revenue to 10.1% by the end of Q1 2025. This is driven by among others, the continued efforts to renegotiate payment
terms.
In line with normal seasonality, cash conversion was negative in the first quarter. Furthermore, a higher cash tax
payment due to a different phasing of tax payments compared to prior year impacted the cash conversion in Q1 2025.
CAPEX was DKK 0.4 billion in the quarter, in line with Q1 2024. This reflects 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 45%, 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
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Inventories
14.3%
14.0%
16.0%
14.9%
15.2%
Trade receivables
2.2%
3.8%
2.5%
2.8%
3.8%
Trade payables
-10.1%
-12.3%
-9.7%
-9.2%
-9.2%
Other net working capital elements
-2.3%
-7.3%
-2.9%
-2.4%
-2.9%
Total
4.2%
-1.7%
5.9%
6.0%
6.9%
BALANCE SHEET
Non-current assets increased by DKK 2.5 billion to DKK 18.9 billion at the end of Q1 2025, 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 7.6 billion, in line with last year, driven by higher inventory due to revenue growth and the
increase in commodity prices, off-set by the decline in trade receivables.
At the end of Q1 2025, net interest-bearing debt amounted to DKK 14.5 billion, up from DKK 12.6 billion in Q1 2024. This
corresponds to a leverage of 1.4x, in line with normal seasonality and broadly in line with last year. At the end of Q1
2025, Pandora had DKK 6.3 billion in undrawn committed credit facilities.
At the end of Q1 2025, equity in Pandora amounted to DKK 3.8 billion, following the distribution to shareholders of an
ordinary dividend of DKK 1.6 billion and buy back of own shares for a total of DKK 1.0 billion in Q1 2025.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • FINANCIAL GUIDANCE
PAGE 19 OF 40
FINANCIAL GUIDANCE
TOP-LINE GUIDANCE UNCHANGED – ELEVATED MACRO UNCERTAINITY
Since Pandora issued its guidance in February 2025, macroeconomic uncertainty has significantly increased. The
prevailing uncertainty has the potential to both negatively impact consumer behaviour and demand as well as adding
operating cost for Pandora.
Pandora has started 2025 well and, for now, has seen no impact on its top-line performance from a potentially more
challenging environment for consumers. Pandora will continue to execute on the Phoenix strategy and the related
growth initiatives, many of which have already demonstrated Pandora’s strong resilience over the past five years.
However, the macroeconomic outlook remains highly uncertain, and it is too early to assess how consumers may
eventually be impacted. Pandora will continue to monitor the situation carefully.
Therefore, Pandora currently retains its initial organic growth guidance for 2025 of 7-8%. The EBIT margin guidance is
updated to around 24% (previously around 24.5%) reflecting the recent adverse foreign exchange movements and a -
30bp impact from current tariffs in place over a 90 day period.
REVENUE GUIDANCE
The organic growth guidance can be illustrated as follows:
FY 2025 GROWTH COMPOSITION VS. FY 2024
Growth in pp (approximation), revenue in DKK billion
Pandora is still expecting LFL growth of 4-5%. This falls within the range identified at the CMD in 2023 of 4-6% CAGR,
albeit slightly lower at the higher end, reflecting the already weak economic outlook. The guidance range does not
account for a potential material change of economic growth or material change in consumer behaviour because of the
current tariff discussions. 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%.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • FINANCIAL GUIDANCE
PAGE 20 OF 40
PROFITABILITY GUIDANCE
The EBIT margin guidance can be illustrated as follows:
FY 2025 EBIT MARGIN VS. FY 2024
Growth in pp (approximation)
*
Assumes 90 days of 10% tariffs on imports to the US (145% for imports from China).
The EBIT margin guidance for 2025 reflects Pandora’s strong commitment to its strategy and consistent execution,
targeting another year of compounding growth fuelled by investments across the Phoenix growth pillars. Despite
increased headwinds from external factors, Pandora targets strong profitability in 2025 and guides for an EBIT margin
of around 24% (previously around 24.5%). The slightly lower guidance reflects 70bp of incremental headwind from
foreign exchange rates, commodity prices and tariffs since the original guidance issued in February 2025, leading to a
combined 280bp headwind vs 2024 from commodity prices, foreign exchange rates and additional tariffs on goods
imported to the US.
