ACCOUNTING POLICIES
Cash flows from operating activities are presented using the indirect method.
Cash flows in currencies other than the functional currency are translated at the average exchange rates
for the month in question, unless these differ significantly from the rates at the transaction dates.
ACCOUNTING POLICIES
Cash flows from operating activities are presented using the indirect method.
Cash flows in currencies other than the functional currency are translated at the average exchange rates
for the month in question, unless these differ significantly from the rates at the transaction dates.
NOTE 1.1
GENERAL ACCOUNTING POLICIES
Pandora A/S is a public limited company with its registered office in Denmark.
The Annual Report for the period 1 January to 31 December 2025 comprises the consolidated financial statements of Pandora A/S and its subsidiaries (the Group) as well as separate Financial Statements for the Parent Company, Pandora A/S. The Financial Statements have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act for class D companies.
The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments, which have been measured at fair value.
The Annual Report is presented in Danish kroner (DKK), and all amounts are in millions unless otherwise stated. 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.
Apart from changes due to the implementation of new or amended standards and interpretations as described in note 1.2 New accounting policies and disclosures, accounting policies are unchanged from last year.
iXBRL REPORTING
Pandora A/S has filed the Annual Report 2025 in the European Single Electronic Format (ESEF), XHTML, which can be displayed in a standard browser. The consolidated financial statements are tagged using eXtensible Business Reporting Language (iXBRL), which complies with the ESEF taxonomy included in the ESEF Regulation. The Annual Report submitted to the Danish Financial Supervisory Authority consists of the XHTML document together with certain technical files, all included in a zip file named PAND-2025-12-31-en.zip.
ALTERNATIVE PERFORMANCE MEASURES
Pandora presents financial measures in the Annual Report that are not defined according to IFRS Accounting Standards. Pandora believes that these non-GAAP measures provide valuable information to investors and Pandora\u2019s 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.
ACCOUNTING POLICIES
The general accounting policies applied in the Annual Report as a whole are described below. The accounting policies related to specific line items are described in the notes to which they relate. The description of accounting policies in the notes forms part of the general description of Pandora\u2019s accounting policies.
NOTES | |
2.1 | Segment and revenue information |
2.2 | Staff costs |
2.3 | Share-based payments |
2.4 | Taxation |
3.1 | Intangible assets |
3.2 | Property, plant and equipment |
3.3 | Leases |
3.4 | Business combinations |
3.5 | Inventories |
3.6 | Trade receivables |
3.7 | Provisions |
3.8 | Contract assets and liabilities |
4.2 | Earnings per share and dividend |
4.3 | Liabilities from financing activities |
4.5 | Derivative financial instruments |
4.6 | Net financials |
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements comprise the Financial Statements of the Parent Company and its subsidiaries. Subsidiaries are fully consolidated from the date of acquisition, being the date on which Pandora obtains control, until the date that such control ceases. All intercompany balances, income and expenses, unrealised gains and losses and dividends resulting from intercompany transactions are eliminated in full.
FUNCTIONAL AND PRESENTATION CURRENCY
The consolidated financial statements are presented in DKK, which is also the functional currency of the Parent Company. Each subsidiary determines its own functional currency, and items recognised in the Financial Statements of each entity are measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recognised in the Group entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange prevailing at the reporting date. All adjustments are recognised in the income statement.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.
Foreign exchange rate adjustments arising on monetary items which are considered part of the net investment in foreign entities are recognised in other comprehensive income.
Group companies with a functional currency other than DKK
The assets and liabilities of foreign subsidiaries are translated into DKK at the rate of exchange prevailing at the reporting date, and their income statements are translated at the exchange rates prevailing at the dates of the transactions.
Exchange rate adjustments arising on translation are recognised in other comprehensive income. On disposal of a foreign subsidiary, the component of other comprehensive income relating to that particular foreign operation is recognised in the income statement.
CONSOLIDATED INCOME STATEMENT
The consolidated income statement is presented based on costs classified by function. Cost of sales comprises direct and indirect expenses incurred to generate revenue for the year, comprising raw materials, consumables, production staff, depreciation, amortisation and impairment losses in respect of production equipment.
Sales, distribution and marketing expenses comprise expenses related to the distribution of goods sold and sales campaigns, including packaging materials, brochures, wages and salaries and other expenses related to sales and distribution staff as well as depreciation, amortisation and impairment losses in respect of distribution equipment and stores.
Administrative expenses comprise expenses incurred in the year to manage Pandora, including expenses related to administrative staff and depreciation, amortisation and impairment losses in respect of assets used in the administration.
The allocation of amortisation and impairment losses from intangible assets is presented in note 3.1 Intangible assetsand the allocation of depreciation and impairment losses from property, plant and equipment in note 3.2 Property, plant and equipment.
ACCOUNTING POLICIES
RETAIL SALES \u2013 PRODUCTS
Revenue from the sale of products through stores owned and operated by Pandora is recognised when a store sells a product to the customer. Payment is usually due when the customer picks up the product in the store or the product is delivered from an online store. However, in some instances collection is delayed and a receivable recognised, see note 3.6 Trade receivables.
A refund liability and a right-of-return asset are recognised for products expected to be returned, see note 3.8 Contract assets and liabilities.
The estimate for returned products is based on historical experience
and expectations. Based on knowledge of the nature of returns, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Rebates and discounts granted to customers are recognised as a reduction in revenue.
The Group\u2019s obligation to repair or replace faulty products is part of the standard terms and is therefore recognised as a contract liability, see note 3.8 Contract assets and liabilities. Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales, that are not recoverable from the local taxation authorities, are reported gross as part of revenue and cost of sales.
WHOLESALE AND THIRD-PARTY DISTRIBUTORS \u2013 PRODUCTS
Pandora manufactures and sells jewellery to wholesalers and third-party distributors. Revenue is recognised when control of the products has been transferred to the wholesaler or third-party distributor. Change of control of the products occurs when they have been delivered to the wholesaler or distributor and no further obligation exists that can affect the transfer of control. Delivery has taken place when the products have been shipped to the location of the wholesaler or distributor and control of the goods has been transferred to the buyer. Revenue from the sale is recognised based on the price specified in the contract.
Revenue is only recognised to the extent it is highly probable that a significant reversal will not occur. A refund liability and a right-of-return asset are recognised for products expected to be returned, seenote 3.8 Contract assets and liabilities. The estimate for returned products is based on historical experience and expectations. Based on knowledge of the nature of returns in the wholesale and distributor channels, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Provisions for rebates and discounts granted to wholesalers and franchisees are recognised as a reduction in revenue. The performance obligation has an initial duration of less than 12 months.
The Group\u2019s obligation to repair or replace faulty products is recognised on a gross basis in the income statement as both a reduction in revenue and a decrease in cost of goods sold. This is due to the handling of warranty claims, which leads to replacements instead of repairs.
Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales that are not recoverable from the local taxation authorities are reported gross as part of revenue and cost of sales.
When control has been transferred, a receivable is recognised, as the consideration to be paid is conditional only on the passage of time. The price specified in the contract is not adjusted for any financing element, as payment terms never exceed 12 months.
LOYALTY PROGRAMME
Revenue related to the loyalty programme points value is deferred up to the time the points are used. The stand-alone selling price of loyalty points issued is calculated by multiplying the estimated redemption rate and the monetary value assigned to the loyalty points. In estimating the redemption rate, Pandora considers breakage, which represents the portion of loyalty points issued that will never be redeemed.
Pandora\u2019s activities are segmented into two reportable segments, each responsible for the end-to-end performance of collections. One includes our Corecollections, while the other, Fuel with more, covers newer collections and innovations.
Coreincludes charms and carriers which focus on collectability. Fuel with moreincludes the Modern Classics (Pandora Timeless, Pandora Signature and PANDORA ESSENCE) and Pandora Lab-Grown Diamonds and targets both existing and new customers who may have a different aesthetic preference than the Corejewellery design.
The two operating segments include all channels relating to the distribution and sale of Pandora products.
Executive 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 to the right.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
ACCOUNTING POLICIES
Selected Pandora employees receive remuneration in the form of share-based payment transactions, whereby programme participants render services as consideration for equity instruments (equity-settled transactions).
EQUITY-SETTLED TRANSACTIONS
The cost of equity-settled transactions with employees is measured by reference to the fair value at the grant date. The calculated fair values are based on the Black-Scholes model. The cost of equity-settled transactions is recognised as staff costs together with a corresponding increase in equity over the period in which the performance and/or service conditions are fulfilled.
The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and management\u2019s best estimate of the number of equity instruments that will ultimately vest. The incomestatement expenses or income for a period represents the movement incumulative expenses recognised at the beginning and end of that period.
ACCOUNTING POLICIES
Income tax expense for the year comprises current tax and changes in deferred tax, including changes in tax rate, adjustment to prior years and changes in provisions for uncertain tax positions. Tax is recognised in the income statement, except to the extent that it is related to items recognised in equity or other comprehensive income. The tax rates and tax laws used to compute the amounts are those enacted or substantively enacted, by the reporting date, in the countries in which Pandora operates and generates taxable income.
ACCOUNTING POLICIES
Pandora is subject to global minimum tax (OECD BEPS Pillar Two rules) primarily in respect of jurisdictions with income tax rates lower than 15% or in which we receive tax incentives. Where qualifying domestic minimum taxes are implemented in applicable jurisdictions, Pandora will pay the minimum tax in those jurisdictions. Where no qualifying domestic minimum tax has been implemented, tax will be paid in Denmark.
ACCOUNTING POLICIES
With respect to global minimum tax, the Group applies the mandatory exception to the accounting requirements for deferred taxes in IAS 12, so that an entity neither recognises nor discloses information about deferred tax assets and liabilities related to minimum taxes. Deferred tax on all the remaining temporary differences between the carrying amounts for financial reporting purposes and the tax base of assets and liabilities are measured using the balance sheet liability method. No deferred tax is recognised on temporary differences that arise from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss.
The recognition of deferred tax assets includes the expected tax value of tax loss carryforwards to the extent that these tax assets can be offset against positive taxable income in the foreseeable future. The same applies to deferred tax assets related to investments in subsidiaries. Management has considered future taxable income and applied judgements to determine whether deferred tax assets should be recognised.
Deferred tax assets and liabilities are measured according to current tax rules and at the tax rates expected to be effective on elimination of the temporary differences. Deferred tax assets and liabilities are offset if the Group has a legally enforceable right to offset current tax assets against current tax liabilities and the deferred tax relates to the same taxable entity and the same tax authority.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
ACCOUNTING POLICIES
Pandora applies a single recognition and measurement approach to all leases, except for short-term leases and low-value leases. Pandora recognises right-of-use assets at the commencement date of the lease when the asset is available for use. Right-of-use assets are measured at cost less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date, key money, dilapidation assets, less any lease incentives received. Key money and dilapidation assets are measured at cost and amortised over the term of the contract. Right-of-use assets are depreciated on a straight-line basis over the shorter of the asset\u2019s useful life and the lease term. At each reporting date, Pandora assesses whether there is any indication that a right-of-use asset may be impaired. If any such indication exists, Pandora carries out impairment testing for the relevant CGU.
Pandora recognises lease liabilities at the commencement date of the lease, measured at the present value of lease payments to be made over the lease term. Lease payments include fixed payments less any lease incentives receivable. Some leases are exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. Payments relating to services are not included in lease liabilities. Some property leases contain variable payment terms that are linked to sales generated from a store. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occurs and are not included in the lease liability.
In calculating the present value of lease payments, Pandora uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, for example a change in the lease term or a change in the lease payments. Lease payments are classified in financial activities in the statement of cash flows. Pandora applies the short-term lease recognition exemption to its short-term leases. Payments related to short-term leases and leases of low-value assets continue to be recognised on a straight-line basis as an expense in the income statement. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise some IT equipment and other office equipment.
ACCOUNTING POLICIES
Business combinations are accounted for in accordance with the IFRS 3 acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. Acquisition costs incurred are expensed. Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is reported and managed internally at Group level. The goodwill acquired is allocated to the CGUs in the two operating segments for impairment testing purposes due to the constraint in IAS 36.
ACCOUNTING POLICIES
Inventories are valued at the lower of cost and net realisable value. The cost of inventories are accounted for on a first-in, first-out basis (FIFO) and includes raw materials - including the effect of realised commodity hedges - direct labour, and a proportion of production overheads allocated based on normal operating capacity. These overheads comprise indirect supplies, indirect wages and salaries, amortisation of production-related software, as well as maintenance and depreciation of machinery, plant and equipment used in production, while borrowing costs are not included. Additionally, the cost of inventories includes directly attributable costs incurred to bring the inventories to their present location and condition, such as freight, insurance and duties.
Point-of-sale materials, including equipment, displays and packaging materials, are also accounted for using the FIFO method. Their cost consists of the purchase price and costs directly related to bringing the materials to the relevant point of sale.
ACCOUNTING POLICIES
Trade receivables are initially recognised at the amount of consideration that is unconditional and consequently recognised at fair value. The Group holds trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
Pandora applies the simplified approach to measure expected credit losses, using a lifetime expected loss allowance.
ACCOUNTING POLICIES
Provisions are recognised when Pandora has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognised in the income statement net of any reimbursement.
ACCOUNTING POLICIES
Pandora recognises a refund and warranty liability related to return rights provided to customers in most markets. A corresponding right-of-return asset is also recognised as part of contract assets. The value of the right-of-return asset is determined by how many of the returned products are expected to be sold. Remaining products are written down to remelt value together with returns covered by warranties.
The refund liability for estimated sales returns is recognised when there is historical experience or when a reasonably accurate estimate of expected future returns can otherwise be made. The income effect recognised is the gross margin of the expected returns and the potential effect of writing down parts of the returned goods to remelt value. Changes to the right-of-return asset and refund liability are recognised gross in the income statement as both revenue and cost of sales.
Refund liability to cover warranty claims is based on expectedreplacements provided for products still covered by warranty at the end of the period. The liability is recognised gross in the income statement as both a reduction in revenue and in cost of goods sold. This is due to the handling of warranty claims which lead to replacements instead of repairs.
Revenue related to the gift cards and coupons is deferred up to the time the gift cards and coupons are used. The stand-alone selling price of the gift cards and coupons is the monetary value of the cards and coupons. In estimating the redemption rate, Pandora considers breakage, which represents the portion of the gift cards and coupons value issued that will never be redeemed. In estimating the redemption rate, Pandora applies the concept of breakage under IFRS 15, recognising revenue from the portion of gift cards and coupons expected not to be redeemed. This breakage is recognised in proportion to the pattern of actual redemptions.
As a common practice in Pandora, no costs to obtain contracts with customers were capitalised in 2025 or previous years.
ACCOUNTING POLICIES
Dividend proposed is recognised as a liability at the date of the adoption at the Annual General Meeting (declaration date). Extraordinary dividend is recognised as a liability at the declaration date.
ACCOUNTING POLICIES
On initial recognition, interest-bearing debt and borrowings are measured at fair value less transaction costs. Subsequent to initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest rate method.
Gains and losses are recognised in the income statement when the liabilities are derecognised and through the effective interest rate method. Amortised cost is calculated by taking into account any discount or premium at inception, as well as fees and other costs.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
NOTE 1.1
GENERAL ACCOUNTING POLICIES
Pandora A/S is a public limited company with its registered office in Denmark.
The Annual Report for the period 1 January to 31 December 2025 comprises the consolidated financial statements of Pandora A/S and its subsidiaries (the Group) as well as separate Financial Statements for the Parent Company, Pandora A/S. The Financial Statements have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act for class D companies.
The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments, which have been measured at fair value.
The Annual Report is presented in Danish kroner (DKK), and all amounts are in millions unless otherwise stated. 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.
Apart from changes due to the implementation of new or amended standards and interpretations as described in note 1.2 New accounting policies and disclosures, accounting policies are unchanged from last year.
iXBRL REPORTING
Pandora A/S has filed the Annual Report 2025 in the European Single Electronic Format (ESEF), XHTML, which can be displayed in a standard browser. The consolidated financial statements are tagged using eXtensible Business Reporting Language (iXBRL), which complies with the ESEF taxonomy included in the ESEF Regulation. The Annual Report submitted to the Danish Financial Supervisory Authority consists of the XHTML document together with certain technical files, all included in a zip file named PAND-2025-12-31-en.zip.
ALTERNATIVE PERFORMANCE MEASURES
Pandora presents financial measures in the Annual Report that are not defined according to IFRS Accounting Standards. Pandora believes that these non-GAAP measures provide valuable information to investors and Pandora\u2019s 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.
ACCOUNTING POLICIES
The general accounting policies applied in the Annual Report as a whole are described below. The accounting policies related to specific line items are described in the notes to which they relate. The description of accounting policies in the notes forms part of the general description of Pandora\u2019s accounting policies.
NOTES | |
2.1 | Segment and revenue information |
2.2 | Staff costs |
2.3 | Share-based payments |
2.4 | Taxation |
3.1 | Intangible assets |
3.2 | Property, plant and equipment |
3.3 | Leases |
3.4 | Business combinations |
3.5 | Inventories |
3.6 | Trade receivables |
3.7 | Provisions |
3.8 | Contract assets and liabilities |
4.2 | Earnings per share and dividend |
4.3 | Liabilities from financing activities |
4.5 | Derivative financial instruments |
4.6 | Net financials |
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements comprise the Financial Statements of the Parent Company and its subsidiaries. Subsidiaries are fully consolidated from the date of acquisition, being the date on which Pandora obtains control, until the date that such control ceases. All intercompany balances, income and expenses, unrealised gains and losses and dividends resulting from intercompany transactions are eliminated in full.
FUNCTIONAL AND PRESENTATION CURRENCY
The consolidated financial statements are presented in DKK, which is also the functional currency of the Parent Company. Each subsidiary determines its own functional currency, and items recognised in the Financial Statements of each entity are measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recognised in the Group entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange prevailing at the reporting date. All adjustments are recognised in the income statement.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.
Foreign exchange rate adjustments arising on monetary items which are considered part of the net investment in foreign entities are recognised in other comprehensive income.
Group companies with a functional currency other than DKK
The assets and liabilities of foreign subsidiaries are translated into DKK at the rate of exchange prevailing at the reporting date, and their income statements are translated at the exchange rates prevailing at the dates of the transactions.
Exchange rate adjustments arising on translation are recognised in other comprehensive income. On disposal of a foreign subsidiary, the component of other comprehensive income relating to that particular foreign operation is recognised in the income statement.
CONSOLIDATED INCOME STATEMENT
The consolidated income statement is presented based on costs classified by function. Cost of sales comprises direct and indirect expenses incurred to generate revenue for the year, comprising raw materials, consumables, production staff, depreciation, amortisation and impairment losses in respect of production equipment.
Sales, distribution and marketing expenses comprise expenses related to the distribution of goods sold and sales campaigns, including packaging materials, brochures, wages and salaries and other expenses related to sales and distribution staff as well as depreciation, amortisation and impairment losses in respect of distribution equipment and stores.
Administrative expenses comprise expenses incurred in the year to manage Pandora, including expenses related to administrative staff and depreciation, amortisation and impairment losses in respect of assets used in the administration.
The allocation of amortisation and impairment losses from intangible assets is presented in note 3.1 Intangible assetsand the allocation of depreciation and impairment losses from property, plant and equipment in note 3.2 Property, plant and equipment.
NOTE 5.6
FINANCIAL DEFINITIONS
Key \ufb01gures and \ufb01nancial ratios stated in the consolidated \ufb01nancial statements have been calculated in accordance with the CFA Society Denmark guidelines.
Revenue growth, % | (Current year\u2019s revenue - last year\u2019s revenue) / last year\u2019s revenue |
Revenue growth, local currency, % | (Current year\u2019s revenue at last year\u2019s exchange rates \u2013 last year\u2019s revenue) / last year\u2019s revenue |
Gross margin, % | Gross profit / revenue |
Effective tax rate, % | Income tax expense / profit before tax |
Forward-looking statements
This Annual Report 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\u2019s future financial and operating results. Forward-lookingstatements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as \u201cexpect\u201d, \u201cestimate\u201d, \u201cintend\u201d, \u201cwill be\u201d, \u201cwill continue\u201d, \u201cwill result\u201d, \u201ccould\u201d, \u201cmay\u201d, \u201cmight\u201d 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\u2019s actual results to differ materially from the results discussed in such forward-looking statements. Prospective information is based on management\u2019s 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\u2019s 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\u2019s 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\u2019s 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\u2019s 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.
Equity ratio, % | Equity / total assets |
Total payout ratio, % | (Dividends paid for the year + value of share buyback) / net profit |
EPS, basic | Net profit / average number of shares outstanding |
EPS, diluted | Net profit / average number of shares outstanding, including the dilutive effect of share options \u201cin the money\u201d |
Pandora presents the following alternative performance measures not de\ufb01ned according to IFRS Accounting Standards (non-GAAP measures) in the Annual Report:
Furthermore, a breakdown of \u201cOperating working capital\u201d, \u201cNet working capital\u201d, \u201cNet working capital excl. derivatives\u201d and \u201cInvested capital\u201d is given on the Financial Statements section 3 divider.
Like-for-like, % | Like-for-like growth includes sell-out from all concept stores (including partner-owned), owned and operated Shop in Shops and Pandora Online. Partner-owned other pointsof sale are not included in like-for-like. The KPI includes stores which have been operating for +12 months |
Organic growth, % | Revenue growth in local currency relative to the same period in the comparative year adjusted for the acquisition/divestment of distributors and franchisee stores (the effect of converting wholesale to retail revenue and vice versa) |
EBITDA | Profit before interest, tax, depreciation and amortisation |
EBITDA margin, % | EBITDA / revenue |
EBIT | Profit before interest and tax |
EBIT margin, % | EBIT / revenue |
Return on invested capital (ROIC), % | Last 12 months' EBIT / last12 months' average invested capital including goodwill |
Free cash flows incl. lease payments | Cash flows from operating activities, excluding financial items and cash flows from investing activities excluding acquisitions of subsidiaries and activities and including the repayment of lease commitments |
Capital expenditure (CAPEX) | Purchase of intangible assets and property, plant and equipment for the year, excluding acquisitions of subsidiaries |
Days sales outstanding (DSO) | Last three months of wholesale and third-party distribution revenue relative to trade receivables from these channels and not adjusted for VAT |
Net interest- bearing debt (NIBD) | Loans, borrowings, capitalised leases and other liabilities relating to obligations to acquire non-controlling interests (current and non-current) less cash |
NIBD to EBITDA | NIBD / EBITDA (rolling 12 months) |
Cash conversion incl. lease payments, % | Free cash flows incl. lease payments / EBIT |
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements comprise the Financial Statements of the Parent Company and its subsidiaries. Subsidiaries are fully consolidated from the date of acquisition, being the date on which Pandora obtains control, until the date that such control ceases. All intercompany balances, income and expenses, unrealised gains and losses and dividends resulting from intercompany transactions are eliminated in full.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5299007OWYZ6I1E46843", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__9__106": { "value": "CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements comprise the Financial Statements of the Parent Company and its subsidiaries. Subsidiaries are fully consolidated from the date of acquisition, being the date on which Pandora obtains control, until the date that such control ceases. All intercompany balances, income and expenses, unrealised gains and losses and dividends resulting from intercompany transactions are eliminated in full.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:5299007OWYZ6I1E46843", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__9__107": { "value": "FUNCTIONAL AND PRESENTATION CURRENCY
The consolidated financial statements are presented in DKK, which is also the functional currency of the Parent Company. Each subsidiary determines its own functional currency, and items recognised in the Financial Statements of each entity are measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recognised in the Group entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange prevailing at the reporting date. All adjustments are recognised in the income statement.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.
Foreign exchange rate adjustments arising on monetary items which are considered part of the net investment in foreign entities are recognised in other comprehensive income.
Group companies with a functional currency other than DKK
The assets and liabilities of foreign subsidiaries are translated into DKK at the rate of exchange prevailing at the reporting date, and their income statements are translated at the exchange rates prevailing at the dates of the transactions.
Exchange rate adjustments arising on translation are recognised in other comprehensive income. On disposal of a foreign subsidiary, the component of other comprehensive income relating to that particular foreign operation is recognised in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:5299007OWYZ6I1E46843", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__9__108": { "value": "FUNCTIONAL AND PRESENTATION CURRENCY
The consolidated financial statements are presented in DKK, which is also the functional currency of the Parent Company. Each subsidiary determines its own functional currency, and items recognised in the Financial Statements of each entity are measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recognised in the Group entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange prevailing at the reporting date. All adjustments are recognised in the income statement.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.
Foreign exchange rate adjustments arising on monetary items which are considered part of the net investment in foreign entities are recognised in other comprehensive income.
Group companies with a functional currency other than DKK
The assets and liabilities of foreign subsidiaries are translated into DKK at the rate of exchange prevailing at the reporting date, and their income statements are translated at the exchange rates prevailing at the dates of the transactions.
Exchange rate adjustments arising on translation are recognised in other comprehensive income. On disposal of a foreign subsidiary, the component of other comprehensive income relating to that particular foreign operation is recognised in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5299007OWYZ6I1E46843", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__9__110-1": { "value": "NOTE 1.2
NEW ACCOUNTING POLICIES AND DISCLOSURES
IMPLEMENTATION OF NEW OR AMENDED STANDARDS AND INTERPRETATIONS
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 1 January to 31 December 2025.
The implementation of these new or amended standards and interpretations had no material impact on the consolidated financial statements for the year.
Standards issued but not yet effective
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.
IFRS 18 introduces new requirements for presentation within the income statement, including specified totals and subtotals. Furthermore, entities are required to classify all income and expenses within the income statement into one of five categories: operating, investing, financing, income taxes and discontinued operations, whereof the first three are new. The standard requires disclosure of management-defined performance measures and new requirements for aggregation and disaggregation of financial information.In addition, consequential narrow-scope amendments have been made to IAS 7 Statement of Cash Flows, which include changing the starting point for determining cash flows from operations under the indirect method, from \u2018profit or loss\u2019 to \u2018operating profit or loss\u2019 and removing the optionality around classification of cash flows from interest paid, which will be presented in the financing category. In addition, there are consequential amendments to several other standards.
Pandora is currently working to identify all impacts the requirements will have on the financial statements. The initial expected material impacts relate to the reclassification of foreign exchange differences into the category where the respective item giving rise to the foreign exchange difference is classified as well as foreign currency hedges relating to operating income and expenses. Furthermore, new disclosures on management-defined performance measures and new notes regarding specification of expenses by nature including reconciliation to the primary financial statements as required by IFRS 18, will be added in the first year of implementation.Pandora intends to adopt the standard on 1 January 2027 and is currently assessing the impact and closely monitoring the implementation guidance.
NOTE 1.3
MANAGEMENT\u2019S JUDGEMENTS AND ESTIMATES UNDER IFRS ACCOUNTING STANDARDS
NOTES | |
2.1 | Segment and revenue information |
2.4 | Taxation |
3.5 | Inventories |
3.8 | Contract assets and liabilities |
5.1 | Contingent assets and liabilities |
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
In preparing the consolidated financial statements, management makes various judgements, accounting estimates and assumptions that form the basis of the presentation, recognition and measurement of Pandora\u2019s assets and liabilities.
Determining the carrying amounts of some assets and liabilities requires judgement, estimates and assumptions concerning future events. Judgements, estimates and assumptions are based on historical experience and other factors, which management assesses to be reasonable, but which by their nature involve uncertainty and unpredictability. These assumptions may have to be revised, and unexpected events or circumstances may occur.
Pandora is subject to risks and uncertainties that may lead to actual results differing from these estimates, both positively and negatively.
CLIMATE CHANGE
As a global business, Pandora is exposed to risks associated with climate change comprising both transitional risks and physical risks. The transition from a linear economy to a circular economy entails a range of transitional risks to Pandora, such as the demand for more green products and packaging and further legal requirements with focus on sustainability for the supply chain.
Pandora is subject to the reporting requirements under the Corporate Sustainability Reporting Directive (CSRD), which are integrated into the Annual Report in the separate Sustainability Statements. The European Commission\u2019s 2025 Omnibus amendments to the CSRD and ESRS do not have a material impact on the Group\u2019s accounting estimates or judgments, as climate and other sustainability risks are embedded in the Group's strategic and financial planning.
In preparing the consolidated financial statements for 2025, management has considered the impact of climate change, particularly in the context of the Group\u2019s sustainability targets, to the extent possible. Pandora\u2019s targets to reduce its greenhouse gas emissions by 50% by 2030 and achieve net zero emissions by 2040 are included in the Group\u2019s financial budgets and forecasts.
Sustainability-related investments as well as costs of sourcing 100% recycled silver and gold and using only man-made stones incl. lab-grown diamonds in our jewellery, as well as other potential impact of climate change (such as costs to source renewable electricity), have been considered in the budget and forecast applied as basis for impairment testing of goodwill, see note 3.1 Intangible assets.
The potential consequences on the value and useful life of production facilities becoming outdated in the sustainability transformation was assessed as having currently no significant financial impact. Our investments related to expansion of production facilities are aligned with our sustainability agenda in this respect.
While sustainability is an embedded part of Pandora\u2019s business model, including but not limited to sustainability targets in our incentive programmes for senior leadership, see note 2.3 Share-based payments, and in all of Pandora\u2019s loan facilities, see note 4.4 Financial risks, management does not consider sustainability targets and climate change to have a material impact on the accounting estimates and judgements prepared by management in relation to the 2025 consolidated and Parent Company financial statements.
MACROECONOMIC UNCERTAINTY
The geopolitical tensions and the significant shifts in the U.S. trade policy, including the introduction of new tariffs continues to impact macroeconomic conditions, contributing to inflationary pressures, rising commodity prices, and adverse foreign exchange movements, which in turn influence consumer sentiment. Pandora remains focused on assessing the value of intangible assets, and property, plant and equipment. Internal forecasts have considered the ongoing impacts of volatile and increasing commodity prices as well as lower consumer sentiment, inflationary pressures, and changes in the interest and tax environment on income and expenses. Changes in selling prices and direct costs are based on experience and management\u2019s expectation of future changes in the markets where the Group operates.
Specific risks for Pandora are discussed in the relevant sections of the Management Review and specifically in the notes 3.1 Intangible assetsand 4.4 Financial risks. The areas that involve a high degree of judgement and estimation and that are material to the Financial Statements are described in more detail in the related notes.
NOTE 1.2
NEW ACCOUNTING POLICIES AND DISCLOSURES
IMPLEMENTATION OF NEW OR AMENDED STANDARDS AND INTERPRETATIONS
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 1 January to 31 December 2025.
The implementation of these new or amended standards and interpretations had no material impact on the consolidated financial statements for the year.
Standards issued but not yet effective
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.
IFRS 18 introduces new requirements for presentation within the income statement, including specified totals and subtotals. Furthermore, entities are required to classify all income and expenses within the income statement into one of five categories: operating, investing, financing, income taxes and discontinued operations, whereof the first three are new. The standard requires disclosure of management-defined performance measures and new requirements for aggregation and disaggregation of financial information.In addition, consequential narrow-scope amendments have been made to IAS 7 Statement of Cash Flows, which include changing the starting point for determining cash flows from operations under the indirect method, from \u2018profit or loss\u2019 to \u2018operating profit or loss\u2019 and removing the optionality around classification of cash flows from interest paid, which will be presented in the financing category. In addition, there are consequential amendments to several other standards.
Pandora is currently working to identify all impacts the requirements will have on the financial statements. The initial expected material impacts relate to the reclassification of foreign exchange differences into the category where the respective item giving rise to the foreign exchange difference is classified as well as foreign currency hedges relating to operating income and expenses. Furthermore, new disclosures on management-defined performance measures and new notes regarding specification of expenses by nature including reconciliation to the primary financial statements as required by IFRS 18, will be added in the first year of implementation.Pandora intends to adopt the standard on 1 January 2027 and is currently assessing the impact and closely monitoring the implementation guidance.
NOTE 1.3
MANAGEMENT\u2019S JUDGEMENTS AND ESTIMATES UNDER IFRS ACCOUNTING STANDARDS
NOTES | |
2.1 | Segment and revenue information |
2.4 | Taxation |
3.5 | Inventories |
3.8 | Contract assets and liabilities |
5.1 | Contingent assets and liabilities |
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
In preparing the consolidated financial statements, management makes various judgements, accounting estimates and assumptions that form the basis of the presentation, recognition and measurement of Pandora\u2019s assets and liabilities.
Determining the carrying amounts of some assets and liabilities requires judgement, estimates and assumptions concerning future events. Judgements, estimates and assumptions are based on historical experience and other factors, which management assesses to be reasonable, but which by their nature involve uncertainty and unpredictability. These assumptions may have to be revised, and unexpected events or circumstances may occur.
Pandora is subject to risks and uncertainties that may lead to actual results differing from these estimates, both positively and negatively.
CLIMATE CHANGE
As a global business, Pandora is exposed to risks associated with climate change comprising both transitional risks and physical risks. The transition from a linear economy to a circular economy entails a range of transitional risks to Pandora, such as the demand for more green products and packaging and further legal requirements with focus on sustainability for the supply chain.
Pandora is subject to the reporting requirements under the Corporate Sustainability Reporting Directive (CSRD), which are integrated into the Annual Report in the separate Sustainability Statements. The European Commission\u2019s 2025 Omnibus amendments to the CSRD and ESRS do not have a material impact on the Group\u2019s accounting estimates or judgments, as climate and other sustainability risks are embedded in the Group's strategic and financial planning.
In preparing the consolidated financial statements for 2025, management has considered the impact of climate change, particularly in the context of the Group\u2019s sustainability targets, to the extent possible. Pandora\u2019s targets to reduce its greenhouse gas emissions by 50% by 2030 and achieve net zero emissions by 2040 are included in the Group\u2019s financial budgets and forecasts.
Sustainability-related investments as well as costs of sourcing 100% recycled silver and gold and using only man-made stones incl. lab-grown diamonds in our jewellery, as well as other potential impact of climate change (such as costs to source renewable electricity), have been considered in the budget and forecast applied as basis for impairment testing of goodwill, see note 3.1 Intangible assets.
The potential consequences on the value and useful life of production facilities becoming outdated in the sustainability transformation was assessed as having currently no significant financial impact. Our investments related to expansion of production facilities are aligned with our sustainability agenda in this respect.
While sustainability is an embedded part of Pandora\u2019s business model, including but not limited to sustainability targets in our incentive programmes for senior leadership, see note 2.3 Share-based payments, and in all of Pandora\u2019s loan facilities, see note 4.4 Financial risks, management does not consider sustainability targets and climate change to have a material impact on the accounting estimates and judgements prepared by management in relation to the 2025 consolidated and Parent Company financial statements.
MACROECONOMIC UNCERTAINTY
The geopolitical tensions and the significant shifts in the U.S. trade policy, including the introduction of new tariffs continues to impact macroeconomic conditions, contributing to inflationary pressures, rising commodity prices, and adverse foreign exchange movements, which in turn influence consumer sentiment. Pandora remains focused on assessing the value of intangible assets, and property, plant and equipment. Internal forecasts have considered the ongoing impacts of volatile and increasing commodity prices as well as lower consumer sentiment, inflationary pressures, and changes in the interest and tax environment on income and expenses. Changes in selling prices and direct costs are based on experience and management\u2019s expectation of future changes in the markets where the Group operates.
Specific risks for Pandora are discussed in the relevant sections of the Management Review and specifically in the notes 3.1 Intangible assetsand 4.4 Financial risks. The areas that involve a high degree of judgement and estimation and that are material to the Financial Statements are described in more detail in the related notes.
SIGNIFICANT ACCOUNTING ESTIMATES
Recognition and measurement of revenue is based on estimates relating to expected sales returns allowed by customers in most markets. These estimates can have a material impact on the timing and measurement of recognised revenue as well as the level of the refund liability. Reductions in revenue from expected sales returns are calculated based on historical return patterns and on a case-by-case basis for commercial and other reasons, see note 3.8 Contract assets and liabilities.
SIGNIFICANT ACCOUNTING JUDGEMENTS
Pandora is subject to income tax in the countries in which the Group operates, comprising various tax rates worldwide. Significant judgements are required in determining the accrual for income taxes, deferred tax assets and liabilities, and provisions for uncertain tax positions. Provisions for uncertain tax positions are measured according to IFRIC 23.
As part of Pandora conducting business globally, tax and transfer pricing disputes with tax authorities may occur. Any unresolved disputes with local tax authorities are recognised as income tax payable/receivable based on the expected value method or the most likely amount. Management believes that the provisions made for uncertain tax positions are adequate. However, the actual obligation may deviate from this and is dependent on the result of litigation and settlements with the relevant tax authorities.
ACCOUNTING ESTIMATES
When assessing the lifetime of leases, Pandora considers the non-cancellable lease term and options to extend or terminate the lease where Pandora is reasonably certain to extend or not to terminate. Leases in Pandora mainly comprise stores and office buildings. The lease term for stores has been assessed to be up to 10 years, depending on factors such as location, revenue and earnings. For office buildings, the lease term is usually 5 to 15 years.
SIGNIFICANT ACCOUNTING ESTIMATES
Estimates relating to write-downs are impacted by forecasting accuracy in the number of obsolete products that will need to be remelted. Further, significant management estimates are required with regards to the calculations of internal gain on inventory when goods are sold from production entities to sales entities.
SIGNIFICANT ACCOUNTING ESTIMATES
In most markets, Pandora has provided return and warranty rights to customers. The handling of warranty claims leads to replacements instead of repairs. The recognised refund liability relating to return and warranty rights is assessed to a large extent on the basis of historical return patterns.
SIGNIFICANT ACCOUNTING ESTIMATES
The factors taken into account when estimating a potential liability in connection with litigation include the nature of the litigation or claim. Other factors taken into account are the development of the case, the judgements and recommendations of legal or other advisers, experience from similar cases and management\u2019s decision on how the Group will react to the litigation or claim.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
In preparing the consolidated financial statements, management makes various judgements, accounting estimates and assumptions that form the basis of the presentation, recognition and measurement of Pandora\u2019s assets and liabilities.
Determining the carrying amounts of some assets and liabilities requires judgement, estimates and assumptions concerning future events. Judgements, estimates and assumptions are based on historical experience and other factors, which management assesses to be reasonable, but which by their nature involve uncertainty and unpredictability. These assumptions may have to be revised, and unexpected events or circumstances may occur.
Pandora is subject to risks and uncertainties that may lead to actual results differing from these estimates, both positively and negatively.
CLIMATE CHANGE
As a global business, Pandora is exposed to risks associated with climate change comprising both transitional risks and physical risks. The transition from a linear economy to a circular economy entails a range of transitional risks to Pandora, such as the demand for more green products and packaging and further legal requirements with focus on sustainability for the supply chain.
Pandora is subject to the reporting requirements under the Corporate Sustainability Reporting Directive (CSRD), which are integrated into the Annual Report in the separate Sustainability Statements. The European Commission\u2019s 2025 Omnibus amendments to the CSRD and ESRS do not have a material impact on the Group\u2019s accounting estimates or judgments, as climate and other sustainability risks are embedded in the Group's strategic and financial planning.
In preparing the consolidated financial statements for 2025, management has considered the impact of climate change, particularly in the context of the Group\u2019s sustainability targets, to the extent possible. Pandora\u2019s targets to reduce its greenhouse gas emissions by 50% by 2030 and achieve net zero emissions by 2040 are included in the Group\u2019s financial budgets and forecasts.
Sustainability-related investments as well as costs of sourcing 100% recycled silver and gold and using only man-made stones incl. lab-grown diamonds in our jewellery, as well as other potential impact of climate change (such as costs to source renewable electricity), have been considered in the budget and forecast applied as basis for impairment testing of goodwill, see note 3.1 Intangible assets.
The potential consequences on the value and useful life of production facilities becoming outdated in the sustainability transformation was assessed as having currently no significant financial impact. Our investments related to expansion of production facilities are aligned with our sustainability agenda in this respect.
While sustainability is an embedded part of Pandora\u2019s business model, including but not limited to sustainability targets in our incentive programmes for senior leadership, see note 2.3 Share-based payments, and in all of Pandora\u2019s loan facilities, see note 4.4 Financial risks, management does not consider sustainability targets and climate change to have a material impact on the accounting estimates and judgements prepared by management in relation to the 2025 consolidated and Parent Company financial statements.
MACROECONOMIC UNCERTAINTY
The geopolitical tensions and the significant shifts in the U.S. trade policy, including the introduction of new tariffs continues to impact macroeconomic conditions, contributing to inflationary pressures, rising commodity prices, and adverse foreign exchange movements, which in turn influence consumer sentiment. Pandora remains focused on assessing the value of intangible assets, and property, plant and equipment. Internal forecasts have considered the ongoing impacts of volatile and increasing commodity prices as well as lower consumer sentiment, inflationary pressures, and changes in the interest and tax environment on income and expenses. Changes in selling prices and direct costs are based on experience and management\u2019s expectation of future changes in the markets where the Group operates.
Specific risks for Pandora are discussed in the relevant sections of the Management Review and specifically in the notes 3.1 Intangible assetsand 4.4 Financial risks. The areas that involve a high degree of judgement and estimation and that are material to the Financial Statements are described in more detail in the related notes.
NOTE 3.1
INTANGIBLE ASSETS
Goodwill | Brand | Distribution | Other intangible assets\u00b9 | Total | |
INTANGIBLE ASSETS | |||||
DKK million | |||||
2025 | |||||
Cost at 1 January | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Acquisition of subsidiaries and activities | 164 | - | - | - | 164 |
Additions | - | - | - | 460 | 460 |
Disposals | - | - | - | -44 | -44 |
Exchange rate adjustments | -270 | - | -8 | -28 | -306 |
Cost at 31 December | 5,020 | 1,057 | 1,606 | 3,429 | 11,113 |
Amortisation and impairment losses at 1 January | - | - | 580 | 2,027 | 2,606 |
Amortisation for the year | - | - | - | 233 | 233 |
Reversal of impairment for the year | - | - | - | -30 | -30 |
Disposals | - | - | - | -30 | -30 |
Exchange rate adjustments | - | - | - 8 | -22 | -30 |
Amortisation and impairment losses at 31 December | - | - | 572 | 2,177 | 2,750 |
Carrying amount at 31 December | 5,020 | 1,057 | 1,034 | 1,252 | 8,364 |
2024 | |||||
Cost at 1 January | 4,914 | 1,057 | 1,610 | 2,678 | 10,259 |
Acquisition of subsidiaries and activities | 98 | - | - | - | 98 |
Additions | - | - | - | 499 | 499 |
Disposals | - | - | - | -171 | -171 |
Exchange rate adjustments | 114 | - | 4 | 35 | 153 |
Cost at 31 December | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Amortisation and impairment losses at 1 January | - | - | 572 | 1,887 | 2,459 |
Amortisation for the year | - | - | 4 | 276 | 280 |
Disposals | - | - | - | -166 | -166 |
Exchange rate adjustments | - | - | 4 | 29 | 33 |
Amortisation and impairment losses at 31 December | - | - | 580 | 2,027 | 2,606 |
Carrying amount at 31 December | 5,126 | 1,057 | 1,034 | 1,015 | 8,232 |
\u00b9 Other intangible assets include assets that are not yet in use of DKK 559 million (2024: DKK 556 million), mainly related to software applications, including ERP systems.
DKK million | 2025 | 2024 |
Amortisation and impairment loss has been recognised in the income statement as follows: | ||
Cost of sales | -17 | 14 |
Sales, distribution and marketing expenses | 101 | 144 |
Administrative expenses | 119 | 122 |
Total | 203 | 280 |
GOODWILL
Additions in 2025 relate to acquisitions of activities. Note 3.4 Business combinationsincludes an overview of acquired goodwill for the year.
BRAND
The \u201cPandora\u201d brand is the only brand of the Group that is capitalised in the consolidated financial statements. It comprises a group of complementary intangible assets relating to the brand, domain name, products, image and customer experience of products sold under the Pandora brand. The brand was acquired as part of the Pandora core business in 2008.
DISTRIBUTION
Distribution includes distribution network and distribution rights acquired. The distribution network covers Pandora\u2019s relations with its distributors. The main part of the distribution network was acquired with the Pandora core business in 2008. Distribution rights mainly relate to the distribution rights for Pandora products in North America with indefinite-life. These were acquired from the American distributor in 2008, and the carrying amount at 31 December 2025 was DKK 1.0 billion (2024: DKK 1.0 billion).
OTHER INTANGIBLE ASSETS
Other intangible assets mainly comprise software, including ERP systems and other operational applications supporting business processes.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
METHOD FOR IMPAIRMENT TESTING
In the impairment test, the recoverable amount is compared with the carrying amount. The recoverable amount is based on a calculation of the value in use using cash flow projections based on the budget for 2026 and a forecast for the two subsequent years.
ALLOCATION OF INTANGIBLE ASSETS TO CGUs | |||
DKK million | Goodwill | Brand | Distribution |
2025 | |||
Core | 3,665 | 766 | 749 |
Fuel with more | 1,355 | 291 | 285 |
Total | 5,020 | 1,057 | 1,034 |
2024 | |||
Core | 3,748 | 766 | 749 |
Fuel with more | 1,377 | 291 | 285 |
Total | 5,126 | 1,057 | 1,034 |
DISCOUNT RATES AND GROWTH RATES IN TERMINAL PERIOD (%) | Discount rate before tax | Growth rate in terminal period |
2025 | ||
Core | 13.2% | 2% |
Fuel with more | 13.2% | 2% |
Group | 13.2% | 2% |
2024 | ||
Core | 12.9% | 2% |
Fuel with more | 12.9% | 2% |
Group | 12.9% | 2% |
All intangible assets are tested for impairment if there is any indication of impairment. Intangible assets with indefinite useful lives and assets not yet in use are tested at least annually.
ASSUMPTIONS
The calculations of the recoverable amounts of CGUs or groups of CGUs are based on the following key assumptions.
Discount rates reflect the current market assessment of the time value of money and the risks specific to each CGU or group of CGUs. The Group discount rates are estimated based on a weighted average cost of capital for the industry and adjusted to reflect the market assessment of any risk specific to each group of CGUs.
The cash flows used in the impairment test are based on the budget for next year, prepared and approved by management, and a forecast for the two subsequent years.
High inflation rates continued in 2025, and commodity prices - particularly silver - increased substantially during the year, both affecting the estimates for the upcoming years. Pandora expects the long-term inflation rate to stabilise and has applied a 2% growth rate in the terminal period (2024: 2%). As such, no real growth has been applied to the terminal period when calculating the recoverable amounts. While Pandora expects long-term commodity prices to stabilise at lower levels than current spot prices, a further increase in commodity prices has been applied in the sensitivity analysis of the recoverable amounts to assess the potential impact of possible changes in key assumptions, including higher production costs.
The cash flows projections for each group of CGUs are based on historical experience and management's expectations concerning:
\u2022 revenue development, taking into account development in network (stores, retail/wholesale share), product mix, market share and changes in consumer behaviour;
\u2022 cost of sales based on raw materials consumption affected by the mix of materials (man-made stones, silver and gold), salaries, and average lagged hedge commodity prices at the time the budget is prepared;
\u2022 development in operating expenses;
\u2022 currency rates, based on spot rates at the time the budget is prepared;
\u2022 interest rates;
\u2022 import duties and tariffs;
\u2022 increasing climate-related risks and geographical exposure; and
\u2022 the transition to a circular economy and to net zero impact, including investments required, and impact on the useful economic life of the assets.
For more information, see note 1.3 Management\u2019s judgements and estimates under IFRS Accounting Standards.
Net working capital in the budget for next year, relative to the revenue of each group of CGUs, is based on historical experience and is maintained for the remainder of the expected useful economic lives. Net working capital thus increases on a linear basis as the level of activity increases.
The impairment test of the brand at Group level is based on the \"Relief from Royalty\" method. The impairment tests did not identify any need for impairment losses to be recognised. Based on sensitivity analysis, it is management\u2019s opinion that no probable change in any key assumptions would cause the carrying amounts of the two operating segments or the Group as a whole to exceed their recoverable amounts.
Even with a significant reduction in the growth rate, higher production costs, and an increase in the discount rate, management has not identified any likely impairment.
NOTE 3.5
INVENTORIES
INVENTORIES | ||
DKK million | 2025 | 2024 |
Raw materials and consumables | 780 | 751 |
Work in progress | 134 | 141 |
Finished goods | 3,820 | 3,376 |
Point-of-sale materials | 149 | 159 |
Total inventories at 31 December | 4,883 | 4,426 |
Inventory write-downs at 1 January | 838 | 750 |
Write-downs during the year | 178 | 243 |
Utilised in the year | -210 | -155 |
Inventory write-downs at 31 December | 806 | 838 |
WRITE-DOWNS
Inventory write-downs primarily relate to finished goods and are recognised in cost of sales, DKK 136 million (2024: DKK 212 million), and operating expenses, DKK 42 million (2024: DKK 31 million). Write-downs include mainly the cost of remelting obsolete jewellery.
PRODUCTION OVERHEADS
Production overheads are calculated using a standard cost method, which is reviewed regularly to ensure relevant assumptions concerning capacity utilisation, lead times and other relevant factors.
NET REALISABLE VALUE
Net realisable value is based on the estimated selling price less estimated costs of completion and distribution. Alternatively, for inventories that are not expected to be sold, net realisable value is based on the recycle value of the reusable raw materials (primarily silver, gold and lab-grown diamonds).
ACCOUNTING POLICIES
Inventories are valued at the lower of cost and net realisable value. The cost of inventories are accounted for on a first-in, first-out basis (FIFO) and includes raw materials - including the effect of realised commodity hedges - direct labour, and a proportion of production overheads allocated based on normal operating capacity. These overheads comprise indirect supplies, indirect wages and salaries, amortisation of production-related software, as well as maintenance and depreciation of machinery, plant and equipment used in production, while borrowing costs are not included. Additionally, the cost of inventories includes directly attributable costs incurred to bring the inventories to their present location and condition, such as freight, insurance and duties.
Point-of-sale materials, including equipment, displays and packaging materials, are also accounted for using the FIFO method. Their cost consists of the purchase price and costs directly related to bringing the materials to the relevant point of sale.
SIGNIFICANT ACCOUNTING ESTIMATES
Estimates relating to write-downs are impacted by forecasting accuracy in the number of obsolete products that will need to be remelted. Further, significant management estimates are required with regards to the calculations of internal gain on inventory when goods are sold from production entities to sales entities.
NOTE 4.4
FINANCIAL RISKS
As a consequence of its operations, investments, and financing, Pandora is exposed to financial risks that are monitored and managed by Pandora\u2019s Group Treasury department.
The financial risks faced by Pandora can be categorised into the following subgroups: commodity price risk, foreign currency risk, interest rate risk, credit risk, and liquidity risk. Pandora adopts a proactive approach to managing these risks, utilising various financial instruments to hedge against market fluctuations and mitigate adverse impacts on Pandora's financial performance and results.
The table on the next page illustrates the sensitivity on 2025 revenue, EBIT, and EBIT margin from exchange rates and commodity price movements. In addition, the sensitivity of financial assets and liabilities as at 31 December from currency and commodity price movements is illustrated on the following pages.
COMMODITY PRICE RISK
Commodity price risk is the risk of increasing raw material prices resulting in higher production costs. The most important raw materials are silver and gold, which are priced in USD.
It is Pandora\u2019s policy to ensure stable, predictable raw material prices. Based on a rolling 12-month production plan, the general policy is for Group Treasury to hedge at least 70% of the Group\u2019s expected purchases of silver and gold.
During 2025, the silver price increased by almost 150%. Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the volume hedged by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately
70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026 income statement exposure in cost of sales from silver and gold price movements. See note 4.5 Derivative financial instruments.
Purchases are hedged up to 12 months forward with a hedge ratio target that decreases with time to maturity. Commodity hedging of silver and gold is updated monthly or in connection with revised 12-month rolling production plans. Actual production may deviate from the 12-month rolling production plan. In case of deviations, the realised commodity hedge ratio may deviate from the estimated hedge target ratio. The effective portion of the realised gain or loss from commodity hedging is recognised in Group inventories and subsequently in cost of sales while the ineffective portion
SENSITIVITY ANALYSIS ON EXCHANGE RATES AND COMMODITY PRICES\u00b9 DKK million | 2025 | 2024 | |||||
Change in exchange rate and commodity prices | Revenue | EBIT | EBIT margin impact | Revenue | EBIT | EBIT margin impact | |
USD | +10% | 1,090 | 186 | -0.2% | 1,030 | 379 | 0.4% |
CAD | +10% | 106 | 50 | 0.1% | 100 | 48 | 0.1% |
AUD | +10% | 149 | 92 | 0.2% | 157 | 101 | 0.2% |
GBP | +10% | 375 | 228 | 0.4% | 394 | 240 | 0.4% |
EUR | +1% | 91 | 43 | 0.1% | 89 | 52 | 0.1% |
TRY | +10% | 66 | 35 | 0.1% | 65 | 38 | 0.1% |
MXN | +10% | 109 | 57 | 0.1% | 129 | 71 | 0.1% |
PLN | +10% | 98 | 75 | 0.2% | 92 | 72 | 0.2% |
THB | +10% | - | -224 | -0.7% | - | -227 | -0.7% |
SILVER and GOLD\u00b2 | +10% | - | -254 | -0.8% | - | -224 | -0.7% |
1Revenue and EBIT for 2025 would have been impacted by the above amounts if exchange rates and commodity prices in 2025 had been higher than the realised exchange rates and commodity prices. The impact would have been the opposite if exchange rates and commodity prices had been decreasing by similar percentages. The analysis is based on transaction currency and excludes the effects of hedging and time lag of inventory.
2The sensitivity analysis presented above reflects the current exposure as of 31 December 2025. A 10% sensitivity has been applied for both silver and gold to ensure comparability with prior years and to provide a basis for linear analysis and modelling, despite higher commodity price volatility observed in 2025. Silver exposure will be reduced in 2026 onwards following the implementation of new creative innovation initiatives.
is recognised in financial items. For the fair value of hedging instruments, see note 4.5 Derivative financial instruments.
FOREIGN CURRENCY RISK
Pandora\u2019s presentation currency is DKK, but the majority of Pandora\u2019s activities and investments are denominated in other currencies. Consequently, exchange rate fluctuations may have a substantial impact on Pandora\u2019s cash flows, profit (loss) and/or financial position in DKK.
The majority of Pandora\u2019s revenue is denominated in USD, EUR, GBP, AUD, MXN, CAD, TRY, and PLN. The functional currency of subsid-iaries is generally the local currency, and a substantial portion of Pandora\u2019s costs relates to raw materials purchased in USD. In addition, Pandora incurs a significant part of its costs denominated in THB. Changes in the exchange rate of the above currencies versus DKK will result in changes to the translated value of future EBIT and cash flows.
33%USD
11%Other
2%TRY
33%USD
10%Other
2%TRY
3%PLN
3%PLN
3%CAD
3%CAD
3%MXN
4%MXN
28%EUR
12%GBP
5%AUD
28%EUR
12%GBP
5%AUD
2025
2024
REVENUE BREAKDOWN BY CURRENCY (%)
Pandora finances the majority of its subsidiaries\u2019 cash requirements via intercompany loans denominated in the local currency of the individual subsidiary. Changes in exchange rate of these currencies against DKK will generally result in a foreign exchange gain or loss.
Exchange rate fluctuations may lead to a decrease in revenue and an increase in costs and thus declining margins. In addition, exchange rate fluctuations affect the translated value of the profits or losses of foreign subsidiaries and the translation of foreign currency assets and liabilities.
It is Pandora\u2019s policy to hedge foreign currency exposures related to the risk of declining net cash flows resulting from exchange rate fluctuations. Pandora does not hedge balance sheet items or ownership interests in foreign subsidiaries.
CURRENCY AND COMMODITY EXPOSUREFROM FINANCIAL ASSETS AND LIABILITIES\u00b9 | 31 December 2025 | 31 December 2024 | |||
Change in exchange rate | Profit (loss) before tax | Equity | Profit (loss) before tax | Equity | |
DKK million | |||||
USD | +10% | -180 | -145 | -286 | -471 |
CAD | +10% | 22 | 22 | -4 | -4 |
AUD | +10% | 29 | 5 | 6 | -26 |
GBP | +10% | 11 | -37 | 105 | 32 |
EUR | +1% | -66 | -66 | -71 | -71 |
TRY | +10% | -4 | -4 | 12 | 12 |
MXN | +10% | 25 | 4 | 26 | 5 |
PLN | +10% | -11 | -11 | 10 | 31 |
THB | +10% | -62 | 27 | -56 | 207 |
SILVER and GOLD2 | +10% | - | 349 | - | 227 |
\u00b9 The movements in the income statement arise from monetary items at the balance sheet date (cash, borrowings, receivables and payables) where the functional currency of the entity differs from the currency that the monetary items are denominated in. The currency movements in equity arise from monetary items and hedging instruments where the functional currency of the entity differs from the currency that the hedging instruments or monetary items are denominated in. The commodity movements in equity arise from the change in the hedging reserve. The impact would have been the opposite if exchange rates had been decreasing by similar percentages. The analysis is based on the transaction currency.
2The currency and commodity exposure from financial assets and liabilities presented above reflects the current exposure of financial assets and financial liabilities including derivative positions as of 31 December 2025. A 10% sensitivity has been applied for both silver and gold to ensure comparability with prior years and to provide a basis for linear analysis and modelling, despite higher commodity price volatility observed in 2025. Silver exposure will be reduced in 2026 onwards following the implementation of new creative innovation initiatives.
For 2025, up to 70% (2024: 70%) of the cash flows from currencies with a risk above policy threshold were hedged based on a rolling 12-month forecast. In 2025, this included USD, THB, GBP, AUD, and MXN. Cash flows are hedged up to 12 months forward with a hedge ratio that decreases with time to maturity. Foreign currency hedging is updated monthly or in connection with revised 12-month rolling cash forecasts. The realised profit (loss) from exchange rate hedging is recognised in financial items.
The table below illustrates the effects of movements in the Group\u2019s principal foreign currencies and commodities on net profit and equity at the balance sheet date after the effect of hedge accounting.
CREDIT RISK
Credit risk is primarily related to trade receivables, cash and unrealised gains on financial contracts. The maximum credit risk related tofinancial assets corresponds to the carrying amounts recognised in the consolidated balance sheet.
It is Pandora\u2019s policy for subsidiaries to be responsible for credit evaluation and credit risk on their trade receivables. Credit limits above certain policy thresholds must be approved by Group Treasury and/or the Chief Financial Officer.
Note 3.6 Trade receivablesincludes an overview of the credit risk related to trade receivables. Rating of trade receivables does not differ materially either by type of customer or geographic location. The risk of further impairment is considered to be limited.
Financial contracts related to foreign exchange and commodity hedging are entered into with counterparties that are highly rated financial institutions. These contracts are settled within a short time frame upon maturity and are therefore not considered to expose the Group to significant credit risk.
Credit risk related to Pandora\u2019s other financial assets mainly includes cash and unrealised gains on financial contracts. The credit risk is related to default of the counterparty with a maximum exposure corresponding to the carrying amount of the assets. Group Treasury is responsible for managing these credit risks.
LIQUIDITY RISK
Pandora\u2019s cash conversion is high, and Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations when due. This, combined with strong, investment-grade credit ratings means that Pandora\u2019s liquidity risk and refinancing risk are considered to be low.
As of December 2025, Pandora has a revolving credit facility of EUR 950 million and a term loan of EUR 60 million committed until April 2029 and May 2030, respectively. Additionally, Pandora has two outstanding EUR 500 million bonds issued under its Euro Medium Term Note programme maturing in 2028 and 2030, respectively.Pandora has uncommitted credit facilities to ensure efficient and flexible local liquidity management. The credit facilities are managed by Group Treasury.
In January 2026, Pandora successfully refinanced its revolving credit facility, securing two revolving credit facilities of EUR 750 million and EUR 350 million, committed until 2029 and 2031, respectively. Both facilities allow for two extension periods of one year each. Neither facility is subject to financial covenants.
Pandora\u2019s suppliers have access to two banks under the supply chain financing programme, see note 3.9 Trade payables. Pandora is not involved in the programme, but management monitors its availability and does not expect any material impact if a provider were to withdraw.
Pandora maintains credit ratings of BBB by S&P Global Ratings and a Baa2 rating from Moody\u2019s Investor Service, both of which have a stable outlook.
OUTSTANDING COMMITTED LOAN FACILITIES DKK million | Available facilities | Maturity date | Drawn amount | Avg. effective interest rate incl. hedging | Available liquidity |
2025 | |||||
Revolving credit facilities\u00b9 | 7,095 | April 2029 | - | - | 7,095 |
Term loan maturing in 2030\u00b9 | 448 | May 2030 | 448 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,734 | April 2028 | 3,734 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,734 | May 2030 | 3,734 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,012 | 7,917 | 7,095 |
2024 | |||||
Revolving credit facilities\u00b9 | 7,087 | April 2028 | - | - | 7,087 |
Term loan maturing in 2030\u00b9 | 547 | May 2030 | 547 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,730 | April 2028 | 3,730 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,730 | May 2030 | 3,730 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,094 | 8,007 | 7,087 |
1Sustainability-linked facilities with an interest rate tied to the achievement of specific sustainability targets. The facilities have no covenants affecting loan maturity, except for the revolving credit facilities and the term loan, which are subject to a net debt to EBITDA ratio covenant of 2.5x measured quarterly.
INTEREST RATE RISK
Interest rate risk is the risk of interest rate fluctuations resulting in changed interest payments and market value of net borrowings. At the reporting date, only the revolving credit facilities were based on floating interest rates.
Pandora has entered into cross-currency interest rate swaps related to the EUR bonds maturing in 2028 and 2030, respectively. Interest payments are swapped from fixed EUR into a fixed interest rate in DKK.
All else being equal, it is estimated that a general increase in interest rates by 1.0 percentage point would lead to a DKK 28 million decrease in profit before tax and equity, excluding tax effect (2024: DKK 29 million decrease).
CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES
The table to the right breaks the Group\u2019s financial liabilities down into relevant maturity groupings based on contractual maturities for:
all non-derivative financial liabilities;
net and gross settled derivative financial instruments for whichthe contractual maturities are essential for an understanding of the timing of the cash flows.
The amounts disclosed in the table are the contractual undiscounted cash flows.
Based on the Group\u2019s expectations for the future operation and the Group\u2019s current cash resources, no significant liquidity risks have been identified.
FINANCIAL LIABILITIES FALL DUE AS FOLLOWS | Within 1 year | Within 1-5 years | After more than 5 years | Total |
DKK million | ||||
2025 | ||||
Non-derivatives | ||||
Loans and borrowings | 1,422 | 350 | - | 1,772 |
Bonds | 313 | 8,552 | - | 8,865 |
Lease liabilities | 1,622 | 3,980 | 1,596 | 7,199 |
Trade payables | 4,623 | - | - | 4,623 |
Other payables | 134 | 140 | 2 | 277 |
Derivatives | ||||
Derivative financial liabilities | 35 | - | - | 35 |
Total financial liabilities at 31 December | 8,149 | 13,023 | 1,599 | 22,770 |
2024 | ||||
Non-derivatives | ||||
Loans and borrowings | 204 | 430 | 50 | 685 |
Bonds | 312 | 4,812 | 3,875 | 8,999 |
Lease liabilities | 1,535 | 3,773 | 1,530 | 6,838 |
Trade payables | 3,894 | - | - | 3,894 |
Other payables | 171 | 167 | 9 | 347 |
Derivatives | ||||
Derivative financial liabilities | 152 | - | - | 152 |
Total financial liabilities at 31 December | 6,269 | 9,182 | 5,464 | 20,916 |
NOTE 2.1
SEGMENT AND REVENUE INFORMATION
Pandora\u2019s activities are segmented into two reportable segments, each responsible for the end-to-end performance of collections. One includes our Corecollections, while the other, Fuel with more, covers newer collections and innovations.
Coreincludes charms and carriers which focus on collectability. Fuel with moreincludes the Modern Classics (Pandora Timeless, Pandora Signature and PANDORA ESSENCE) and Pandora Lab-Grown Diamonds and targets both existing and new customers who may have a different aesthetic preference than the Corejewellery design.
The two operating segments include all channels relating to the distribution and sale of Pandora products.
Executive 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 to the right.
Income Statement by segments | Fuel with | ||
DKK million | Core | more | Group |
2025 | |||
Revenue | 24,235 | 8,314 | 32,549 |
Cost of sales | -5,368 | -1,434 | -6,802 |
Gross profit | 18,867 | 6,880 | 25,747 |
Gross margin, % | 77.9% | 82.8% | 79.1% |
Operating expenses | -17,964 | ||
Consolidated operating profit (EBIT) | 7,783 | ||
Profit margin (EBIT margin), % | 23.9% | ||
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% |
REVENUE BY COLLECTIONS | ||
DKK million | 2025 | 2024 |
Core | 24,235 | 23,542 |
- Moments | 19,812 | 19,934 |
- Collabs | 3,114 | 2,564 |
- ME | 1,309 | 1,044 |
Fuel with more | 8,314 | 8,139 |
- Timeless | 6,516 | 6,339 |
- Signature | 623 | 910 |
- PANDORA ESSENCE\u00b9 | 819 | 574 |
- Pandora Lab-Grown Diamonds | 357 | 315 |
Total revenue | 32,549 | 31,680 |
Goods transferred at a point in time | 32,500 | 31,622 |
Services transferred over time | 50 | 58 |
Total revenue | 32,549 | 31,680 |
1PANDORA ESSENCE was launched in 2024 following a pilot in the Netherlands in 2023.
Non-unit-driven revenue, comprising mainly engraving and franchise fees, is allocatedproportionately to the different revenue categories.
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.
REVENUE BY SALES CHANNEL | ||
DKK million | 2025 | 2024 |
Pandora physical stores | 20,493 | 19,015 |
Pandora online stores | 7,440 | 7,120 |
Wholesale and third-party distribution | 4,616 | 5,545 |
Total revenue | 32,549 | 31,680 |
GEOGRAPHIC INFORMATION, REVENUE | ||
DKK million | 2025 | 2024 |
EMEA | 16,149 | 15,839 |
\u2013 of which UK | 3,740 | 3,929 |
North America | 11,762 | 11,003 |
\u2013 of which US | 10,386 | 9,709 |
Latin America | 2,129 | 2,357 |
Asia Pacific | 2,509 | 2,481 |
Total revenue\u00b9 | 32,549 | 31,680 |
\u00b9 The country of domicile is Denmark, which is part of the EMEA region. Denmark is immaterial to Pandora\u2019s operations in terms of sales, as the majority of revenue, 99.8%, is generated outside of the country (99.8% in 2024). In 2025, Pandora simplified its geographical disclosure to four regions. Individually material countries are disclosed separately when revenue exceeds 10% of total revenue.
GEOGRAPHIC INFORMATION, ASSETS | ||
DKK million | 2025 | 2024 |
EMEA | 8,878 | 8,306 |
\u2013 of which Denmark | 2,856 | 2,660 |
North America | 5,224 | 4,959 |
\u2013 of which US | 4,739 | 4,541 |
Latin America | 419 | 398 |
Asia Pacific2 | 2,995 | 3,041 |
Total non-current assets\u00b9 | 17,515 | 16,704 |
1Comprise intangible assets, property, plant and equipment and right-of-use assets. In 2025, Pandora simplified its geographical disclosure to four regions. Individually material countries are disclosed separately when non-current assets exceed 10% of total non-current assets.
2Asia Pacific includes Thailand and Vietnam where the Group's crafting facilities, are located with total non-current assets for the two countries totalling DKK 1,817 million (2024: DKK 1,693 million).
SIGNIFICANT ACCOUNTING ESTIMATES
Recognition and measurement of revenue is based on estimates relating to expected sales returns allowed by customers in most markets. These estimates can have a material impact on the timing and measurement of recognised revenue as well as the level of the refund liability. Reductions in revenue from expected sales returns are calculated based on historical return patterns and on a case-by-case basis for commercial and other reasons, see note 3.8 Contract assets and liabilities.
ACCOUNTING POLICIES
RETAIL SALES \u2013 PRODUCTS
Revenue from the sale of products through stores owned and operated by Pandora is recognised when a store sells a product to the customer. Payment is usually due when the customer picks up the product in the store or the product is delivered from an online store. However, in some instances collection is delayed and a receivable recognised, see note 3.6 Trade receivables.
A refund liability and a right-of-return asset are recognised for products expected to be returned, see note 3.8 Contract assets and liabilities.
The estimate for returned products is based on historical experience
and expectations. Based on knowledge of the nature of returns, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Rebates and discounts granted to customers are recognised as a reduction in revenue.
The Group\u2019s obligation to repair or replace faulty products is part of the standard terms and is therefore recognised as a contract liability, see note 3.8 Contract assets and liabilities. Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales, that are not recoverable from the local taxation authorities, are reported gross as part of revenue and cost of sales.
WHOLESALE AND THIRD-PARTY DISTRIBUTORS \u2013 PRODUCTS
Pandora manufactures and sells jewellery to wholesalers and third-party distributors. Revenue is recognised when control of the products has been transferred to the wholesaler or third-party distributor. Change of control of the products occurs when they have been delivered to the wholesaler or distributor and no further obligation exists that can affect the transfer of control. Delivery has taken place when the products have been shipped to the location of the wholesaler or distributor and control of the goods has been transferred to the buyer. Revenue from the sale is recognised based on the price specified in the contract.
Revenue is only recognised to the extent it is highly probable that a significant reversal will not occur. A refund liability and a right-of-return asset are recognised for products expected to be returned, seenote 3.8 Contract assets and liabilities. The estimate for returned products is based on historical experience and expectations. Based on knowledge of the nature of returns in the wholesale and distributor channels, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Provisions for rebates and discounts granted to wholesalers and franchisees are recognised as a reduction in revenue. The performance obligation has an initial duration of less than 12 months.
The Group\u2019s obligation to repair or replace faulty products is recognised on a gross basis in the income statement as both a reduction in revenue and a decrease in cost of goods sold. This is due to the handling of warranty claims, which leads to replacements instead of repairs.
Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales that are not recoverable from the local taxation authorities are reported gross as part of revenue and cost of sales.
When control has been transferred, a receivable is recognised, as the consideration to be paid is conditional only on the passage of time. The price specified in the contract is not adjusted for any financing element, as payment terms never exceed 12 months.
LOYALTY PROGRAMME
Revenue related to the loyalty programme points value is deferred up to the time the points are used. The stand-alone selling price of loyalty points issued is calculated by multiplying the estimated redemption rate and the monetary value assigned to the loyalty points. In estimating the redemption rate, Pandora considers breakage, which represents the portion of loyalty points issued that will never be redeemed.
NOTE 2.1
SEGMENT AND REVENUE INFORMATION
Pandora\u2019s activities are segmented into two reportable segments, each responsible for the end-to-end performance of collections. One includes our Corecollections, while the other, Fuel with more, covers newer collections and innovations.
Coreincludes charms and carriers which focus on collectability. Fuel with moreincludes the Modern Classics (Pandora Timeless, Pandora Signature and PANDORA ESSENCE) and Pandora Lab-Grown Diamonds and targets both existing and new customers who may have a different aesthetic preference than the Corejewellery design.
The two operating segments include all channels relating to the distribution and sale of Pandora products.
Executive 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 to the right.
Income Statement by segments | Fuel with | ||
DKK million | Core | more | Group |
2025 | |||
Revenue | 24,235 | 8,314 | 32,549 |
Cost of sales | -5,368 | -1,434 | -6,802 |
Gross profit | 18,867 | 6,880 | 25,747 |
Gross margin, % | 77.9% | 82.8% | 79.1% |
Operating expenses | -17,964 | ||
Consolidated operating profit (EBIT) | 7,783 | ||
Profit margin (EBIT margin), % | 23.9% | ||
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% |
REVENUE BY COLLECTIONS | ||
DKK million | 2025 | 2024 |
Core | 24,235 | 23,542 |
- Moments | 19,812 | 19,934 |
- Collabs | 3,114 | 2,564 |
- ME | 1,309 | 1,044 |
Fuel with more | 8,314 | 8,139 |
- Timeless | 6,516 | 6,339 |
- Signature | 623 | 910 |
- PANDORA ESSENCE\u00b9 | 819 | 574 |
- Pandora Lab-Grown Diamonds | 357 | 315 |
Total revenue | 32,549 | 31,680 |
Goods transferred at a point in time | 32,500 | 31,622 |
Services transferred over time | 50 | 58 |
Total revenue | 32,549 | 31,680 |
1PANDORA ESSENCE was launched in 2024 following a pilot in the Netherlands in 2023.
Non-unit-driven revenue, comprising mainly engraving and franchise fees, is allocatedproportionately to the different revenue categories.
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.
REVENUE BY SALES CHANNEL | ||
DKK million | 2025 | 2024 |
Pandora physical stores | 20,493 | 19,015 |
Pandora online stores | 7,440 | 7,120 |
Wholesale and third-party distribution | 4,616 | 5,545 |
Total revenue | 32,549 | 31,680 |
GEOGRAPHIC INFORMATION, REVENUE | ||
DKK million | 2025 | 2024 |
EMEA | 16,149 | 15,839 |
\u2013 of which UK | 3,740 | 3,929 |
North America | 11,762 | 11,003 |
\u2013 of which US | 10,386 | 9,709 |
Latin America | 2,129 | 2,357 |
Asia Pacific | 2,509 | 2,481 |
Total revenue\u00b9 | 32,549 | 31,680 |
\u00b9 The country of domicile is Denmark, which is part of the EMEA region. Denmark is immaterial to Pandora\u2019s operations in terms of sales, as the majority of revenue, 99.8%, is generated outside of the country (99.8% in 2024). In 2025, Pandora simplified its geographical disclosure to four regions. Individually material countries are disclosed separately when revenue exceeds 10% of total revenue.
GEOGRAPHIC INFORMATION, ASSETS | ||
DKK million | 2025 | 2024 |
EMEA | 8,878 | 8,306 |
\u2013 of which Denmark | 2,856 | 2,660 |
North America | 5,224 | 4,959 |
\u2013 of which US | 4,739 | 4,541 |
Latin America | 419 | 398 |
Asia Pacific2 | 2,995 | 3,041 |
Total non-current assets\u00b9 | 17,515 | 16,704 |
1Comprise intangible assets, property, plant and equipment and right-of-use assets. In 2025, Pandora simplified its geographical disclosure to four regions. Individually material countries are disclosed separately when non-current assets exceed 10% of total non-current assets.
2Asia Pacific includes Thailand and Vietnam where the Group's crafting facilities, are located with total non-current assets for the two countries totalling DKK 1,817 million (2024: DKK 1,693 million).
SIGNIFICANT ACCOUNTING ESTIMATES
Recognition and measurement of revenue is based on estimates relating to expected sales returns allowed by customers in most markets. These estimates can have a material impact on the timing and measurement of recognised revenue as well as the level of the refund liability. Reductions in revenue from expected sales returns are calculated based on historical return patterns and on a case-by-case basis for commercial and other reasons, see note 3.8 Contract assets and liabilities.
ACCOUNTING POLICIES
RETAIL SALES \u2013 PRODUCTS
Revenue from the sale of products through stores owned and operated by Pandora is recognised when a store sells a product to the customer. Payment is usually due when the customer picks up the product in the store or the product is delivered from an online store. However, in some instances collection is delayed and a receivable recognised, see note 3.6 Trade receivables.
A refund liability and a right-of-return asset are recognised for products expected to be returned, see note 3.8 Contract assets and liabilities.
The estimate for returned products is based on historical experience
and expectations. Based on knowledge of the nature of returns, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Rebates and discounts granted to customers are recognised as a reduction in revenue.
The Group\u2019s obligation to repair or replace faulty products is part of the standard terms and is therefore recognised as a contract liability, see note 3.8 Contract assets and liabilities. Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales, that are not recoverable from the local taxation authorities, are reported gross as part of revenue and cost of sales.
WHOLESALE AND THIRD-PARTY DISTRIBUTORS \u2013 PRODUCTS
Pandora manufactures and sells jewellery to wholesalers and third-party distributors. Revenue is recognised when control of the products has been transferred to the wholesaler or third-party distributor. Change of control of the products occurs when they have been delivered to the wholesaler or distributor and no further obligation exists that can affect the transfer of control. Delivery has taken place when the products have been shipped to the location of the wholesaler or distributor and control of the goods has been transferred to the buyer. Revenue from the sale is recognised based on the price specified in the contract.
Revenue is only recognised to the extent it is highly probable that a significant reversal will not occur. A refund liability and a right-of-return asset are recognised for products expected to be returned, seenote 3.8 Contract assets and liabilities. The estimate for returned products is based on historical experience and expectations. Based on knowledge of the nature of returns in the wholesale and distributor channels, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Provisions for rebates and discounts granted to wholesalers and franchisees are recognised as a reduction in revenue. The performance obligation has an initial duration of less than 12 months.
The Group\u2019s obligation to repair or replace faulty products is recognised on a gross basis in the income statement as both a reduction in revenue and a decrease in cost of goods sold. This is due to the handling of warranty claims, which leads to replacements instead of repairs.
Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales that are not recoverable from the local taxation authorities are reported gross as part of revenue and cost of sales.
When control has been transferred, a receivable is recognised, as the consideration to be paid is conditional only on the passage of time. The price specified in the contract is not adjusted for any financing element, as payment terms never exceed 12 months.
LOYALTY PROGRAMME
Revenue related to the loyalty programme points value is deferred up to the time the points are used. The stand-alone selling price of loyalty points issued is calculated by multiplying the estimated redemption rate and the monetary value assigned to the loyalty points. In estimating the redemption rate, Pandora considers breakage, which represents the portion of loyalty points issued that will never be redeemed.
NOTE 2.1
SEGMENT AND REVENUE INFORMATION
Pandora\u2019s activities are segmented into two reportable segments, each responsible for the end-to-end performance of collections. One includes our Corecollections, while the other, Fuel with more, covers newer collections and innovations.
Coreincludes charms and carriers which focus on collectability. Fuel with moreincludes the Modern Classics (Pandora Timeless, Pandora Signature and PANDORA ESSENCE) and Pandora Lab-Grown Diamonds and targets both existing and new customers who may have a different aesthetic preference than the Corejewellery design.
The two operating segments include all channels relating to the distribution and sale of Pandora products.
Executive 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 to the right.
Income Statement by segments | Fuel with | ||
DKK million | Core | more | Group |
2025 | |||
Revenue | 24,235 | 8,314 | 32,549 |
Cost of sales | -5,368 | -1,434 | -6,802 |
Gross profit | 18,867 | 6,880 | 25,747 |
Gross margin, % | 77.9% | 82.8% | 79.1% |
Operating expenses | -17,964 | ||
Consolidated operating profit (EBIT) | 7,783 | ||
Profit margin (EBIT margin), % | 23.9% | ||
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% |
REVENUE BY COLLECTIONS | ||
DKK million | 2025 | 2024 |
Core | 24,235 | 23,542 |
- Moments | 19,812 | 19,934 |
- Collabs | 3,114 | 2,564 |
- ME | 1,309 | 1,044 |
Fuel with more | 8,314 | 8,139 |
- Timeless | 6,516 | 6,339 |
- Signature | 623 | 910 |
- PANDORA ESSENCE\u00b9 | 819 | 574 |
- Pandora Lab-Grown Diamonds | 357 | 315 |
Total revenue | 32,549 | 31,680 |
Goods transferred at a point in time | 32,500 | 31,622 |
Services transferred over time | 50 | 58 |
Total revenue | 32,549 | 31,680 |
1PANDORA ESSENCE was launched in 2024 following a pilot in the Netherlands in 2023.
Non-unit-driven revenue, comprising mainly engraving and franchise fees, is allocatedproportionately to the different revenue categories.
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.
REVENUE BY SALES CHANNEL | ||
DKK million | 2025 | 2024 |
Pandora physical stores | 20,493 | 19,015 |
Pandora online stores | 7,440 | 7,120 |
Wholesale and third-party distribution | 4,616 | 5,545 |
Total revenue | 32,549 | 31,680 |
GEOGRAPHIC INFORMATION, REVENUE | ||
DKK million | 2025 | 2024 |
EMEA | 16,149 | 15,839 |
\u2013 of which UK | 3,740 | 3,929 |
North America | 11,762 | 11,003 |
\u2013 of which US | 10,386 | 9,709 |
Latin America | 2,129 | 2,357 |
Asia Pacific | 2,509 | 2,481 |
Total revenue\u00b9 | 32,549 | 31,680 |
\u00b9 The country of domicile is Denmark, which is part of the EMEA region. Denmark is immaterial to Pandora\u2019s operations in terms of sales, as the majority of revenue, 99.8%, is generated outside of the country (99.8% in 2024). In 2025, Pandora simplified its geographical disclosure to four regions. Individually material countries are disclosed separately when revenue exceeds 10% of total revenue.
GEOGRAPHIC INFORMATION, ASSETS | ||
DKK million | 2025 | 2024 |
EMEA | 8,878 | 8,306 |
\u2013 of which Denmark | 2,856 | 2,660 |
North America | 5,224 | 4,959 |
\u2013 of which US | 4,739 | 4,541 |
Latin America | 419 | 398 |
Asia Pacific2 | 2,995 | 3,041 |
Total non-current assets\u00b9 | 17,515 | 16,704 |
1Comprise intangible assets, property, plant and equipment and right-of-use assets. In 2025, Pandora simplified its geographical disclosure to four regions. Individually material countries are disclosed separately when non-current assets exceed 10% of total non-current assets.
2Asia Pacific includes Thailand and Vietnam where the Group's crafting facilities, are located with total non-current assets for the two countries totalling DKK 1,817 million (2024: DKK 1,693 million).
SIGNIFICANT ACCOUNTING ESTIMATES
Recognition and measurement of revenue is based on estimates relating to expected sales returns allowed by customers in most markets. These estimates can have a material impact on the timing and measurement of recognised revenue as well as the level of the refund liability. Reductions in revenue from expected sales returns are calculated based on historical return patterns and on a case-by-case basis for commercial and other reasons, see note 3.8 Contract assets and liabilities.
ACCOUNTING POLICIES
RETAIL SALES \u2013 PRODUCTS
Revenue from the sale of products through stores owned and operated by Pandora is recognised when a store sells a product to the customer. Payment is usually due when the customer picks up the product in the store or the product is delivered from an online store. However, in some instances collection is delayed and a receivable recognised, see note 3.6 Trade receivables.
A refund liability and a right-of-return asset are recognised for products expected to be returned, see note 3.8 Contract assets and liabilities.
The estimate for returned products is based on historical experience
and expectations. Based on knowledge of the nature of returns, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Rebates and discounts granted to customers are recognised as a reduction in revenue.
The Group\u2019s obligation to repair or replace faulty products is part of the standard terms and is therefore recognised as a contract liability, see note 3.8 Contract assets and liabilities. Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales, that are not recoverable from the local taxation authorities, are reported gross as part of revenue and cost of sales.