The additional tariffs currently imposed on goods imported to the US represent a 30bp additional impact to the EBIT
margin. The guidance is based on the assumption that after the 90 days pause, all additional tariffs on goods imported
to the US affecting Pandora will be removed (this includes the 145% on imports from China and 10% on other countries).
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
250bp (previously 210bp), with the incremental drag coming from a weaker USD, but also incremental depreciation of
AUD, GBP, TRY and MXN, partially off-set by a weaker THB. 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.
In Q1 2025, the EBIT margin was up Y/Y. The headwinds from commodity prices and foreign exchange will, however,
be materially higher during Q2-Q4. The guided decline in the EBIT margin from 2024 to 2025 is expected to be more
visible in Q2 and Q3, before moderating in Q4 to a lower decline Y/Y. This is due to several factors including timing of
tariffs and forward integration as well as the timing of actions taken to mitigate the higher commodity prices and
foreign exchange.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • FINANCIAL GUIDANCE
PAGE 21 OF 40
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 (including at least 50 net store closures in China) and around 25
Pandora operated 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 around 24%, slightly below the run-rate of 24-25% in recent years due to the
retroactive effect for 2022-2024 of a bilateral advance pricing arrangement signed by the Danish Tax Authorities and
the Australian taxation office. Pandora expects net financial expenses to be DKK 900-950 million in 2025 (previously
DKK 1,000-1,050 million). The guidance consists of around DKK 950 million interest on debt, IFRS 16-related interest
and fees, and net DKK 0-50 million gain 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 40.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • FINANCIAL GUIDANCE
PAGE 22 OF 40
CAPITAL STRUCTURE POLICY AND CASH DISTRIBUTION
At the end of Q1 2025, Pandora’s leverage was 1.4x NIBD to EBITDA, broadly in line with Q1 2024 and reflecting normal
seasonality. 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.
In Q1 2025, Pandora paid out DKK 2.6 billion to shareholders, of which DKK 1.6 billion came from an ordinary dividend
of DKK 20 per share and DKK 1.0 billion was distributed via share buybacks. For 2025, Pandora expects a total cash
distribution to shareholders of DKK 5.6 billion. The share buyback amounts to DKK 4.0 billion and commenced on 6
February 2025 and will be completed no later than 30 January 2026.
At Pandora’s Annual General Meeting on 12 March 2025, the proposed resolution to reduce the share capital with a
nominal amount of DKK 3,000,000 treasury shares of DKK 1 was adopted. The share capital reduction was announced
to the Danish Business Authority on 12 March 2025 and the four-week notification period has expired with no
objections. The Board of Directors has therefore resolved to effect the share capital reduction on 11 April 2025.
Following this, the Company’s share capital is nominally DKK 79,000,000, divided into shares of DKK 1.
FOREIGN EXCHANGE AND COMMODITY ASSUMPTIONS
AND IMPLICATIONS – AS OF 30 April 2025
Average 2024
Average 2025
2025 Y-Y
Financial Impact
USD/DKK
6.89
6.70
THB/DKK
0.20
0.20
GBP/DKK
8.81
8.80
AUD/DKK
4.55
4.26
MXN/DKK
0.38
0.34
CAD/DKK
5.03
4.79
TRY/DKK
0.21
0.18
CNY/DKK
0.96
0.92
Silver/USD (per ounce)
23.77
28.57
Gold/USD (per ounce)
1,982
2,507
Revenue (DKK million)
Approx. -970
EBIT (DKK million)
Approx. -1,080
EBIT margin (foreign exchange)
Approx. -1.0%
EBIT margin (commodities)
Approx. -1.5%
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • SUSTAINABILITY
PAGE 23 OF 40
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • OTHER EVENTS
PAGE 24 OF 40
OTHER EVENTS
Winona Ryder stars in new Pandora campaign
Pandora has launched the next phase of its BE LOVE campaign, featuring acclaimed actress Winona Ryder, supermodel
Iman and models Vittoria Ceretti, Karen Elson, He Cong and Ugbad Abdi. The campaign showcases Pandora’s most
iconic pieces and supports the brand’s ambitions to be recognized as a full jewellery brand.
Pandora Launches New Charm in Support of UNICEF
Pandora launched a special-edition heart-shaped silver charm featuring a blue center-stone on 5
th
of March. The launch
highlights Pandora’s continued partnership with UNICEF. Over the past five years, Pandora’s collaboration has raised
nearly USD 14 million to support children and young people globally.
The British Fashion Council and Pandora Announce Continued Partnership for The Fashion Awards 2025
The British Fashion Council (BFC) and Pandora have announced the continuation of their partnership for The Fashion
Awards 2025 (TFA). Following successful collaborations in 2023 and 2024, Pandora will return as Principal Partner,
reinforcing its commitment to today’s discourse around culture and fashion. The renewed partnership reflects the
shared values of Pandora and BFC in driving positive change and elevating the global fashion industry.
Reduction of Pandora A/S' share capital
At Pandora’s Annual General Meeting on 12 March 2025, the proposed resolution to reduce the share capital with a
nominal amount of DKK 3,000,000 treasury shares of DKK 1 was adopted. The share capital reduction was announced
to the Danish Business Authority on 12 March 2025 and the four-week notification period has expired with no
objections. The Board of Directors has therefore resolved to effect the share capital reduction on 11 April 2025.
Following this, the Company’s share capital is nominally DKK 79,000,000, divided into shares of DKK 1.
FINANCIAL CALENDAR 2025
The expected dates for upcoming 2025 financial announcements for Pandora A/S are as follows:
15 Aug 2025 Interim Report Q2 2025
05 Nov 2025 Interim Report Q3 2025
06 Feb 2026 Annual Report 2025
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • CONTACT
PAGE 25 OF 40
CONTACT
CONFERENCE CALL
A conference call for investors and financial analysts will be held today at 11.00 CET and can be joined online at
www.pandoragroup.com. The presentation for the call will be available on the website before the call.
The following numbers can be used by investors and analysts:
DK: +45 78 76 84 90
SE: +46 406 820 620
UK: +44 203 769 6819
US: +1 646 787 0157
PIN: 837462
Link to webcast: https://pandora-events.eventcdn.net/events/interim-financial-report-for-the-first-quarter-202
ABOUT PANDORA
jewellery made from high-quality materials. Each piece is created to inspire self-expression, allowing people to share
their stories and passions through meaningful jewellery. Pandora jewellery is sold in more than 100 countries through
6,750 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
SVP, 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
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • FINANCIAL STATEMENTS
PAGE 26 OF 40
FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
DKK million
Notes
Q1 2025
Q1 2024
FY 2024
Revenue
3
Cost of sales
-1,436
-1,410
-6,391
Gross profit
Sales, distribution and marketing expenses
-3,657
-3,325
-14,844
Administrative expenses
-613
-592
-2,471
Operating profit
Finance income
Finance costs
-276
-276
-1,297
Profit before tax
Income tax expense
-302
-313
-1,699
Net profit for the period
Earnings per share, basic, DKK
Earnings per share, diluted, DKK
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
DKK million
Q1 2025
Q1 2024
FY 2024
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
-317
Fair value adjustment of hedging instruments
-25
Tax on other comprehensive income, hedging
instruments, income/expense
-44
Items that may be reclassified to profit/loss for
the period, net of tax
-155
Items not to be reclassified to profit/loss for the
period
Actuarial gain/loss on defined benefit plans, net of tax
-12
Items not to be reclassified to profit/loss for the
period, net of tax
-12
Other comprehensive income, net of tax
-155
Total comprehensive income for the period
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • FINANCIAL STATEMENTS
PAGE 27 OF 40
CONSOLIDATED BALANCE SHEET
DKK million
Notes
2025
31 March
2024
31 March
2024
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
-4,123
-5,184
-3,228
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
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • FINANCIAL STATEMENTS
PAGE 28 OF 40
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
DKK million
Share
capital
Treasury
shares
Translation
reserve
Hedging
reserve
Dividend
proposed
Retained
earnings
Total
equity
2025
Equity at 1 January
-3,228
Net profit for the period
Other comprehensive income, net of tax
-315
-155
Total comprehensive income for the period
-315
Share-based payments
-159
Purchase of treasury shares
-1,075
-1,075
Cancellation of treasury shares
Dividend proposed
-10
Dividend paid
-1,567
-1,567
Equity at 31 March
-4,123
2024
Equity at 1 January
-4,353
-33
Net profit for the period
Other comprehensive income, net of tax
-20
-9
Total comprehensive income for the period
-20
Share-based payments
-116
Purchase of treasury shares
-1,028
-1,028
Cancellation of treasury shares
Dividend proposed
-9
Dividend paid
-1,471
-1,471
Equity at 31 March
-5,184
-53
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • FINANCIAL STATEMENTS
PAGE 29 OF 40
CONSOLIDATED STATEMENT OF CASH FLOWS
1
In Q3 2024, Pandora performed a reclassification between "Change in payables and other liabilities" and "Other non-cash adjustments" for presentation
purposes. All comparative figures were restated accordingly. "Other non-cash adjustments" mainly comprise obligation to restore leased property.