WHOLESALE AND THIRD-PARTY DISTRIBUTORS \u2013 PRODUCTS
Pandora manufactures and sells jewellery to wholesalers and third-party distributors. Revenue is recognised when control of the products has been transferred to the wholesaler or third-party distributor. Change of control of the products occurs when they have been delivered to the wholesaler or distributor and no further obligation exists that can affect the transfer of control. Delivery has taken place when the products have been shipped to the location of the wholesaler or distributor and control of the goods has been transferred to the buyer. Revenue from the sale is recognised based on the price specified in the contract.
Revenue is only recognised to the extent it is highly probable that a significant reversal will not occur. A refund liability and a right-of-return asset are recognised for products expected to be returned, seenote 3.8 Contract assets and liabilities. The estimate for returned products is based on historical experience and expectations. Based on knowledge of the nature of returns in the wholesale and distributor channels, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Provisions for rebates and discounts granted to wholesalers and franchisees are recognised as a reduction in revenue. The performance obligation has an initial duration of less than 12 months.
The Group\u2019s obligation to repair or replace faulty products is recognised on a gross basis in the income statement as both a reduction in revenue and a decrease in cost of goods sold. This is due to the handling of warranty claims, which leads to replacements instead of repairs.
Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales that are not recoverable from the local taxation authorities are reported gross as part of revenue and cost of sales.
When control has been transferred, a receivable is recognised, as the consideration to be paid is conditional only on the passage of time. The price specified in the contract is not adjusted for any financing element, as payment terms never exceed 12 months.
LOYALTY PROGRAMME
Revenue related to the loyalty programme points value is deferred up to the time the points are used. The stand-alone selling price of loyalty points issued is calculated by multiplying the estimated redemption rate and the monetary value assigned to the loyalty points. In estimating the redemption rate, Pandora considers breakage, which represents the portion of loyalty points issued that will never be redeemed.
Pandora\u2019s activities are segmented into two reportable segments, each responsible for the end-to-end performance of collections. One includes our Corecollections, while the other, Fuel with more, covers newer collections and innovations.
Coreincludes charms and carriers which focus on collectability. Fuel with moreincludes the Modern Classics (Pandora Timeless, Pandora Signature and PANDORA ESSENCE) and Pandora Lab-Grown Diamonds and targets both existing and new customers who may have a different aesthetic preference than the Corejewellery design.
The two operating segments include all channels relating to the distribution and sale of Pandora products.
Executive 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 to the right.
Income Statement by segments | Fuel with | ||
DKK million | Core | more | Group |
2025 | |||
Revenue | 24,235 | 8,314 | 32,549 |
Cost of sales | -5,368 | -1,434 | -6,802 |
Gross profit | 18,867 | 6,880 | 25,747 |
Gross margin, % | 77.9% | 82.8% | 79.1% |
Operating expenses | -17,964 | ||
Consolidated operating profit (EBIT) | 7,783 | ||
Profit margin (EBIT margin), % | 23.9% | ||
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% |
ACCOUNTING POLICIES
RETAIL SALES \u2013 PRODUCTS
Revenue from the sale of products through stores owned and operated by Pandora is recognised when a store sells a product to the customer. Payment is usually due when the customer picks up the product in the store or the product is delivered from an online store. However, in some instances collection is delayed and a receivable recognised, see note 3.6 Trade receivables.
A refund liability and a right-of-return asset are recognised for products expected to be returned, see note 3.8 Contract assets and liabilities.
The estimate for returned products is based on historical experience
and expectations. Based on knowledge of the nature of returns, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Rebates and discounts granted to customers are recognised as a reduction in revenue.
The Group\u2019s obligation to repair or replace faulty products is part of the standard terms and is therefore recognised as a contract liability, see note 3.8 Contract assets and liabilities. Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales, that are not recoverable from the local taxation authorities, are reported gross as part of revenue and cost of sales.
WHOLESALE AND THIRD-PARTY DISTRIBUTORS \u2013 PRODUCTS
Pandora manufactures and sells jewellery to wholesalers and third-party distributors. Revenue is recognised when control of the products has been transferred to the wholesaler or third-party distributor. Change of control of the products occurs when they have been delivered to the wholesaler or distributor and no further obligation exists that can affect the transfer of control. Delivery has taken place when the products have been shipped to the location of the wholesaler or distributor and control of the goods has been transferred to the buyer. Revenue from the sale is recognised based on the price specified in the contract.
Revenue is only recognised to the extent it is highly probable that a significant reversal will not occur. A refund liability and a right-of-return asset are recognised for products expected to be returned, seenote 3.8 Contract assets and liabilities. The estimate for returned products is based on historical experience and expectations. Based on knowledge of the nature of returns in the wholesale and distributor channels, it is considered highly probable that a significant reversal of cumulative revenue recognised will not occur. Provisions for rebates and discounts granted to wholesalers and franchisees are recognised as a reduction in revenue. The performance obligation has an initial duration of less than 12 months.
The Group\u2019s obligation to repair or replace faulty products is recognised on a gross basis in the income statement as both a reduction in revenue and a decrease in cost of goods sold. This is due to the handling of warranty claims, which leads to replacements instead of repairs.
Revenue is further measured excluding sales taxes and duties when these are passed on to customers. Sales taxes and duties incurred on sales that are not recoverable from the local taxation authorities are reported gross as part of revenue and cost of sales.
When control has been transferred, a receivable is recognised, as the consideration to be paid is conditional only on the passage of time. The price specified in the contract is not adjusted for any financing element, as payment terms never exceed 12 months.
LOYALTY PROGRAMME
Revenue related to the loyalty programme points value is deferred up to the time the points are used. The stand-alone selling price of loyalty points issued is calculated by multiplying the estimated redemption rate and the monetary value assigned to the loyalty points. In estimating the redemption rate, Pandora considers breakage, which represents the portion of loyalty points issued that will never be redeemed.
LOYALTY PROGRAMME
Revenue related to the loyalty programme points value is deferred up to the time the points are used. The stand-alone selling price of loyalty points issued is calculated by multiplying the estimated redemption rate and the monetary value assigned to the loyalty points. In estimating the redemption rate, Pandora considers breakage, which represents the portion of loyalty points issued that will never be redeemed.
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STAFF COSTS
The Group\u2019s pension plans are primarily defined contribution plans. Pandora has defined benefit plans relating to employees in Thailand. The defined benefit plans are recognised at the present value of the actuarially measured obligations. In 2025, these obligations amounted to DKK 187 million (2024: DKK 145 million).
In 2025, the actuarial loss was DKK 23 million (2024: loss of DKK 12 million) recognised in other comprehensive income.
STAFF COSTS | ||
DKK million | 2025 | 2024 |
Wages and salaries | 6,394 | 6,251 |
Pensions | 329 | 293 |
Share-based payments | 103 | 166 |
Social security costs | 537 | 487 |
Other staff costs | 801 | 599 |
Total staff costs | 8,164 | 7,795 |
Staff costs have been recognised in theincome statement as follows: | ||
Cost of sales | 1,125 | 1,072 |
Sales, distribution and marketing expenses | 5,561 | 5,240 |
Administrative expenses | 1,478 | 1,483 |
Total staff costs | 8,164 | 7,795 |
Average number of full-time employees during the year | 29,563 | 28,190 |
TOTAL REMUNERATION | ||||||
DKK million | Base pay | Bonus | Shares | Benefits | Other | Total |
2025 | ||||||
Executive Management | 20.3 | - | 26.4 | 2.7 | 44.0 | 93.4 |
Executive Leadership Team | 48.0 | - | 51.0 | 8.5 | 51.5 | 159.0 |
2024 | ||||||
Executive Management | 18.8 | 18.0 | 49.3 | 2.4 | - | 88.5 |
Executive Leadership Team | 44.4 | 55.6 | 80.3 | 7.4 | 2.4 | 190.2 |
The 2025 compensation to Executive Management includes a retirement package to the former CEO of DKK 56 million, comprising DKK 25 million and DKK 19 million related to base pay and bonus in the notice period, as well as, DKK 12 million related to share-based payments for which vesting has been accelerated. The amount has been estimated based on current vesting assumptions and may change over the remaining vesting period. Furthermore, the \u2018Other\u2019 category under the Executive Leadership Team includes DKK 7.5 million related to a position allowance and a one-time payment required under local labour regulations.
Executive Leadership Team is reported including Executive Management. Executive Management, together with other members of the Executive Leadership Team, is considered key management personnel in Pandora.
TOTAL REMUNERATION | ||
DKK million | 2025 | 2024 |
Board of Directors | 10.6 | 10.2 |
Board members receive a fixed travel fee when attending Board meetings abroad. Total travel fee for 2025 amounted to DKK 1.7 million (2024: DKK 1.6 million). For further details, see our Remuneration Report 2025.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
NOTE 2.3
SHARE-BASED PAYMENTS
Decisions to grant share-based incentive programmes are made by the Board of Directors in accordance with general guidelines on incentive pay for Pandora.
The cost related to share-based payments was DKK 103 million (2024: DKK 166 million). The 2023 programme was recorded at the maximum level. The 2024 programme was recorded at target for financial performance and above target for sustainability performance, while the programme for 2025 was recorded at target for both the financial and sustainability metrics. The cost of share-based payments is included in staff costs. In the remaining vesting periods, an amount of DKK 83 million (2024: DKK 142 million) is expected to be recognised in respect of the current programmes. The weighted average remaining contractual life of the shares at the end of the period was 1.1 year (2024: 1.1 year).For shares exercised in 2025, the average share price at the time of exercise was DKK 1,342 (2024: DKK 1,040).
LONG-TERM INCENTIVE PLANS
Pandora is launching annual incentive programmes targeting Executive Management and other employees. The calculated value of each programme is recognised over the vesting period (three years) based on the likelihood that programme targets will be met. For Executive Management, a further two-year holding period applies.
Vesting of the performance shares granted in 2025 is subject to achievement of Pandora\u2019s earnings per share (EPS) target for the financial year 2027 and the achievement of sustainability targets, which will be assessed against objectives based on Pandora\u2019s internal projections. As financial KPIs are commercially sensitive, Pandora\u2019s practice is to communicate these after the end of the performance period. For further details, see our Remuneration Report 2025.
ASSUMPTIONS ON FAIR VALUE OF SHARES
The volatility of the shares is based on the historical volatility of the price of Pandora A/S shares. The risk-free interest rate is based on a Danish government bond with similar maturity. The dividend yield applied is equal to 1.89% for the 2025 programme and is based on the assumed future dividend over the vesting period and the share price on the date of the grant. Actual paid dividends may differ from the assumptions applied in the valuation of the market value.
ACCOUNTING POLICIES
Selected Pandora employees receive remuneration in the form of share-based payment transactions, whereby programme participants render services as consideration for equity instruments (equity-settled transactions).
EQUITY-SETTLED TRANSACTIONS
The cost of equity-settled transactions with employees is measured by reference to the fair value at the grant date. The calculated fair values are based on the Black-Scholes model. The cost of equity-settled transactions is recognised as staff costs together with a corresponding increase in equity over the period in which the performance and/or service conditions are fulfilled.
The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and management\u2019s best estimate of the number of equity instruments that will ultimately vest. The incomestatement expenses or income for a period represents the movement incumulative expenses recognised at the beginning and end of that period.
SHARES OUTSTANDING | Executive Management | Other employees | Total | Average exercise price per performance share, DKK |
2025 | ||||
Shares outstanding at 1 January | 155,516 | 457,377 | 612,893 | - |
Shares granted during the year | 41,348 | 173,131 | 214,479 | - |
Shares exercised during the year | -40,791 | -132,828 | -173,619 | - |
Shares lapsed during the year | -1,315 | -33,162 | -34,477 | - |
Shares outstanding at 31 December | 154,758 | 464,518 | 619,276 | - |
2024 | ||||
Shares outstanding at 1 January | 254,284 | 550,498 | 804,782 | 0.3 |
Shares granted during the year | 57,182 | 125,163 | 182,345 | - |
Shares exercised during the year | -153,588 | -158,650 | -312,238 | 0.9 |
Shares lapsed during the year | -2,362 | -59,634 | -61,996 | - |
Shares outstanding at 31 December | 155,516 | 457,377 | 612,893 | - |
NUMBER OF OUTSTANDING SHARES IN PANDORA A/S | Vesting date | Shares at 31 December 2025 | Maximum cost at launch (DKK million) | Accumulated cost recognised(DKK million) | Remaining value to be expensed (DKK million) |
Programme start date | |||||
April 2023\u00b2 | 2026 | 174,871 | 137 | 109 | - |
April 2023\u00b9 | 2026 | 56,228 | 34 | 34 | - |
April 2024\u00b2 | 2027 | 116,516 | 133 | 59 | 11 |
April 2024\u00b9 | 2027 | 57,182 | 61 | 22 | 2 |
April 2025\u00b2 | 2028 | 173,131 | 165 | 26 | 63 |
April 2025\u00b9 | 2028 | 41,348 | 42 | 14 | 7 |
Total number of shares outstanding | 619,276 | 572 | 263 | 83 |
1Programme related to Executive Management, where a two-year holding period applies.
2Programme related to other employees.
NOTE 2.2
STAFF COSTS
The Group\u2019s pension plans are primarily defined contribution plans. Pandora has defined benefit plans relating to employees in Thailand. The defined benefit plans are recognised at the present value of the actuarially measured obligations. In 2025, these obligations amounted to DKK 187 million (2024: DKK 145 million).
In 2025, the actuarial loss was DKK 23 million (2024: loss of DKK 12 million) recognised in other comprehensive income.
STAFF COSTS | ||
DKK million | 2025 | 2024 |
Wages and salaries | 6,394 | 6,251 |
Pensions | 329 | 293 |
Share-based payments | 103 | 166 |
Social security costs | 537 | 487 |
Other staff costs | 801 | 599 |
Total staff costs | 8,164 | 7,795 |
Staff costs have been recognised in theincome statement as follows: | ||
Cost of sales | 1,125 | 1,072 |
Sales, distribution and marketing expenses | 5,561 | 5,240 |
Administrative expenses | 1,478 | 1,483 |
Total staff costs | 8,164 | 7,795 |
Average number of full-time employees during the year | 29,563 | 28,190 |
TOTAL REMUNERATION | ||||||
DKK million | Base pay | Bonus | Shares | Benefits | Other | Total |
2025 | ||||||
Executive Management | 20.3 | - | 26.4 | 2.7 | 44.0 | 93.4 |
Executive Leadership Team | 48.0 | - | 51.0 | 8.5 | 51.5 | 159.0 |
2024 | ||||||
Executive Management | 18.8 | 18.0 | 49.3 | 2.4 | - | 88.5 |
Executive Leadership Team | 44.4 | 55.6 | 80.3 | 7.4 | 2.4 | 190.2 |
The 2025 compensation to Executive Management includes a retirement package to the former CEO of DKK 56 million, comprising DKK 25 million and DKK 19 million related to base pay and bonus in the notice period, as well as, DKK 12 million related to share-based payments for which vesting has been accelerated. The amount has been estimated based on current vesting assumptions and may change over the remaining vesting period. Furthermore, the \u2018Other\u2019 category under the Executive Leadership Team includes DKK 7.5 million related to a position allowance and a one-time payment required under local labour regulations.
Executive Leadership Team is reported including Executive Management. Executive Management, together with other members of the Executive Leadership Team, is considered key management personnel in Pandora.
TOTAL REMUNERATION | ||
DKK million | 2025 | 2024 |
Board of Directors | 10.6 | 10.2 |
Board members receive a fixed travel fee when attending Board meetings abroad. Total travel fee for 2025 amounted to DKK 1.7 million (2024: DKK 1.6 million). For further details, see our Remuneration Report 2025.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
NOTE 2.2
STAFF COSTS
The Group\u2019s pension plans are primarily defined contribution plans. Pandora has defined benefit plans relating to employees in Thailand. The defined benefit plans are recognised at the present value of the actuarially measured obligations. In 2025, these obligations amounted to DKK 187 million (2024: DKK 145 million).
In 2025, the actuarial loss was DKK 23 million (2024: loss of DKK 12 million) recognised in other comprehensive income.
STAFF COSTS | ||
DKK million | 2025 | 2024 |
Wages and salaries | 6,394 | 6,251 |
Pensions | 329 | 293 |
Share-based payments | 103 | 166 |
Social security costs | 537 | 487 |
Other staff costs | 801 | 599 |
Total staff costs | 8,164 | 7,795 |
Staff costs have been recognised in theincome statement as follows: | ||
Cost of sales | 1,125 | 1,072 |
Sales, distribution and marketing expenses | 5,561 | 5,240 |
Administrative expenses | 1,478 | 1,483 |
Total staff costs | 8,164 | 7,795 |
Average number of full-time employees during the year | 29,563 | 28,190 |
TOTAL REMUNERATION | ||||||
DKK million | Base pay | Bonus | Shares | Benefits | Other | Total |
2025 | ||||||
Executive Management | 20.3 | - | 26.4 | 2.7 | 44.0 | 93.4 |
Executive Leadership Team | 48.0 | - | 51.0 | 8.5 | 51.5 | 159.0 |
2024 | ||||||
Executive Management | 18.8 | 18.0 | 49.3 | 2.4 | - | 88.5 |
Executive Leadership Team | 44.4 | 55.6 | 80.3 | 7.4 | 2.4 | 190.2 |
The 2025 compensation to Executive Management includes a retirement package to the former CEO of DKK 56 million, comprising DKK 25 million and DKK 19 million related to base pay and bonus in the notice period, as well as, DKK 12 million related to share-based payments for which vesting has been accelerated. The amount has been estimated based on current vesting assumptions and may change over the remaining vesting period. Furthermore, the \u2018Other\u2019 category under the Executive Leadership Team includes DKK 7.5 million related to a position allowance and a one-time payment required under local labour regulations.
Executive Leadership Team is reported including Executive Management. Executive Management, together with other members of the Executive Leadership Team, is considered key management personnel in Pandora.
TOTAL REMUNERATION | ||
DKK million | 2025 | 2024 |
Board of Directors | 10.6 | 10.2 |
Board members receive a fixed travel fee when attending Board meetings abroad. Total travel fee for 2025 amounted to DKK 1.7 million (2024: DKK 1.6 million). For further details, see our Remuneration Report 2025.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
NOTE 2.2
STAFF COSTS
The Group\u2019s pension plans are primarily defined contribution plans. Pandora has defined benefit plans relating to employees in Thailand. The defined benefit plans are recognised at the present value of the actuarially measured obligations. In 2025, these obligations amounted to DKK 187 million (2024: DKK 145 million).
In 2025, the actuarial loss was DKK 23 million (2024: loss of DKK 12 million) recognised in other comprehensive income.
STAFF COSTS | ||
DKK million | 2025 | 2024 |
Wages and salaries | 6,394 | 6,251 |
Pensions | 329 | 293 |
Share-based payments | 103 | 166 |
Social security costs | 537 | 487 |
Other staff costs | 801 | 599 |
Total staff costs | 8,164 | 7,795 |
Staff costs have been recognised in theincome statement as follows: | ||
Cost of sales | 1,125 | 1,072 |
Sales, distribution and marketing expenses | 5,561 | 5,240 |
Administrative expenses | 1,478 | 1,483 |
Total staff costs | 8,164 | 7,795 |
Average number of full-time employees during the year | 29,563 | 28,190 |
TOTAL REMUNERATION | ||||||
DKK million | Base pay | Bonus | Shares | Benefits | Other | Total |
2025 | ||||||
Executive Management | 20.3 | - | 26.4 | 2.7 | 44.0 | 93.4 |
Executive Leadership Team | 48.0 | - | 51.0 | 8.5 | 51.5 | 159.0 |
2024 | ||||||
Executive Management | 18.8 | 18.0 | 49.3 | 2.4 | - | 88.5 |
Executive Leadership Team | 44.4 | 55.6 | 80.3 | 7.4 | 2.4 | 190.2 |
The 2025 compensation to Executive Management includes a retirement package to the former CEO of DKK 56 million, comprising DKK 25 million and DKK 19 million related to base pay and bonus in the notice period, as well as, DKK 12 million related to share-based payments for which vesting has been accelerated. The amount has been estimated based on current vesting assumptions and may change over the remaining vesting period. Furthermore, the \u2018Other\u2019 category under the Executive Leadership Team includes DKK 7.5 million related to a position allowance and a one-time payment required under local labour regulations.
Executive Leadership Team is reported including Executive Management. Executive Management, together with other members of the Executive Leadership Team, is considered key management personnel in Pandora.
TOTAL REMUNERATION | ||
DKK million | 2025 | 2024 |
Board of Directors | 10.6 | 10.2 |
Board members receive a fixed travel fee when attending Board meetings abroad. Total travel fee for 2025 amounted to DKK 1.7 million (2024: DKK 1.6 million). For further details, see our Remuneration Report 2025.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
NOTE 3.1
INTANGIBLE ASSETS
Goodwill | Brand | Distribution | Other intangible assets\u00b9 | Total | |
INTANGIBLE ASSETS | |||||
DKK million | |||||
2025 | |||||
Cost at 1 January | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Acquisition of subsidiaries and activities | 164 | - | - | - | 164 |
Additions | - | - | - | 460 | 460 |
Disposals | - | - | - | -44 | -44 |
Exchange rate adjustments | -270 | - | -8 | -28 | -306 |
Cost at 31 December | 5,020 | 1,057 | 1,606 | 3,429 | 11,113 |
Amortisation and impairment losses at 1 January | - | - | 580 | 2,027 | 2,606 |
Amortisation for the year | - | - | - | 233 | 233 |
Reversal of impairment for the year | - | - | - | -30 | -30 |
Disposals | - | - | - | -30 | -30 |
Exchange rate adjustments | - | - | - 8 | -22 | -30 |
Amortisation and impairment losses at 31 December | - | - | 572 | 2,177 | 2,750 |
Carrying amount at 31 December | 5,020 | 1,057 | 1,034 | 1,252 | 8,364 |
2024 | |||||
Cost at 1 January | 4,914 | 1,057 | 1,610 | 2,678 | 10,259 |
Acquisition of subsidiaries and activities | 98 | - | - | - | 98 |
Additions | - | - | - | 499 | 499 |
Disposals | - | - | - | -171 | -171 |
Exchange rate adjustments | 114 | - | 4 | 35 | 153 |
Cost at 31 December | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Amortisation and impairment losses at 1 January | - | - | 572 | 1,887 | 2,459 |
Amortisation for the year | - | - | 4 | 276 | 280 |
Disposals | - | - | - | -166 | -166 |
Exchange rate adjustments | - | - | 4 | 29 | 33 |
Amortisation and impairment losses at 31 December | - | - | 580 | 2,027 | 2,606 |
Carrying amount at 31 December | 5,126 | 1,057 | 1,034 | 1,015 | 8,232 |
\u00b9 Other intangible assets include assets that are not yet in use of DKK 559 million (2024: DKK 556 million), mainly related to software applications, including ERP systems.
DKK million | 2025 | 2024 |
Amortisation and impairment loss has been recognised in the income statement as follows: | ||
Cost of sales | -17 | 14 |
Sales, distribution and marketing expenses | 101 | 144 |
Administrative expenses | 119 | 122 |
Total | 203 | 280 |
GOODWILL
Additions in 2025 relate to acquisitions of activities. Note 3.4 Business combinationsincludes an overview of acquired goodwill for the year.
BRAND
The \u201cPandora\u201d brand is the only brand of the Group that is capitalised in the consolidated financial statements. It comprises a group of complementary intangible assets relating to the brand, domain name, products, image and customer experience of products sold under the Pandora brand. The brand was acquired as part of the Pandora core business in 2008.
DISTRIBUTION
Distribution includes distribution network and distribution rights acquired. The distribution network covers Pandora\u2019s relations with its distributors. The main part of the distribution network was acquired with the Pandora core business in 2008. Distribution rights mainly relate to the distribution rights for Pandora products in North America with indefinite-life. These were acquired from the American distributor in 2008, and the carrying amount at 31 December 2025 was DKK 1.0 billion (2024: DKK 1.0 billion).
OTHER INTANGIBLE ASSETS
Other intangible assets mainly comprise software, including ERP systems and other operational applications supporting business processes.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
METHOD FOR IMPAIRMENT TESTING
In the impairment test, the recoverable amount is compared with the carrying amount. The recoverable amount is based on a calculation of the value in use using cash flow projections based on the budget for 2026 and a forecast for the two subsequent years.
ALLOCATION OF INTANGIBLE ASSETS TO CGUs | |||
DKK million | Goodwill | Brand | Distribution |
2025 | |||
Core | 3,665 | 766 | 749 |
Fuel with more | 1,355 | 291 | 285 |
Total | 5,020 | 1,057 | 1,034 |
2024 | |||
Core | 3,748 | 766 | 749 |
Fuel with more | 1,377 | 291 | 285 |
Total | 5,126 | 1,057 | 1,034 |
DISCOUNT RATES AND GROWTH RATES IN TERMINAL PERIOD (%) | Discount rate before tax | Growth rate in terminal period |
2025 | ||
Core | 13.2% | 2% |
Fuel with more | 13.2% | 2% |
Group | 13.2% | 2% |
2024 | ||
Core | 12.9% | 2% |
Fuel with more | 12.9% | 2% |
Group | 12.9% | 2% |
All intangible assets are tested for impairment if there is any indication of impairment. Intangible assets with indefinite useful lives and assets not yet in use are tested at least annually.
ASSUMPTIONS
The calculations of the recoverable amounts of CGUs or groups of CGUs are based on the following key assumptions.
Discount rates reflect the current market assessment of the time value of money and the risks specific to each CGU or group of CGUs. The Group discount rates are estimated based on a weighted average cost of capital for the industry and adjusted to reflect the market assessment of any risk specific to each group of CGUs.
The cash flows used in the impairment test are based on the budget for next year, prepared and approved by management, and a forecast for the two subsequent years.
High inflation rates continued in 2025, and commodity prices - particularly silver - increased substantially during the year, both affecting the estimates for the upcoming years. Pandora expects the long-term inflation rate to stabilise and has applied a 2% growth rate in the terminal period (2024: 2%). As such, no real growth has been applied to the terminal period when calculating the recoverable amounts. While Pandora expects long-term commodity prices to stabilise at lower levels than current spot prices, a further increase in commodity prices has been applied in the sensitivity analysis of the recoverable amounts to assess the potential impact of possible changes in key assumptions, including higher production costs.
The cash flows projections for each group of CGUs are based on historical experience and management's expectations concerning:
\u2022 revenue development, taking into account development in network (stores, retail/wholesale share), product mix, market share and changes in consumer behaviour;
\u2022 cost of sales based on raw materials consumption affected by the mix of materials (man-made stones, silver and gold), salaries, and average lagged hedge commodity prices at the time the budget is prepared;
\u2022 development in operating expenses;
\u2022 currency rates, based on spot rates at the time the budget is prepared;
\u2022 interest rates;
\u2022 import duties and tariffs;
\u2022 increasing climate-related risks and geographical exposure; and
\u2022 the transition to a circular economy and to net zero impact, including investments required, and impact on the useful economic life of the assets.
For more information, see note 1.3 Management\u2019s judgements and estimates under IFRS Accounting Standards.
Net working capital in the budget for next year, relative to the revenue of each group of CGUs, is based on historical experience and is maintained for the remainder of the expected useful economic lives. Net working capital thus increases on a linear basis as the level of activity increases.
The impairment test of the brand at Group level is based on the \"Relief from Royalty\" method. The impairment tests did not identify any need for impairment losses to be recognised. Based on sensitivity analysis, it is management\u2019s opinion that no probable change in any key assumptions would cause the carrying amounts of the two operating segments or the Group as a whole to exceed their recoverable amounts.
Even with a significant reduction in the growth rate, higher production costs, and an increase in the discount rate, management has not identified any likely impairment.
NOTE 3.2
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | Land and buildings | Plant and equipment | Assets under construction\u00b9 | Total |
DKK million | ||||
2025 | ||||
Cost at 1 January | 1,389 | 5,274 | 396 | 7,059 |
Acquisition of subsidiaries and activities | - | 28 | - | 28 |
Additions | 12 | 80 | 1,387 | 1,479 |
Disposals | -1 | -218 | - | -219 |
Transfers | 425 | 1,017 | -1,442 | - |
Exchange rate adjustments | -61 | -266 | -72 | -398 |
Cost at 31 December | 1,765 | 5,914 | 269 | 7,949 |
Depreciation and impairment losses at 1 January | 620 | 2,964 | - | 3,584 |
Depreciation for the year | 102 | 738 | - | 840 |
Impairment for the year2 | - | 11 | 54 | 65 |
Disposals | -1 | -205 | - | -206 |
Exchange rate adjustments | -25 | -126 | - | -151 |
Depreciation and impairment losses at 31 December | 697 | 3,382 | 54 | 4,132 |
Carrying amount at 31 December | 1,069 | 2,532 | 216 | 3,817 |
2024 | ||||
Cost at 1 January | 1,286 | 4,661 | 263 | 6,210 |
Acquisition of subsidiaries and activities | - | 25 | - | 25 |
Additions | 15 | 174 | 1,252 | 1,441 |
Disposals | -11 | -789 | - | -800 |
Transfers | 16 | 1,109 | -1,124 | - |
Exchange rate adjustments | 85 | 93 | 5 | 184 |
Cost at 31 December | 1,389 | 5,274 | 396 | 7,059 |
Depreciation and impairment losses at 1 January | 511 | 2,953 | - | 3,464 |
Depreciation for the year | 80 | 650 | - | 730 |
Disposals | -10 | -694 | - | -704 |
Exchange rate adjustments | 38 | 55 | - | 93 |
Depreciation and impairment losses at 31 December | 620 | 2,964 | - | 3,584 |
Carrying amount at 31 December | 769 | 2,310 | 396 | 3,475 |
DKK million | 2025 | 2024 |
Depreciation and impairment losses have been recognised in the income statement as follows: | ||
Cost of sales | 187 | 122 |
Sales, distribution and marketing expenses | 673 | 565 |
Administrative expenses | 45 | 43 |
Total | 906 | 730 |
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
NOTE 2.2
STAFF COSTS
The Group\u2019s pension plans are primarily defined contribution plans. Pandora has defined benefit plans relating to employees in Thailand. The defined benefit plans are recognised at the present value of the actuarially measured obligations. In 2025, these obligations amounted to DKK 187 million (2024: DKK 145 million).
In 2025, the actuarial loss was DKK 23 million (2024: loss of DKK 12 million) recognised in other comprehensive income.
STAFF COSTS | ||
DKK million | 2025 | 2024 |
Wages and salaries | 6,394 | 6,251 |
Pensions | 329 | 293 |
Share-based payments | 103 | 166 |
Social security costs | 537 | 487 |
Other staff costs | 801 | 599 |
Total staff costs | 8,164 | 7,795 |
Staff costs have been recognised in theincome statement as follows: | ||
Cost of sales | 1,125 | 1,072 |
Sales, distribution and marketing expenses | 5,561 | 5,240 |
Administrative expenses | 1,478 | 1,483 |
Total staff costs | 8,164 | 7,795 |
Average number of full-time employees during the year | 29,563 | 28,190 |
TOTAL REMUNERATION | ||||||
DKK million | Base pay | Bonus | Shares | Benefits | Other | Total |
2025 | ||||||
Executive Management | 20.3 | - | 26.4 | 2.7 | 44.0 | 93.4 |
Executive Leadership Team | 48.0 | - | 51.0 | 8.5 | 51.5 | 159.0 |
2024 | ||||||
Executive Management | 18.8 | 18.0 | 49.3 | 2.4 | - | 88.5 |
Executive Leadership Team | 44.4 | 55.6 | 80.3 | 7.4 | 2.4 | 190.2 |
The 2025 compensation to Executive Management includes a retirement package to the former CEO of DKK 56 million, comprising DKK 25 million and DKK 19 million related to base pay and bonus in the notice period, as well as, DKK 12 million related to share-based payments for which vesting has been accelerated. The amount has been estimated based on current vesting assumptions and may change over the remaining vesting period. Furthermore, the \u2018Other\u2019 category under the Executive Leadership Team includes DKK 7.5 million related to a position allowance and a one-time payment required under local labour regulations.
Executive Leadership Team is reported including Executive Management. Executive Management, together with other members of the Executive Leadership Team, is considered key management personnel in Pandora.
TOTAL REMUNERATION | ||
DKK million | 2025 | 2024 |
Board of Directors | 10.6 | 10.2 |
Board members receive a fixed travel fee when attending Board meetings abroad. Total travel fee for 2025 amounted to DKK 1.7 million (2024: DKK 1.6 million). For further details, see our Remuneration Report 2025.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
NOTE 3.2
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | Land and buildings | Plant and equipment | Assets under construction\u00b9 | Total |
DKK million | ||||
2025 | ||||
Cost at 1 January | 1,389 | 5,274 | 396 | 7,059 |
Acquisition of subsidiaries and activities | - | 28 | - | 28 |
Additions | 12 | 80 | 1,387 | 1,479 |
Disposals | -1 | -218 | - | -219 |
Transfers | 425 | 1,017 | -1,442 | - |
Exchange rate adjustments | -61 | -266 | -72 | -398 |
Cost at 31 December | 1,765 | 5,914 | 269 | 7,949 |
Depreciation and impairment losses at 1 January | 620 | 2,964 | - | 3,584 |
Depreciation for the year | 102 | 738 | - | 840 |
Impairment for the year2 | - | 11 | 54 | 65 |
Disposals | -1 | -205 | - | -206 |
Exchange rate adjustments | -25 | -126 | - | -151 |
Depreciation and impairment losses at 31 December | 697 | 3,382 | 54 | 4,132 |
Carrying amount at 31 December | 1,069 | 2,532 | 216 | 3,817 |
2024 | ||||
Cost at 1 January | 1,286 | 4,661 | 263 | 6,210 |
Acquisition of subsidiaries and activities | - | 25 | - | 25 |
Additions | 15 | 174 | 1,252 | 1,441 |
Disposals | -11 | -789 | - | -800 |
Transfers | 16 | 1,109 | -1,124 | - |
Exchange rate adjustments | 85 | 93 | 5 | 184 |
Cost at 31 December | 1,389 | 5,274 | 396 | 7,059 |
Depreciation and impairment losses at 1 January | 511 | 2,953 | - | 3,464 |
Depreciation for the year | 80 | 650 | - | 730 |
Disposals | -10 | -694 | - | -704 |
Exchange rate adjustments | 38 | 55 | - | 93 |
Depreciation and impairment losses at 31 December | 620 | 2,964 | - | 3,584 |
Carrying amount at 31 December | 769 | 2,310 | 396 | 3,475 |
DKK million | 2025 | 2024 |
Depreciation and impairment losses have been recognised in the income statement as follows: | ||
Cost of sales | 187 | 122 |
Sales, distribution and marketing expenses | 673 | 565 |
Administrative expenses | 45 | 43 |
Total | 906 | 730 |
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
NOTE 2.2
STAFF COSTS
The Group\u2019s pension plans are primarily defined contribution plans. Pandora has defined benefit plans relating to employees in Thailand. The defined benefit plans are recognised at the present value of the actuarially measured obligations. In 2025, these obligations amounted to DKK 187 million (2024: DKK 145 million).
In 2025, the actuarial loss was DKK 23 million (2024: loss of DKK 12 million) recognised in other comprehensive income.
STAFF COSTS | ||
DKK million | 2025 | 2024 |
Wages and salaries | 6,394 | 6,251 |
Pensions | 329 | 293 |
Share-based payments | 103 | 166 |
Social security costs | 537 | 487 |
Other staff costs | 801 | 599 |
Total staff costs | 8,164 | 7,795 |
Staff costs have been recognised in theincome statement as follows: | ||
Cost of sales | 1,125 | 1,072 |
Sales, distribution and marketing expenses | 5,561 | 5,240 |
Administrative expenses | 1,478 | 1,483 |
Total staff costs | 8,164 | 7,795 |
Average number of full-time employees during the year | 29,563 | 28,190 |
TOTAL REMUNERATION | ||||||
DKK million | Base pay | Bonus | Shares | Benefits | Other | Total |
2025 | ||||||
Executive Management | 20.3 | - | 26.4 | 2.7 | 44.0 | 93.4 |
Executive Leadership Team | 48.0 | - | 51.0 | 8.5 | 51.5 | 159.0 |
2024 | ||||||
Executive Management | 18.8 | 18.0 | 49.3 | 2.4 | - | 88.5 |
Executive Leadership Team | 44.4 | 55.6 | 80.3 | 7.4 | 2.4 | 190.2 |
The 2025 compensation to Executive Management includes a retirement package to the former CEO of DKK 56 million, comprising DKK 25 million and DKK 19 million related to base pay and bonus in the notice period, as well as, DKK 12 million related to share-based payments for which vesting has been accelerated. The amount has been estimated based on current vesting assumptions and may change over the remaining vesting period. Furthermore, the \u2018Other\u2019 category under the Executive Leadership Team includes DKK 7.5 million related to a position allowance and a one-time payment required under local labour regulations.
Executive Leadership Team is reported including Executive Management. Executive Management, together with other members of the Executive Leadership Team, is considered key management personnel in Pandora.
TOTAL REMUNERATION | ||
DKK million | 2025 | 2024 |
Board of Directors | 10.6 | 10.2 |
Board members receive a fixed travel fee when attending Board meetings abroad. Total travel fee for 2025 amounted to DKK 1.7 million (2024: DKK 1.6 million). For further details, see our Remuneration Report 2025.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
NOTE 3.1
INTANGIBLE ASSETS
Goodwill | Brand | Distribution | Other intangible assets\u00b9 | Total | |
INTANGIBLE ASSETS | |||||
DKK million | |||||
2025 | |||||
Cost at 1 January | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Acquisition of subsidiaries and activities | 164 | - | - | - | 164 |
Additions | - | - | - | 460 | 460 |
Disposals | - | - | - | -44 | -44 |
Exchange rate adjustments | -270 | - | -8 | -28 | -306 |
Cost at 31 December | 5,020 | 1,057 | 1,606 | 3,429 | 11,113 |
Amortisation and impairment losses at 1 January | - | - | 580 | 2,027 | 2,606 |
Amortisation for the year | - | - | - | 233 | 233 |
Reversal of impairment for the year | - | - | - | -30 | -30 |
Disposals | - | - | - | -30 | -30 |
Exchange rate adjustments | - | - | - 8 | -22 | -30 |
Amortisation and impairment losses at 31 December | - | - | 572 | 2,177 | 2,750 |
Carrying amount at 31 December | 5,020 | 1,057 | 1,034 | 1,252 | 8,364 |
2024 | |||||
Cost at 1 January | 4,914 | 1,057 | 1,610 | 2,678 | 10,259 |
Acquisition of subsidiaries and activities | 98 | - | - | - | 98 |
Additions | - | - | - | 499 | 499 |
Disposals | - | - | - | -171 | -171 |
Exchange rate adjustments | 114 | - | 4 | 35 | 153 |
Cost at 31 December | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Amortisation and impairment losses at 1 January | - | - | 572 | 1,887 | 2,459 |
Amortisation for the year | - | - | 4 | 276 | 280 |
Disposals | - | - | - | -166 | -166 |
Exchange rate adjustments | - | - | 4 | 29 | 33 |
Amortisation and impairment losses at 31 December | - | - | 580 | 2,027 | 2,606 |
Carrying amount at 31 December | 5,126 | 1,057 | 1,034 | 1,015 | 8,232 |
\u00b9 Other intangible assets include assets that are not yet in use of DKK 559 million (2024: DKK 556 million), mainly related to software applications, including ERP systems.
DKK million | 2025 | 2024 |
Amortisation and impairment loss has been recognised in the income statement as follows: | ||
Cost of sales | -17 | 14 |
Sales, distribution and marketing expenses | 101 | 144 |
Administrative expenses | 119 | 122 |
Total | 203 | 280 |
GOODWILL
Additions in 2025 relate to acquisitions of activities. Note 3.4 Business combinationsincludes an overview of acquired goodwill for the year.
BRAND
The \u201cPandora\u201d brand is the only brand of the Group that is capitalised in the consolidated financial statements. It comprises a group of complementary intangible assets relating to the brand, domain name, products, image and customer experience of products sold under the Pandora brand. The brand was acquired as part of the Pandora core business in 2008.
DISTRIBUTION
Distribution includes distribution network and distribution rights acquired. The distribution network covers Pandora\u2019s relations with its distributors. The main part of the distribution network was acquired with the Pandora core business in 2008. Distribution rights mainly relate to the distribution rights for Pandora products in North America with indefinite-life. These were acquired from the American distributor in 2008, and the carrying amount at 31 December 2025 was DKK 1.0 billion (2024: DKK 1.0 billion).
OTHER INTANGIBLE ASSETS
Other intangible assets mainly comprise software, including ERP systems and other operational applications supporting business processes.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
METHOD FOR IMPAIRMENT TESTING
In the impairment test, the recoverable amount is compared with the carrying amount. The recoverable amount is based on a calculation of the value in use using cash flow projections based on the budget for 2026 and a forecast for the two subsequent years.
ALLOCATION OF INTANGIBLE ASSETS TO CGUs | |||
DKK million | Goodwill | Brand | Distribution |
2025 | |||
Core | 3,665 | 766 | 749 |
Fuel with more | 1,355 | 291 | 285 |
Total | 5,020 | 1,057 | 1,034 |
2024 | |||
Core | 3,748 | 766 | 749 |
Fuel with more | 1,377 | 291 | 285 |
Total | 5,126 | 1,057 | 1,034 |
DISCOUNT RATES AND GROWTH RATES IN TERMINAL PERIOD (%) | Discount rate before tax | Growth rate in terminal period |
2025 | ||
Core | 13.2% | 2% |
Fuel with more | 13.2% | 2% |
Group | 13.2% | 2% |
2024 | ||
Core | 12.9% | 2% |
Fuel with more | 12.9% | 2% |
Group | 12.9% | 2% |
All intangible assets are tested for impairment if there is any indication of impairment. Intangible assets with indefinite useful lives and assets not yet in use are tested at least annually.
ASSUMPTIONS
The calculations of the recoverable amounts of CGUs or groups of CGUs are based on the following key assumptions.
Discount rates reflect the current market assessment of the time value of money and the risks specific to each CGU or group of CGUs. The Group discount rates are estimated based on a weighted average cost of capital for the industry and adjusted to reflect the market assessment of any risk specific to each group of CGUs.
The cash flows used in the impairment test are based on the budget for next year, prepared and approved by management, and a forecast for the two subsequent years.
High inflation rates continued in 2025, and commodity prices - particularly silver - increased substantially during the year, both affecting the estimates for the upcoming years. Pandora expects the long-term inflation rate to stabilise and has applied a 2% growth rate in the terminal period (2024: 2%). As such, no real growth has been applied to the terminal period when calculating the recoverable amounts. While Pandora expects long-term commodity prices to stabilise at lower levels than current spot prices, a further increase in commodity prices has been applied in the sensitivity analysis of the recoverable amounts to assess the potential impact of possible changes in key assumptions, including higher production costs.
The cash flows projections for each group of CGUs are based on historical experience and management's expectations concerning:
\u2022 revenue development, taking into account development in network (stores, retail/wholesale share), product mix, market share and changes in consumer behaviour;
\u2022 cost of sales based on raw materials consumption affected by the mix of materials (man-made stones, silver and gold), salaries, and average lagged hedge commodity prices at the time the budget is prepared;
\u2022 development in operating expenses;
\u2022 currency rates, based on spot rates at the time the budget is prepared;
\u2022 interest rates;
\u2022 import duties and tariffs;
\u2022 increasing climate-related risks and geographical exposure; and
\u2022 the transition to a circular economy and to net zero impact, including investments required, and impact on the useful economic life of the assets.
For more information, see note 1.3 Management\u2019s judgements and estimates under IFRS Accounting Standards.
Net working capital in the budget for next year, relative to the revenue of each group of CGUs, is based on historical experience and is maintained for the remainder of the expected useful economic lives. Net working capital thus increases on a linear basis as the level of activity increases.
The impairment test of the brand at Group level is based on the \"Relief from Royalty\" method. The impairment tests did not identify any need for impairment losses to be recognised. Based on sensitivity analysis, it is management\u2019s opinion that no probable change in any key assumptions would cause the carrying amounts of the two operating segments or the Group as a whole to exceed their recoverable amounts.
Even with a significant reduction in the growth rate, higher production costs, and an increase in the discount rate, management has not identified any likely impairment.
NOTE 3.2
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | Land and buildings | Plant and equipment | Assets under construction\u00b9 | Total |
DKK million | ||||
2025 | ||||
Cost at 1 January | 1,389 | 5,274 | 396 | 7,059 |
Acquisition of subsidiaries and activities | - | 28 | - | 28 |
Additions | 12 | 80 | 1,387 | 1,479 |
Disposals | -1 | -218 | - | -219 |
Transfers | 425 | 1,017 | -1,442 | - |
Exchange rate adjustments | -61 | -266 | -72 | -398 |
Cost at 31 December | 1,765 | 5,914 | 269 | 7,949 |
Depreciation and impairment losses at 1 January | 620 | 2,964 | - | 3,584 |
Depreciation for the year | 102 | 738 | - | 840 |
Impairment for the year2 | - | 11 | 54 | 65 |
Disposals | -1 | -205 | - | -206 |
Exchange rate adjustments | -25 | -126 | - | -151 |
Depreciation and impairment losses at 31 December | 697 | 3,382 | 54 | 4,132 |
Carrying amount at 31 December | 1,069 | 2,532 | 216 | 3,817 |
2024 | ||||
Cost at 1 January | 1,286 | 4,661 | 263 | 6,210 |
Acquisition of subsidiaries and activities | - | 25 | - | 25 |
Additions | 15 | 174 | 1,252 | 1,441 |
Disposals | -11 | -789 | - | -800 |
Transfers | 16 | 1,109 | -1,124 | - |
Exchange rate adjustments | 85 | 93 | 5 | 184 |
Cost at 31 December | 1,389 | 5,274 | 396 | 7,059 |
Depreciation and impairment losses at 1 January | 511 | 2,953 | - | 3,464 |
Depreciation for the year | 80 | 650 | - | 730 |
Disposals | -10 | -694 | - | -704 |
Exchange rate adjustments | 38 | 55 | - | 93 |
Depreciation and impairment losses at 31 December | 620 | 2,964 | - | 3,584 |
Carrying amount at 31 December | 769 | 2,310 | 396 | 3,475 |
DKK million | 2025 | 2024 |
Depreciation and impairment losses have been recognised in the income statement as follows: | ||
Cost of sales | 187 | 122 |
Sales, distribution and marketing expenses | 673 | 565 |
Administrative expenses | 45 | 43 |
Total | 906 | 730 |
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
ACCOUNTING POLICIES
Wages and salaries, social security contributions, leave and sick leave, bonuses and non-monetary benefits are recognised in the financial year in which services are rendered by Pandora employees. Whenever Pandora provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees.
Termination benefits are recognised at the time an agreement between Pandora and the employee is made and no future service is rendered by the employee in exchange for the benefits.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
NOTE 2.3
SHARE-BASED PAYMENTS
Decisions to grant share-based incentive programmes are made by the Board of Directors in accordance with general guidelines on incentive pay for Pandora.
The cost related to share-based payments was DKK 103 million (2024: DKK 166 million). The 2023 programme was recorded at the maximum level. The 2024 programme was recorded at target for financial performance and above target for sustainability performance, while the programme for 2025 was recorded at target for both the financial and sustainability metrics. The cost of share-based payments is included in staff costs. In the remaining vesting periods, an amount of DKK 83 million (2024: DKK 142 million) is expected to be recognised in respect of the current programmes. The weighted average remaining contractual life of the shares at the end of the period was 1.1 year (2024: 1.1 year).For shares exercised in 2025, the average share price at the time of exercise was DKK 1,342 (2024: DKK 1,040).
LONG-TERM INCENTIVE PLANS
Pandora is launching annual incentive programmes targeting Executive Management and other employees. The calculated value of each programme is recognised over the vesting period (three years) based on the likelihood that programme targets will be met. For Executive Management, a further two-year holding period applies.
Vesting of the performance shares granted in 2025 is subject to achievement of Pandora\u2019s earnings per share (EPS) target for the financial year 2027 and the achievement of sustainability targets, which will be assessed against objectives based on Pandora\u2019s internal projections. As financial KPIs are commercially sensitive, Pandora\u2019s practice is to communicate these after the end of the performance period. For further details, see our Remuneration Report 2025.
ASSUMPTIONS ON FAIR VALUE OF SHARES
The volatility of the shares is based on the historical volatility of the price of Pandora A/S shares. The risk-free interest rate is based on a Danish government bond with similar maturity. The dividend yield applied is equal to 1.89% for the 2025 programme and is based on the assumed future dividend over the vesting period and the share price on the date of the grant. Actual paid dividends may differ from the assumptions applied in the valuation of the market value.
ACCOUNTING POLICIES
Selected Pandora employees receive remuneration in the form of share-based payment transactions, whereby programme participants render services as consideration for equity instruments (equity-settled transactions).
EQUITY-SETTLED TRANSACTIONS
The cost of equity-settled transactions with employees is measured by reference to the fair value at the grant date. The calculated fair values are based on the Black-Scholes model. The cost of equity-settled transactions is recognised as staff costs together with a corresponding increase in equity over the period in which the performance and/or service conditions are fulfilled.
The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and management\u2019s best estimate of the number of equity instruments that will ultimately vest. The incomestatement expenses or income for a period represents the movement incumulative expenses recognised at the beginning and end of that period.
SHARES OUTSTANDING | Executive Management | Other employees | Total | Average exercise price per performance share, DKK |
2025 | ||||
Shares outstanding at 1 January | 155,516 | 457,377 | 612,893 | - |
Shares granted during the year | 41,348 | 173,131 | 214,479 | - |
Shares exercised during the year | -40,791 | -132,828 | -173,619 | - |
Shares lapsed during the year | -1,315 | -33,162 | -34,477 | - |
Shares outstanding at 31 December | 154,758 | 464,518 | 619,276 | - |
2024 | ||||
Shares outstanding at 1 January | 254,284 | 550,498 | 804,782 | 0.3 |
Shares granted during the year | 57,182 | 125,163 | 182,345 | - |
Shares exercised during the year | -153,588 | -158,650 | -312,238 | 0.9 |
Shares lapsed during the year | -2,362 | -59,634 | -61,996 | - |
Shares outstanding at 31 December | 155,516 | 457,377 | 612,893 | - |
NUMBER OF OUTSTANDING SHARES IN PANDORA A/S | Vesting date | Shares at 31 December 2025 | Maximum cost at launch (DKK million) | Accumulated cost recognised(DKK million) | Remaining value to be expensed (DKK million) |
Programme start date | |||||
April 2023\u00b2 | 2026 | 174,871 | 137 | 109 | - |
April 2023\u00b9 | 2026 | 56,228 | 34 | 34 | - |
April 2024\u00b2 | 2027 | 116,516 | 133 | 59 | 11 |
April 2024\u00b9 | 2027 | 57,182 | 61 | 22 | 2 |
April 2025\u00b2 | 2028 | 173,131 | 165 | 26 | 63 |
April 2025\u00b9 | 2028 | 41,348 | 42 | 14 | 7 |
Total number of shares outstanding | 619,276 | 572 | 263 | 83 |
1Programme related to Executive Management, where a two-year holding period applies.
2Programme related to other employees.
ACCOUNTING POLICIES
Selected Pandora employees receive remuneration in the form of share-based payment transactions, whereby programme participants render services as consideration for equity instruments (equity-settled transactions).
EQUITY-SETTLED TRANSACTIONS
The cost of equity-settled transactions with employees is measured by reference to the fair value at the grant date. The calculated fair values are based on the Black-Scholes model. The cost of equity-settled transactions is recognised as staff costs together with a corresponding increase in equity over the period in which the performance and/or service conditions are fulfilled.
The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and management\u2019s best estimate of the number of equity instruments that will ultimately vest. The incomestatement expenses or income for a period represents the movement incumulative expenses recognised at the beginning and end of that period.
NOTE 2.4
TAXATION
INCOME TAXES
Income tax expense
The tax expense was DKK 1.7 billion in 2025, corresponding to an effective tax rate of 24.2% (2024: DKK 1.7 billion, 24.5%). In 2025, some of Pandora\u2019s tax incentives in Thailand relating to income tax and withholding tax on dividends under Board of Investment (BOI) agreements reduced. Consequently, witholding tax on dividends from Thailand increased, and no minimum tax is payable in respect of Thailand for 2025.
The effective tax rate was reduced as a result of a bilateral advanced pricing agreement between Australia and Denmark that was agreed during 2025 in respect of the years from 2022 to 2027.
2025 | 2024 | |||
% | (DKK million) | % | (DKK million) | |
RECONCILIATION OF EFFECTIVE | ||||
TAX RATE AND TAX | ||||
Profit before tax | 6,913 | 6,926 | ||
Income tax rate in Denmark, 22% | 22.0% | 1,521 | 22.0% | 1,524 |
Deviation in foreign subsidiaries\u2019 tax rates compared with the Danish rate | 1.2% | 83 | 0.2% | 12 |
Non-deductible expenses | 3.3% | 231 | 2.5% | 176 |
Tax incentives | -1.8% | -121 | -2.3% | -159 |
Adjustment to tax for prior years | -1.5% | -103 | 0.0% | 1 |
Non-capitalised tax assets, net | -0.2% | -15 | -0.2% | -12 |
Withholding taxes/other taxes | 1.1% | 75 | 0.7% | 46 |
OECD Pillar II Global Minimum Tax | 0.0% | - | 1.6% | 111 |
Effective income tax rate/income tax expense | 24.2% | 1,671 | 24.5% | 1,699 |
INCOME TAX EXPENSE | ||
DKK million | 2025 | 2024 |
Current income tax charge for the year\u00b9 | 1,777 | 2,023 |
Change in deferred tax for the year | -3 | -325 |
Adjustment to current tax for prior years | -81 | -14 |
Adjustment to deferred tax for prior years | -22 | 15 |
Total income tax expense | 1,671 | 1,699 |
Deferred tax on other comprehensive income | 313 | 11 |
Current income tax on other comprehensive income | -5 | -32 |
Total tax on other comprehensive income | 308 | -21 |
1Withholding taxes are included in current income tax charge for the year.
ACCOUNTING POLICIES
Income tax expense for the year comprises current tax and changes in deferred tax, including changes in tax rate, adjustment to prior years and changes in provisions for uncertain tax positions. Tax is recognised in the income statement, except to the extent that it is related to items recognised in equity or other comprehensive income. The tax rates and tax laws used to compute the amounts are those enacted or substantively enacted, by the reporting date, in the countries in which Pandora operates and generates taxable income.
SIGNIFICANT ACCOUNTING JUDGEMENTS
Pandora is subject to income tax in the countries in which the Group operates, comprising various tax rates worldwide. Significant judgements are required in determining the accrual for income taxes, deferred tax assets and liabilities, and provisions for uncertain tax positions. Provisions for uncertain tax positions are measured according to IFRIC 23.
As part of Pandora conducting business globally, tax and transfer pricing disputes with tax authorities may occur. Any unresolved disputes with local tax authorities are recognised as income tax payable/receivable based on the expected value method or the most likely amount. Management believes that the provisions made for uncertain tax positions are adequate. However, the actual obligation may deviate from this and is dependent on the result of litigation and settlements with the relevant tax authorities.
OECD Pillar Two minimum tax
The OECD introduced a global minimum tax rate of 15%, based on group accounting income per jurisdiction, that has applied to Pandora since 2024. The minimum tax rules apply to entities that are a member of a multinational group with annual revenue of EUR 750 million or more in the consolidated financial statements. If the effective tax rate is lower than 15% in any jurisdiction, a top-up or minimum tax must be paid.
Pandora has no minimum tax costs in respect of 2025 (2024: DKK 111 million, mainly relating to Thailand).
ACCOUNTING POLICIES
Pandora is subject to global minimum tax (OECD BEPS Pillar Two rules) primarily in respect of jurisdictions with income tax rates lower than 15% or in which we receive tax incentives. Where qualifying domestic minimum taxes are implemented in applicable jurisdictions, Pandora will pay the minimum tax in those jurisdictions. Where no qualifying domestic minimum tax has been implemented, tax will be paid in Denmark.
ACCOUNTING POLICIES
Income tax expense for the year comprises current tax and changes in deferred tax, including changes in tax rate, adjustment to prior years and changes in provisions for uncertain tax positions. Tax is recognised in the income statement, except to the extent that it is related to items recognised in equity or other comprehensive income. The tax rates and tax laws used to compute the amounts are those enacted or substantively enacted, by the reporting date, in the countries in which Pandora operates and generates taxable income.
ACCOUNTING POLICIES
Pandora is subject to global minimum tax (OECD BEPS Pillar Two rules) primarily in respect of jurisdictions with income tax rates lower than 15% or in which we receive tax incentives. Where qualifying domestic minimum taxes are implemented in applicable jurisdictions, Pandora will pay the minimum tax in those jurisdictions. Where no qualifying domestic minimum tax has been implemented, tax will be paid in Denmark.
Deferred tax
At the end of 2025, deferred tax assets amounted to DKK 1,566 million (2024: DKK 1,530 million), and deferred tax liabilities amounted to DKK 462 million (2024: DKK 102 million). Net deferred tax assets amounted to DKK 1,103 million (2024: DKK 1,428 million).
Of the total deferred tax assets recognised, DKK 21 million (2024: DKK 27 million) related to tax loss carryforwards, the utilisation of which depends on future positive taxable income exceeding realised deferred tax liabilities. It is management\u2019s opinion that these tax loss carryforwards can be utilised.
DEFERRED TAX | ||
DKK million | 2025 | 2024 |
Deferred tax at 1 January | 1,427 | 1,096 |
Exchange rate adjustments | -7 | -6 |
Recognised in the income statement | 25 | 310 |
Recognised in other comprehensive income | -313 | -11 |
Recognised in equity, share-based payments | -29 | 39 |
Deferred tax at 31 December | 1,103 | 1,428 |
Deferred tax assets | 1,566 | 1,530 |
Deferred tax liabilities | -462 | -102 |
Deferred tax, net | 1,103 | 1,428 |
BREAKDOWN OF DEFERRED TAX | ||
DKK million | 2025 | 2024 |
Intangible assets | -742 | -699 |
Property, plant and equipment | -26 | -85 |
Right-of-use assets | 139 | 105 |
Current assets | 1,330 | 1,704 |
Non-current assets and liabilities | 381 | 376 |
Tax loss carryforwards | 21 | 27 |
Deferred tax, net | 1,103 | 1,428 |
ACCOUNTING POLICIES
With respect to global minimum tax, the Group applies the mandatory exception to the accounting requirements for deferred taxes in IAS 12, so that an entity neither recognises nor discloses information about deferred tax assets and liabilities related to minimum taxes. Deferred tax on all the remaining temporary differences between the carrying amounts for financial reporting purposes and the tax base of assets and liabilities are measured using the balance sheet liability method. No deferred tax is recognised on temporary differences that arise from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss.
The recognition of deferred tax assets includes the expected tax value of tax loss carryforwards to the extent that these tax assets can be offset against positive taxable income in the foreseeable future. The same applies to deferred tax assets related to investments in subsidiaries. Management has considered future taxable income and applied judgements to determine whether deferred tax assets should be recognised.
Deferred tax assets and liabilities are measured according to current tax rules and at the tax rates expected to be effective on elimination of the temporary differences. Deferred tax assets and liabilities are offset if the Group has a legally enforceable right to offset current tax assets against current tax liabilities and the deferred tax relates to the same taxable entity and the same tax authority.
Tax assets not recognised were DKK 217 million (2024: DKK 230 million), of which DKK 80 million (2024: DKK 89 million) relate to tax loss carryforwards that are not expected to be utilised in the foreseeable future. Tax losses that can expire amounted to DKK 14 million (2024: DKK 25 million).
The Group recognises deferred tax liabilities in respect of earnings that are intended for distribution in the short term where the tax expense on distribution would be material.
Only insignificant latent tax liabilities remained at 31 December 2025. These liabilities are not recognised as the Group is able to control this liability and it is considered probable that the liability will not crystallise in the foreseeable future.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:5299007OWYZ6I1E46843", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__9__146": { "value": "ACCOUNTING POLICIES
With respect to global minimum tax, the Group applies the mandatory exception to the accounting requirements for deferred taxes in IAS 12, so that an entity neither recognises nor discloses information about deferred tax assets and liabilities related to minimum taxes. Deferred tax on all the remaining temporary differences between the carrying amounts for financial reporting purposes and the tax base of assets and liabilities are measured using the balance sheet liability method. No deferred tax is recognised on temporary differences that arise from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or loss.
The recognition of deferred tax assets includes the expected tax value of tax loss carryforwards to the extent that these tax assets can be offset against positive taxable income in the foreseeable future. The same applies to deferred tax assets related to investments in subsidiaries. Management has considered future taxable income and applied judgements to determine whether deferred tax assets should be recognised.
Deferred tax assets and liabilities are measured according to current tax rules and at the tax rates expected to be effective on elimination of the temporary differences. Deferred tax assets and liabilities are offset if the Group has a legally enforceable right to offset current tax assets against current tax liabilities and the deferred tax relates to the same taxable entity and the same tax authority.
OUR APPROACH TO TAXES AND TAXES PAID
Our sustainability strategy is reflected in our tax approach, and we aim at paying a fair tax in all markets where we operate. Pandora is committed to ensure compliance with the letter and spirit of tax law in the markets where we operate, while striving to maximise shareholder value in a responsible way. The Group Tax Policy, which has been approved by the Board of Directors of Pandora, is available at pandoragroup.com/investor/corporate-governance/tax-informationand includes more information on our approach to taxes.
Pandora operates globally under a vertically integrated business model, and we own a significant part of our value chain from production to retail. Pandora\u2019s Transfer Pricing Policy follows a principal operating model, where profit follows risk and value creation throughout the value chain. While all steps of the value chain are important to Pandora, Pandora A/S is the principal value driver and also assumes the majority of business risks. Other entities in the Group achieve a profit margin, based on benchmark studies, and the
residual profit (or loss) in the value chain remains with Pandora A/S. With a principal operating model, Pandora by nature has a significant number of intercompany transactions.
Intercompany transactions are in general made on arm\u2019s length basis and therefore priced on a basis consistent with the way unrelated parties would have priced such transactions. This impacts the taxes we pay in the countries in which we do business. Pandora understands the need for transparency by both taxpayers and tax administrations, and the need to provide clarity about Pandora\u2019s position on tax. In doing so, we provide our full country-by-country report for all markets, including definitions, available at pandoragroup.com/investor/corporate-governance/tax-information.
PAID INCOME TAX
In 2025, we paid income taxes in the amount of DKK 1,881 million (2024: DKK 1,738 million). The major part of the taxes paid is attributable to Denmark and Pandora\u2019s key markets, and mainly relates to the current year. Tax payments in respect of prior years increased in 2025.
Income tax paid reflects the cash tax payments made in the year and relates to taxes on account for the current year as well as payments regarding prior years. For the majority of the countries, the final taxes are paid in the year following the financial year, creating a timing difference in cash tax payments.
In 2025, the net income tax payable decreased to DKK 528 million, as shown in the bridge \u201cMovement in net tax payable\u201d on the next page. The decrease mainly relates to the lower current tax charge for 2025.
The difference between income tax expense in the income statement and income tax paid is explained in the bridge \u201cFrom income tax expense to tax paid\u201d on the next page.
CASH INCOME TAX PAID | ||
DKK million | 2025 | 2024 |
Income tax expense in income statement | -1,671 | -1,699 |
Tax on other comprehensive income and exchange rate adjustments | 5 | 32 |
Adjustments regarding deferred taxes | -25 | -310 |
Movement in income tax receivable/payable | -190 | 239 |
Income tax paid in the year | -1,881 | -1,738 |
- of which relates to prior years | -368 | -183 |
- of which relates to current year | -1,513 | -1,555 |
Income tax paid in the year | -1,881 | -1,738 |
MOVEMENT IN NET TAX PAYABLE |
DKK million |
Net tax payable, start of year
718
Current income tax charge for the year
1,777
Tax on other comprehensive income and exchange rate adjustments
-5
Adjustments to current tax in prior years
-81
Income tax paid in the year as reflected in our cash flows
-1,881
Net tax payable, year-end
528
FROM INCOME TAX EXPENSE TO TAX PAID |
DKK million |
Income tax expense in income statement
1,671
Tax on other comprehensive income and exchange rate adjustments
-5
Adjustments regarding deferred taxes
25
Net tax payable, start of year
718
Net tax payable, year-end
-528
Income tax paid in the year as reflected in our cash flows
1,881
NOTE 3.1
INTANGIBLE ASSETS
Goodwill | Brand | Distribution | Other intangible assets\u00b9 | Total | |
INTANGIBLE ASSETS | |||||
DKK million | |||||
2025 | |||||
Cost at 1 January | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Acquisition of subsidiaries and activities | 164 | - | - | - | 164 |
Additions | - | - | - | 460 | 460 |
Disposals | - | - | - | -44 | -44 |
Exchange rate adjustments | -270 | - | -8 | -28 | -306 |
Cost at 31 December | 5,020 | 1,057 | 1,606 | 3,429 | 11,113 |
Amortisation and impairment losses at 1 January | - | - | 580 | 2,027 | 2,606 |
Amortisation for the year | - | - | - | 233 | 233 |
Reversal of impairment for the year | - | - | - | -30 | -30 |
Disposals | - | - | - | -30 | -30 |
Exchange rate adjustments | - | - | - 8 | -22 | -30 |
Amortisation and impairment losses at 31 December | - | - | 572 | 2,177 | 2,750 |
Carrying amount at 31 December | 5,020 | 1,057 | 1,034 | 1,252 | 8,364 |
2024 | |||||
Cost at 1 January | 4,914 | 1,057 | 1,610 | 2,678 | 10,259 |
Acquisition of subsidiaries and activities | 98 | - | - | - | 98 |
Additions | - | - | - | 499 | 499 |
Disposals | - | - | - | -171 | -171 |
Exchange rate adjustments | 114 | - | 4 | 35 | 153 |
Cost at 31 December | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Amortisation and impairment losses at 1 January | - | - | 572 | 1,887 | 2,459 |
Amortisation for the year | - | - | 4 | 276 | 280 |
Disposals | - | - | - | -166 | -166 |
Exchange rate adjustments | - | - | 4 | 29 | 33 |
Amortisation and impairment losses at 31 December | - | - | 580 | 2,027 | 2,606 |
Carrying amount at 31 December | 5,126 | 1,057 | 1,034 | 1,015 | 8,232 |
\u00b9 Other intangible assets include assets that are not yet in use of DKK 559 million (2024: DKK 556 million), mainly related to software applications, including ERP systems.
DKK million | 2025 | 2024 |
Amortisation and impairment loss has been recognised in the income statement as follows: | ||
Cost of sales | -17 | 14 |
Sales, distribution and marketing expenses | 101 | 144 |
Administrative expenses | 119 | 122 |
Total | 203 | 280 |
GOODWILL
Additions in 2025 relate to acquisitions of activities. Note 3.4 Business combinationsincludes an overview of acquired goodwill for the year.
BRAND
The \u201cPandora\u201d brand is the only brand of the Group that is capitalised in the consolidated financial statements. It comprises a group of complementary intangible assets relating to the brand, domain name, products, image and customer experience of products sold under the Pandora brand. The brand was acquired as part of the Pandora core business in 2008.
DISTRIBUTION
Distribution includes distribution network and distribution rights acquired. The distribution network covers Pandora\u2019s relations with its distributors. The main part of the distribution network was acquired with the Pandora core business in 2008. Distribution rights mainly relate to the distribution rights for Pandora products in North America with indefinite-life. These were acquired from the American distributor in 2008, and the carrying amount at 31 December 2025 was DKK 1.0 billion (2024: DKK 1.0 billion).
OTHER INTANGIBLE ASSETS
Other intangible assets mainly comprise software, including ERP systems and other operational applications supporting business processes.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
METHOD FOR IMPAIRMENT TESTING
In the impairment test, the recoverable amount is compared with the carrying amount. The recoverable amount is based on a calculation of the value in use using cash flow projections based on the budget for 2026 and a forecast for the two subsequent years.
ALLOCATION OF INTANGIBLE ASSETS TO CGUs | |||
DKK million | Goodwill | Brand | Distribution |
2025 | |||
Core | 3,665 | 766 | 749 |
Fuel with more | 1,355 | 291 | 285 |
Total | 5,020 | 1,057 | 1,034 |
2024 | |||
Core | 3,748 | 766 | 749 |
Fuel with more | 1,377 | 291 | 285 |
Total | 5,126 | 1,057 | 1,034 |
DISCOUNT RATES AND GROWTH RATES IN TERMINAL PERIOD (%) | Discount rate before tax | Growth rate in terminal period |
2025 | ||
Core | 13.2% | 2% |
Fuel with more | 13.2% | 2% |
Group | 13.2% | 2% |
2024 | ||
Core | 12.9% | 2% |
Fuel with more | 12.9% | 2% |
Group | 12.9% | 2% |
All intangible assets are tested for impairment if there is any indication of impairment. Intangible assets with indefinite useful lives and assets not yet in use are tested at least annually.
ASSUMPTIONS
The calculations of the recoverable amounts of CGUs or groups of CGUs are based on the following key assumptions.
Discount rates reflect the current market assessment of the time value of money and the risks specific to each CGU or group of CGUs. The Group discount rates are estimated based on a weighted average cost of capital for the industry and adjusted to reflect the market assessment of any risk specific to each group of CGUs.
The cash flows used in the impairment test are based on the budget for next year, prepared and approved by management, and a forecast for the two subsequent years.
High inflation rates continued in 2025, and commodity prices - particularly silver - increased substantially during the year, both affecting the estimates for the upcoming years. Pandora expects the long-term inflation rate to stabilise and has applied a 2% growth rate in the terminal period (2024: 2%). As such, no real growth has been applied to the terminal period when calculating the recoverable amounts. While Pandora expects long-term commodity prices to stabilise at lower levels than current spot prices, a further increase in commodity prices has been applied in the sensitivity analysis of the recoverable amounts to assess the potential impact of possible changes in key assumptions, including higher production costs.
The cash flows projections for each group of CGUs are based on historical experience and management's expectations concerning:
\u2022 revenue development, taking into account development in network (stores, retail/wholesale share), product mix, market share and changes in consumer behaviour;
\u2022 cost of sales based on raw materials consumption affected by the mix of materials (man-made stones, silver and gold), salaries, and average lagged hedge commodity prices at the time the budget is prepared;
\u2022 development in operating expenses;
\u2022 currency rates, based on spot rates at the time the budget is prepared;
\u2022 interest rates;
\u2022 import duties and tariffs;
\u2022 increasing climate-related risks and geographical exposure; and
\u2022 the transition to a circular economy and to net zero impact, including investments required, and impact on the useful economic life of the assets.
For more information, see note 1.3 Management\u2019s judgements and estimates under IFRS Accounting Standards.
Net working capital in the budget for next year, relative to the revenue of each group of CGUs, is based on historical experience and is maintained for the remainder of the expected useful economic lives. Net working capital thus increases on a linear basis as the level of activity increases.
The impairment test of the brand at Group level is based on the \"Relief from Royalty\" method. The impairment tests did not identify any need for impairment losses to be recognised. Based on sensitivity analysis, it is management\u2019s opinion that no probable change in any key assumptions would cause the carrying amounts of the two operating segments or the Group as a whole to exceed their recoverable amounts.
Even with a significant reduction in the growth rate, higher production costs, and an increase in the discount rate, management has not identified any likely impairment.
NOTE 3.2
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | Land and buildings | Plant and equipment | Assets under construction\u00b9 | Total |
DKK million | ||||
2025 | ||||
Cost at 1 January | 1,389 | 5,274 | 396 | 7,059 |
Acquisition of subsidiaries and activities | - | 28 | - | 28 |
Additions | 12 | 80 | 1,387 | 1,479 |
Disposals | -1 | -218 | - | -219 |
Transfers | 425 | 1,017 | -1,442 | - |
Exchange rate adjustments | -61 | -266 | -72 | -398 |
Cost at 31 December | 1,765 | 5,914 | 269 | 7,949 |
Depreciation and impairment losses at 1 January | 620 | 2,964 | - | 3,584 |
Depreciation for the year | 102 | 738 | - | 840 |
Impairment for the year2 | - | 11 | 54 | 65 |
Disposals | -1 | -205 | - | -206 |
Exchange rate adjustments | -25 | -126 | - | -151 |
Depreciation and impairment losses at 31 December | 697 | 3,382 | 54 | 4,132 |
Carrying amount at 31 December | 1,069 | 2,532 | 216 | 3,817 |
2024 | ||||
Cost at 1 January | 1,286 | 4,661 | 263 | 6,210 |
Acquisition of subsidiaries and activities | - | 25 | - | 25 |
Additions | 15 | 174 | 1,252 | 1,441 |
Disposals | -11 | -789 | - | -800 |
Transfers | 16 | 1,109 | -1,124 | - |
Exchange rate adjustments | 85 | 93 | 5 | 184 |
Cost at 31 December | 1,389 | 5,274 | 396 | 7,059 |
Depreciation and impairment losses at 1 January | 511 | 2,953 | - | 3,464 |
Depreciation for the year | 80 | 650 | - | 730 |
Disposals | -10 | -694 | - | -704 |
Exchange rate adjustments | 38 | 55 | - | 93 |
Depreciation and impairment losses at 31 December | 620 | 2,964 | - | 3,584 |
Carrying amount at 31 December | 769 | 2,310 | 396 | 3,475 |
DKK million | 2025 | 2024 |
Depreciation and impairment losses have been recognised in the income statement as follows: | ||
Cost of sales | 187 | 122 |
Sales, distribution and marketing expenses | 673 | 565 |
Administrative expenses | 45 | 43 |
Total | 906 | 730 |
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
NOTE 3.5
INVENTORIES
INVENTORIES | ||
DKK million | 2025 | 2024 |
Raw materials and consumables | 780 | 751 |
Work in progress | 134 | 141 |
Finished goods | 3,820 | 3,376 |
Point-of-sale materials | 149 | 159 |
Total inventories at 31 December | 4,883 | 4,426 |
Inventory write-downs at 1 January | 838 | 750 |
Write-downs during the year | 178 | 243 |
Utilised in the year | -210 | -155 |
Inventory write-downs at 31 December | 806 | 838 |
WRITE-DOWNS
Inventory write-downs primarily relate to finished goods and are recognised in cost of sales, DKK 136 million (2024: DKK 212 million), and operating expenses, DKK 42 million (2024: DKK 31 million). Write-downs include mainly the cost of remelting obsolete jewellery.
PRODUCTION OVERHEADS
Production overheads are calculated using a standard cost method, which is reviewed regularly to ensure relevant assumptions concerning capacity utilisation, lead times and other relevant factors.
NET REALISABLE VALUE
Net realisable value is based on the estimated selling price less estimated costs of completion and distribution. Alternatively, for inventories that are not expected to be sold, net realisable value is based on the recycle value of the reusable raw materials (primarily silver, gold and lab-grown diamonds).
ACCOUNTING POLICIES
Inventories are valued at the lower of cost and net realisable value. The cost of inventories are accounted for on a first-in, first-out basis (FIFO) and includes raw materials - including the effect of realised commodity hedges - direct labour, and a proportion of production overheads allocated based on normal operating capacity. These overheads comprise indirect supplies, indirect wages and salaries, amortisation of production-related software, as well as maintenance and depreciation of machinery, plant and equipment used in production, while borrowing costs are not included. Additionally, the cost of inventories includes directly attributable costs incurred to bring the inventories to their present location and condition, such as freight, insurance and duties.
Point-of-sale materials, including equipment, displays and packaging materials, are also accounted for using the FIFO method. Their cost consists of the purchase price and costs directly related to bringing the materials to the relevant point of sale.
SIGNIFICANT ACCOUNTING ESTIMATES
Estimates relating to write-downs are impacted by forecasting accuracy in the number of obsolete products that will need to be remelted. Further, significant management estimates are required with regards to the calculations of internal gain on inventory when goods are sold from production entities to sales entities.
NOTE 3.6
TRADE RECEIVABLES
TRADE RECEIVABLES | ||
DKK million | 2025 | 2024 |
Receivables related to third-party distribution and wholesale | 544 | 711 |
Receivables related to retail sales | 620 | 506 |
Total trade receivables at 31 December | 1,163 | 1,217 |
Ageing of trade receivables at 31 December | ||
Not past due | 981 | 972 |
Up to 30 days | 121 | 174 |
Between 30 and 60 days | 44 | 45 |
Between 60 and 90 days | 9 | 12 |
Over 90 days | 8 | 14 |
Total past due, not impaired | 182 | 245 |
Total trade receivables at 31 December | 1,163 | 1,217 |
Development in impairment losses on trade receivables | ||
Impairment at 1 January | 95 | 94 |
Additions | 8 | 27 |
Utilised | -3 | -17 |
Unused amounts reversed | -10 | -9 |
Exchange rate adjustments | - | 1 |
Impairment at 31 December | 90 | 95 |
Trade receivables are amounts due from the sale of goods to wholesalers and distributors, or due from landlords, malls or e-commerce providers responsible for the collection of cash related to retail sales on behalf of Pandora.
Management continues to assess credit risk in order to ensure credit risk never exceeds the recognised write-down on trade receivables. For a further description of credit risk, see note 4.4 Financial risks.
In view of the low historical loss rates on receivables, incorporating current and forward-looking information on macroeconomic factors \u2013 such as GDP trends and unemployment levels \u2013 into these rates is not expected to significantly increase the assessed risk of credit losses.
ACCOUNTING POLICIES
Trade receivables are initially recognised at the amount of consideration that is unconditional and consequently recognised at fair value. The Group holds trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
Pandora applies the simplified approach to measure expected credit losses, using a lifetime expected loss allowance.
NOTE 3.1
INTANGIBLE ASSETS
Goodwill | Brand | Distribution | Other intangible assets\u00b9 | Total | |
INTANGIBLE ASSETS | |||||
DKK million | |||||
2025 | |||||
Cost at 1 January | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Acquisition of subsidiaries and activities | 164 | - | - | - | 164 |
Additions | - | - | - | 460 | 460 |
Disposals | - | - | - | -44 | -44 |
Exchange rate adjustments | -270 | - | -8 | -28 | -306 |
Cost at 31 December | 5,020 | 1,057 | 1,606 | 3,429 | 11,113 |
Amortisation and impairment losses at 1 January | - | - | 580 | 2,027 | 2,606 |
Amortisation for the year | - | - | - | 233 | 233 |
Reversal of impairment for the year | - | - | - | -30 | -30 |
Disposals | - | - | - | -30 | -30 |
Exchange rate adjustments | - | - | - 8 | -22 | -30 |
Amortisation and impairment losses at 31 December | - | - | 572 | 2,177 | 2,750 |
Carrying amount at 31 December | 5,020 | 1,057 | 1,034 | 1,252 | 8,364 |
2024 | |||||
Cost at 1 January | 4,914 | 1,057 | 1,610 | 2,678 | 10,259 |
Acquisition of subsidiaries and activities | 98 | - | - | - | 98 |
Additions | - | - | - | 499 | 499 |
Disposals | - | - | - | -171 | -171 |
Exchange rate adjustments | 114 | - | 4 | 35 | 153 |
Cost at 31 December | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Amortisation and impairment losses at 1 January | - | - | 572 | 1,887 | 2,459 |
Amortisation for the year | - | - | 4 | 276 | 280 |
Disposals | - | - | - | -166 | -166 |
Exchange rate adjustments | - | - | 4 | 29 | 33 |
Amortisation and impairment losses at 31 December | - | - | 580 | 2,027 | 2,606 |
Carrying amount at 31 December | 5,126 | 1,057 | 1,034 | 1,015 | 8,232 |
\u00b9 Other intangible assets include assets that are not yet in use of DKK 559 million (2024: DKK 556 million), mainly related to software applications, including ERP systems.
DKK million | 2025 | 2024 |
Amortisation and impairment loss has been recognised in the income statement as follows: | ||
Cost of sales | -17 | 14 |
Sales, distribution and marketing expenses | 101 | 144 |
Administrative expenses | 119 | 122 |
Total | 203 | 280 |
GOODWILL
Additions in 2025 relate to acquisitions of activities. Note 3.4 Business combinationsincludes an overview of acquired goodwill for the year.
BRAND
The \u201cPandora\u201d brand is the only brand of the Group that is capitalised in the consolidated financial statements. It comprises a group of complementary intangible assets relating to the brand, domain name, products, image and customer experience of products sold under the Pandora brand. The brand was acquired as part of the Pandora core business in 2008.
DISTRIBUTION
Distribution includes distribution network and distribution rights acquired. The distribution network covers Pandora\u2019s relations with its distributors. The main part of the distribution network was acquired with the Pandora core business in 2008. Distribution rights mainly relate to the distribution rights for Pandora products in North America with indefinite-life. These were acquired from the American distributor in 2008, and the carrying amount at 31 December 2025 was DKK 1.0 billion (2024: DKK 1.0 billion).
OTHER INTANGIBLE ASSETS
Other intangible assets mainly comprise software, including ERP systems and other operational applications supporting business processes.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
METHOD FOR IMPAIRMENT TESTING
In the impairment test, the recoverable amount is compared with the carrying amount. The recoverable amount is based on a calculation of the value in use using cash flow projections based on the budget for 2026 and a forecast for the two subsequent years.
ALLOCATION OF INTANGIBLE ASSETS TO CGUs | |||
DKK million | Goodwill | Brand | Distribution |
2025 | |||
Core | 3,665 | 766 | 749 |
Fuel with more | 1,355 | 291 | 285 |
Total | 5,020 | 1,057 | 1,034 |
2024 | |||
Core | 3,748 | 766 | 749 |
Fuel with more | 1,377 | 291 | 285 |
Total | 5,126 | 1,057 | 1,034 |
DISCOUNT RATES AND GROWTH RATES IN TERMINAL PERIOD (%) | Discount rate before tax | Growth rate in terminal period |
2025 | ||
Core | 13.2% | 2% |
Fuel with more | 13.2% | 2% |
Group | 13.2% | 2% |
2024 | ||
Core | 12.9% | 2% |
Fuel with more | 12.9% | 2% |
Group | 12.9% | 2% |
All intangible assets are tested for impairment if there is any indication of impairment. Intangible assets with indefinite useful lives and assets not yet in use are tested at least annually.
ASSUMPTIONS
The calculations of the recoverable amounts of CGUs or groups of CGUs are based on the following key assumptions.
Discount rates reflect the current market assessment of the time value of money and the risks specific to each CGU or group of CGUs. The Group discount rates are estimated based on a weighted average cost of capital for the industry and adjusted to reflect the market assessment of any risk specific to each group of CGUs.
The cash flows used in the impairment test are based on the budget for next year, prepared and approved by management, and a forecast for the two subsequent years.
High inflation rates continued in 2025, and commodity prices - particularly silver - increased substantially during the year, both affecting the estimates for the upcoming years. Pandora expects the long-term inflation rate to stabilise and has applied a 2% growth rate in the terminal period (2024: 2%). As such, no real growth has been applied to the terminal period when calculating the recoverable amounts. While Pandora expects long-term commodity prices to stabilise at lower levels than current spot prices, a further increase in commodity prices has been applied in the sensitivity analysis of the recoverable amounts to assess the potential impact of possible changes in key assumptions, including higher production costs.