The above cannot be derived directly from the income statement and the balance sheet.
DKK million
Notes
Q1 2025
Q1 2024
FY 2024
Operating profit
Depreciation and amortisation
Share-based payments
Change in inventories
-248
-160
-126
Change in receivables
Change in payables and other liabilities
1
-1,804
-1,415
Other non-cash adjustments
1
-4
-9
-44
Finance income received
Finance costs paid
-196
-191
-922
Income taxes paid
-651
-361
-1,738
Cash flows from operating activities, net
-289
Acquisitions of subsidiaries and activities,
net of cash acquired
6
-180
-115
-194
Purchase of intangible assets
-129
-39
-343
Purchase of property, plant and equipment
-240
-256
-1,336
Change in other assets
-29
Proceeds from sale of property, plant and equipment
Cash flows from investing activities, net
-545
-406
-1,889
Dividend paid
-1,567
-1,471
-1,471
Dividend paid - withholding tax
Purchase of treasury shares
-1,011
-988
-4,013
Proceeds from loans and borrowings
Repayment of loans and borrowings
-1,875
-2,729
Repayment of lease commitments
-314
-271
-1,162
Cash flows from financing activities, net
-1,014
-414
-5,701
Net increase/decrease in cash
-1,848
-632
Cash and cash equivalents, beginning of period
Exchange gains/losses on cash and cash equivalents
-16
-4
-11
Net increase/decrease in cash
-1,848
-632
Cash and cash equivalents, end of period
Cash balances
Overdrafts
-305
-386
-90
Cash and cash equivalents, end of period
Cash flows from operating activities, net
-289
- Finance income received
-9
-4
-19
- Finance costs paid
Cash flows from investing activities, net
-545
-406
-1,889
- Acquisition of subsidiaries and activities, net of cash acquired
Repayment of lease commitments
-314
-271
-1,162
Free cash flows incl. lease payments
-782
-187
Unutilised committed credit facilities
4
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 30 OF 40
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 2025. 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 STANDARDS
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.
The current tariff discussions drive both elevated macroeconomic uncertainty – and thereby elevated recession risk –
as well as elevated cost and margin uncertainty. Pandora remains well-positioned to navigate these challenges with a
resilient business model and a proven strategic approach.
Stress testing confirms that even under severe economic scenarios, Pandora will remain highly profitable and continue
to generate excess cash. With a clear strategic focus and operational agility, and not least a brand that is stronger than
ever, Pandora remains well-positioned to deliver sustainable value through a potentially volatile period.
Pandora has evaluated the value of its non-current assets. Based on current market information and forecasts, no
indicators of impairment were identified, and the most recent impairment test conducted in 2024 is still considered to
include sufficient headroom. Given the uncertain macroeconomic environment, Pandora will continue assessing the
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 31 OF 40
value of the assets. Pandora has also considered the recoverability of accounts receivable and the inventory value and
has not identified any impairment write down.
For information on liquidity risk please refer to note 4 Financial risks.
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
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
Q1 2025
Revenue
5,298
2,049
7,347
Cost of sales
-1,106
-330
-1,436
Gross profit
4,192
1,719
5,910
Gross margin, %
79.1%
83.9%
80.4%
Operating expenses
-4,270
Consolidated operating profit (EBIT)
1,641
Profit margin (EBIT margin), %
22.3%
Q1 2024
Revenue
5,015
1,819
6,834
Cost of sales
-1,108
-302
-1,410
Gross profit
3,907
1,517
5,424
Gross margin, %
77.9%
83.4%
79.4%
Operating expenses
-3,917
Consolidated operating profit (EBIT)
1,507
Profit margin (EBIT margin), %
22.0%
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 32 OF 40
REVENUE BY SEGMENTS
DKK million
Q1 2025
Q1 2024
Like-
for-like
Local currency
growth
Share of
Revenue
Core
5,298
5,015
2%
5%
72%
- Moments
4,376
4,231
0%
3%
60%
- Collabs
672
560
19%
19%
9%
- ME
249
224
6%
11%
3%
Fuel with more
2,049
1,819
12%
12%
28%
- Timeless
1,636
1,523
7%
7%
22%
- Signature
172
232
-24%
-25%
2%
- PANDORA ESSENCE
1
151
1
-
-
2%
- Pandora Lab-Grown Diamonds
90
63
43%
42%
1%
Total revenue
7,347
6,834
6%
7%
100%
Goods transferred at a point in time
7,335
6,820
Services transferred over time
12
14
Total revenue
7,347
6,834
1
PANDORA ESSENCE was launched in Q2 2024 following a pilot in the Netherlands in 2023.