The cash flows projections for each group of CGUs are based on historical experience and management's expectations concerning:
\u2022 revenue development, taking into account development in network (stores, retail/wholesale share), product mix, market share and changes in consumer behaviour;
\u2022 cost of sales based on raw materials consumption affected by the mix of materials (man-made stones, silver and gold), salaries, and average lagged hedge commodity prices at the time the budget is prepared;
\u2022 development in operating expenses;
\u2022 currency rates, based on spot rates at the time the budget is prepared;
\u2022 interest rates;
\u2022 import duties and tariffs;
\u2022 increasing climate-related risks and geographical exposure; and
\u2022 the transition to a circular economy and to net zero impact, including investments required, and impact on the useful economic life of the assets.
For more information, see note 1.3 Management\u2019s judgements and estimates under IFRS Accounting Standards.
Net working capital in the budget for next year, relative to the revenue of each group of CGUs, is based on historical experience and is maintained for the remainder of the expected useful economic lives. Net working capital thus increases on a linear basis as the level of activity increases.
The impairment test of the brand at Group level is based on the \"Relief from Royalty\" method. The impairment tests did not identify any need for impairment losses to be recognised. Based on sensitivity analysis, it is management\u2019s opinion that no probable change in any key assumptions would cause the carrying amounts of the two operating segments or the Group as a whole to exceed their recoverable amounts.
Even with a significant reduction in the growth rate, higher production costs, and an increase in the discount rate, management has not identified any likely impairment.
NOTE 3.1
INTANGIBLE ASSETS
Goodwill | Brand | Distribution | Other intangible assets\u00b9 | Total | |
INTANGIBLE ASSETS | |||||
DKK million | |||||
2025 | |||||
Cost at 1 January | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Acquisition of subsidiaries and activities | 164 | - | - | - | 164 |
Additions | - | - | - | 460 | 460 |
Disposals | - | - | - | -44 | -44 |
Exchange rate adjustments | -270 | - | -8 | -28 | -306 |
Cost at 31 December | 5,020 | 1,057 | 1,606 | 3,429 | 11,113 |
Amortisation and impairment losses at 1 January | - | - | 580 | 2,027 | 2,606 |
Amortisation for the year | - | - | - | 233 | 233 |
Reversal of impairment for the year | - | - | - | -30 | -30 |
Disposals | - | - | - | -30 | -30 |
Exchange rate adjustments | - | - | - 8 | -22 | -30 |
Amortisation and impairment losses at 31 December | - | - | 572 | 2,177 | 2,750 |
Carrying amount at 31 December | 5,020 | 1,057 | 1,034 | 1,252 | 8,364 |
2024 | |||||
Cost at 1 January | 4,914 | 1,057 | 1,610 | 2,678 | 10,259 |
Acquisition of subsidiaries and activities | 98 | - | - | - | 98 |
Additions | - | - | - | 499 | 499 |
Disposals | - | - | - | -171 | -171 |
Exchange rate adjustments | 114 | - | 4 | 35 | 153 |
Cost at 31 December | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Amortisation and impairment losses at 1 January | - | - | 572 | 1,887 | 2,459 |
Amortisation for the year | - | - | 4 | 276 | 280 |
Disposals | - | - | - | -166 | -166 |
Exchange rate adjustments | - | - | 4 | 29 | 33 |
Amortisation and impairment losses at 31 December | - | - | 580 | 2,027 | 2,606 |
Carrying amount at 31 December | 5,126 | 1,057 | 1,034 | 1,015 | 8,232 |
\u00b9 Other intangible assets include assets that are not yet in use of DKK 559 million (2024: DKK 556 million), mainly related to software applications, including ERP systems.
DKK million | 2025 | 2024 |
Amortisation and impairment loss has been recognised in the income statement as follows: | ||
Cost of sales | -17 | 14 |
Sales, distribution and marketing expenses | 101 | 144 |
Administrative expenses | 119 | 122 |
Total | 203 | 280 |
BRAND
The \u201cPandora\u201d brand is the only brand of the Group that is capitalised in the consolidated financial statements. It comprises a group of complementary intangible assets relating to the brand, domain name, products, image and customer experience of products sold under the Pandora brand. The brand was acquired as part of the Pandora core business in 2008.
DISTRIBUTION
Distribution includes distribution network and distribution rights acquired. The distribution network covers Pandora\u2019s relations with its distributors. The main part of the distribution network was acquired with the Pandora core business in 2008. Distribution rights mainly relate to the distribution rights for Pandora products in North America with indefinite-life. These were acquired from the American distributor in 2008, and the carrying amount at 31 December 2025 was DKK 1.0 billion (2024: DKK 1.0 billion).
OTHER INTANGIBLE ASSETS
Other intangible assets mainly comprise software, including ERP systems and other operational applications supporting business processes.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
METHOD FOR IMPAIRMENT TESTING
In the impairment test, the recoverable amount is compared with the carrying amount. The recoverable amount is based on a calculation of the value in use using cash flow projections based on the budget for 2026 and a forecast for the two subsequent years.
ALLOCATION OF INTANGIBLE ASSETS TO CGUs | |||
DKK million | Goodwill | Brand | Distribution |
2025 | |||
Core | 3,665 | 766 | 749 |
Fuel with more | 1,355 | 291 | 285 |
Total | 5,020 | 1,057 | 1,034 |
2024 | |||
Core | 3,748 | 766 | 749 |
Fuel with more | 1,377 | 291 | 285 |
Total | 5,126 | 1,057 | 1,034 |
DISCOUNT RATES AND GROWTH RATES IN TERMINAL PERIOD (%) | Discount rate before tax | Growth rate in terminal period |
2025 | ||
Core | 13.2% | 2% |
Fuel with more | 13.2% | 2% |
Group | 13.2% | 2% |
2024 | ||
Core | 12.9% | 2% |
Fuel with more | 12.9% | 2% |
Group | 12.9% | 2% |
All intangible assets are tested for impairment if there is any indication of impairment. Intangible assets with indefinite useful lives and assets not yet in use are tested at least annually.
ASSUMPTIONS
The calculations of the recoverable amounts of CGUs or groups of CGUs are based on the following key assumptions.
Discount rates reflect the current market assessment of the time value of money and the risks specific to each CGU or group of CGUs. The Group discount rates are estimated based on a weighted average cost of capital for the industry and adjusted to reflect the market assessment of any risk specific to each group of CGUs.
The cash flows used in the impairment test are based on the budget for next year, prepared and approved by management, and a forecast for the two subsequent years.
High inflation rates continued in 2025, and commodity prices - particularly silver - increased substantially during the year, both affecting the estimates for the upcoming years. Pandora expects the long-term inflation rate to stabilise and has applied a 2% growth rate in the terminal period (2024: 2%). As such, no real growth has been applied to the terminal period when calculating the recoverable amounts. While Pandora expects long-term commodity prices to stabilise at lower levels than current spot prices, a further increase in commodity prices has been applied in the sensitivity analysis of the recoverable amounts to assess the potential impact of possible changes in key assumptions, including higher production costs.
The cash flows projections for each group of CGUs are based on historical experience and management's expectations concerning:
\u2022 revenue development, taking into account development in network (stores, retail/wholesale share), product mix, market share and changes in consumer behaviour;
\u2022 cost of sales based on raw materials consumption affected by the mix of materials (man-made stones, silver and gold), salaries, and average lagged hedge commodity prices at the time the budget is prepared;
\u2022 development in operating expenses;
\u2022 currency rates, based on spot rates at the time the budget is prepared;
\u2022 interest rates;
\u2022 import duties and tariffs;
\u2022 increasing climate-related risks and geographical exposure; and
\u2022 the transition to a circular economy and to net zero impact, including investments required, and impact on the useful economic life of the assets.
For more information, see note 1.3 Management\u2019s judgements and estimates under IFRS Accounting Standards.
Net working capital in the budget for next year, relative to the revenue of each group of CGUs, is based on historical experience and is maintained for the remainder of the expected useful economic lives. Net working capital thus increases on a linear basis as the level of activity increases.
The impairment test of the brand at Group level is based on the \"Relief from Royalty\" method. The impairment tests did not identify any need for impairment losses to be recognised. Based on sensitivity analysis, it is management\u2019s opinion that no probable change in any key assumptions would cause the carrying amounts of the two operating segments or the Group as a whole to exceed their recoverable amounts.
Even with a significant reduction in the growth rate, higher production costs, and an increase in the discount rate, management has not identified any likely impairment.
NOTE 3.1
INTANGIBLE ASSETS
Goodwill | Brand | Distribution | Other intangible assets\u00b9 | Total | |
INTANGIBLE ASSETS | |||||
DKK million | |||||
2025 | |||||
Cost at 1 January | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Acquisition of subsidiaries and activities | 164 | - | - | - | 164 |
Additions | - | - | - | 460 | 460 |
Disposals | - | - | - | -44 | -44 |
Exchange rate adjustments | -270 | - | -8 | -28 | -306 |
Cost at 31 December | 5,020 | 1,057 | 1,606 | 3,429 | 11,113 |
Amortisation and impairment losses at 1 January | - | - | 580 | 2,027 | 2,606 |
Amortisation for the year | - | - | - | 233 | 233 |
Reversal of impairment for the year | - | - | - | -30 | -30 |
Disposals | - | - | - | -30 | -30 |
Exchange rate adjustments | - | - | - 8 | -22 | -30 |
Amortisation and impairment losses at 31 December | - | - | 572 | 2,177 | 2,750 |
Carrying amount at 31 December | 5,020 | 1,057 | 1,034 | 1,252 | 8,364 |
2024 | |||||
Cost at 1 January | 4,914 | 1,057 | 1,610 | 2,678 | 10,259 |
Acquisition of subsidiaries and activities | 98 | - | - | - | 98 |
Additions | - | - | - | 499 | 499 |
Disposals | - | - | - | -171 | -171 |
Exchange rate adjustments | 114 | - | 4 | 35 | 153 |
Cost at 31 December | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Amortisation and impairment losses at 1 January | - | - | 572 | 1,887 | 2,459 |
Amortisation for the year | - | - | 4 | 276 | 280 |
Disposals | - | - | - | -166 | -166 |
Exchange rate adjustments | - | - | 4 | 29 | 33 |
Amortisation and impairment losses at 31 December | - | - | 580 | 2,027 | 2,606 |
Carrying amount at 31 December | 5,126 | 1,057 | 1,034 | 1,015 | 8,232 |
\u00b9 Other intangible assets include assets that are not yet in use of DKK 559 million (2024: DKK 556 million), mainly related to software applications, including ERP systems.
GOODWILL
Additions in 2025 relate to acquisitions of activities. Note 3.4 Business combinationsincludes an overview of acquired goodwill for the year.
METHOD FOR IMPAIRMENT TESTING
In the impairment test, the recoverable amount is compared with the carrying amount. The recoverable amount is based on a calculation of the value in use using cash flow projections based on the budget for 2026 and a forecast for the two subsequent years.
ALLOCATION OF INTANGIBLE ASSETS TO CGUs | |||
DKK million | Goodwill | Brand | Distribution |
2025 | |||
Core | 3,665 | 766 | 749 |
Fuel with more | 1,355 | 291 | 285 |
Total | 5,020 | 1,057 | 1,034 |
2024 | |||
Core | 3,748 | 766 | 749 |
Fuel with more | 1,377 | 291 | 285 |
Total | 5,126 | 1,057 | 1,034 |
DISCOUNT RATES AND GROWTH RATES IN TERMINAL PERIOD (%) | Discount rate before tax | Growth rate in terminal period |
2025 | ||
Core | 13.2% | 2% |
Fuel with more | 13.2% | 2% |
Group | 13.2% | 2% |
2024 | ||
Core | 12.9% | 2% |
Fuel with more | 12.9% | 2% |
Group | 12.9% | 2% |
All intangible assets are tested for impairment if there is any indication of impairment. Intangible assets with indefinite useful lives and assets not yet in use are tested at least annually.
ASSUMPTIONS
The calculations of the recoverable amounts of CGUs or groups of CGUs are based on the following key assumptions.
Discount rates reflect the current market assessment of the time value of money and the risks specific to each CGU or group of CGUs. The Group discount rates are estimated based on a weighted average cost of capital for the industry and adjusted to reflect the market assessment of any risk specific to each group of CGUs.
The cash flows used in the impairment test are based on the budget for next year, prepared and approved by management, and a forecast for the two subsequent years.
High inflation rates continued in 2025, and commodity prices - particularly silver - increased substantially during the year, both affecting the estimates for the upcoming years. Pandora expects the long-term inflation rate to stabilise and has applied a 2% growth rate in the terminal period (2024: 2%). As such, no real growth has been applied to the terminal period when calculating the recoverable amounts. While Pandora expects long-term commodity prices to stabilise at lower levels than current spot prices, a further increase in commodity prices has been applied in the sensitivity analysis of the recoverable amounts to assess the potential impact of possible changes in key assumptions, including higher production costs.
The cash flows projections for each group of CGUs are based on historical experience and management's expectations concerning:
\u2022 revenue development, taking into account development in network (stores, retail/wholesale share), product mix, market share and changes in consumer behaviour;
\u2022 cost of sales based on raw materials consumption affected by the mix of materials (man-made stones, silver and gold), salaries, and average lagged hedge commodity prices at the time the budget is prepared;
\u2022 development in operating expenses;
\u2022 currency rates, based on spot rates at the time the budget is prepared;
\u2022 interest rates;
\u2022 import duties and tariffs;
\u2022 increasing climate-related risks and geographical exposure; and
\u2022 the transition to a circular economy and to net zero impact, including investments required, and impact on the useful economic life of the assets.
For more information, see note 1.3 Management\u2019s judgements and estimates under IFRS Accounting Standards.
Net working capital in the budget for next year, relative to the revenue of each group of CGUs, is based on historical experience and is maintained for the remainder of the expected useful economic lives. Net working capital thus increases on a linear basis as the level of activity increases.
The impairment test of the brand at Group level is based on the \"Relief from Royalty\" method. The impairment tests did not identify any need for impairment losses to be recognised. Based on sensitivity analysis, it is management\u2019s opinion that no probable change in any key assumptions would cause the carrying amounts of the two operating segments or the Group as a whole to exceed their recoverable amounts.
Even with a significant reduction in the growth rate, higher production costs, and an increase in the discount rate, management has not identified any likely impairment.
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
NOTE 3.4
BUSINESS COMBINATIONS
ACQUISITIONS IN 2025
In 2025, Pandora took over 46 concept stores (37 concept stores in the US, 4 concept stores in Italy, 4 concept stores in Canada, and 1 concept store in Puerto Rico) in 12 business combinations. Net assets acquired mainly consisted of store properties, inventories and related liabilities. The total purchase price for the acquisitions was DKK 377 million. Based on the purchase price allocations, goodwill was DKK 164 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 \u2013 31 December 2025 was DKK 213 million and DKK 73 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 \u2013 31 December 2025 would have been approximately DKK 284 million and DKK 85 million, respectively1.
ACQUISITIONS IN 2024
In 2024, Pandora took over 36 concept stores. 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 stores from wholesale and distribution to Pandora-owned retail. From the goodwill acquired, DKK 93 million was deductible for income tax purposes.
ACQUISITIONS | ||
DKK million | 2025 | 2024 |
Property, plant and equipment and right-of-use assets | 97 | 85 |
Other non-current assets | - | 1 |
Inventories | 196 | 85 |
Other current assets | 4 | 1 |
Assets acquired | 297 | 172 |
Non-current liabilities | 40 | 41 |
Payables | 8 | 4 |
Other current liabilities | 36 | 43 |
Liabilities assumed | 84 | 88 |
Total identifiable net assets acquired | 212 | 84 |
Goodwill arising on acquisitions | 164 | 98 |
Purchase consideration | 377 | 183 |
Cash movements on acquisitions: | ||
Consideration transferred regarding previous years2 | 8 | 19 |
Deferred payment3 | -12 | -8 |
Net cash flows on acquisitions | 373 | 194 |
1The incremental contribution to Group revenue and net profit is determined as the net of acquiredretail 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 2025 calculated according to IFRS 3 was DKK 529 million and DKK 235 million, respectively. On a proforma basis, if the acquisitions had been effective from1 January 2025, the IFRS 3 contribution to Group revenue and net profit for the period 1 January - 31 December 2025, excluding the temporary drag on the margin from inventory buybacks, would have been approximately DKK 599 million and DKK 246 million, respectively.
2The consideration of DKK 8 million transferred during 2025 relates mainly to the acquisition in Italy, the US, and Canada in prior years. The consideration of DKK 19 million transferred during 2024 mainly relates to the acquisition in Colombia in 2023.
3 The deferred payment of DKK 12 million in 2025 relates to the acquisitions in Italy, the US, Canada, and Puerto Rico. In 2024, the deferred payment of DKK 8 million relates mainly to the acquisitions in the US and Italy.
BUSINESS COMBINATIONS AFTER THE REPORTING PERIOD
No business combinations of significance to Pandora took place after the reporting period.
ACCOUNTING POLICIES
Business combinations are accounted for in accordance with the IFRS 3 acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. Acquisition costs incurred are expensed. Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is reported and managed internally at Group level. The goodwill acquired is allocated to the CGUs in the two operating segments for impairment testing purposes due to the constraint in IAS 36.
NOTE 3.1
INTANGIBLE ASSETS
Goodwill | Brand | Distribution | Other intangible assets\u00b9 | Total | |
INTANGIBLE ASSETS | |||||
DKK million | |||||
2025 | |||||
Cost at 1 January | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Acquisition of subsidiaries and activities | 164 | - | - | - | 164 |
Additions | - | - | - | 460 | 460 |
Disposals | - | - | - | -44 | -44 |
Exchange rate adjustments | -270 | - | -8 | -28 | -306 |
Cost at 31 December | 5,020 | 1,057 | 1,606 | 3,429 | 11,113 |
Amortisation and impairment losses at 1 January | - | - | 580 | 2,027 | 2,606 |
Amortisation for the year | - | - | - | 233 | 233 |
Reversal of impairment for the year | - | - | - | -30 | -30 |
Disposals | - | - | - | -30 | -30 |
Exchange rate adjustments | - | - | - 8 | -22 | -30 |
Amortisation and impairment losses at 31 December | - | - | 572 | 2,177 | 2,750 |
Carrying amount at 31 December | 5,020 | 1,057 | 1,034 | 1,252 | 8,364 |
2024 | |||||
Cost at 1 January | 4,914 | 1,057 | 1,610 | 2,678 | 10,259 |
Acquisition of subsidiaries and activities | 98 | - | - | - | 98 |
Additions | - | - | - | 499 | 499 |
Disposals | - | - | - | -171 | -171 |
Exchange rate adjustments | 114 | - | 4 | 35 | 153 |
Cost at 31 December | 5,126 | 1,057 | 1,614 | 3,041 | 10,838 |
Amortisation and impairment losses at 1 January | - | - | 572 | 1,887 | 2,459 |
Amortisation for the year | - | - | 4 | 276 | 280 |
Disposals | - | - | - | -166 | -166 |
Exchange rate adjustments | - | - | 4 | 29 | 33 |
Amortisation and impairment losses at 31 December | - | - | 580 | 2,027 | 2,606 |
Carrying amount at 31 December | 5,126 | 1,057 | 1,034 | 1,015 | 8,232 |
\u00b9 Other intangible assets include assets that are not yet in use of DKK 559 million (2024: DKK 556 million), mainly related to software applications, including ERP systems.
DKK million | 2025 | 2024 |
Amortisation and impairment loss has been recognised in the income statement as follows: | ||
Cost of sales | -17 | 14 |
Sales, distribution and marketing expenses | 101 | 144 |
Administrative expenses | 119 | 122 |
Total | 203 | 280 |
GOODWILL
Additions in 2025 relate to acquisitions of activities. Note 3.4 Business combinationsincludes an overview of acquired goodwill for the year.
BRAND
The \u201cPandora\u201d brand is the only brand of the Group that is capitalised in the consolidated financial statements. It comprises a group of complementary intangible assets relating to the brand, domain name, products, image and customer experience of products sold under the Pandora brand. The brand was acquired as part of the Pandora core business in 2008.
DISTRIBUTION
Distribution includes distribution network and distribution rights acquired. The distribution network covers Pandora\u2019s relations with its distributors. The main part of the distribution network was acquired with the Pandora core business in 2008. Distribution rights mainly relate to the distribution rights for Pandora products in North America with indefinite-life. These were acquired from the American distributor in 2008, and the carrying amount at 31 December 2025 was DKK 1.0 billion (2024: DKK 1.0 billion).
OTHER INTANGIBLE ASSETS
Other intangible assets mainly comprise software, including ERP systems and other operational applications supporting business processes.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
METHOD FOR IMPAIRMENT TESTING
In the impairment test, the recoverable amount is compared with the carrying amount. The recoverable amount is based on a calculation of the value in use using cash flow projections based on the budget for 2026 and a forecast for the two subsequent years.
ALLOCATION OF INTANGIBLE ASSETS TO CGUs | |||
DKK million | Goodwill | Brand | Distribution |
2025 | |||
Core | 3,665 | 766 | 749 |
Fuel with more | 1,355 | 291 | 285 |
Total | 5,020 | 1,057 | 1,034 |
2024 | |||
Core | 3,748 | 766 | 749 |
Fuel with more | 1,377 | 291 | 285 |
Total | 5,126 | 1,057 | 1,034 |
DISCOUNT RATES AND GROWTH RATES IN TERMINAL PERIOD (%) | Discount rate before tax | Growth rate in terminal period |
2025 | ||
Core | 13.2% | 2% |
Fuel with more | 13.2% | 2% |
Group | 13.2% | 2% |
2024 | ||
Core | 12.9% | 2% |
Fuel with more | 12.9% | 2% |
Group | 12.9% | 2% |
All intangible assets are tested for impairment if there is any indication of impairment. Intangible assets with indefinite useful lives and assets not yet in use are tested at least annually.
ASSUMPTIONS
The calculations of the recoverable amounts of CGUs or groups of CGUs are based on the following key assumptions.
Discount rates reflect the current market assessment of the time value of money and the risks specific to each CGU or group of CGUs. The Group discount rates are estimated based on a weighted average cost of capital for the industry and adjusted to reflect the market assessment of any risk specific to each group of CGUs.
The cash flows used in the impairment test are based on the budget for next year, prepared and approved by management, and a forecast for the two subsequent years.
High inflation rates continued in 2025, and commodity prices - particularly silver - increased substantially during the year, both affecting the estimates for the upcoming years. Pandora expects the long-term inflation rate to stabilise and has applied a 2% growth rate in the terminal period (2024: 2%). As such, no real growth has been applied to the terminal period when calculating the recoverable amounts. While Pandora expects long-term commodity prices to stabilise at lower levels than current spot prices, a further increase in commodity prices has been applied in the sensitivity analysis of the recoverable amounts to assess the potential impact of possible changes in key assumptions, including higher production costs.
The cash flows projections for each group of CGUs are based on historical experience and management's expectations concerning:
\u2022 revenue development, taking into account development in network (stores, retail/wholesale share), product mix, market share and changes in consumer behaviour;
\u2022 cost of sales based on raw materials consumption affected by the mix of materials (man-made stones, silver and gold), salaries, and average lagged hedge commodity prices at the time the budget is prepared;
\u2022 development in operating expenses;
\u2022 currency rates, based on spot rates at the time the budget is prepared;
\u2022 interest rates;
\u2022 import duties and tariffs;
\u2022 increasing climate-related risks and geographical exposure; and
\u2022 the transition to a circular economy and to net zero impact, including investments required, and impact on the useful economic life of the assets.
For more information, see note 1.3 Management\u2019s judgements and estimates under IFRS Accounting Standards.
Net working capital in the budget for next year, relative to the revenue of each group of CGUs, is based on historical experience and is maintained for the remainder of the expected useful economic lives. Net working capital thus increases on a linear basis as the level of activity increases.
The impairment test of the brand at Group level is based on the \"Relief from Royalty\" method. The impairment tests did not identify any need for impairment losses to be recognised. Based on sensitivity analysis, it is management\u2019s opinion that no probable change in any key assumptions would cause the carrying amounts of the two operating segments or the Group as a whole to exceed their recoverable amounts.
Even with a significant reduction in the growth rate, higher production costs, and an increase in the discount rate, management has not identified any likely impairment.
NOTE 3.2
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | Land and buildings | Plant and equipment | Assets under construction\u00b9 | Total |
DKK million | ||||
2025 | ||||
Cost at 1 January | 1,389 | 5,274 | 396 | 7,059 |
Acquisition of subsidiaries and activities | - | 28 | - | 28 |
Additions | 12 | 80 | 1,387 | 1,479 |
Disposals | -1 | -218 | - | -219 |
Transfers | 425 | 1,017 | -1,442 | - |
Exchange rate adjustments | -61 | -266 | -72 | -398 |
Cost at 31 December | 1,765 | 5,914 | 269 | 7,949 |
Depreciation and impairment losses at 1 January | 620 | 2,964 | - | 3,584 |
Depreciation for the year | 102 | 738 | - | 840 |
Impairment for the year2 | - | 11 | 54 | 65 |
Disposals | -1 | -205 | - | -206 |
Exchange rate adjustments | -25 | -126 | - | -151 |
Depreciation and impairment losses at 31 December | 697 | 3,382 | 54 | 4,132 |
Carrying amount at 31 December | 1,069 | 2,532 | 216 | 3,817 |
2024 | ||||
Cost at 1 January | 1,286 | 4,661 | 263 | 6,210 |
Acquisition of subsidiaries and activities | - | 25 | - | 25 |
Additions | 15 | 174 | 1,252 | 1,441 |
Disposals | -11 | -789 | - | -800 |
Transfers | 16 | 1,109 | -1,124 | - |
Exchange rate adjustments | 85 | 93 | 5 | 184 |
Cost at 31 December | 1,389 | 5,274 | 396 | 7,059 |
Depreciation and impairment losses at 1 January | 511 | 2,953 | - | 3,464 |
Depreciation for the year | 80 | 650 | - | 730 |
Disposals | -10 | -694 | - | -704 |
Exchange rate adjustments | 38 | 55 | - | 93 |
Depreciation and impairment losses at 31 December | 620 | 2,964 | - | 3,584 |
Carrying amount at 31 December | 769 | 2,310 | 396 | 3,475 |
DKK million | 2025 | 2024 |
Depreciation and impairment losses have been recognised in the income statement as follows: | ||
Cost of sales | 187 | 122 |
Sales, distribution and marketing expenses | 673 | 565 |
Administrative expenses | 45 | 43 |
Total | 906 | 730 |
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
ACCOUNTING POLICIES
Business combinations are accounted for in accordance with the IFRS 3 acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. Acquisition costs incurred are expensed. Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is reported and managed internally at Group level. The goodwill acquired is allocated to the CGUs in the two operating segments for impairment testing purposes due to the constraint in IAS 36.
ACCOUNTING POLICIES
GOODWILL
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds the recognised value of the identifiable assets and liabilities acquired. Goodwill comprises future growth expec-tations, buyer-specific synergies, the workforce in place and know-how. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but is tested for impairment annually or if an impairment indication arises. Impairment losses charged in previous years cannot be reversed.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:5299007OWYZ6I1E46843", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__9__173": { "value": "BRAND
Brand is initially recognised at cost based on the \u201cRelief from Royalty\u201d method, which is considered to have an indefinite useful life and is tested for impairment annually.
DISTRIBUTION
The distribution network is initially recognised at fair value based on an estimation of the costs the entity avoids by owning the intangible assets and therefore does not need to rebuild the network (the cost approach).
The distribution network is amortised over an expected useful life of 15 years.
The distribution rights for Pandora products in the North American market are measured based on a residual model, since the distribution agreement underlying the distribution rights is non-terminable. Consequently, the distribution rights are considered to have an indefinite useful life.
Other acquired distribution rights are initially recognised at cost based on the \u201cMulti-period Excess Earnings\u201d model and amortised over their expected useful lives.
OTHER INTANGIBLE ASSETS
Software is initially recognised at cost and amortised over 2-10 years. Software obtained through a Software-as-a-Service (SaaS) arrangement is capitalised to the extent that the IAS 38 criteria are met, and amortised over the contract period. Costs directly attributable to prepare the software for its intended use, such as costs related to implementation and configuration, is capitalised together with the software. Any cost not directly attributable to the assets recorded is expensed as incurred.
Amortisation is allocated to segments on a pro rata basis based on the standard cost per segment. Intangible assets that are not yet in use are tested for impairment annually or if an impairment indication arises.
IMPAIRMENT
At each reporting date, Pandora assesses whether there are any indications that an asset may be impaired.
If any such indication exists, or when annual impairment testing of an asset is required, Pandora estimates the recoverable amount of the asset.
The recoverable amount of an asset is the higher of the fair value of the asset or cash-generating unit (CGU) less costs to sell and its value in use. The recoverable amount is determined for the smallest group of assets that is independent from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down to its recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used.
The most significant factors when assessing the potential need for impairment are:
\u2013 decreasing revenue;\u2013 increasing production costs, mainly linked to rising silver prices;\u2013 decreasing brand value;\u2013 changes to the product mix.
The indicators above should be viewed in the context of Pandora\u2019s relatively high margins and low asset base.
The brand is applied and supported globally in all of the Group\u2019s entities. The brand is maintained and preserved through common strategy and product development at Group level and marketing in the individual sales entities. The brand is consequently tested for impairment at Group level.
Like the brand described above, goodwill is reported and managed
internally at Group level. Due to the constraint in IAS 36, goodwill is allocated to the two operating segments for impairment testing purposes. It is management\u2019s opinion that this best reflects Pandora\u2019s value creation.
The intangible assets not yet in use, which are classified as corporate assets, are reported and managed at Group level and allocated to the two operating segments for impairment testing purposes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:5299007OWYZ6I1E46843", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__9__177": { "value": "NOTE 3.2
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | Land and buildings | Plant and equipment | Assets under construction\u00b9 | Total |
DKK million | ||||
2025 | ||||
Cost at 1 January | 1,389 | 5,274 | 396 | 7,059 |
Acquisition of subsidiaries and activities | - | 28 | - | 28 |
Additions | 12 | 80 | 1,387 | 1,479 |
Disposals | -1 | -218 | - | -219 |
Transfers | 425 | 1,017 | -1,442 | - |
Exchange rate adjustments | -61 | -266 | -72 | -398 |
Cost at 31 December | 1,765 | 5,914 | 269 | 7,949 |
Depreciation and impairment losses at 1 January | 620 | 2,964 | - | 3,584 |
Depreciation for the year | 102 | 738 | - | 840 |
Impairment for the year2 | - | 11 | 54 | 65 |
Disposals | -1 | -205 | - | -206 |
Exchange rate adjustments | -25 | -126 | - | -151 |
Depreciation and impairment losses at 31 December | 697 | 3,382 | 54 | 4,132 |
Carrying amount at 31 December | 1,069 | 2,532 | 216 | 3,817 |
2024 | ||||
Cost at 1 January | 1,286 | 4,661 | 263 | 6,210 |
Acquisition of subsidiaries and activities | - | 25 | - | 25 |
Additions | 15 | 174 | 1,252 | 1,441 |
Disposals | -11 | -789 | - | -800 |
Transfers | 16 | 1,109 | -1,124 | - |
Exchange rate adjustments | 85 | 93 | 5 | 184 |
Cost at 31 December | 1,389 | 5,274 | 396 | 7,059 |
Depreciation and impairment losses at 1 January | 511 | 2,953 | - | 3,464 |
Depreciation for the year | 80 | 650 | - | 730 |
Disposals | -10 | -694 | - | -704 |
Exchange rate adjustments | 38 | 55 | - | 93 |
Depreciation and impairment losses at 31 December | 620 | 2,964 | - | 3,584 |
Carrying amount at 31 December | 769 | 2,310 | 396 | 3,475 |
DKK million | 2025 | 2024 |
Depreciation and impairment losses have been recognised in the income statement as follows: | ||
Cost of sales | 187 | 122 |
Sales, distribution and marketing expenses | 673 | 565 |
Administrative expenses | 45 | 43 |
Total | 906 | 730 |
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
ACCOUNTING POLICIES
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful life according to the list below.
Asset | Useful life |
Land | Indefinite |
Buildings | 20-50 years |
Leasehold improvements | Lease term |
Plant and equipment\u00b9 | 5-15 years |
Other fixtures and fittings | 5-7 years |
\u00b9 The estimated useful lives of plant and equipment have been revised from 3-5 years to 5-15 years to reflect the commissioning of the new crafting facilities in Vietnam. This change has been applied prospectively and no reassessment or restatement has been performed for plant and equipment acquired in prior periods.
1The additions mainly relate to the crafting facilities in Vietnam and to the network expansion, where Pandora has capital commitments of DKK 84 million (2024: DKK 269 million).
\u00b2 Impairment loss of DKK 54 million relates to write-down of the Lamphun North construction site, which has been discontinued due to macroeconomic and geopolitical uncertainties. The loss is recognised in cost of sales in the income statement.
NOTE 3.3
LEASES
RIGHT-OF-USE ASSETS | ||
DKK million | 2025 | 2024 |
Cost at 1 January | 4,997 | 3,779 |
Acquisition of subsidiaries and activities | 69 | 60 |
Additions | 2,102 | 2,541 |
Disposals | -97 | -132 |
Depreciation for the year | -1,466 | -1,343 |
Impairment | -11 | - |
Exchange rate adjustments | -259 | 93 |
Carrying amount at 31 December | 5,335 | 4,997 |
LEASE LIABILITIES | ||
DKK million | 2025 | 2024 |
Non-current | 4,193 | 3,794 |
Current | 1,475 | 1,379 |
Total lease liabilities | 5,668 | 5,173 |
Lease liabilities are recognised in loans and borrowings.
Pandora leases stores, offices, office equipment and cars.
Depreciation mainly relates to leased stores and is presented in the sales, distribution and marketing expenses.
Many of the Group\u2019s property leases contain terms on variable lease payments that are linked to store sales performance according to normal market practice.
In 2025, around 23% (2024: 26%) of the lease payments were recognised as variable rent in the income statement. Pandora has estimated that a 1% increase in annual physical owned and operated store revenue would result in a 0.4% (2024: 0.5%) increase in total
lease payments. The average standard store lease term ranges from 4 to 5 years with an option to extend for an additional 4 to 5 years in approximately 13% (2024: 14%) of current leases, typically with one or more termination options. Approximately 26% of current leases are up for renegotiation in 2026. The estimated value of lease options that Pandora is not reasonably certain of executing is around DKK 0.5 billion (2024: DKK 0.4 billion).
OTHER ITEMS RELATING TO LEASES | ||
DKK million | 2025 | 2024 |
Interest expenses | 422 | 381 |
Total interest for the period | 422 | 381 |
TOTAL CASH FLOWS RELATING TO LEASES | ||
DKK million | 2025 | 2024 |
Fixed lease payments | 1,260 | 1,162 |
Interest payments | 422 | 381 |
Variable leases linked to revenue | 542 | 588 |
Short-term and low-value leases | 92 | 88 |
Total cash flows relating to leases | 2,316 | 2,219 |
ACCOUNTING POLICIES
Pandora applies a single recognition and measurement approach to all leases, except for short-term leases and low-value leases. Pandora recognises right-of-use assets at the commencement date of the lease when the asset is available for use. Right-of-use assets are measured at cost less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date, key money, dilapidation assets, less any lease incentives received. Key money and dilapidation assets are measured at cost and amortised over the term of the contract. Right-of-use assets are depreciated on a straight-line basis over the shorter of the asset\u2019s useful life and the lease term. At each reporting date, Pandora assesses whether there is any indication that a right-of-use asset may be impaired. If any such indication exists, Pandora carries out impairment testing for the relevant CGU.
Pandora recognises lease liabilities at the commencement date of the lease, measured at the present value of lease payments to be made over the lease term. Lease payments include fixed payments less any lease incentives receivable. Some leases are exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. Payments relating to services are not included in lease liabilities. Some property leases contain variable payment terms that are linked to sales generated from a store. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occurs and are not included in the lease liability.
In calculating the present value of lease payments, Pandora uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, for example a change in the lease term or a change in the lease payments. Lease payments are classified in financial activities in the statement of cash flows. Pandora applies the short-term lease recognition exemption to its short-term leases. Payments related to short-term leases and leases of low-value assets continue to be recognised on a straight-line basis as an expense in the income statement. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise some IT equipment and other office equipment.
ACCOUNTING ESTIMATES
When assessing the lifetime of leases, Pandora considers the non-cancellable lease term and options to extend or terminate the lease where Pandora is reasonably certain to extend or not to terminate. Leases in Pandora mainly comprise stores and office buildings. The lease term for stores has been assessed to be up to 10 years, depending on factors such as location, revenue and earnings. For office buildings, the lease term is usually 5 to 15 years.
ACCOUNTING POLICIES
Pandora applies a single recognition and measurement approach to all leases, except for short-term leases and low-value leases. Pandora recognises right-of-use assets at the commencement date of the lease when the asset is available for use. Right-of-use assets are measured at cost less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date, key money, dilapidation assets, less any lease incentives received. Key money and dilapidation assets are measured at cost and amortised over the term of the contract. Right-of-use assets are depreciated on a straight-line basis over the shorter of the asset\u2019s useful life and the lease term. At each reporting date, Pandora assesses whether there is any indication that a right-of-use asset may be impaired. If any such indication exists, Pandora carries out impairment testing for the relevant CGU.
Pandora recognises lease liabilities at the commencement date of the lease, measured at the present value of lease payments to be made over the lease term. Lease payments include fixed payments less any lease incentives receivable. Some leases are exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. Payments relating to services are not included in lease liabilities. Some property leases contain variable payment terms that are linked to sales generated from a store. Variable lease payments that depend on sales are recognised in profit or loss in the period in which the condition that triggers those payments occurs and are not included in the lease liability.
In calculating the present value of lease payments, Pandora uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, for example a change in the lease term or a change in the lease payments. Lease payments are classified in financial activities in the statement of cash flows. Pandora applies the short-term lease recognition exemption to its short-term leases. Payments related to short-term leases and leases of low-value assets continue to be recognised on a straight-line basis as an expense in the income statement. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise some IT equipment and other office equipment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:5299007OWYZ6I1E46843", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__9__191": { "value": "NOTE 3.4
BUSINESS COMBINATIONS
ACQUISITIONS IN 2025
In 2025, Pandora took over 46 concept stores (37 concept stores in the US, 4 concept stores in Italy, 4 concept stores in Canada, and 1 concept store in Puerto Rico) in 12 business combinations. Net assets acquired mainly consisted of store properties, inventories and related liabilities. The total purchase price for the acquisitions was DKK 377 million. Based on the purchase price allocations, goodwill was DKK 164 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 \u2013 31 December 2025 was DKK 213 million and DKK 73 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 \u2013 31 December 2025 would have been approximately DKK 284 million and DKK 85 million, respectively1.
ACQUISITIONS IN 2024
In 2024, Pandora took over 36 concept stores. 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 stores from wholesale and distribution to Pandora-owned retail. From the goodwill acquired, DKK 93 million was deductible for income tax purposes.
ACQUISITIONS | ||
DKK million | 2025 | 2024 |
Property, plant and equipment and right-of-use assets | 97 | 85 |
Other non-current assets | - | 1 |
Inventories | 196 | 85 |
Other current assets | 4 | 1 |
Assets acquired | 297 | 172 |
Non-current liabilities | 40 | 41 |
Payables | 8 | 4 |
Other current liabilities | 36 | 43 |
Liabilities assumed | 84 | 88 |
Total identifiable net assets acquired | 212 | 84 |
Goodwill arising on acquisitions | 164 | 98 |
Purchase consideration | 377 | 183 |
Cash movements on acquisitions: | ||
Consideration transferred regarding previous years2 | 8 | 19 |
Deferred payment3 | -12 | -8 |
Net cash flows on acquisitions | 373 | 194 |
1The incremental contribution to Group revenue and net profit is determined as the net of acquiredretail 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 2025 calculated according to IFRS 3 was DKK 529 million and DKK 235 million, respectively. On a proforma basis, if the acquisitions had been effective from1 January 2025, the IFRS 3 contribution to Group revenue and net profit for the period 1 January - 31 December 2025, excluding the temporary drag on the margin from inventory buybacks, would have been approximately DKK 599 million and DKK 246 million, respectively.
2The consideration of DKK 8 million transferred during 2025 relates mainly to the acquisition in Italy, the US, and Canada in prior years. The consideration of DKK 19 million transferred during 2024 mainly relates to the acquisition in Colombia in 2023.
3 The deferred payment of DKK 12 million in 2025 relates to the acquisitions in Italy, the US, Canada, and Puerto Rico. In 2024, the deferred payment of DKK 8 million relates mainly to the acquisitions in the US and Italy.
BUSINESS COMBINATIONS AFTER THE REPORTING PERIOD
No business combinations of significance to Pandora took place after the reporting period.
ACCOUNTING POLICIES
Business combinations are accounted for in accordance with the IFRS 3 acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. Acquisition costs incurred are expensed. Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is reported and managed internally at Group level. The goodwill acquired is allocated to the CGUs in the two operating segments for impairment testing purposes due to the constraint in IAS 36.
ACCOUNTING POLICIES
Business combinations are accounted for in accordance with the IFRS 3 acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. Acquisition costs incurred are expensed. Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is reported and managed internally at Group level. The goodwill acquired is allocated to the CGUs in the two operating segments for impairment testing purposes due to the constraint in IAS 36.