REVENUE DEVELOPMENT IN KEY MARKETS
DKK million
Q1 2025
Q1 2024
Like-
for-like
Local currency
growth
US
2,368
2,027
11%
13%
China
96
110
-11%
-15%
UK
864
854
2%
-1%
Italy
508
565
-9%
-10%
Australia
234
203
2%
17%
France
255
274
-6%
-7%
Germany
499
472
1%
6%
Total key markets
4,823
4,506
4%
5%
Rest of Pandora
2,523
2,328
8%
11%
Total revenue
7,347
6,834
6%
7%
REVENUE DEVELOPMENT BY CHANNEL
DKK million
Q1 2025
Q1 2024
Organic
growth
Share of
Revenue
Pandora operated
1
retail
6,176
5,495
11%
84%
- of which concept stores
4,040
3,662
8%
55%
- of which online stores
1,659
1,397
17%
23%
- of which other points of sale
477
437
15%
6%
Wholesale
989
1,127
-10%
13%
- of which concept stores
365
468
-15%
5%
- of which other points of sale
624
659
-7%
8%
Third-party distribution
182
211
-15%
2%
Total revenue
7,347
6,834
7%
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.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 33 OF 40
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 to the consolidated financial
statements in the Annual Report 2024.
Net interest-bearing debt (NIBD), incl. capitalised leases amounted to DKK 14.5 billion at the end of Q1 2025 (Q4 2024:
DKK 11.0 billion) corresponding to a financial leverage of 1.4x (Q4 2024: 1.1x).
Liquidity risk
Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations when due.
NET INTEREST-BEARING DEBT
1
Includes the EUR 500 million bond issued in May 2024 and the EUR 500 million bond issued in March 2023.
In Q1 2025, Pandora has drawn DKK 0.8 billion on short-term money market lines and DKK 0.4 billion in uncommitted
overdraft facilities to optimise interest costs and the Group cash position. Further, Q1 2025 closed with DKK 8.8 billion
in drawn committed financing, leaving DKK 6.3 billion available in undrawn committed loan facilities.
NOTE 5 – TRADE RECEIVABLES
NOTE 6 – BUSINESS COMBINATIONS
In Q1 2025, Pandora took over 19 concept stores (15 concept stores in the US and 4 concept stores in Italy) in five
business combinations. Net assets acquired mainly consisted of store properties, inventories and related liabilities. The
total purchase price for the acquisitions was DKK 185 million. Based on the purchase price allocations, goodwill was
DKK 90 million, fully deductible for income tax purposes. Goodwill from the acquisitions was mainly related to the
synergies from converting the stores from wholesale and distribution to Pandora-operated retail. 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 March 2025 was DKK 10 million and DKK 2 million,
respectively. On a pro forma basis, if the acquisitions had been effective from 1 January 2025, the incremental
contribution to Group revenue and net profit for the period 1 January – 31 March 2025 would have been approximately
DKK 26 million and DKK 4 million, respectively
1
.
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 March 2025 calculated according to IFRS 3 was DKK 24 million and DKK 9 million, respectively. On a proforma basis, if the
acquisitions had been effective from 1 January 2025, the IFRS 3 contribution to Group revenue and net profit for the period 1 January - 31 March 2025,
excluding the temporary drag on the margin from inventory buybacks, would have been approximately DKK 40 million and DKK 12 million, respectively.
DKK million
2025
31 March
2024
31 December
Loans and borrowings, non-current
1
8,557
7,831
Lease liabilities, non-current
3,803
3,794
Loans and borrowings, current
1,438
397
Lease liabilities, current
1,415
1,379
Cash
-744
-2,394
Net interest-bearing debt
14,469
11,008
Unutilised committed credit facilities
6,341
7,087
DKK million
2025
31 March
2024
31 December
Receivables related to third-party distribution and wholesale
478
711
Receivables related to retail revenue
240
506
Total trade receivables
719
1,217
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 34 OF 40
ACQUISITIONS
1
The consideration of DKK 5 million transferred during 2025 relates to the acquisitions in the US and Italy in prior years. The consideration of DKK 19
million transferred during 2024 relates mainly to the acquisition in Colombia in 2023.
2
The deferred payment of DKK 10 million in 2025 and DKK 8 million in 2024 relates mainly to the acquisitions in the US and Italy.
Business combinations after the reporting period
After the reporting period, Pandora took over 13 concept stores (11 concept stores in the US and 2 concept stores in
Canada) in four business combinations. The total purchase price for the acquisitions was DKK 104 million. Assets
acquired are mainly non-current assets relating to the stores and inventory. Due to the timing between acquisition
dates and the announcement of the financial statements, it has not been possible to finalise the purchase price
allocations. Expected goodwill from the acquisitions, based on the preliminary purchase price allocations, was DKK
44 million, fully deductible for income tax purposes.
NOTE 7 – GOODWILL
DKK million
2025
31 March
2024
31 December
Cost at 1 January
5,126
4,914
Acquisition of subsidiaries and activities in the period
90
98
Exchange rate adjustments
-91
114
Cost at the end of the period
5,124
5,126
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.
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
2025
31 March
2024
31 December
Property
4,986
4,974
Other
24
23
DKK million
Q1 2025
FY 2024
Property, plant and equipment and right-of-use assets
34
85
Other non-current assets
-
1
Inventories
89
85
Other current assets
2
1
Assets acquired
125
172
Non-current liabilities
13
41
Payables
4
4
Other current liabilities
13
43
Liabilities assumed
29
88
Total identifiable net assets acquired
95
84
Goodwill arising on the acquisitions
90
98
Purchase consideration
185
183
Cash movements on acquisitions:
Consideration transferred regarding previous years
1
5
19
Deferred payment
2
-10
-8
Net cash flows on acquisitions
180
194
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 35 OF 40
Total right-of-use assets
5,009
4,997
The right-of-use-assets in the period 1 January to 31 March 2025 remains stable. The DKK 0.5 billion increase relating
to renewals of lease contracts and new leases driven by network expansion and forward integration, is offset by a
decrease of DKK 0.5 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
2025
31 March
2024
31 December
Non-current
3,803
3,794
Current
1,415
1,379
Total lease liabilities
5,218
5,173
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 March 2025
1 January –
31 March 2024
Property
355
309
Other
3
4
Total depreciation on right-of-use assets for the period
359
313
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 March 2025
1 January –
31 March 2024
Interest expense
103
82
Total interest for the period
103
82
Costs recognised in the period for short-term and low-value leases were DKK 23 million (Q1 2024: DKK 21 million).
Expenses are recognised on a straight-line basis.
TOTAL CASH FLOWS RELATING TO LEASES
DKK million
1 January –
31 March 2025
1 January –
31 March 2024
Fixed lease payments
314
271
Interest payments
103
82
Variable leases
131
138
Short-term and low-value leases
23
21
Total cash flows relating to leases
571
512
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
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 36 OF 40
payables within the supply chain financing programme range from 100–120 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 344 million at 31 March 2025 (31
December 2024: DKK 362 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
Q1 2025
Number
of concept
stores
Q4 2024
Number
of concept
stores
Q1 2024
Growth
Q1 2025
/ Q4 2024
Growth
Q1 2025
/Q1 2024
Number
of concept
stores
O&O
Q1 2025
Growth
O&O
stores
Q1 2025
/ Q4 2024
Growth
O&O
stores
Q1 2025
/Q1 2024
US
480
484
457
-4
23
415
16
49
China
188
198
212
-10
-24
178
-10
-24
UK
224
222
219
2
5
224
3
9
Italy
190
186
175
4
15
168
8
20
Australia
132
134
124
-2
8
79
3
24
France
126
127
123
-1
3
119
1
17
Germany
137
138
135
-1
2
136
-2
3
Total key markets
1,477
1,489
1,445
-12
32
1,319
19
98
Rest of Pandora
1,294
1,299
1,225
-5
69
794
6
89
All markets
2,771
2,788
2,670
-17
101
2,113
25
187
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
As of the end of Q1 2025, Pandora had hedged 70% of commodity exposures for the next 12 months of production.