NOTE 3.5
INVENTORIES
INVENTORIES | ||
DKK million | 2025 | 2024 |
Raw materials and consumables | 780 | 751 |
Work in progress | 134 | 141 |
Finished goods | 3,820 | 3,376 |
Point-of-sale materials | 149 | 159 |
Total inventories at 31 December | 4,883 | 4,426 |
Inventory write-downs at 1 January | 838 | 750 |
Write-downs during the year | 178 | 243 |
Utilised in the year | -210 | -155 |
Inventory write-downs at 31 December | 806 | 838 |
WRITE-DOWNS
Inventory write-downs primarily relate to finished goods and are recognised in cost of sales, DKK 136 million (2024: DKK 212 million), and operating expenses, DKK 42 million (2024: DKK 31 million). Write-downs include mainly the cost of remelting obsolete jewellery.
PRODUCTION OVERHEADS
Production overheads are calculated using a standard cost method, which is reviewed regularly to ensure relevant assumptions concerning capacity utilisation, lead times and other relevant factors.
NET REALISABLE VALUE
Net realisable value is based on the estimated selling price less estimated costs of completion and distribution. Alternatively, for inventories that are not expected to be sold, net realisable value is based on the recycle value of the reusable raw materials (primarily silver, gold and lab-grown diamonds).
ACCOUNTING POLICIES
Inventories are valued at the lower of cost and net realisable value. The cost of inventories are accounted for on a first-in, first-out basis (FIFO) and includes raw materials - including the effect of realised commodity hedges - direct labour, and a proportion of production overheads allocated based on normal operating capacity. These overheads comprise indirect supplies, indirect wages and salaries, amortisation of production-related software, as well as maintenance and depreciation of machinery, plant and equipment used in production, while borrowing costs are not included. Additionally, the cost of inventories includes directly attributable costs incurred to bring the inventories to their present location and condition, such as freight, insurance and duties.
Point-of-sale materials, including equipment, displays and packaging materials, are also accounted for using the FIFO method. Their cost consists of the purchase price and costs directly related to bringing the materials to the relevant point of sale.
SIGNIFICANT ACCOUNTING ESTIMATES
Estimates relating to write-downs are impacted by forecasting accuracy in the number of obsolete products that will need to be remelted. Further, significant management estimates are required with regards to the calculations of internal gain on inventory when goods are sold from production entities to sales entities.
ACCOUNTING POLICIES
Inventories are valued at the lower of cost and net realisable value. The cost of inventories are accounted for on a first-in, first-out basis (FIFO) and includes raw materials - including the effect of realised commodity hedges - direct labour, and a proportion of production overheads allocated based on normal operating capacity. These overheads comprise indirect supplies, indirect wages and salaries, amortisation of production-related software, as well as maintenance and depreciation of machinery, plant and equipment used in production, while borrowing costs are not included. Additionally, the cost of inventories includes directly attributable costs incurred to bring the inventories to their present location and condition, such as freight, insurance and duties.
Point-of-sale materials, including equipment, displays and packaging materials, are also accounted for using the FIFO method. Their cost consists of the purchase price and costs directly related to bringing the materials to the relevant point of sale.
NOTE 3.6
TRADE RECEIVABLES
TRADE RECEIVABLES | ||
DKK million | 2025 | 2024 |
Receivables related to third-party distribution and wholesale | 544 | 711 |
Receivables related to retail sales | 620 | 506 |
Total trade receivables at 31 December | 1,163 | 1,217 |
Ageing of trade receivables at 31 December | ||
Not past due | 981 | 972 |
Up to 30 days | 121 | 174 |
Between 30 and 60 days | 44 | 45 |
Between 60 and 90 days | 9 | 12 |
Over 90 days | 8 | 14 |
Total past due, not impaired | 182 | 245 |
Total trade receivables at 31 December | 1,163 | 1,217 |
Development in impairment losses on trade receivables | ||
Impairment at 1 January | 95 | 94 |
Additions | 8 | 27 |
Utilised | -3 | -17 |
Unused amounts reversed | -10 | -9 |
Exchange rate adjustments | - | 1 |
Impairment at 31 December | 90 | 95 |
Trade receivables are amounts due from the sale of goods to wholesalers and distributors, or due from landlords, malls or e-commerce providers responsible for the collection of cash related to retail sales on behalf of Pandora.
Management continues to assess credit risk in order to ensure credit risk never exceeds the recognised write-down on trade receivables. For a further description of credit risk, see note 4.4 Financial risks.
In view of the low historical loss rates on receivables, incorporating current and forward-looking information on macroeconomic factors \u2013 such as GDP trends and unemployment levels \u2013 into these rates is not expected to significantly increase the assessed risk of credit losses.
ACCOUNTING POLICIES
Trade receivables are initially recognised at the amount of consideration that is unconditional and consequently recognised at fair value. The Group holds trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
Pandora applies the simplified approach to measure expected credit losses, using a lifetime expected loss allowance.
NOTE 3.6
TRADE RECEIVABLES
TRADE RECEIVABLES | ||
DKK million | 2025 | 2024 |
Receivables related to third-party distribution and wholesale | 544 | 711 |
Receivables related to retail sales | 620 | 506 |
Total trade receivables at 31 December | 1,163 | 1,217 |
Ageing of trade receivables at 31 December | ||
Not past due | 981 | 972 |
Up to 30 days | 121 | 174 |
Between 30 and 60 days | 44 | 45 |
Between 60 and 90 days | 9 | 12 |
Over 90 days | 8 | 14 |
Total past due, not impaired | 182 | 245 |
Total trade receivables at 31 December | 1,163 | 1,217 |
Development in impairment losses on trade receivables | ||
Impairment at 1 January | 95 | 94 |
Additions | 8 | 27 |
Utilised | -3 | -17 |
Unused amounts reversed | -10 | -9 |
Exchange rate adjustments | - | 1 |
Impairment at 31 December | 90 | 95 |
Trade receivables are amounts due from the sale of goods to wholesalers and distributors, or due from landlords, malls or e-commerce providers responsible for the collection of cash related to retail sales on behalf of Pandora.
Management continues to assess credit risk in order to ensure credit risk never exceeds the recognised write-down on trade receivables. For a further description of credit risk, see note 4.4 Financial risks.
In view of the low historical loss rates on receivables, incorporating current and forward-looking information on macroeconomic factors \u2013 such as GDP trends and unemployment levels \u2013 into these rates is not expected to significantly increase the assessed risk of credit losses.
ACCOUNTING POLICIES
Trade receivables are initially recognised at the amount of consideration that is unconditional and consequently recognised at fair value. The Group holds trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
Pandora applies the simplified approach to measure expected credit losses, using a lifetime expected loss allowance.
ACCOUNTING POLICIES
Trade receivables are initially recognised at the amount of consideration that is unconditional and consequently recognised at fair value. The Group holds trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.
Pandora applies the simplified approach to measure expected credit losses, using a lifetime expected loss allowance.
NOTE 3.7
PROVISIONS
PROVISIONS | ||
DKK million | 2025 | 2024 |
Provisions at 1 January | 543 | 431 |
Additions in the year | 165 | 185 |
Utilised in the year | -40 | -75 |
Unused provisions reversed | -61 | -11 |
Exchange rate adjustments | -17 | 12 |
Provisions at 31 December | 591 | 543 |
Provisions are recognised in the balance sheetas follows: | ||
Current | 33 | 49 |
Non-current | 558 | 494 |
Provisions at 31 December | 591 | 543 |
Provisions are liabilities of uncertain timing or amount and consist of defined benefit pension plans of DKK 187 million (2024: DKK 145 million), obligations to restore leased property of DKK 207 million (2024: DKK 207 million) and other legal and constructive obligations of DKK 196 million (2024: DKK 191 million). Seenote 5.1 Contingent assets and liabilitiesfor estimates relating to litigation.
ACCOUNTING POLICIES
Provisions are recognised when Pandora has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognised in the income statement net of any reimbursement.
NOTE 3.7
PROVISIONS
PROVISIONS | ||
DKK million | 2025 | 2024 |
Provisions at 1 January | 543 | 431 |
Additions in the year | 165 | 185 |
Utilised in the year | -40 | -75 |
Unused provisions reversed | -61 | -11 |
Exchange rate adjustments | -17 | 12 |
Provisions at 31 December | 591 | 543 |
Provisions are recognised in the balance sheetas follows: | ||
Current | 33 | 49 |
Non-current | 558 | 494 |
Provisions at 31 December | 591 | 543 |
Provisions are liabilities of uncertain timing or amount and consist of defined benefit pension plans of DKK 187 million (2024: DKK 145 million), obligations to restore leased property of DKK 207 million (2024: DKK 207 million) and other legal and constructive obligations of DKK 196 million (2024: DKK 191 million). Seenote 5.1 Contingent assets and liabilitiesfor estimates relating to litigation.
ACCOUNTING POLICIES
Provisions are recognised when Pandora has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognised in the income statement net of any reimbursement.
NOTE 5.1
CONTINGENT ASSETS AND LIABILITIES
LITIGATION
Pandora is from time to time party to various legal proceedings with current business partners, authorities and other third parties, related to copyright, marketing conduct and pricing. None of these proceedings is expected to have a material impact on Pandora\u2019s financial position or future earnings.
SIGNIFICANT ACCOUNTING ESTIMATES
The factors taken into account when estimating a potential liability in connection with litigation include the nature of the litigation or claim. Other factors taken into account are the development of the case, the judgements and recommendations of legal or other advisers, experience from similar cases and management\u2019s decision on how the Group will react to the litigation or claim.
CONTRACTUAL OBLIGATIONS
Pandora has entered into a number of long-term purchase, sales and supply contracts in the course of the Group\u2019s ordinary business. Contractual obligations amounted to DKK 1,127 million at 31 December 2025 (2024: DKK 1,092 million) and relate mainly to commercial collaborations and IT contracts.
Apart from the liabilities already recognised in the balance sheet, no significant financial losses are expected to be incurred as a result of these contracts.
CONTINGENT ASSETS
The Group is involved in a few legal disputes, including those related to the insurance compensation for Pandora\u2019s European Distribution Center, located in Hamburg, Germany, that was affected by a fire in October 2022, a receivable due from the former Russian distributor, and other recourse claims. Based on legal advice, management considers it probable that some level of compensation will be received from some or all these matters. As the potential inflow of economic benefits cannot be reliably estimated, no asset has been recognised in the Financial Statements at 31 December 2025.
NOTE 3.7
PROVISIONS
PROVISIONS | ||
DKK million | 2025 | 2024 |
Provisions at 1 January | 543 | 431 |
Additions in the year | 165 | 185 |
Utilised in the year | -40 | -75 |
Unused provisions reversed | -61 | -11 |
Exchange rate adjustments | -17 | 12 |
Provisions at 31 December | 591 | 543 |
Provisions are recognised in the balance sheetas follows: | ||
Current | 33 | 49 |
Non-current | 558 | 494 |
Provisions at 31 December | 591 | 543 |
Provisions are liabilities of uncertain timing or amount and consist of defined benefit pension plans of DKK 187 million (2024: DKK 145 million), obligations to restore leased property of DKK 207 million (2024: DKK 207 million) and other legal and constructive obligations of DKK 196 million (2024: DKK 191 million). Seenote 5.1 Contingent assets and liabilitiesfor estimates relating to litigation.
ACCOUNTING POLICIES
Provisions are recognised when Pandora has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognised in the income statement net of any reimbursement.
ACCOUNTING POLICIES
Provisions are recognised when Pandora has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognised in the income statement net of any reimbursement.
ACCOUNTING POLICIES
Provisions are recognised when Pandora has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognised in the income statement net of any reimbursement.
NOTE 3.8
CONTRACT ASSETS AND LIABILITIES
CONTRACT ASSETS AND LIABILITIES | ||
DKK million | 2025 | 2024 |
Contract assets | ||
Right-of-return assets | 72 | 91 |
Total contract assets | 72 | 91 |
Contract liabilities | ||
Prepayments from customers | 54 | 27 |
Coupons, gift cards etc. | 136 | 143 |
Loyalty programme | 82 | 67 |
Refund and warranty liability | 793 | 840 |
Total contract liabilities | 1,064 | 1,077 |
SIGNIFICANT ACCOUNTING ESTIMATES
In most markets, Pandora has provided return and warranty rights to customers. The handling of warranty claims leads to replacements instead of repairs. The recognised refund liability relating to return and warranty rights is assessed to a large extent on the basis of historical return patterns.
REFUND AND WARRANTY LIABILITY | Refund | Warranty | Total |
DKK million | |||
2025 | |||
Liability at 1 January | 418 | 422 | 840 |
Performance obligations for which consideration has been received | 1,394 | 478 | 1,872 |
Revenue recognised, included in the contract liability | -1,305 | -405 | -1,710 |
Contract liabilities reversed | -111 | -72 | -183 |
Exchange rate adjustments | -16 | -11 | -27 |
Refund and warranty liability at 31 December | 381 | 412 | 793 |
2024 | |||
Liability at 1 January | 376 | 345 | 721 |
Performance obligations for which consideration has been received | 1,317 | 498 | 1,814 |
Revenue recognised, included in the contract liability | -1,097 | -387 | -1,484 |
Contract liabilities reversed | -186 | -35 | -221 |
Exchange rate adjustments | 8 | 2 | 10 |
Refund and warranty liability at 31 December | 418 | 422 | 840 |
ACCOUNTING POLICIES
Pandora recognises a refund and warranty liability related to return rights provided to customers in most markets. A corresponding right-of-return asset is also recognised as part of contract assets. The value of the right-of-return asset is determined by how many of the returned products are expected to be sold. Remaining products are written down to remelt value together with returns covered by warranties.
The refund liability for estimated sales returns is recognised when there is historical experience or when a reasonably accurate estimate of expected future returns can otherwise be made. The income effect recognised is the gross margin of the expected returns and the potential effect of writing down parts of the returned goods to remelt value. Changes to the right-of-return asset and refund liability are recognised gross in the income statement as both revenue and cost of sales.
Refund liability to cover warranty claims is based on expectedreplacements provided for products still covered by warranty at the end of the period. The liability is recognised gross in the income statement as both a reduction in revenue and in cost of goods sold. This is due to the handling of warranty claims which lead to replacements instead of repairs.
Revenue related to the gift cards and coupons is deferred up to the time the gift cards and coupons are used. The stand-alone selling price of the gift cards and coupons is the monetary value of the cards and coupons. In estimating the redemption rate, Pandora considers breakage, which represents the portion of the gift cards and coupons value issued that will never be redeemed. In estimating the redemption rate, Pandora applies the concept of breakage under IFRS 15, recognising revenue from the portion of gift cards and coupons expected not to be redeemed. This breakage is recognised in proportion to the pattern of actual redemptions.
As a common practice in Pandora, no costs to obtain contracts with customers were capitalised in 2025 or previous years.
NOTE 3.9
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\u2013120 days, while the payment terms for trade payables outside the programme average around 55 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 770 million at 31 December 2025 (2024: DKK 362 million). Suppliers have received payment from the bank for all the liabilities under the supplier finance arrangement.
NOTE 4.1
SHARE CAPITAL
At the Annual General Meeting of Pandora A/S on 12 March 2025, the shareholders resolved to cancel 3,000,000 treasury shares. At 31 December 2025, the share capital comprised 79,000,000 shares with a par value of DKK 1. No shares have special rights. Pandora has an equity ratio of 18% and high returns to the shareholders.
In 2025, Pandora executed a new share buyback programme under which Pandora bought back own shares of DKK 4.0 billion. In 2025, Pandora purchased 4,406,713 treasury shares, corresponding to a total purchase price of DKK 4.4 billion (DKK 0.4 billion related to the share buyback programme from 2024, and DKK 4.0 billion related to the share buyback programme in 2025). At 31 December 2025, Pandora had yet to repurchase own shares at a total purchase price of DKK 10 million as part of the share buyback programme. Own shares of DKK 10 million have been repurchased after 31 December 2025.
TREASURY SHARES
All treasury shares are owned by Pandora A/S. Treasury shares include hedges for share-based incentive plans granted to Executive Management and other employees.
At 31 December 2025, treasury shares accounted for 5.6% of the
share capital (2024: 3.9%).
SHARE CAPITAL | Number of shares | Nominal value (DKK) | ||
2025 | ||||
Balance at 1 January | 82,000,000 | 82,000,000 | ||
Cancellation of shares | -3,000,000 | -3,000,000 | ||
Balance at 31 December | 79,000,000 | 79,000,000 | ||
2024 | ||||
Balance at 1 January | 89,000,000 | 89,000,000 | ||
Cancellation of shares | -7,000,000 | -7,000,000 | ||
Balance at 31 December | 82,000,000 | 82,000,000 | ||
TREASURY SHARES | Number of shares | Nominal value (DKK) | Purchase price | % of shares |
2025 | ||||
Balance at 1 January | 3,182,459 | 3,182,459 | 3,227,910,692 | 3.9% |
Used to settle share-based incentive plans | -173,619 | -173,619 | -180,237,483 | -0.2% |
Purchase of treasury shares | 4,406,713 | 4,406,713 | 4,356,456,493 | 5.5% |
Cancellation of treasury shares | -3,000,000 | -3,000,000 | -3,168,311,712 | -3.7% |
Balance at 31 December | 4,415,553 | 4,415,553 | 4,235,817,990 | 5.6% |
2024 | ||||
Balance at 1 January | 6,790,028 | 6,790,028 | 4,352,925,278 | 7.6% |
Used to settle share-based incentive plans | -312,238 | -312,238 | -208,797,080 | -0.4% |
Purchase of treasury shares | 3,704,669 | 3,704,669 | 4,035,810,450 | 4.3% |
Cancellation of treasury shares | -7,000,000 | -7,000,000 | -4,952,027,957 | -7.9% |
Balance at 31 December | 3,182,459 | 3,182,459 | 3,227,910,692 | 3.9% |
NOTE 4.1
SHARE CAPITAL
At the Annual General Meeting of Pandora A/S on 12 March 2025, the shareholders resolved to cancel 3,000,000 treasury shares. At 31 December 2025, the share capital comprised 79,000,000 shares with a par value of DKK 1. No shares have special rights. Pandora has an equity ratio of 18% and high returns to the shareholders.
In 2025, Pandora executed a new share buyback programme under which Pandora bought back own shares of DKK 4.0 billion. In 2025, Pandora purchased 4,406,713 treasury shares, corresponding to a total purchase price of DKK 4.4 billion (DKK 0.4 billion related to the share buyback programme from 2024, and DKK 4.0 billion related to the share buyback programme in 2025). At 31 December 2025, Pandora had yet to repurchase own shares at a total purchase price of DKK 10 million as part of the share buyback programme. Own shares of DKK 10 million have been repurchased after 31 December 2025.
TREASURY SHARES
All treasury shares are owned by Pandora A/S. Treasury shares include hedges for share-based incentive plans granted to Executive Management and other employees.
At 31 December 2025, treasury shares accounted for 5.6% of the
share capital (2024: 3.9%).
SHARE CAPITAL | Number of shares | Nominal value (DKK) | ||
2025 | ||||
Balance at 1 January | 82,000,000 | 82,000,000 | ||
Cancellation of shares | -3,000,000 | -3,000,000 | ||
Balance at 31 December | 79,000,000 | 79,000,000 | ||
2024 | ||||
Balance at 1 January | 89,000,000 | 89,000,000 | ||
Cancellation of shares | -7,000,000 | -7,000,000 | ||
Balance at 31 December | 82,000,000 | 82,000,000 | ||
TREASURY SHARES | Number of shares | Nominal value (DKK) | Purchase price | % of shares |
2025 | ||||
Balance at 1 January | 3,182,459 | 3,182,459 | 3,227,910,692 | 3.9% |
Used to settle share-based incentive plans | -173,619 | -173,619 | -180,237,483 | -0.2% |
Purchase of treasury shares | 4,406,713 | 4,406,713 | 4,356,456,493 | 5.5% |
Cancellation of treasury shares | -3,000,000 | -3,000,000 | -3,168,311,712 | -3.7% |
Balance at 31 December | 4,415,553 | 4,415,553 | 4,235,817,990 | 5.6% |
2024 | ||||
Balance at 1 January | 6,790,028 | 6,790,028 | 4,352,925,278 | 7.6% |
Used to settle share-based incentive plans | -312,238 | -312,238 | -208,797,080 | -0.4% |
Purchase of treasury shares | 3,704,669 | 3,704,669 | 4,035,810,450 | 4.3% |
Cancellation of treasury shares | -7,000,000 | -7,000,000 | -4,952,027,957 | -7.9% |
Balance at 31 December | 3,182,459 | 3,182,459 | 3,227,910,692 | 3.9% |
NOTE 4.1
SHARE CAPITAL
At the Annual General Meeting of Pandora A/S on 12 March 2025, the shareholders resolved to cancel 3,000,000 treasury shares. At 31 December 2025, the share capital comprised 79,000,000 shares with a par value of DKK 1. No shares have special rights. Pandora has an equity ratio of 18% and high returns to the shareholders.
In 2025, Pandora executed a new share buyback programme under which Pandora bought back own shares of DKK 4.0 billion. In 2025, Pandora purchased 4,406,713 treasury shares, corresponding to a total purchase price of DKK 4.4 billion (DKK 0.4 billion related to the share buyback programme from 2024, and DKK 4.0 billion related to the share buyback programme in 2025). At 31 December 2025, Pandora had yet to repurchase own shares at a total purchase price of DKK 10 million as part of the share buyback programme. Own shares of DKK 10 million have been repurchased after 31 December 2025.
TREASURY SHARES
All treasury shares are owned by Pandora A/S. Treasury shares include hedges for share-based incentive plans granted to Executive Management and other employees.
At 31 December 2025, treasury shares accounted for 5.6% of the
share capital (2024: 3.9%).
SHARE CAPITAL | Number of shares | Nominal value (DKK) | ||
2025 | ||||
Balance at 1 January | 82,000,000 | 82,000,000 | ||
Cancellation of shares | -3,000,000 | -3,000,000 | ||
Balance at 31 December | 79,000,000 | 79,000,000 | ||
2024 | ||||
Balance at 1 January | 89,000,000 | 89,000,000 | ||
Cancellation of shares | -7,000,000 | -7,000,000 | ||
Balance at 31 December | 82,000,000 | 82,000,000 | ||
TREASURY SHARES | Number of shares | Nominal value (DKK) | Purchase price | % of shares |
2025 | ||||
Balance at 1 January | 3,182,459 | 3,182,459 | 3,227,910,692 | 3.9% |
Used to settle share-based incentive plans | -173,619 | -173,619 | -180,237,483 | -0.2% |
Purchase of treasury shares | 4,406,713 | 4,406,713 | 4,356,456,493 | 5.5% |
Cancellation of treasury shares | -3,000,000 | -3,000,000 | -3,168,311,712 | -3.7% |
Balance at 31 December | 4,415,553 | 4,415,553 | 4,235,817,990 | 5.6% |
2024 | ||||
Balance at 1 January | 6,790,028 | 6,790,028 | 4,352,925,278 | 7.6% |
Used to settle share-based incentive plans | -312,238 | -312,238 | -208,797,080 | -0.4% |
Purchase of treasury shares | 3,704,669 | 3,704,669 | 4,035,810,450 | 4.3% |
Cancellation of treasury shares | -7,000,000 | -7,000,000 | -4,952,027,957 | -7.9% |
Balance at 31 December | 3,182,459 | 3,182,459 | 3,227,910,692 | 3.9% |
NOTE 4.1
SHARE CAPITAL
At the Annual General Meeting of Pandora A/S on 12 March 2025, the shareholders resolved to cancel 3,000,000 treasury shares. At 31 December 2025, the share capital comprised 79,000,000 shares with a par value of DKK 1. No shares have special rights. Pandora has an equity ratio of 18% and high returns to the shareholders.
In 2025, Pandora executed a new share buyback programme under which Pandora bought back own shares of DKK 4.0 billion. In 2025, Pandora purchased 4,406,713 treasury shares, corresponding to a total purchase price of DKK 4.4 billion (DKK 0.4 billion related to the share buyback programme from 2024, and DKK 4.0 billion related to the share buyback programme in 2025). At 31 December 2025, Pandora had yet to repurchase own shares at a total purchase price of DKK 10 million as part of the share buyback programme. Own shares of DKK 10 million have been repurchased after 31 December 2025.
TREASURY SHARES
All treasury shares are owned by Pandora A/S. Treasury shares include hedges for share-based incentive plans granted to Executive Management and other employees.
At 31 December 2025, treasury shares accounted for 5.6% of the
share capital (2024: 3.9%).
SHARE CAPITAL | Number of shares | Nominal value (DKK) | ||
2025 | ||||
Balance at 1 January | 82,000,000 | 82,000,000 | ||
Cancellation of shares | -3,000,000 | -3,000,000 | ||
Balance at 31 December | 79,000,000 | 79,000,000 | ||
2024 | ||||
Balance at 1 January | 89,000,000 | 89,000,000 | ||
Cancellation of shares | -7,000,000 | -7,000,000 | ||
Balance at 31 December | 82,000,000 | 82,000,000 | ||
TREASURY SHARES | Number of shares | Nominal value (DKK) | Purchase price | % of shares |
2025 | ||||
Balance at 1 January | 3,182,459 | 3,182,459 | 3,227,910,692 | 3.9% |
Used to settle share-based incentive plans | -173,619 | -173,619 | -180,237,483 | -0.2% |
Purchase of treasury shares | 4,406,713 | 4,406,713 | 4,356,456,493 | 5.5% |
Cancellation of treasury shares | -3,000,000 | -3,000,000 | -3,168,311,712 | -3.7% |
Balance at 31 December | 4,415,553 | 4,415,553 | 4,235,817,990 | 5.6% |
2024 | ||||
Balance at 1 January | 6,790,028 | 6,790,028 | 4,352,925,278 | 7.6% |
Used to settle share-based incentive plans | -312,238 | -312,238 | -208,797,080 | -0.4% |
Purchase of treasury shares | 3,704,669 | 3,704,669 | 4,035,810,450 | 4.3% |
Cancellation of treasury shares | -7,000,000 | -7,000,000 | -4,952,027,957 | -7.9% |
Balance at 31 December | 3,182,459 | 3,182,459 | 3,227,910,692 | 3.9% |
NOTE 4.2
EARNINGS PER SHARE AND DIVIDEND
EARNINGS PER SHARE | ||
DKK million | 2025 | 2024 |
Profit attributable to equity holders | 5,241 | 5,227 |
Weighted average number of ordinary shares | 76,958,052 | 80,603,566 |
Effect of performance shares\u00b9 | 231,099 | 311,857 |
Weighted average number of ordinary sharesadjusted for the effect of dilution | 77,189,151 | 80,915,422 |
Basic earnings per share, DKK | 68.1 | 64.8 |
Diluted earnings per share, DKK | 67.9 | 64.6 |
1387,627 performance shares were not included in diluted EPS, but could potentially dilute EPS in the future (2024: 301,037).
There have been no transactions between the reporting date and the date of completion of the Annual Report involving shares that would have significantly changed the number of shares or potential shares in Pandora A/S.
DIVIDEND
The Board of Directors will propose at the Annual General Meeting that a dividend of DKK 22 per share (2024: DKK 20), corresponding to DKK 1.6 billion, be distributed for 2025. No dividend is paid on treasury shares.
In 2025, a dividend of DKK 1.6 billion in total was paid. Dividend paid had no effect on the Group\u2019s tax expense for the year.
For further shareholder information on dividend payments, see page 38.
DISTRIBUTABLE RESERVES
Cash distribution to the shareholders is, by law, limited to the amount of the free reserves of the Parent Company.
As at 31 December 2025, free reserves in the Parent Company amounted to DKK 13.3 billion (2024: DKK 13.5 billion). When calculating the amount available for distribution of dividend and share buyback, treasury shares are deducted from distributable reserves.
ACCOUNTING POLICIES
Dividend proposed is recognised as a liability at the date of the adoption at the Annual General Meeting (declaration date). Extraordinary dividend is recognised as a liability at the declaration date.
DIVIDEND
The Board of Directors will propose at the Annual General Meeting that a dividend of DKK 22 per share (2024: DKK 20), corresponding to DKK 1.6 billion, be distributed for 2025. No dividend is paid on treasury shares.
In 2025, a dividend of DKK 1.6 billion in total was paid. Dividend paid had no effect on the Group\u2019s tax expense for the year.
For further shareholder information on dividend payments, see page 38.
ACCOUNTING POLICIES
Dividend proposed is recognised as a liability at the date of the adoption at the Annual General Meeting (declaration date). Extraordinary dividend is recognised as a liability at the declaration date.
ACCOUNTING POLICIES
Dividend proposed is recognised as a liability at the date of the adoption at the Annual General Meeting (declaration date). Extraordinary dividend is recognised as a liability at the declaration date.
NOTE 4.3
LIABILITIES FROM FINANCING ACTIVITIES
TOTAL LIABILITIES FROM FINANCING ACTIVITIES | Financial liabilities at 1 January | Cash flows, net | New leases etc. | Other\u00b9 | Foreign exchange adjustments | Financial liabilities at 31 December |
DKK million | ||||||
2025 | ||||||
Non-current borrowings2 | 7,831 | - | - | -111 | 9 | 7,729 |
Non-current lease liabilities | 3,794 | - | 1,690 | -1,094 | -197 | 4,193 |
Current borrowings3 | 397 | 1,092 | - | 142 | -3 | 1,627 |
Current lease liabilities | 1,379 | -1,260 | 480 | 952 | -77 | 1,475 |
Total liabilities from financing activities | 13,401 | -168 | 2,170 | -111 | -269 | 15,024 |
2024 | ||||||
Non-current borrowings2 | 6,973 | 1,067 | - | -209 | - | 7,831 |
Non-current lease liabilities | 2,765 | - | 1,942 | -989 | 76 | 3,794 |
Current borrowings | 313 | -122 | - | 204 | 2 | 397 |
Current lease liabilities | 1,116 | -1,162 | 554 | 847 | 24 | 1,379 |
Total liabilities from financing activities | 11,165 | -217 | 2,496 | -146 | 103 | 13,401 |
1Includes the effect of the reclassification of the non-current portion of interest-bearing loans and borrowings to the current portion due to the passage of time. Also includes the effect of accrued, but not yet paid interest on interest-bearing loans and borrowings, and the effect of the lease modification and reassessment, etc. The Groupclassifies interest paid as cash flows from operating activities.
2Includes the bond of EUR 500 million issued in May 2024 and the bond of EUR 500 million issued in March 2023.
3Includes DKK 1.4 billion in uncommitted short-term financing, which is utilised when possible to optimise interest expenses and enhance the Group's overall cash position.
ACCOUNTING POLICIES
On initial recognition, interest-bearing debt and borrowings are measured at fair value less transaction costs. Subsequent to initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest rate method.
Gains and losses are recognised in the income statement when the liabilities are derecognised and through the effective interest rate method. Amortised cost is calculated by taking into account any discount or premium at inception, as well as fees and other costs.
NOTE 4.3
LIABILITIES FROM FINANCING ACTIVITIES
TOTAL LIABILITIES FROM FINANCING ACTIVITIES | Financial liabilities at 1 January | Cash flows, net | New leases etc. | Other\u00b9 | Foreign exchange adjustments | Financial liabilities at 31 December |
DKK million | ||||||
2025 | ||||||
Non-current borrowings2 | 7,831 | - | - | -111 | 9 | 7,729 |
Non-current lease liabilities | 3,794 | - | 1,690 | -1,094 | -197 | 4,193 |
Current borrowings3 | 397 | 1,092 | - | 142 | -3 | 1,627 |
Current lease liabilities | 1,379 | -1,260 | 480 | 952 | -77 | 1,475 |
Total liabilities from financing activities | 13,401 | -168 | 2,170 | -111 | -269 | 15,024 |
2024 | ||||||
Non-current borrowings2 | 6,973 | 1,067 | - | -209 | - | 7,831 |
Non-current lease liabilities | 2,765 | - | 1,942 | -989 | 76 | 3,794 |
Current borrowings | 313 | -122 | - | 204 | 2 | 397 |
Current lease liabilities | 1,116 | -1,162 | 554 | 847 | 24 | 1,379 |
Total liabilities from financing activities | 11,165 | -217 | 2,496 | -146 | 103 | 13,401 |
1Includes the effect of the reclassification of the non-current portion of interest-bearing loans and borrowings to the current portion due to the passage of time. Also includes the effect of accrued, but not yet paid interest on interest-bearing loans and borrowings, and the effect of the lease modification and reassessment, etc. The Groupclassifies interest paid as cash flows from operating activities.
2Includes the bond of EUR 500 million issued in May 2024 and the bond of EUR 500 million issued in March 2023.
3Includes DKK 1.4 billion in uncommitted short-term financing, which is utilised when possible to optimise interest expenses and enhance the Group's overall cash position.
ACCOUNTING POLICIES
On initial recognition, interest-bearing debt and borrowings are measured at fair value less transaction costs. Subsequent to initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest rate method.
Gains and losses are recognised in the income statement when the liabilities are derecognised and through the effective interest rate method. Amortised cost is calculated by taking into account any discount or premium at inception, as well as fees and other costs.
ACCOUNTING POLICIES
On initial recognition, interest-bearing debt and borrowings are measured at fair value less transaction costs. Subsequent to initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest rate method.
Gains and losses are recognised in the income statement when the liabilities are derecognised and through the effective interest rate method. Amortised cost is calculated by taking into account any discount or premium at inception, as well as fees and other costs.
ACCOUNTING POLICIES
On initial recognition, interest-bearing debt and borrowings are measured at fair value less transaction costs. Subsequent to initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest rate method.
Gains and losses are recognised in the income statement when the liabilities are derecognised and through the effective interest rate method. Amortised cost is calculated by taking into account any discount or premium at inception, as well as fees and other costs.
NOTE 4.4
FINANCIAL RISKS
As a consequence of its operations, investments, and financing, Pandora is exposed to financial risks that are monitored and managed by Pandora\u2019s Group Treasury department.
The financial risks faced by Pandora can be categorised into the following subgroups: commodity price risk, foreign currency risk, interest rate risk, credit risk, and liquidity risk. Pandora adopts a proactive approach to managing these risks, utilising various financial instruments to hedge against market fluctuations and mitigate adverse impacts on Pandora's financial performance and results.
The table on the next page illustrates the sensitivity on 2025 revenue, EBIT, and EBIT margin from exchange rates and commodity price movements. In addition, the sensitivity of financial assets and liabilities as at 31 December from currency and commodity price movements is illustrated on the following pages.
COMMODITY PRICE RISK
Commodity price risk is the risk of increasing raw material prices resulting in higher production costs. The most important raw materials are silver and gold, which are priced in USD.
It is Pandora\u2019s policy to ensure stable, predictable raw material prices. Based on a rolling 12-month production plan, the general policy is for Group Treasury to hedge at least 70% of the Group\u2019s expected purchases of silver and gold.
During 2025, the silver price increased by almost 150%. Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the volume hedged by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately
70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026 income statement exposure in cost of sales from silver and gold price movements. See note 4.5 Derivative financial instruments.
Purchases are hedged up to 12 months forward with a hedge ratio target that decreases with time to maturity. Commodity hedging of silver and gold is updated monthly or in connection with revised 12-month rolling production plans. Actual production may deviate from the 12-month rolling production plan. In case of deviations, the realised commodity hedge ratio may deviate from the estimated hedge target ratio. The effective portion of the realised gain or loss from commodity hedging is recognised in Group inventories and subsequently in cost of sales while the ineffective portion
SENSITIVITY ANALYSIS ON EXCHANGE RATES AND COMMODITY PRICES\u00b9 DKK million | 2025 | 2024 | |||||
Change in exchange rate and commodity prices | Revenue | EBIT | EBIT margin impact | Revenue | EBIT | EBIT margin impact | |
USD | +10% | 1,090 | 186 | -0.2% | 1,030 | 379 | 0.4% |
CAD | +10% | 106 | 50 | 0.1% | 100 | 48 | 0.1% |
AUD | +10% | 149 | 92 | 0.2% | 157 | 101 | 0.2% |
GBP | +10% | 375 | 228 | 0.4% | 394 | 240 | 0.4% |
EUR | +1% | 91 | 43 | 0.1% | 89 | 52 | 0.1% |
TRY | +10% | 66 | 35 | 0.1% | 65 | 38 | 0.1% |
MXN | +10% | 109 | 57 | 0.1% | 129 | 71 | 0.1% |
PLN | +10% | 98 | 75 | 0.2% | 92 | 72 | 0.2% |
THB | +10% | - | -224 | -0.7% | - | -227 | -0.7% |
SILVER and GOLD\u00b2 | +10% | - | -254 | -0.8% | - | -224 | -0.7% |
1Revenue and EBIT for 2025 would have been impacted by the above amounts if exchange rates and commodity prices in 2025 had been higher than the realised exchange rates and commodity prices. The impact would have been the opposite if exchange rates and commodity prices had been decreasing by similar percentages. The analysis is based on transaction currency and excludes the effects of hedging and time lag of inventory.
2The sensitivity analysis presented above reflects the current exposure as of 31 December 2025. A 10% sensitivity has been applied for both silver and gold to ensure comparability with prior years and to provide a basis for linear analysis and modelling, despite higher commodity price volatility observed in 2025. Silver exposure will be reduced in 2026 onwards following the implementation of new creative innovation initiatives.
is recognised in financial items. For the fair value of hedging instruments, see note 4.5 Derivative financial instruments.
FOREIGN CURRENCY RISK
Pandora\u2019s presentation currency is DKK, but the majority of Pandora\u2019s activities and investments are denominated in other currencies. Consequently, exchange rate fluctuations may have a substantial impact on Pandora\u2019s cash flows, profit (loss) and/or financial position in DKK.
The majority of Pandora\u2019s revenue is denominated in USD, EUR, GBP, AUD, MXN, CAD, TRY, and PLN. The functional currency of subsid-iaries is generally the local currency, and a substantial portion of Pandora\u2019s costs relates to raw materials purchased in USD. In addition, Pandora incurs a significant part of its costs denominated in THB. Changes in the exchange rate of the above currencies versus DKK will result in changes to the translated value of future EBIT and cash flows.
33%USD
11%Other
2%TRY
33%USD
10%Other
2%TRY
3%PLN
3%PLN
3%CAD
3%CAD
3%MXN
4%MXN
28%EUR
12%GBP
5%AUD
28%EUR
12%GBP
5%AUD
2025
2024
REVENUE BREAKDOWN BY CURRENCY (%)
Pandora finances the majority of its subsidiaries\u2019 cash requirements via intercompany loans denominated in the local currency of the individual subsidiary. Changes in exchange rate of these currencies against DKK will generally result in a foreign exchange gain or loss.
Exchange rate fluctuations may lead to a decrease in revenue and an increase in costs and thus declining margins. In addition, exchange rate fluctuations affect the translated value of the profits or losses of foreign subsidiaries and the translation of foreign currency assets and liabilities.
It is Pandora\u2019s policy to hedge foreign currency exposures related to the risk of declining net cash flows resulting from exchange rate fluctuations. Pandora does not hedge balance sheet items or ownership interests in foreign subsidiaries.
CURRENCY AND COMMODITY EXPOSUREFROM FINANCIAL ASSETS AND LIABILITIES\u00b9 | 31 December 2025 | 31 December 2024 | |||
Change in exchange rate | Profit (loss) before tax | Equity | Profit (loss) before tax | Equity | |
DKK million | |||||
USD | +10% | -180 | -145 | -286 | -471 |
CAD | +10% | 22 | 22 | -4 | -4 |
AUD | +10% | 29 | 5 | 6 | -26 |
GBP | +10% | 11 | -37 | 105 | 32 |
EUR | +1% | -66 | -66 | -71 | -71 |
TRY | +10% | -4 | -4 | 12 | 12 |
MXN | +10% | 25 | 4 | 26 | 5 |
PLN | +10% | -11 | -11 | 10 | 31 |
THB | +10% | -62 | 27 | -56 | 207 |
SILVER and GOLD2 | +10% | - | 349 | - | 227 |
\u00b9 The movements in the income statement arise from monetary items at the balance sheet date (cash, borrowings, receivables and payables) where the functional currency of the entity differs from the currency that the monetary items are denominated in. The currency movements in equity arise from monetary items and hedging instruments where the functional currency of the entity differs from the currency that the hedging instruments or monetary items are denominated in. The commodity movements in equity arise from the change in the hedging reserve. The impact would have been the opposite if exchange rates had been decreasing by similar percentages. The analysis is based on the transaction currency.
2The currency and commodity exposure from financial assets and liabilities presented above reflects the current exposure of financial assets and financial liabilities including derivative positions as of 31 December 2025. A 10% sensitivity has been applied for both silver and gold to ensure comparability with prior years and to provide a basis for linear analysis and modelling, despite higher commodity price volatility observed in 2025. Silver exposure will be reduced in 2026 onwards following the implementation of new creative innovation initiatives.
For 2025, up to 70% (2024: 70%) of the cash flows from currencies with a risk above policy threshold were hedged based on a rolling 12-month forecast. In 2025, this included USD, THB, GBP, AUD, and MXN. Cash flows are hedged up to 12 months forward with a hedge ratio that decreases with time to maturity. Foreign currency hedging is updated monthly or in connection with revised 12-month rolling cash forecasts. The realised profit (loss) from exchange rate hedging is recognised in financial items.
The table below illustrates the effects of movements in the Group\u2019s principal foreign currencies and commodities on net profit and equity at the balance sheet date after the effect of hedge accounting.
CREDIT RISK
Credit risk is primarily related to trade receivables, cash and unrealised gains on financial contracts. The maximum credit risk related tofinancial assets corresponds to the carrying amounts recognised in the consolidated balance sheet.
It is Pandora\u2019s policy for subsidiaries to be responsible for credit evaluation and credit risk on their trade receivables. Credit limits above certain policy thresholds must be approved by Group Treasury and/or the Chief Financial Officer.
Note 3.6 Trade receivablesincludes an overview of the credit risk related to trade receivables. Rating of trade receivables does not differ materially either by type of customer or geographic location. The risk of further impairment is considered to be limited.
Financial contracts related to foreign exchange and commodity hedging are entered into with counterparties that are highly rated financial institutions. These contracts are settled within a short time frame upon maturity and are therefore not considered to expose the Group to significant credit risk.
Credit risk related to Pandora\u2019s other financial assets mainly includes cash and unrealised gains on financial contracts. The credit risk is related to default of the counterparty with a maximum exposure corresponding to the carrying amount of the assets. Group Treasury is responsible for managing these credit risks.
LIQUIDITY RISK
Pandora\u2019s cash conversion is high, and Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations when due. This, combined with strong, investment-grade credit ratings means that Pandora\u2019s liquidity risk and refinancing risk are considered to be low.
As of December 2025, Pandora has a revolving credit facility of EUR 950 million and a term loan of EUR 60 million committed until April 2029 and May 2030, respectively. Additionally, Pandora has two outstanding EUR 500 million bonds issued under its Euro Medium Term Note programme maturing in 2028 and 2030, respectively.Pandora has uncommitted credit facilities to ensure efficient and flexible local liquidity management. The credit facilities are managed by Group Treasury.
In January 2026, Pandora successfully refinanced its revolving credit facility, securing two revolving credit facilities of EUR 750 million and EUR 350 million, committed until 2029 and 2031, respectively. Both facilities allow for two extension periods of one year each. Neither facility is subject to financial covenants.
Pandora\u2019s suppliers have access to two banks under the supply chain financing programme, see note 3.9 Trade payables. Pandora is not involved in the programme, but management monitors its availability and does not expect any material impact if a provider were to withdraw.
Pandora maintains credit ratings of BBB by S&P Global Ratings and a Baa2 rating from Moody\u2019s Investor Service, both of which have a stable outlook.
OUTSTANDING COMMITTED LOAN FACILITIES DKK million | Available facilities | Maturity date | Drawn amount | Avg. effective interest rate incl. hedging | Available liquidity |
2025 | |||||
Revolving credit facilities\u00b9 | 7,095 | April 2029 | - | - | 7,095 |
Term loan maturing in 2030\u00b9 | 448 | May 2030 | 448 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,734 | April 2028 | 3,734 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,734 | May 2030 | 3,734 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,012 | 7,917 | 7,095 |
2024 | |||||
Revolving credit facilities\u00b9 | 7,087 | April 2028 | - | - | 7,087 |
Term loan maturing in 2030\u00b9 | 547 | May 2030 | 547 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,730 | April 2028 | 3,730 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,730 | May 2030 | 3,730 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,094 | 8,007 | 7,087 |
1Sustainability-linked facilities with an interest rate tied to the achievement of specific sustainability targets. The facilities have no covenants affecting loan maturity, except for the revolving credit facilities and the term loan, which are subject to a net debt to EBITDA ratio covenant of 2.5x measured quarterly.
INTEREST RATE RISK
Interest rate risk is the risk of interest rate fluctuations resulting in changed interest payments and market value of net borrowings. At the reporting date, only the revolving credit facilities were based on floating interest rates.
Pandora has entered into cross-currency interest rate swaps related to the EUR bonds maturing in 2028 and 2030, respectively. Interest payments are swapped from fixed EUR into a fixed interest rate in DKK.
All else being equal, it is estimated that a general increase in interest rates by 1.0 percentage point would lead to a DKK 28 million decrease in profit before tax and equity, excluding tax effect (2024: DKK 29 million decrease).
CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES
The table to the right breaks the Group\u2019s financial liabilities down into relevant maturity groupings based on contractual maturities for:
all non-derivative financial liabilities;
net and gross settled derivative financial instruments for whichthe contractual maturities are essential for an understanding of the timing of the cash flows.
The amounts disclosed in the table are the contractual undiscounted cash flows.
Based on the Group\u2019s expectations for the future operation and the Group\u2019s current cash resources, no significant liquidity risks have been identified.
FINANCIAL LIABILITIES FALL DUE AS FOLLOWS | Within 1 year | Within 1-5 years | After more than 5 years | Total |
DKK million | ||||
2025 | ||||
Non-derivatives | ||||
Loans and borrowings | 1,422 | 350 | - | 1,772 |
Bonds | 313 | 8,552 | - | 8,865 |
Lease liabilities | 1,622 | 3,980 | 1,596 | 7,199 |
Trade payables | 4,623 | - | - | 4,623 |
Other payables | 134 | 140 | 2 | 277 |
Derivatives | ||||
Derivative financial liabilities | 35 | - | - | 35 |
Total financial liabilities at 31 December | 8,149 | 13,023 | 1,599 | 22,770 |
2024 | ||||
Non-derivatives | ||||
Loans and borrowings | 204 | 430 | 50 | 685 |
Bonds | 312 | 4,812 | 3,875 | 8,999 |
Lease liabilities | 1,535 | 3,773 | 1,530 | 6,838 |
Trade payables | 3,894 | - | - | 3,894 |
Other payables | 171 | 167 | 9 | 347 |
Derivatives | ||||
Derivative financial liabilities | 152 | - | - | 152 |
Total financial liabilities at 31 December | 6,269 | 9,182 | 5,464 | 20,916 |
NOTE 4.4
FINANCIAL RISKS
As a consequence of its operations, investments, and financing, Pandora is exposed to financial risks that are monitored and managed by Pandora\u2019s Group Treasury department.
The financial risks faced by Pandora can be categorised into the following subgroups: commodity price risk, foreign currency risk, interest rate risk, credit risk, and liquidity risk. Pandora adopts a proactive approach to managing these risks, utilising various financial instruments to hedge against market fluctuations and mitigate adverse impacts on Pandora's financial performance and results.
The table on the next page illustrates the sensitivity on 2025 revenue, EBIT, and EBIT margin from exchange rates and commodity price movements. In addition, the sensitivity of financial assets and liabilities as at 31 December from currency and commodity price movements is illustrated on the following pages.
COMMODITY PRICE RISK
Commodity price risk is the risk of increasing raw material prices resulting in higher production costs. The most important raw materials are silver and gold, which are priced in USD.
It is Pandora\u2019s policy to ensure stable, predictable raw material prices. Based on a rolling 12-month production plan, the general policy is for Group Treasury to hedge at least 70% of the Group\u2019s expected purchases of silver and gold.
During 2025, the silver price increased by almost 150%. Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the volume hedged by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately
70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026 income statement exposure in cost of sales from silver and gold price movements. See note 4.5 Derivative financial instruments.
Purchases are hedged up to 12 months forward with a hedge ratio target that decreases with time to maturity. Commodity hedging of silver and gold is updated monthly or in connection with revised 12-month rolling production plans. Actual production may deviate from the 12-month rolling production plan. In case of deviations, the realised commodity hedge ratio may deviate from the estimated hedge target ratio. The effective portion of the realised gain or loss from commodity hedging is recognised in Group inventories and subsequently in cost of sales while the ineffective portion
SENSITIVITY ANALYSIS ON EXCHANGE RATES AND COMMODITY PRICES\u00b9 DKK million | 2025 | 2024 | |||||
Change in exchange rate and commodity prices | Revenue | EBIT | EBIT margin impact | Revenue | EBIT | EBIT margin impact | |
USD | +10% | 1,090 | 186 | -0.2% | 1,030 | 379 | 0.4% |
CAD | +10% | 106 | 50 | 0.1% | 100 | 48 | 0.1% |
AUD | +10% | 149 | 92 | 0.2% | 157 | 101 | 0.2% |
GBP | +10% | 375 | 228 | 0.4% | 394 | 240 | 0.4% |
EUR | +1% | 91 | 43 | 0.1% | 89 | 52 | 0.1% |
TRY | +10% | 66 | 35 | 0.1% | 65 | 38 | 0.1% |
MXN | +10% | 109 | 57 | 0.1% | 129 | 71 | 0.1% |
PLN | +10% | 98 | 75 | 0.2% | 92 | 72 | 0.2% |
THB | +10% | - | -224 | -0.7% | - | -227 | -0.7% |
SILVER and GOLD\u00b2 | +10% | - | -254 | -0.8% | - | -224 | -0.7% |
1Revenue and EBIT for 2025 would have been impacted by the above amounts if exchange rates and commodity prices in 2025 had been higher than the realised exchange rates and commodity prices. The impact would have been the opposite if exchange rates and commodity prices had been decreasing by similar percentages. The analysis is based on transaction currency and excludes the effects of hedging and time lag of inventory.
2The sensitivity analysis presented above reflects the current exposure as of 31 December 2025. A 10% sensitivity has been applied for both silver and gold to ensure comparability with prior years and to provide a basis for linear analysis and modelling, despite higher commodity price volatility observed in 2025. Silver exposure will be reduced in 2026 onwards following the implementation of new creative innovation initiatives.
is recognised in financial items. For the fair value of hedging instruments, see note 4.5 Derivative financial instruments.
FOREIGN CURRENCY RISK
Pandora\u2019s presentation currency is DKK, but the majority of Pandora\u2019s activities and investments are denominated in other currencies. Consequently, exchange rate fluctuations may have a substantial impact on Pandora\u2019s cash flows, profit (loss) and/or financial position in DKK.
The majority of Pandora\u2019s revenue is denominated in USD, EUR, GBP, AUD, MXN, CAD, TRY, and PLN. The functional currency of subsid-iaries is generally the local currency, and a substantial portion of Pandora\u2019s costs relates to raw materials purchased in USD. In addition, Pandora incurs a significant part of its costs denominated in THB. Changes in the exchange rate of the above currencies versus DKK will result in changes to the translated value of future EBIT and cash flows.
33%USD
11%Other
2%TRY
33%USD
10%Other
2%TRY
3%PLN
3%PLN
3%CAD
3%CAD
3%MXN
4%MXN
28%EUR
12%GBP
5%AUD
28%EUR
12%GBP
5%AUD
2025
2024
REVENUE BREAKDOWN BY CURRENCY (%)
Pandora finances the majority of its subsidiaries\u2019 cash requirements via intercompany loans denominated in the local currency of the individual subsidiary. Changes in exchange rate of these currencies against DKK will generally result in a foreign exchange gain or loss.
Exchange rate fluctuations may lead to a decrease in revenue and an increase in costs and thus declining margins. In addition, exchange rate fluctuations affect the translated value of the profits or losses of foreign subsidiaries and the translation of foreign currency assets and liabilities.
It is Pandora\u2019s policy to hedge foreign currency exposures related to the risk of declining net cash flows resulting from exchange rate fluctuations. Pandora does not hedge balance sheet items or ownership interests in foreign subsidiaries.
CURRENCY AND COMMODITY EXPOSUREFROM FINANCIAL ASSETS AND LIABILITIES\u00b9 | 31 December 2025 | 31 December 2024 | |||
Change in exchange rate | Profit (loss) before tax | Equity | Profit (loss) before tax | Equity | |
DKK million | |||||
USD | +10% | -180 | -145 | -286 | -471 |
CAD | +10% | 22 | 22 | -4 | -4 |
AUD | +10% | 29 | 5 | 6 | -26 |
GBP | +10% | 11 | -37 | 105 | 32 |
EUR | +1% | -66 | -66 | -71 | -71 |
TRY | +10% | -4 | -4 | 12 | 12 |
MXN | +10% | 25 | 4 | 26 | 5 |
PLN | +10% | -11 | -11 | 10 | 31 |
THB | +10% | -62 | 27 | -56 | 207 |
SILVER and GOLD2 | +10% | - | 349 | - | 227 |
\u00b9 The movements in the income statement arise from monetary items at the balance sheet date (cash, borrowings, receivables and payables) where the functional currency of the entity differs from the currency that the monetary items are denominated in. The currency movements in equity arise from monetary items and hedging instruments where the functional currency of the entity differs from the currency that the hedging instruments or monetary items are denominated in. The commodity movements in equity arise from the change in the hedging reserve. The impact would have been the opposite if exchange rates had been decreasing by similar percentages. The analysis is based on the transaction currency.
2The currency and commodity exposure from financial assets and liabilities presented above reflects the current exposure of financial assets and financial liabilities including derivative positions as of 31 December 2025. A 10% sensitivity has been applied for both silver and gold to ensure comparability with prior years and to provide a basis for linear analysis and modelling, despite higher commodity price volatility observed in 2025. Silver exposure will be reduced in 2026 onwards following the implementation of new creative innovation initiatives.
For 2025, up to 70% (2024: 70%) of the cash flows from currencies with a risk above policy threshold were hedged based on a rolling 12-month forecast. In 2025, this included USD, THB, GBP, AUD, and MXN. Cash flows are hedged up to 12 months forward with a hedge ratio that decreases with time to maturity. Foreign currency hedging is updated monthly or in connection with revised 12-month rolling cash forecasts. The realised profit (loss) from exchange rate hedging is recognised in financial items.
The table below illustrates the effects of movements in the Group\u2019s principal foreign currencies and commodities on net profit and equity at the balance sheet date after the effect of hedge accounting.
CREDIT RISK
Credit risk is primarily related to trade receivables, cash and unrealised gains on financial contracts. The maximum credit risk related tofinancial assets corresponds to the carrying amounts recognised in the consolidated balance sheet.
It is Pandora\u2019s policy for subsidiaries to be responsible for credit evaluation and credit risk on their trade receivables. Credit limits above certain policy thresholds must be approved by Group Treasury and/or the Chief Financial Officer.
Note 3.6 Trade receivablesincludes an overview of the credit risk related to trade receivables. Rating of trade receivables does not differ materially either by type of customer or geographic location. The risk of further impairment is considered to be limited.
Financial contracts related to foreign exchange and commodity hedging are entered into with counterparties that are highly rated financial institutions. These contracts are settled within a short time frame upon maturity and are therefore not considered to expose the Group to significant credit risk.
Credit risk related to Pandora\u2019s other financial assets mainly includes cash and unrealised gains on financial contracts. The credit risk is related to default of the counterparty with a maximum exposure corresponding to the carrying amount of the assets. Group Treasury is responsible for managing these credit risks.
LIQUIDITY RISK
Pandora\u2019s cash conversion is high, and Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations when due. This, combined with strong, investment-grade credit ratings means that Pandora\u2019s liquidity risk and refinancing risk are considered to be low.
As of December 2025, Pandora has a revolving credit facility of EUR 950 million and a term loan of EUR 60 million committed until April 2029 and May 2030, respectively. Additionally, Pandora has two outstanding EUR 500 million bonds issued under its Euro Medium Term Note programme maturing in 2028 and 2030, respectively.Pandora has uncommitted credit facilities to ensure efficient and flexible local liquidity management. The credit facilities are managed by Group Treasury.
In January 2026, Pandora successfully refinanced its revolving credit facility, securing two revolving credit facilities of EUR 750 million and EUR 350 million, committed until 2029 and 2031, respectively. Both facilities allow for two extension periods of one year each. Neither facility is subject to financial covenants.
Pandora\u2019s suppliers have access to two banks under the supply chain financing programme, see note 3.9 Trade payables. Pandora is not involved in the programme, but management monitors its availability and does not expect any material impact if a provider were to withdraw.
Pandora maintains credit ratings of BBB by S&P Global Ratings and a Baa2 rating from Moody\u2019s Investor Service, both of which have a stable outlook.
OUTSTANDING COMMITTED LOAN FACILITIES DKK million | Available facilities | Maturity date | Drawn amount | Avg. effective interest rate incl. hedging | Available liquidity |
2025 | |||||
Revolving credit facilities\u00b9 | 7,095 | April 2029 | - | - | 7,095 |
Term loan maturing in 2030\u00b9 | 448 | May 2030 | 448 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,734 | April 2028 | 3,734 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,734 | May 2030 | 3,734 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,012 | 7,917 | 7,095 |
2024 | |||||
Revolving credit facilities\u00b9 | 7,087 | April 2028 | - | - | 7,087 |
Term loan maturing in 2030\u00b9 | 547 | May 2030 | 547 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,730 | April 2028 | 3,730 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,730 | May 2030 | 3,730 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,094 | 8,007 | 7,087 |
1Sustainability-linked facilities with an interest rate tied to the achievement of specific sustainability targets. The facilities have no covenants affecting loan maturity, except for the revolving credit facilities and the term loan, which are subject to a net debt to EBITDA ratio covenant of 2.5x measured quarterly.
INTEREST RATE RISK
Interest rate risk is the risk of interest rate fluctuations resulting in changed interest payments and market value of net borrowings. At the reporting date, only the revolving credit facilities were based on floating interest rates.
Pandora has entered into cross-currency interest rate swaps related to the EUR bonds maturing in 2028 and 2030, respectively. Interest payments are swapped from fixed EUR into a fixed interest rate in DKK.
All else being equal, it is estimated that a general increase in interest rates by 1.0 percentage point would lead to a DKK 28 million decrease in profit before tax and equity, excluding tax effect (2024: DKK 29 million decrease).
CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES
The table to the right breaks the Group\u2019s financial liabilities down into relevant maturity groupings based on contractual maturities for:
all non-derivative financial liabilities;
net and gross settled derivative financial instruments for whichthe contractual maturities are essential for an understanding of the timing of the cash flows.
The amounts disclosed in the table are the contractual undiscounted cash flows.
Based on the Group\u2019s expectations for the future operation and the Group\u2019s current cash resources, no significant liquidity risks have been identified.
FINANCIAL LIABILITIES FALL DUE AS FOLLOWS | Within 1 year | Within 1-5 years | After more than 5 years | Total |
DKK million | ||||
2025 | ||||
Non-derivatives | ||||
Loans and borrowings | 1,422 | 350 | - | 1,772 |
Bonds | 313 | 8,552 | - | 8,865 |
Lease liabilities | 1,622 | 3,980 | 1,596 | 7,199 |
Trade payables | 4,623 | - | - | 4,623 |
Other payables | 134 | 140 | 2 | 277 |
Derivatives | ||||
Derivative financial liabilities | 35 | - | - | 35 |
Total financial liabilities at 31 December | 8,149 | 13,023 | 1,599 | 22,770 |
2024 | ||||
Non-derivatives | ||||
Loans and borrowings | 204 | 430 | 50 | 685 |
Bonds | 312 | 4,812 | 3,875 | 8,999 |
Lease liabilities | 1,535 | 3,773 | 1,530 | 6,838 |
Trade payables | 3,894 | - | - | 3,894 |
Other payables | 171 | 167 | 9 | 347 |
Derivatives | ||||
Derivative financial liabilities | 152 | - | - | 152 |
Total financial liabilities at 31 December | 6,269 | 9,182 | 5,464 | 20,916 |
NOTE 4.4
FINANCIAL RISKS
As a consequence of its operations, investments, and financing, Pandora is exposed to financial risks that are monitored and managed by Pandora\u2019s Group Treasury department.
The financial risks faced by Pandora can be categorised into the following subgroups: commodity price risk, foreign currency risk, interest rate risk, credit risk, and liquidity risk. Pandora adopts a proactive approach to managing these risks, utilising various financial instruments to hedge against market fluctuations and mitigate adverse impacts on Pandora's financial performance and results.
The table on the next page illustrates the sensitivity on 2025 revenue, EBIT, and EBIT margin from exchange rates and commodity price movements. In addition, the sensitivity of financial assets and liabilities as at 31 December from currency and commodity price movements is illustrated on the following pages.
COMMODITY PRICE RISK
Commodity price risk is the risk of increasing raw material prices resulting in higher production costs. The most important raw materials are silver and gold, which are priced in USD.
It is Pandora\u2019s policy to ensure stable, predictable raw material prices. Based on a rolling 12-month production plan, the general policy is for Group Treasury to hedge at least 70% of the Group\u2019s expected purchases of silver and gold.
During 2025, the silver price increased by almost 150%. Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the volume hedged by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately
70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026 income statement exposure in cost of sales from silver and gold price movements. See note 4.5 Derivative financial instruments.
Purchases are hedged up to 12 months forward with a hedge ratio target that decreases with time to maturity. Commodity hedging of silver and gold is updated monthly or in connection with revised 12-month rolling production plans. Actual production may deviate from the 12-month rolling production plan. In case of deviations, the realised commodity hedge ratio may deviate from the estimated hedge target ratio. The effective portion of the realised gain or loss from commodity hedging is recognised in Group inventories and subsequently in cost of sales while the ineffective portion
SENSITIVITY ANALYSIS ON EXCHANGE RATES AND COMMODITY PRICES\u00b9 DKK million | 2025 | 2024 | |||||
Change in exchange rate and commodity prices | Revenue | EBIT | EBIT margin impact | Revenue | EBIT | EBIT margin impact | |
USD | +10% | 1,090 | 186 | -0.2% | 1,030 | 379 | 0.4% |
CAD | +10% | 106 | 50 | 0.1% | 100 | 48 | 0.1% |
AUD | +10% | 149 | 92 | 0.2% | 157 | 101 | 0.2% |
GBP | +10% | 375 | 228 | 0.4% | 394 | 240 | 0.4% |
EUR | +1% | 91 | 43 | 0.1% | 89 | 52 | 0.1% |
TRY | +10% | 66 | 35 | 0.1% | 65 | 38 | 0.1% |
MXN | +10% | 109 | 57 | 0.1% | 129 | 71 | 0.1% |
PLN | +10% | 98 | 75 | 0.2% | 92 | 72 | 0.2% |
THB | +10% | - | -224 | -0.7% | - | -227 | -0.7% |
SILVER and GOLD\u00b2 | +10% | - | -254 | -0.8% | - | -224 | -0.7% |
1Revenue and EBIT for 2025 would have been impacted by the above amounts if exchange rates and commodity prices in 2025 had been higher than the realised exchange rates and commodity prices. The impact would have been the opposite if exchange rates and commodity prices had been decreasing by similar percentages. The analysis is based on transaction currency and excludes the effects of hedging and time lag of inventory.
2The sensitivity analysis presented above reflects the current exposure as of 31 December 2025. A 10% sensitivity has been applied for both silver and gold to ensure comparability with prior years and to provide a basis for linear analysis and modelling, despite higher commodity price volatility observed in 2025. Silver exposure will be reduced in 2026 onwards following the implementation of new creative innovation initiatives.
is recognised in financial items. For the fair value of hedging instruments, see note 4.5 Derivative financial instruments.
FOREIGN CURRENCY RISK
Pandora\u2019s presentation currency is DKK, but the majority of Pandora\u2019s activities and investments are denominated in other currencies. Consequently, exchange rate fluctuations may have a substantial impact on Pandora\u2019s cash flows, profit (loss) and/or financial position in DKK.
The majority of Pandora\u2019s revenue is denominated in USD, EUR, GBP, AUD, MXN, CAD, TRY, and PLN. The functional currency of subsid-iaries is generally the local currency, and a substantial portion of Pandora\u2019s costs relates to raw materials purchased in USD. In addition, Pandora incurs a significant part of its costs denominated in THB. Changes in the exchange rate of the above currencies versus DKK will result in changes to the translated value of future EBIT and cash flows.
33%USD
11%Other
2%TRY
33%USD
10%Other
2%TRY
3%PLN
3%PLN
3%CAD
3%CAD
3%MXN
4%MXN
28%EUR
12%GBP
5%AUD
28%EUR
12%GBP
5%AUD
2025
2024
REVENUE BREAKDOWN BY CURRENCY (%)
Pandora finances the majority of its subsidiaries\u2019 cash requirements via intercompany loans denominated in the local currency of the individual subsidiary. Changes in exchange rate of these currencies against DKK will generally result in a foreign exchange gain or loss.
Exchange rate fluctuations may lead to a decrease in revenue and an increase in costs and thus declining margins. In addition, exchange rate fluctuations affect the translated value of the profits or losses of foreign subsidiaries and the translation of foreign currency assets and liabilities.
It is Pandora\u2019s policy to hedge foreign currency exposures related to the risk of declining net cash flows resulting from exchange rate fluctuations. Pandora does not hedge balance sheet items or ownership interests in foreign subsidiaries.
CURRENCY AND COMMODITY EXPOSUREFROM FINANCIAL ASSETS AND LIABILITIES\u00b9 | 31 December 2025 | 31 December 2024 | |||
Change in exchange rate | Profit (loss) before tax | Equity | Profit (loss) before tax | Equity | |
DKK million | |||||
USD | +10% | -180 | -145 | -286 | -471 |
CAD | +10% | 22 | 22 | -4 | -4 |
AUD | +10% | 29 | 5 | 6 | -26 |
GBP | +10% | 11 | -37 | 105 | 32 |
EUR | +1% | -66 | -66 | -71 | -71 |
TRY | +10% | -4 | -4 | 12 | 12 |
MXN | +10% | 25 | 4 | 26 | 5 |
PLN | +10% | -11 | -11 | 10 | 31 |
THB | +10% | -62 | 27 | -56 | 207 |
SILVER and GOLD2 | +10% | - | 349 | - | 227 |
\u00b9 The movements in the income statement arise from monetary items at the balance sheet date (cash, borrowings, receivables and payables) where the functional currency of the entity differs from the currency that the monetary items are denominated in. The currency movements in equity arise from monetary items and hedging instruments where the functional currency of the entity differs from the currency that the hedging instruments or monetary items are denominated in. The commodity movements in equity arise from the change in the hedging reserve. The impact would have been the opposite if exchange rates had been decreasing by similar percentages. The analysis is based on the transaction currency.
2The currency and commodity exposure from financial assets and liabilities presented above reflects the current exposure of financial assets and financial liabilities including derivative positions as of 31 December 2025. A 10% sensitivity has been applied for both silver and gold to ensure comparability with prior years and to provide a basis for linear analysis and modelling, despite higher commodity price volatility observed in 2025. Silver exposure will be reduced in 2026 onwards following the implementation of new creative innovation initiatives.
For 2025, up to 70% (2024: 70%) of the cash flows from currencies with a risk above policy threshold were hedged based on a rolling 12-month forecast. In 2025, this included USD, THB, GBP, AUD, and MXN. Cash flows are hedged up to 12 months forward with a hedge ratio that decreases with time to maturity. Foreign currency hedging is updated monthly or in connection with revised 12-month rolling cash forecasts. The realised profit (loss) from exchange rate hedging is recognised in financial items.
The table below illustrates the effects of movements in the Group\u2019s principal foreign currencies and commodities on net profit and equity at the balance sheet date after the effect of hedge accounting.
CREDIT RISK
Credit risk is primarily related to trade receivables, cash and unrealised gains on financial contracts. The maximum credit risk related tofinancial assets corresponds to the carrying amounts recognised in the consolidated balance sheet.
It is Pandora\u2019s policy for subsidiaries to be responsible for credit evaluation and credit risk on their trade receivables. Credit limits above certain policy thresholds must be approved by Group Treasury and/or the Chief Financial Officer.
Note 3.6 Trade receivablesincludes an overview of the credit risk related to trade receivables. Rating of trade receivables does not differ materially either by type of customer or geographic location. The risk of further impairment is considered to be limited.
Financial contracts related to foreign exchange and commodity hedging are entered into with counterparties that are highly rated financial institutions. These contracts are settled within a short time frame upon maturity and are therefore not considered to expose the Group to significant credit risk.
Credit risk related to Pandora\u2019s other financial assets mainly includes cash and unrealised gains on financial contracts. The credit risk is related to default of the counterparty with a maximum exposure corresponding to the carrying amount of the assets. Group Treasury is responsible for managing these credit risks.
LIQUIDITY RISK
Pandora\u2019s cash conversion is high, and Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations when due. This, combined with strong, investment-grade credit ratings means that Pandora\u2019s liquidity risk and refinancing risk are considered to be low.
As of December 2025, Pandora has a revolving credit facility of EUR 950 million and a term loan of EUR 60 million committed until April 2029 and May 2030, respectively. Additionally, Pandora has two outstanding EUR 500 million bonds issued under its Euro Medium Term Note programme maturing in 2028 and 2030, respectively.Pandora has uncommitted credit facilities to ensure efficient and flexible local liquidity management. The credit facilities are managed by Group Treasury.
In January 2026, Pandora successfully refinanced its revolving credit facility, securing two revolving credit facilities of EUR 750 million and EUR 350 million, committed until 2029 and 2031, respectively. Both facilities allow for two extension periods of one year each. Neither facility is subject to financial covenants.
Pandora\u2019s suppliers have access to two banks under the supply chain financing programme, see note 3.9 Trade payables. Pandora is not involved in the programme, but management monitors its availability and does not expect any material impact if a provider were to withdraw.
Pandora maintains credit ratings of BBB by S&P Global Ratings and a Baa2 rating from Moody\u2019s Investor Service, both of which have a stable outlook.
OUTSTANDING COMMITTED LOAN FACILITIES DKK million | Available facilities | Maturity date | Drawn amount | Avg. effective interest rate incl. hedging | Available liquidity |
2025 | |||||
Revolving credit facilities\u00b9 | 7,095 | April 2029 | - | - | 7,095 |
Term loan maturing in 2030\u00b9 | 448 | May 2030 | 448 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,734 | April 2028 | 3,734 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,734 | May 2030 | 3,734 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,012 | 7,917 | 7,095 |
2024 | |||||
Revolving credit facilities\u00b9 | 7,087 | April 2028 | - | - | 7,087 |
Term loan maturing in 2030\u00b9 | 547 | May 2030 | 547 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,730 | April 2028 | 3,730 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,730 | May 2030 | 3,730 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,094 | 8,007 | 7,087 |
1Sustainability-linked facilities with an interest rate tied to the achievement of specific sustainability targets. The facilities have no covenants affecting loan maturity, except for the revolving credit facilities and the term loan, which are subject to a net debt to EBITDA ratio covenant of 2.5x measured quarterly.
INTEREST RATE RISK
Interest rate risk is the risk of interest rate fluctuations resulting in changed interest payments and market value of net borrowings. At the reporting date, only the revolving credit facilities were based on floating interest rates.
Pandora has entered into cross-currency interest rate swaps related to the EUR bonds maturing in 2028 and 2030, respectively. Interest payments are swapped from fixed EUR into a fixed interest rate in DKK.
All else being equal, it is estimated that a general increase in interest rates by 1.0 percentage point would lead to a DKK 28 million decrease in profit before tax and equity, excluding tax effect (2024: DKK 29 million decrease).
CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES
The table to the right breaks the Group\u2019s financial liabilities down into relevant maturity groupings based on contractual maturities for:
all non-derivative financial liabilities;
net and gross settled derivative financial instruments for whichthe contractual maturities are essential for an understanding of the timing of the cash flows.
The amounts disclosed in the table are the contractual undiscounted cash flows.
Based on the Group\u2019s expectations for the future operation and the Group\u2019s current cash resources, no significant liquidity risks have been identified.
FINANCIAL LIABILITIES FALL DUE AS FOLLOWS | Within 1 year | Within 1-5 years | After more than 5 years | Total |
DKK million | ||||
2025 | ||||
Non-derivatives | ||||
Loans and borrowings | 1,422 | 350 | - | 1,772 |
Bonds | 313 | 8,552 | - | 8,865 |
Lease liabilities | 1,622 | 3,980 | 1,596 | 7,199 |
Trade payables | 4,623 | - | - | 4,623 |
Other payables | 134 | 140 | 2 | 277 |
Derivatives | ||||
Derivative financial liabilities | 35 | - | - | 35 |
Total financial liabilities at 31 December | 8,149 | 13,023 | 1,599 | 22,770 |
2024 | ||||
Non-derivatives | ||||
Loans and borrowings | 204 | 430 | 50 | 685 |
Bonds | 312 | 4,812 | 3,875 | 8,999 |
Lease liabilities | 1,535 | 3,773 | 1,530 | 6,838 |
Trade payables | 3,894 | - | - | 3,894 |
Other payables | 171 | 167 | 9 | 347 |
Derivatives | ||||
Derivative financial liabilities | 152 | - | - | 152 |
Total financial liabilities at 31 December | 6,269 | 9,182 | 5,464 | 20,916 |
NOTE 4.5
DERIVATIVE FINANCIAL INSTRUMENTS
Pandora uses a number of derivative financial instruments to hedge its exposure to fluctuations in commodity prices, interest rates, and exchange rates.
Derivative financial instruments include silver and gold forward contracts, foreign exchange forward contracts and cross-currency interest rate swaps.
Pandora has entered into cross-currency interest rate swaps related to the fixed rate bonds maturing in 2028 and 2030, respectively. The swaps have a notional amount of EUR 1.0 billion (2024: EUR 1.0 billion) whereby Pandora receives a fixed rate of interest of 4.2% in EUR and pays interest at a fixed rate equal to 4.0% in DKK.
It is Pandora\u2019s general policy to hedge at least 70% of the Group\u2019s expected silver and gold purchases based on a rolling 12-month production plan. Realised hedges are initially recognised in Group inventories and will subsequently impact cost of sales when the products are sold. The time lag from purchase to impact on cost of sales is usually 5 to 10 months.1
Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the hedged volume by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately 70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026
DERIVATIVE FINANCIAL INSTRUMENTS | Assets | Liabilities | Carrying amount | Hedge reserve, net of tax |
DKK million | ||||
2025 | ||||
Commodities | 1,689 | -1 | 1,688 | 1,129 |
Foreign exchange | 10 | -33 | -23 | -18 |
Interest rate | 9 | - | 9 | 7 |
Total derivative financial instruments | 1,709 | -35 | 1,674 | 1,118 |
2024 | ||||
Commodities | 49 | -88 | -39 | -30 |
Foreign exchange | 106 | -64 | 42 | 33 |
Interest rate | 7 | - | 7 | 5 |
Total derivative financial instruments | 162 | -152 | 10 | 8 |
HEDGED PRICES FOR PURCHASES AND EXPECTED PHASING INTO COST OF SALES (USD/OZ)2 | Q1 2026 | Q2 2026 | Q3 2026 | Q4 2026 | ||
Realised in 2025 | ||||||
Silver | Estimated net price, cost of sales3 | 27.6 | ~32 | ~32 | ~31 | ~38 |
Hedged price, purchases | 31.3 | 30.1 | 29.8 | - | - | |
Gold | Estimated net price, cost of sales | 2,372 | ~2,700 | ~2,950 | ~3,350 | ~3,800 |
Hedged price, purchases | 2,847 | 3,663 | 4,123 | 4,424 | 4,588 |
2 The estimated net price in cost of sales reflects the commodity prices that will be recognised in the income statement at the point of sale, i.e. including the impact of the time lag, whereas the hedge price at the time of purchase reflects the actual hedged price paid. The estimate is based on our current operating flow, time lag estimates, and projected product mix for 2026.
3 The hedge ratio for the year is expected to cover 90-100% of cost of sales, the simulated rates in the table assumes 95%. The unhedged portion assumes a silver spot price of USD 82/oz.
income statement exposure in cost of sales from silver and gold price movements. The table above illustrates when the hedges are estimated to impact our cost of sales in 2026, as well as the average hedged price per quarter.
CLASSIFICATION ACCORDING TO THE FAIR VALUE HIERARCHY
The fair value at 31 December 2025 of Pandora\u2019s derivative financial instruments was measured in accordance with level 2 in the fair value hierarchy (IFRS 13). Level 2 is based on non-quoted prices, observable either directly (as prices) or indirectly (derived from prices). Pandora uses input from third-party valuation specialists to quote prices for
unrealised derivative financial instruments. The value of unrealised silver and gold instruments is tested against the prices observable at the London Bullion Market Association (LBMA). The value of unrealised foreign exchange and interest instruments is tested against observable foreign exchange and interest forward rates.
The value of financial instruments recognised in other comprehensive income is recycled from equity at the time the hedged transaction occurs, which is when the instrument is settled, within 12 months. The settlement period of the interest rate financial instruments is significantly longer and follows the maturity of the bonds.
1Historically, we have communicated a 2\u20137 month lag assumption. Over the past years, the realised timing has trended towards the upper end of that range. Accordingly, we have updated the assumption to 5\u201310 months to better reflect current operating flows. This is a technical timing clarification only, with no impact from demand trends.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
DERIVATIVE FINANCIAL INSTRUMENTS THAT QUALIFY FOR CASH FLOW HEDGE ACCOUNTING
The hedges are expected to be highly effective due to the nature of the economic relation between the exposure and the hedge. Hedge ineffectiveness can arise from the differences in the timing and in the forecasted amount of the cash flows of the hedged items and the hedging instruments.
The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials.
The effective portion of the realised gain or loss on a commodity hedging transaction is recognised in Group inventories and subsequently in cost of sales whereas the ineffective portion is realised in net financials. The impact in net financials was a gain of DKK 2 million (2024: gain of DKK 26 million). The realised gain or loss on all foreign exchange contracts is recognised in net financials.
For information about risk management strategy, see note 4.4 Financial risks.
FOREIGN CURRENCY RISK
Pandora\u2019s presentation currency is DKK, but the majority of Pandora\u2019s activities and investments are denominated in other currencies. Consequently, exchange rate fluctuations may have a substantial impact on Pandora\u2019s cash flows, profit (loss) and/or financial position in DKK.
The majority of Pandora\u2019s revenue is denominated in USD, EUR, GBP, AUD, MXN, CAD, TRY, and PLN. The functional currency of subsid-iaries is generally the local currency, and a substantial portion of Pandora\u2019s costs relates to raw materials purchased in USD. In addition, Pandora incurs a significant part of its costs denominated in THB. Changes in the exchange rate of the above currencies versus DKK will result in changes to the translated value of future EBIT and cash flows.
33%USD
11%Other
2%TRY
33%USD
10%Other
2%TRY
3%PLN
3%PLN
3%CAD
3%CAD
3%MXN
4%MXN
28%EUR
12%GBP
5%AUD
28%EUR
12%GBP
5%AUD
2025
2024
REVENUE BREAKDOWN BY CURRENCY (%)
Pandora finances the majority of its subsidiaries\u2019 cash requirements via intercompany loans denominated in the local currency of the individual subsidiary. Changes in exchange rate of these currencies against DKK will generally result in a foreign exchange gain or loss.
Exchange rate fluctuations may lead to a decrease in revenue and an increase in costs and thus declining margins. In addition, exchange rate fluctuations affect the translated value of the profits or losses of foreign subsidiaries and the translation of foreign currency assets and liabilities.
It is Pandora\u2019s policy to hedge foreign currency exposures related to the risk of declining net cash flows resulting from exchange rate fluctuations. Pandora does not hedge balance sheet items or ownership interests in foreign subsidiaries.
CURRENCY AND COMMODITY EXPOSUREFROM FINANCIAL ASSETS AND LIABILITIES\u00b9 | 31 December 2025 | 31 December 2024 | |||
Change in exchange rate | Profit (loss) before tax | Equity | Profit (loss) before tax | Equity | |
DKK million | |||||
USD | +10% | -180 | -145 | -286 | -471 |
CAD | +10% | 22 | 22 | -4 | -4 |
AUD | +10% | 29 | 5 | 6 | -26 |
GBP | +10% | 11 | -37 | 105 | 32 |
EUR | +1% | -66 | -66 | -71 | -71 |
TRY | +10% | -4 | -4 | 12 | 12 |
MXN | +10% | 25 | 4 | 26 | 5 |
PLN | +10% | -11 | -11 | 10 | 31 |
THB | +10% | -62 | 27 | -56 | 207 |
SILVER and GOLD2 | +10% | - | 349 | - | 227 |
\u00b9 The movements in the income statement arise from monetary items at the balance sheet date (cash, borrowings, receivables and payables) where the functional currency of the entity differs from the currency that the monetary items are denominated in. The currency movements in equity arise from monetary items and hedging instruments where the functional currency of the entity differs from the currency that the hedging instruments or monetary items are denominated in. The commodity movements in equity arise from the change in the hedging reserve. The impact would have been the opposite if exchange rates had been decreasing by similar percentages. The analysis is based on the transaction currency.
2The currency and commodity exposure from financial assets and liabilities presented above reflects the current exposure of financial assets and financial liabilities including derivative positions as of 31 December 2025. A 10% sensitivity has been applied for both silver and gold to ensure comparability with prior years and to provide a basis for linear analysis and modelling, despite higher commodity price volatility observed in 2025. Silver exposure will be reduced in 2026 onwards following the implementation of new creative innovation initiatives.
For 2025, up to 70% (2024: 70%) of the cash flows from currencies with a risk above policy threshold were hedged based on a rolling 12-month forecast. In 2025, this included USD, THB, GBP, AUD, and MXN. Cash flows are hedged up to 12 months forward with a hedge ratio that decreases with time to maturity. Foreign currency hedging is updated monthly or in connection with revised 12-month rolling cash forecasts. The realised profit (loss) from exchange rate hedging is recognised in financial items.
The table below illustrates the effects of movements in the Group\u2019s principal foreign currencies and commodities on net profit and equity at the balance sheet date after the effect of hedge accounting.
CREDIT RISK
Credit risk is primarily related to trade receivables, cash and unrealised gains on financial contracts. The maximum credit risk related tofinancial assets corresponds to the carrying amounts recognised in the consolidated balance sheet.
It is Pandora\u2019s policy for subsidiaries to be responsible for credit evaluation and credit risk on their trade receivables. Credit limits above certain policy thresholds must be approved by Group Treasury and/or the Chief Financial Officer.
Note 3.6 Trade receivablesincludes an overview of the credit risk related to trade receivables. Rating of trade receivables does not differ materially either by type of customer or geographic location. The risk of further impairment is considered to be limited.
Financial contracts related to foreign exchange and commodity hedging are entered into with counterparties that are highly rated financial institutions. These contracts are settled within a short time frame upon maturity and are therefore not considered to expose the Group to significant credit risk.