Early April 2025, Pandora took advantage of the extraordinary volatility in the commodity markets and hedged more
of the silver exposure related to the 2026 P&L. The table below illustrates the timing of the hedges in 2025 and 2026
including the additional contracts entered in early April related to the purchase of silver and gold for production,
excluding the time-lag from inventory to cost of sales. The time-lag from use in production to impact on cost of sales
is usually 2-7 months.
HEDGED AND REALISED PURCHASE PRICES
(AT USE OF THE SILVER AND GOLD FOR PRODUCTION)
USD / OZ
Realised in
Q1 2025
Hedged
Q2 2025
Hedged
Q3 2025
Hedged
Q4 2025
Hedged
Q1 2026
Hedged
Q2 2026
Silver price
27.9
31.3
32.2
32.0
1
30.3
1
29.8
Gold price
2,482
2,681
2,853
2,925
2,866
-
Commodity hedge ratio (target), %
Realised
70-100%
70-90%
50-70%
30-50%
-
1
Excluding hedging contracts entered in early April, the silver price would be 32.4 for Q4 2025 and 31.3 for Q1 2026, respectively. Exposures related
to Q2 2026 was also hedged in early April.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 37 OF 40
As a result, Pandora has now hedged all of the 2025 P&L and around 70% of the 2026 P&L for silver and gold combined.
The P&L exposure for silver is hedged at an average silver price of 29.2 USD/oz for 2025 and around 31 USD/oz for
2026, including forward pricing.
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
Other than as described in “Update on the recently announced US tariffs” and “Other events” in the Management
review, as well as in note 6 Business Combinations and note 12 Commodity hedging and derivatives, Pandora is not
aware of events after 31 March 2025, which are expected to materially impact the Group’s financial position.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 38 OF 40
QUARTERLY OVERVIEW
DKK million
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Financial highlights
Revenue
7,347
11,973
6,103
6,771
6,834
Organic growth, %
7%
11%
11%
15%
18%
Like-for-like, %
6%
6%
7%
8%
11%
Earnings before interest, tax, depreciation and
amortisation (EBITDA)
2,265
4,772
1,571
1,916
2,067
Operating profit (EBIT)
1,641
4,149
980
1,338
1,507
EBIT margin, %
22.3%
34.7%
16.1%
19.8%
22.0%
Net financials
-238
-347
-193
-280
-229
Net profit for the period
1,101
2,869
595
799
965
FINANCIAL RATIOS
Revenue growth, DKK, %
8%
11%
10%
15%
17%
Revenue growth, local currency, %
7%
11%
12%
16%
19%
Gross margin, %
80.4%
79.8%
80.1%
80.2%
79.4%
EBITDA margin, %
30.8%
39.9%
25.7%
28.3%
30.3%
EBIT margin, %
22.3%
34.7%
16.1%
19.8%
22.0%
Effective tax rate, %
21.5%
24.5%
24.5%
24.5%
24.5%
Equity ratio, %
14%
20%
14%
16%
17%
NIBD to EBITDA, x
1.4
1.1
1.5
1.4
1.3
Return on invested capital (ROIC), %
1
45%
46%
44%
45%
45%
Cash conversion incl. lease payments, %
-48%
124%
58%
94%
-12%
Net working capital, % of last 12 months’ revenue
4.2%
-1.7%
5.9%
6.0%
6.9%
Capital expenditure, % of revenue
5.6%
4.6%
7.9%
7.0%
6.0%
STOCK RATIOS
Total payout ratio (incl. share buyback), %
234%
35%
193%
110%
255%
CONSOLIDATED BALANCE SHEET
Total assets
26,448
27,758
25,529
24,797
23,993
Invested capital
18,306
16,515
18,013
17,478
16,605
Net working capital
1,338
-549
1,812
1,812
2,017
Net interest-bearing debt (NIBD)
14,474
11,008
14,498
13,402
12,643
Equity
3,833
5,508
3,515
4,076
3,961
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
-289
5,725
1,181
1,626
188
Capital expenditure, total
409
553
481
476
409
Capital expenditure, property, plant and equipment
309
439
398
331
252
Free cash flows incl. lease payments
-782
5,126
572
1,255
-187
1
Last 12 months’ EBIT in % of last 12 months’ average invested capital.
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.
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • ACCOUNTING NOTES
PAGE 39 OF 40
MANAGEMENT STATEMENT
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
6 MAY 2025 • COMPANY ANNOUNCEMENT 944 • INTERIM REPORT Q1 2025 • DISCLAIMER
PAGE 40 OF 40
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.