Credit risk related to Pandora\u2019s other financial assets mainly includes cash and unrealised gains on financial contracts. The credit risk is related to default of the counterparty with a maximum exposure corresponding to the carrying amount of the assets. Group Treasury is responsible for managing these credit risks.
LIQUIDITY RISK
Pandora\u2019s cash conversion is high, and Pandora maintains an adequate level of cash and unutilised credit facilities to meet financial obligations when due. This, combined with strong, investment-grade credit ratings means that Pandora\u2019s liquidity risk and refinancing risk are considered to be low.
As of December 2025, Pandora has a revolving credit facility of EUR 950 million and a term loan of EUR 60 million committed until April 2029 and May 2030, respectively. Additionally, Pandora has two outstanding EUR 500 million bonds issued under its Euro Medium Term Note programme maturing in 2028 and 2030, respectively.Pandora has uncommitted credit facilities to ensure efficient and flexible local liquidity management. The credit facilities are managed by Group Treasury.
In January 2026, Pandora successfully refinanced its revolving credit facility, securing two revolving credit facilities of EUR 750 million and EUR 350 million, committed until 2029 and 2031, respectively. Both facilities allow for two extension periods of one year each. Neither facility is subject to financial covenants.
Pandora\u2019s suppliers have access to two banks under the supply chain financing programme, see note 3.9 Trade payables. Pandora is not involved in the programme, but management monitors its availability and does not expect any material impact if a provider were to withdraw.
Pandora maintains credit ratings of BBB by S&P Global Ratings and a Baa2 rating from Moody\u2019s Investor Service, both of which have a stable outlook.
OUTSTANDING COMMITTED LOAN FACILITIES DKK million | Available facilities | Maturity date | Drawn amount | Avg. effective interest rate incl. hedging | Available liquidity |
2025 | |||||
Revolving credit facilities\u00b9 | 7,095 | April 2029 | - | - | 7,095 |
Term loan maturing in 2030\u00b9 | 448 | May 2030 | 448 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,734 | April 2028 | 3,734 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,734 | May 2030 | 3,734 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,012 | 7,917 | 7,095 |
2024 | |||||
Revolving credit facilities\u00b9 | 7,087 | April 2028 | - | - | 7,087 |
Term loan maturing in 2030\u00b9 | 547 | May 2030 | 547 | 2.8% | - |
Bond maturing in 2028\u00b9 | 3,730 | April 2028 | 3,730 | 4.3% | - |
Bond maturing in 2030\u00b9 | 3,730 | May 2030 | 3,730 | 3.7% | - |
Total outstanding committed loan facilities at 31 December | 15,094 | 8,007 | 7,087 |
1Sustainability-linked facilities with an interest rate tied to the achievement of specific sustainability targets. The facilities have no covenants affecting loan maturity, except for the revolving credit facilities and the term loan, which are subject to a net debt to EBITDA ratio covenant of 2.5x measured quarterly.
NOTE 4.5
DERIVATIVE FINANCIAL INSTRUMENTS
Pandora uses a number of derivative financial instruments to hedge its exposure to fluctuations in commodity prices, interest rates, and exchange rates.
Derivative financial instruments include silver and gold forward contracts, foreign exchange forward contracts and cross-currency interest rate swaps.
Pandora has entered into cross-currency interest rate swaps related to the fixed rate bonds maturing in 2028 and 2030, respectively. The swaps have a notional amount of EUR 1.0 billion (2024: EUR 1.0 billion) whereby Pandora receives a fixed rate of interest of 4.2% in EUR and pays interest at a fixed rate equal to 4.0% in DKK.
It is Pandora\u2019s general policy to hedge at least 70% of the Group\u2019s expected silver and gold purchases based on a rolling 12-month production plan. Realised hedges are initially recognised in Group inventories and will subsequently impact cost of sales when the products are sold. The time lag from purchase to impact on cost of sales is usually 5 to 10 months.1
Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the hedged volume by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately 70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026
DERIVATIVE FINANCIAL INSTRUMENTS | Assets | Liabilities | Carrying amount | Hedge reserve, net of tax |
DKK million | ||||
2025 | ||||
Commodities | 1,689 | -1 | 1,688 | 1,129 |
Foreign exchange | 10 | -33 | -23 | -18 |
Interest rate | 9 | - | 9 | 7 |
Total derivative financial instruments | 1,709 | -35 | 1,674 | 1,118 |
2024 | ||||
Commodities | 49 | -88 | -39 | -30 |
Foreign exchange | 106 | -64 | 42 | 33 |
Interest rate | 7 | - | 7 | 5 |
Total derivative financial instruments | 162 | -152 | 10 | 8 |
HEDGED PRICES FOR PURCHASES AND EXPECTED PHASING INTO COST OF SALES (USD/OZ)2 | Q1 2026 | Q2 2026 | Q3 2026 | Q4 2026 | ||
Realised in 2025 | ||||||
Silver | Estimated net price, cost of sales3 | 27.6 | ~32 | ~32 | ~31 | ~38 |
Hedged price, purchases | 31.3 | 30.1 | 29.8 | - | - | |
Gold | Estimated net price, cost of sales | 2,372 | ~2,700 | ~2,950 | ~3,350 | ~3,800 |
Hedged price, purchases | 2,847 | 3,663 | 4,123 | 4,424 | 4,588 |
2 The estimated net price in cost of sales reflects the commodity prices that will be recognised in the income statement at the point of sale, i.e. including the impact of the time lag, whereas the hedge price at the time of purchase reflects the actual hedged price paid. The estimate is based on our current operating flow, time lag estimates, and projected product mix for 2026.
3 The hedge ratio for the year is expected to cover 90-100% of cost of sales, the simulated rates in the table assumes 95%. The unhedged portion assumes a silver spot price of USD 82/oz.
income statement exposure in cost of sales from silver and gold price movements. The table above illustrates when the hedges are estimated to impact our cost of sales in 2026, as well as the average hedged price per quarter.
CLASSIFICATION ACCORDING TO THE FAIR VALUE HIERARCHY
The fair value at 31 December 2025 of Pandora\u2019s derivative financial instruments was measured in accordance with level 2 in the fair value hierarchy (IFRS 13). Level 2 is based on non-quoted prices, observable either directly (as prices) or indirectly (derived from prices). Pandora uses input from third-party valuation specialists to quote prices for
unrealised derivative financial instruments. The value of unrealised silver and gold instruments is tested against the prices observable at the London Bullion Market Association (LBMA). The value of unrealised foreign exchange and interest instruments is tested against observable foreign exchange and interest forward rates.
The value of financial instruments recognised in other comprehensive income is recycled from equity at the time the hedged transaction occurs, which is when the instrument is settled, within 12 months. The settlement period of the interest rate financial instruments is significantly longer and follows the maturity of the bonds.
1Historically, we have communicated a 2\u20137 month lag assumption. Over the past years, the realised timing has trended towards the upper end of that range. Accordingly, we have updated the assumption to 5\u201310 months to better reflect current operating flows. This is a technical timing clarification only, with no impact from demand trends.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
DERIVATIVE FINANCIAL INSTRUMENTS THAT QUALIFY FOR CASH FLOW HEDGE ACCOUNTING
The hedges are expected to be highly effective due to the nature of the economic relation between the exposure and the hedge. Hedge ineffectiveness can arise from the differences in the timing and in the forecasted amount of the cash flows of the hedged items and the hedging instruments.
The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials.
The effective portion of the realised gain or loss on a commodity hedging transaction is recognised in Group inventories and subsequently in cost of sales whereas the ineffective portion is realised in net financials. The impact in net financials was a gain of DKK 2 million (2024: gain of DKK 26 million). The realised gain or loss on all foreign exchange contracts is recognised in net financials.
For information about risk management strategy, see note 4.4 Financial risks.
NOTE 4.5
DERIVATIVE FINANCIAL INSTRUMENTS
Pandora uses a number of derivative financial instruments to hedge its exposure to fluctuations in commodity prices, interest rates, and exchange rates.
Derivative financial instruments include silver and gold forward contracts, foreign exchange forward contracts and cross-currency interest rate swaps.
Pandora has entered into cross-currency interest rate swaps related to the fixed rate bonds maturing in 2028 and 2030, respectively. The swaps have a notional amount of EUR 1.0 billion (2024: EUR 1.0 billion) whereby Pandora receives a fixed rate of interest of 4.2% in EUR and pays interest at a fixed rate equal to 4.0% in DKK.
It is Pandora\u2019s general policy to hedge at least 70% of the Group\u2019s expected silver and gold purchases based on a rolling 12-month production plan. Realised hedges are initially recognised in Group inventories and will subsequently impact cost of sales when the products are sold. The time lag from purchase to impact on cost of sales is usually 5 to 10 months.1
Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the hedged volume by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately 70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026
DERIVATIVE FINANCIAL INSTRUMENTS | Assets | Liabilities | Carrying amount | Hedge reserve, net of tax |
DKK million | ||||
2025 | ||||
Commodities | 1,689 | -1 | 1,688 | 1,129 |
Foreign exchange | 10 | -33 | -23 | -18 |
Interest rate | 9 | - | 9 | 7 |
Total derivative financial instruments | 1,709 | -35 | 1,674 | 1,118 |
2024 | ||||
Commodities | 49 | -88 | -39 | -30 |
Foreign exchange | 106 | -64 | 42 | 33 |
Interest rate | 7 | - | 7 | 5 |
Total derivative financial instruments | 162 | -152 | 10 | 8 |
HEDGED PRICES FOR PURCHASES AND EXPECTED PHASING INTO COST OF SALES (USD/OZ)2 | Q1 2026 | Q2 2026 | Q3 2026 | Q4 2026 | ||
Realised in 2025 | ||||||
Silver | Estimated net price, cost of sales3 | 27.6 | ~32 | ~32 | ~31 | ~38 |
Hedged price, purchases | 31.3 | 30.1 | 29.8 | - | - | |
Gold | Estimated net price, cost of sales | 2,372 | ~2,700 | ~2,950 | ~3,350 | ~3,800 |
Hedged price, purchases | 2,847 | 3,663 | 4,123 | 4,424 | 4,588 |
2 The estimated net price in cost of sales reflects the commodity prices that will be recognised in the income statement at the point of sale, i.e. including the impact of the time lag, whereas the hedge price at the time of purchase reflects the actual hedged price paid. The estimate is based on our current operating flow, time lag estimates, and projected product mix for 2026.
3 The hedge ratio for the year is expected to cover 90-100% of cost of sales, the simulated rates in the table assumes 95%. The unhedged portion assumes a silver spot price of USD 82/oz.
income statement exposure in cost of sales from silver and gold price movements. The table above illustrates when the hedges are estimated to impact our cost of sales in 2026, as well as the average hedged price per quarter.
CLASSIFICATION ACCORDING TO THE FAIR VALUE HIERARCHY
The fair value at 31 December 2025 of Pandora\u2019s derivative financial instruments was measured in accordance with level 2 in the fair value hierarchy (IFRS 13). Level 2 is based on non-quoted prices, observable either directly (as prices) or indirectly (derived from prices). Pandora uses input from third-party valuation specialists to quote prices for
unrealised derivative financial instruments. The value of unrealised silver and gold instruments is tested against the prices observable at the London Bullion Market Association (LBMA). The value of unrealised foreign exchange and interest instruments is tested against observable foreign exchange and interest forward rates.
The value of financial instruments recognised in other comprehensive income is recycled from equity at the time the hedged transaction occurs, which is when the instrument is settled, within 12 months. The settlement period of the interest rate financial instruments is significantly longer and follows the maturity of the bonds.
1Historically, we have communicated a 2\u20137 month lag assumption. Over the past years, the realised timing has trended towards the upper end of that range. Accordingly, we have updated the assumption to 5\u201310 months to better reflect current operating flows. This is a technical timing clarification only, with no impact from demand trends.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
DERIVATIVE FINANCIAL INSTRUMENTS THAT QUALIFY FOR CASH FLOW HEDGE ACCOUNTING
The hedges are expected to be highly effective due to the nature of the economic relation between the exposure and the hedge. Hedge ineffectiveness can arise from the differences in the timing and in the forecasted amount of the cash flows of the hedged items and the hedging instruments.
The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials.
The effective portion of the realised gain or loss on a commodity hedging transaction is recognised in Group inventories and subsequently in cost of sales whereas the ineffective portion is realised in net financials. The impact in net financials was a gain of DKK 2 million (2024: gain of DKK 26 million). The realised gain or loss on all foreign exchange contracts is recognised in net financials.
For information about risk management strategy, see note 4.4 Financial risks.
NOTE 4.5
DERIVATIVE FINANCIAL INSTRUMENTS
Pandora uses a number of derivative financial instruments to hedge its exposure to fluctuations in commodity prices, interest rates, and exchange rates.
Derivative financial instruments include silver and gold forward contracts, foreign exchange forward contracts and cross-currency interest rate swaps.
Pandora has entered into cross-currency interest rate swaps related to the fixed rate bonds maturing in 2028 and 2030, respectively. The swaps have a notional amount of EUR 1.0 billion (2024: EUR 1.0 billion) whereby Pandora receives a fixed rate of interest of 4.2% in EUR and pays interest at a fixed rate equal to 4.0% in DKK.
It is Pandora\u2019s general policy to hedge at least 70% of the Group\u2019s expected silver and gold purchases based on a rolling 12-month production plan. Realised hedges are initially recognised in Group inventories and will subsequently impact cost of sales when the products are sold. The time lag from purchase to impact on cost of sales is usually 5 to 10 months.1
Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the hedged volume by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately 70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026
DERIVATIVE FINANCIAL INSTRUMENTS | Assets | Liabilities | Carrying amount | Hedge reserve, net of tax |
DKK million | ||||
2025 | ||||
Commodities | 1,689 | -1 | 1,688 | 1,129 |
Foreign exchange | 10 | -33 | -23 | -18 |
Interest rate | 9 | - | 9 | 7 |
Total derivative financial instruments | 1,709 | -35 | 1,674 | 1,118 |
2024 | ||||
Commodities | 49 | -88 | -39 | -30 |
Foreign exchange | 106 | -64 | 42 | 33 |
Interest rate | 7 | - | 7 | 5 |
Total derivative financial instruments | 162 | -152 | 10 | 8 |
HEDGED PRICES FOR PURCHASES AND EXPECTED PHASING INTO COST OF SALES (USD/OZ)2 | Q1 2026 | Q2 2026 | Q3 2026 | Q4 2026 | ||
Realised in 2025 | ||||||
Silver | Estimated net price, cost of sales3 | 27.6 | ~32 | ~32 | ~31 | ~38 |
Hedged price, purchases | 31.3 | 30.1 | 29.8 | - | - | |
Gold | Estimated net price, cost of sales | 2,372 | ~2,700 | ~2,950 | ~3,350 | ~3,800 |
Hedged price, purchases | 2,847 | 3,663 | 4,123 | 4,424 | 4,588 |
2 The estimated net price in cost of sales reflects the commodity prices that will be recognised in the income statement at the point of sale, i.e. including the impact of the time lag, whereas the hedge price at the time of purchase reflects the actual hedged price paid. The estimate is based on our current operating flow, time lag estimates, and projected product mix for 2026.
3 The hedge ratio for the year is expected to cover 90-100% of cost of sales, the simulated rates in the table assumes 95%. The unhedged portion assumes a silver spot price of USD 82/oz.
income statement exposure in cost of sales from silver and gold price movements. The table above illustrates when the hedges are estimated to impact our cost of sales in 2026, as well as the average hedged price per quarter.
CLASSIFICATION ACCORDING TO THE FAIR VALUE HIERARCHY
The fair value at 31 December 2025 of Pandora\u2019s derivative financial instruments was measured in accordance with level 2 in the fair value hierarchy (IFRS 13). Level 2 is based on non-quoted prices, observable either directly (as prices) or indirectly (derived from prices). Pandora uses input from third-party valuation specialists to quote prices for
unrealised derivative financial instruments. The value of unrealised silver and gold instruments is tested against the prices observable at the London Bullion Market Association (LBMA). The value of unrealised foreign exchange and interest instruments is tested against observable foreign exchange and interest forward rates.
The value of financial instruments recognised in other comprehensive income is recycled from equity at the time the hedged transaction occurs, which is when the instrument is settled, within 12 months. The settlement period of the interest rate financial instruments is significantly longer and follows the maturity of the bonds.
1Historically, we have communicated a 2\u20137 month lag assumption. Over the past years, the realised timing has trended towards the upper end of that range. Accordingly, we have updated the assumption to 5\u201310 months to better reflect current operating flows. This is a technical timing clarification only, with no impact from demand trends.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
DERIVATIVE FINANCIAL INSTRUMENTS THAT QUALIFY FOR CASH FLOW HEDGE ACCOUNTING
The hedges are expected to be highly effective due to the nature of the economic relation between the exposure and the hedge. Hedge ineffectiveness can arise from the differences in the timing and in the forecasted amount of the cash flows of the hedged items and the hedging instruments.
The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials.
The effective portion of the realised gain or loss on a commodity hedging transaction is recognised in Group inventories and subsequently in cost of sales whereas the ineffective portion is realised in net financials. The impact in net financials was a gain of DKK 2 million (2024: gain of DKK 26 million). The realised gain or loss on all foreign exchange contracts is recognised in net financials.
For information about risk management strategy, see note 4.4 Financial risks.
NOTE 4.5
DERIVATIVE FINANCIAL INSTRUMENTS
Pandora uses a number of derivative financial instruments to hedge its exposure to fluctuations in commodity prices, interest rates, and exchange rates.
Derivative financial instruments include silver and gold forward contracts, foreign exchange forward contracts and cross-currency interest rate swaps.
Pandora has entered into cross-currency interest rate swaps related to the fixed rate bonds maturing in 2028 and 2030, respectively. The swaps have a notional amount of EUR 1.0 billion (2024: EUR 1.0 billion) whereby Pandora receives a fixed rate of interest of 4.2% in EUR and pays interest at a fixed rate equal to 4.0% in DKK.
It is Pandora\u2019s general policy to hedge at least 70% of the Group\u2019s expected silver and gold purchases based on a rolling 12-month production plan. Realised hedges are initially recognised in Group inventories and will subsequently impact cost of sales when the products are sold. The time lag from purchase to impact on cost of sales is usually 5 to 10 months.1
Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the hedged volume by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately 70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026
DERIVATIVE FINANCIAL INSTRUMENTS | Assets | Liabilities | Carrying amount | Hedge reserve, net of tax |
DKK million | ||||
2025 | ||||
Commodities | 1,689 | -1 | 1,688 | 1,129 |
Foreign exchange | 10 | -33 | -23 | -18 |
Interest rate | 9 | - | 9 | 7 |
Total derivative financial instruments | 1,709 | -35 | 1,674 | 1,118 |
2024 | ||||
Commodities | 49 | -88 | -39 | -30 |
Foreign exchange | 106 | -64 | 42 | 33 |
Interest rate | 7 | - | 7 | 5 |
Total derivative financial instruments | 162 | -152 | 10 | 8 |
HEDGED PRICES FOR PURCHASES AND EXPECTED PHASING INTO COST OF SALES (USD/OZ)2 | Q1 2026 | Q2 2026 | Q3 2026 | Q4 2026 | ||
Realised in 2025 | ||||||
Silver | Estimated net price, cost of sales3 | 27.6 | ~32 | ~32 | ~31 | ~38 |
Hedged price, purchases | 31.3 | 30.1 | 29.8 | - | - | |
Gold | Estimated net price, cost of sales | 2,372 | ~2,700 | ~2,950 | ~3,350 | ~3,800 |
Hedged price, purchases | 2,847 | 3,663 | 4,123 | 4,424 | 4,588 |
2 The estimated net price in cost of sales reflects the commodity prices that will be recognised in the income statement at the point of sale, i.e. including the impact of the time lag, whereas the hedge price at the time of purchase reflects the actual hedged price paid. The estimate is based on our current operating flow, time lag estimates, and projected product mix for 2026.
3 The hedge ratio for the year is expected to cover 90-100% of cost of sales, the simulated rates in the table assumes 95%. The unhedged portion assumes a silver spot price of USD 82/oz.
income statement exposure in cost of sales from silver and gold price movements. The table above illustrates when the hedges are estimated to impact our cost of sales in 2026, as well as the average hedged price per quarter.
CLASSIFICATION ACCORDING TO THE FAIR VALUE HIERARCHY
The fair value at 31 December 2025 of Pandora\u2019s derivative financial instruments was measured in accordance with level 2 in the fair value hierarchy (IFRS 13). Level 2 is based on non-quoted prices, observable either directly (as prices) or indirectly (derived from prices). Pandora uses input from third-party valuation specialists to quote prices for
unrealised derivative financial instruments. The value of unrealised silver and gold instruments is tested against the prices observable at the London Bullion Market Association (LBMA). The value of unrealised foreign exchange and interest instruments is tested against observable foreign exchange and interest forward rates.
The value of financial instruments recognised in other comprehensive income is recycled from equity at the time the hedged transaction occurs, which is when the instrument is settled, within 12 months. The settlement period of the interest rate financial instruments is significantly longer and follows the maturity of the bonds.
1Historically, we have communicated a 2\u20137 month lag assumption. Over the past years, the realised timing has trended towards the upper end of that range. Accordingly, we have updated the assumption to 5\u201310 months to better reflect current operating flows. This is a technical timing clarification only, with no impact from demand trends.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
DERIVATIVE FINANCIAL INSTRUMENTS THAT QUALIFY FOR CASH FLOW HEDGE ACCOUNTING
The hedges are expected to be highly effective due to the nature of the economic relation between the exposure and the hedge. Hedge ineffectiveness can arise from the differences in the timing and in the forecasted amount of the cash flows of the hedged items and the hedging instruments.
The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials.
The effective portion of the realised gain or loss on a commodity hedging transaction is recognised in Group inventories and subsequently in cost of sales whereas the ineffective portion is realised in net financials. The impact in net financials was a gain of DKK 2 million (2024: gain of DKK 26 million). The realised gain or loss on all foreign exchange contracts is recognised in net financials.
For information about risk management strategy, see note 4.4 Financial risks.
NOTE 4.5
DERIVATIVE FINANCIAL INSTRUMENTS
Pandora uses a number of derivative financial instruments to hedge its exposure to fluctuations in commodity prices, interest rates, and exchange rates.
Derivative financial instruments include silver and gold forward contracts, foreign exchange forward contracts and cross-currency interest rate swaps.
Pandora has entered into cross-currency interest rate swaps related to the fixed rate bonds maturing in 2028 and 2030, respectively. The swaps have a notional amount of EUR 1.0 billion (2024: EUR 1.0 billion) whereby Pandora receives a fixed rate of interest of 4.2% in EUR and pays interest at a fixed rate equal to 4.0% in DKK.
It is Pandora\u2019s general policy to hedge at least 70% of the Group\u2019s expected silver and gold purchases based on a rolling 12-month production plan. Realised hedges are initially recognised in Group inventories and will subsequently impact cost of sales when the products are sold. The time lag from purchase to impact on cost of sales is usually 5 to 10 months.1
Following a significant decrease in silver prices in early April 2025, a strategic decision was made to increase the hedged volume by adding a significant portion of the 2026 purchases at around 30 USD/oz. As a result of the high silver volumes hedged in April 2025, combined with expected lower silver consumption driven by creative innovation, Pandora did not enter into additional hedges in the second half of 2025. As of December 2025, Pandora has hedged approximately 70% of expected commodity exposures for the next 12 months of purchases, in line with policy. Due to the 5 to 10 months lag between realising hedged purchases to impact on cost of sales, this hedge ratio effectively covers approximately 90-100% of the 2026
DERIVATIVE FINANCIAL INSTRUMENTS | Assets | Liabilities | Carrying amount | Hedge reserve, net of tax |
DKK million | ||||
2025 | ||||
Commodities | 1,689 | -1 | 1,688 | 1,129 |
Foreign exchange | 10 | -33 | -23 | -18 |
Interest rate | 9 | - | 9 | 7 |
Total derivative financial instruments | 1,709 | -35 | 1,674 | 1,118 |
2024 | ||||
Commodities | 49 | -88 | -39 | -30 |
Foreign exchange | 106 | -64 | 42 | 33 |
Interest rate | 7 | - | 7 | 5 |
Total derivative financial instruments | 162 | -152 | 10 | 8 |
HEDGED PRICES FOR PURCHASES AND EXPECTED PHASING INTO COST OF SALES (USD/OZ)2 | Q1 2026 | Q2 2026 | Q3 2026 | Q4 2026 | ||
Realised in 2025 | ||||||
Silver | Estimated net price, cost of sales3 | 27.6 | ~32 | ~32 | ~31 | ~38 |
Hedged price, purchases | 31.3 | 30.1 | 29.8 | - | - | |
Gold | Estimated net price, cost of sales | 2,372 | ~2,700 | ~2,950 | ~3,350 | ~3,800 |
Hedged price, purchases | 2,847 | 3,663 | 4,123 | 4,424 | 4,588 |
2 The estimated net price in cost of sales reflects the commodity prices that will be recognised in the income statement at the point of sale, i.e. including the impact of the time lag, whereas the hedge price at the time of purchase reflects the actual hedged price paid. The estimate is based on our current operating flow, time lag estimates, and projected product mix for 2026.
3 The hedge ratio for the year is expected to cover 90-100% of cost of sales, the simulated rates in the table assumes 95%. The unhedged portion assumes a silver spot price of USD 82/oz.
income statement exposure in cost of sales from silver and gold price movements. The table above illustrates when the hedges are estimated to impact our cost of sales in 2026, as well as the average hedged price per quarter.
CLASSIFICATION ACCORDING TO THE FAIR VALUE HIERARCHY
The fair value at 31 December 2025 of Pandora\u2019s derivative financial instruments was measured in accordance with level 2 in the fair value hierarchy (IFRS 13). Level 2 is based on non-quoted prices, observable either directly (as prices) or indirectly (derived from prices). Pandora uses input from third-party valuation specialists to quote prices for
unrealised derivative financial instruments. The value of unrealised silver and gold instruments is tested against the prices observable at the London Bullion Market Association (LBMA). The value of unrealised foreign exchange and interest instruments is tested against observable foreign exchange and interest forward rates.
The value of financial instruments recognised in other comprehensive income is recycled from equity at the time the hedged transaction occurs, which is when the instrument is settled, within 12 months. The settlement period of the interest rate financial instruments is significantly longer and follows the maturity of the bonds.
1Historically, we have communicated a 2\u20137 month lag assumption. Over the past years, the realised timing has trended towards the upper end of that range. Accordingly, we have updated the assumption to 5\u201310 months to better reflect current operating flows. This is a technical timing clarification only, with no impact from demand trends.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
DERIVATIVE FINANCIAL INSTRUMENTS THAT QUALIFY FOR CASH FLOW HEDGE ACCOUNTING
The hedges are expected to be highly effective due to the nature of the economic relation between the exposure and the hedge. Hedge ineffectiveness can arise from the differences in the timing and in the forecasted amount of the cash flows of the hedged items and the hedging instruments.
The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials.
The effective portion of the realised gain or loss on a commodity hedging transaction is recognised in Group inventories and subsequently in cost of sales whereas the ineffective portion is realised in net financials. The impact in net financials was a gain of DKK 2 million (2024: gain of DKK 26 million). The realised gain or loss on all foreign exchange contracts is recognised in net financials.
For information about risk management strategy, see note 4.4 Financial risks.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
ACCOUNTING POLICIES
Derivative financial instruments are initially recognised at fair value at the date on which a contract is entered into and are subsequently measured at fair value. For derivative financial instruments not traded in an active market, the fair value is determined using appropriate valuation methods. Such methods may include comparison with recent arm\u2019s length market transactions, reference to the current fair value of another instrument that is substantially the same, or discounted cash flow analysis.
Pandora has designated certain derivative financial instruments as cash flow hedges as defined under IFRS 9. Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk are associated with the cash flows of recognised assets and liabilities and highly probable forecast transactions.
Pandora designates and documents all hedging relationships between commodity contracts and purchase transactions relating to silver and gold. The effective portion of the unrealised gain or loss on all hedging instruments is recognised directly as other comprehensive income in the equity hedging reserve. The ineffective portion is recognised in net financials. The effective portion of the realised gain or loss from commodity hedging is recognised in inventories and subsequently in cost of sales. The realised profit (loss) from exchange rate hedging is recognised in financial items.
NOTE 4.6
NET FINANCIALS
FINANCE INCOME | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 157 | 46 |
Total finance income from derivative financial instruments | 157 | 46 |
Finance income from loans and receivables measured at amortised cost: | ||
Foreign exchange gains | 77 | 163 |
Interest income, bank | 43 | 32 |
Interest income, loans and receivables | 2 | 7 |
Total finance income from loans and receivables | 121 | 202 |
Total finance income | 279 | 248 |
FINANCE COSTS | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 24 | 158 |
Total finance costs from derivative financial instruments | 24 | 158 |
Finance costs from financial liabilities measured at amortised cost: | ||
Foreign exchange losses | 133 | 221 |
Interest on loans and borrowings | 424 | 420 |
Interest on lease liabilities | 422 | 381 |
Other finance costs | 146 | 117 |
Total finance costs from loans and borrowings | 1,125 | 1,139 |
Total finance costs | 1,149 | 1,297 |
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
NOTE 4.6
NET FINANCIALS
FINANCE INCOME | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 157 | 46 |
Total finance income from derivative financial instruments | 157 | 46 |
Finance income from loans and receivables measured at amortised cost: | ||
Foreign exchange gains | 77 | 163 |
Interest income, bank | 43 | 32 |
Interest income, loans and receivables | 2 | 7 |
Total finance income from loans and receivables | 121 | 202 |
Total finance income | 279 | 248 |
FINANCE COSTS | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 24 | 158 |
Total finance costs from derivative financial instruments | 24 | 158 |
Finance costs from financial liabilities measured at amortised cost: | ||
Foreign exchange losses | 133 | 221 |
Interest on loans and borrowings | 424 | 420 |
Interest on lease liabilities | 422 | 381 |
Other finance costs | 146 | 117 |
Total finance costs from loans and borrowings | 1,125 | 1,139 |
Total finance costs | 1,149 | 1,297 |
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
NOTE 4.6
NET FINANCIALS
FINANCE INCOME | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 157 | 46 |
Total finance income from derivative financial instruments | 157 | 46 |
Finance income from loans and receivables measured at amortised cost: | ||
Foreign exchange gains | 77 | 163 |
Interest income, bank | 43 | 32 |
Interest income, loans and receivables | 2 | 7 |
Total finance income from loans and receivables | 121 | 202 |
Total finance income | 279 | 248 |
FINANCE COSTS | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 24 | 158 |
Total finance costs from derivative financial instruments | 24 | 158 |
Finance costs from financial liabilities measured at amortised cost: | ||
Foreign exchange losses | 133 | 221 |
Interest on loans and borrowings | 424 | 420 |
Interest on lease liabilities | 422 | 381 |
Other finance costs | 146 | 117 |
Total finance costs from loans and borrowings | 1,125 | 1,139 |
Total finance costs | 1,149 | 1,297 |
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
FINANCE INCOME | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 157 | 46 |
Total finance income from derivative financial instruments | 157 | 46 |
Finance income from loans and receivables measured at amortised cost: | ||
Foreign exchange gains | 77 | 163 |
Interest income, bank | 43 | 32 |
Interest income, loans and receivables | 2 | 7 |
Total finance income from loans and receivables | 121 | 202 |
Total finance income | 279 | 248 |
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
FINANCE INCOME | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 157 | 46 |
Total finance income from derivative financial instruments | 157 | 46 |
Finance income from loans and receivables measured at amortised cost: | ||
Foreign exchange gains | 77 | 163 |
Interest income, bank | 43 | 32 |
Interest income, loans and receivables | 2 | 7 |
Total finance income from loans and receivables | 121 | 202 |
Total finance income | 279 | 248 |
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
FINANCE COSTS | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 24 | 158 |
Total finance costs from derivative financial instruments | 24 | 158 |
Finance costs from financial liabilities measured at amortised cost: | ||
Foreign exchange losses | 133 | 221 |
Interest on loans and borrowings | 424 | 420 |
Interest on lease liabilities | 422 | 381 |
Other finance costs | 146 | 117 |
Total finance costs from loans and borrowings | 1,125 | 1,139 |
Total finance costs | 1,149 | 1,297 |
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
FINANCE COSTS | ||
DKK million | 2025 | 2024 |
Reclassified from equity hedge reserves | 24 | 158 |
Total finance costs from derivative financial instruments | 24 | 158 |
Finance costs from financial liabilities measured at amortised cost: | ||
Foreign exchange losses | 133 | 221 |
Interest on loans and borrowings | 424 | 420 |
Interest on lease liabilities | 422 | 381 |
Other finance costs | 146 | 117 |
Total finance costs from loans and borrowings | 1,125 | 1,139 |
Total finance costs | 1,149 | 1,297 |
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
ACCOUNTING POLICIES
Finance income and costs comprise interest income and expenses, realised and unrealised gains and losses on payables/receivables and transactions in foreign currencies.
For all financial instruments measured at amortised cost, interest income or expenses are recognised using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability.
NOTE 5.1
CONTINGENT ASSETS AND LIABILITIES
LITIGATION
Pandora is from time to time party to various legal proceedings with current business partners, authorities and other third parties, related to copyright, marketing conduct and pricing. None of these proceedings is expected to have a material impact on Pandora\u2019s financial position or future earnings.
SIGNIFICANT ACCOUNTING ESTIMATES
The factors taken into account when estimating a potential liability in connection with litigation include the nature of the litigation or claim. Other factors taken into account are the development of the case, the judgements and recommendations of legal or other advisers, experience from similar cases and management\u2019s decision on how the Group will react to the litigation or claim.
CONTRACTUAL OBLIGATIONS
Pandora has entered into a number of long-term purchase, sales and supply contracts in the course of the Group\u2019s ordinary business. Contractual obligations amounted to DKK 1,127 million at 31 December 2025 (2024: DKK 1,092 million) and relate mainly to commercial collaborations and IT contracts.
Apart from the liabilities already recognised in the balance sheet, no significant financial losses are expected to be incurred as a result of these contracts.
CONTINGENT ASSETS
The Group is involved in a few legal disputes, including those related to the insurance compensation for Pandora\u2019s European Distribution Center, located in Hamburg, Germany, that was affected by a fire in October 2022, a receivable due from the former Russian distributor, and other recourse claims. Based on legal advice, management considers it probable that some level of compensation will be received from some or all these matters. As the potential inflow of economic benefits cannot be reliably estimated, no asset has been recognised in the Financial Statements at 31 December 2025.
NOTE 5.1
CONTINGENT ASSETS AND LIABILITIES
LITIGATION
Pandora is from time to time party to various legal proceedings with current business partners, authorities and other third parties, related to copyright, marketing conduct and pricing. None of these proceedings is expected to have a material impact on Pandora\u2019s financial position or future earnings.
SIGNIFICANT ACCOUNTING ESTIMATES
The factors taken into account when estimating a potential liability in connection with litigation include the nature of the litigation or claim. Other factors taken into account are the development of the case, the judgements and recommendations of legal or other advisers, experience from similar cases and management\u2019s decision on how the Group will react to the litigation or claim.
CONTRACTUAL OBLIGATIONS
Pandora has entered into a number of long-term purchase, sales and supply contracts in the course of the Group\u2019s ordinary business. Contractual obligations amounted to DKK 1,127 million at 31 December 2025 (2024: DKK 1,092 million) and relate mainly to commercial collaborations and IT contracts.
Apart from the liabilities already recognised in the balance sheet, no significant financial losses are expected to be incurred as a result of these contracts.
CONTINGENT ASSETS
The Group is involved in a few legal disputes, including those related to the insurance compensation for Pandora\u2019s European Distribution Center, located in Hamburg, Germany, that was affected by a fire in October 2022, a receivable due from the former Russian distributor, and other recourse claims. Based on legal advice, management considers it probable that some level of compensation will be received from some or all these matters. As the potential inflow of economic benefits cannot be reliably estimated, no asset has been recognised in the Financial Statements at 31 December 2025.
CONTRACTUAL OBLIGATIONS
Pandora has entered into a number of long-term purchase, sales and supply contracts in the course of the Group\u2019s ordinary business. Contractual obligations amounted to DKK 1,127 million at 31 December 2025 (2024: DKK 1,092 million) and relate mainly to commercial collaborations and IT contracts.
Apart from the liabilities already recognised in the balance sheet, no significant financial losses are expected to be incurred as a result of these contracts.
CONTINGENT ASSETS
The Group is involved in a few legal disputes, including those related to the insurance compensation for Pandora\u2019s European Distribution Center, located in Hamburg, Germany, that was affected by a fire in October 2022, a receivable due from the former Russian distributor, and other recourse claims. Based on legal advice, management considers it probable that some level of compensation will be received from some or all these matters. As the potential inflow of economic benefits cannot be reliably estimated, no asset has been recognised in the Financial Statements at 31 December 2025.
NOTE 5.2
RELATED PARTIES
RELATED PARTIES WITH SIGNIFICANT INTERESTS
Related parties of Pandora include the Board of Directors, Executive Leadership Team and their close family members. Other related parties also include companies in which the aforementioned persons have control or significant interests.
TRANSACTIONS WITH RELATED PARTIES
As part of the share buyback carried out in 2025, Pandora purchased own shares from shareholders. The shares were purchased at the volume-weighted average purchase price for the shares purchased under the share buyback programme in the market on the relevant day of trading.
Pandora did not enter into any transactions with members of the Board of Directors or the Executive Leadership Team, except for compensation and benefits received as a result of their membership of the Board of Directors, employment with Pandora or shareholdings in Pandora. For further information, see note 2.2 Staff costs andnote 2.3 Share-based payments.
NOTE 5.3
FEES TO INDEPENDENT AUDITOR
FEES TO INDEPENDENT AUDITOR | ||
DKK million | 2025 | 2024 |
Fee for statutory audit | 15 | 14 |
Other assurance engagements | 3 | 3 |
Total audit-related services | 18 | 17 |
Tax consultancy | 0 | 0 |
Other services | 0 | 1 |
Total non-audit services | 0 | 1 |
Total fees to independent auditor | 18 | 18 |
The costs in the table above are recognised in the income statement as administrative expenses.
Pandora has implemented a policy regarding non-audit services provided by the auditor appointed at the Annual General Meeting. The policy states which services are allowed or prohibited.
In addition to statutory audit, EY Godkendt Revisionspartnerselskab, the Group auditors appointed at the Annual General Meeting, provided other assurance engagements, primarily consisting of a limited assurance report on the Sustainability Statements, a reason-able assurance report on the Remuneration Report, as well as audit of turnover certificates. All non-audit services have been approved according to the policy for non-audit services and within the 70% fee cap restrictions.
NOTE 5.4
EVENTS OCCURRING AFTER THE REPORTING PERIOD
No subsequent events have occurred after the balance sheet date that required adjustment to or disclosure in the consolidated financial statements, apart from the refinancing of the revolving credit facility, see note 4.4 Financial risks.
NOTE 5.5
COMPANIES IN THE PANDORA GROUP
The table below shows information about the Group entities at 31 December 2025.
Company | Ownership | Registered office | Date of consolidation |
OWNED BY PANDORA A/S | |||
Pandora Jewelry Argentina SRL | 100% | Argentina | 27 September 2017 |
AD Astra Holdings Pty Ltd. | 100% | Australia | 1 July 2009 |
Pandora \u00d6sterreich GmbH | 100% | Austria | 23 May 2012 |
Pandora Jewellery Belgium NV | 100% | Belgium | 13 April 2017 |
Pandora do Brasil Participa\u00e7\u00f5es Ltda. | 100% | Brazil | 24 October 2013 |
Pandora Jewelry Ltd. | 100% | Canada | 7 March 2008 |
Pandora Jewelry Chile SpA | 100% | Chile | 7 May 2017 |
Pandora Jewelry Colombia S.A.S | 100% | Colombia | 17 January 2019 |
Pandora Int. ApS | 100% | Denmark | 1 October 2009 |
Pan Me A/S | 100% | Denmark | 16 January 2015 |
Pandora Jewelry Taiwan A/S | 100% | Denmark | 18 May 2018 |
Pandora Production Holding A/S | 100% | Denmark | 3 May 2022 |
Pandora Jewellery UK Limited | 100% | England | 1 December 2008 |
Pandora UK Hub Limited | 100% | England | 1 April 2024 |
Pandora Jewelry Finland Oy | 100% | Finland | 1 January 2012 |
Pandora France SAS | 100% | France | 25 February 2011 |
Pandora Jewelry GmbH | 100% | Germany | 5 January 2010 |
Pandora EMEA Distribution Center GmbH | 100% | Germany | 5 December 2011 |
Pandora Greece Single Member S.A. | 100% | Greece | 1 October 2023 |
Pandora Jewelry Asia-Pacific Limited | 100% | Hong Kong | 1 November 2009 |
Pan Jewelry Limited | 100% | Ireland | 10 January 2018 |
Pandora Italia SRL | 100% | Italy | 23 May 2012 |
Pandora Jewelry Japan Ltd. | 100% | Japan | 29 October 2014 |
Pandora Jewelry Macau Company Ltd. | 100% | Macau | 1 January 2016 |
Pandora Jewelry Mexico, S.A. de C.V. | 100% | Mexico | 8 March 2017 |
Pandora Jewelry Mexico Servicios, S.A. de C.V. | 100% | Mexico | 8 March 2017 |
Pandora Jewelry B.V. | 100% | Netherlands | 20 September 2010 |
Pandora Jewelry Panama S.A. | 100% | Panama | 5 July 2016 |
Pandora Jewelry Panama Retail, S.A. | 100% | Panama | 14 April 2021 |
Pandora Jewelry Peru S.A.C | 100% | Peru | 10 July 2018 |
Pandora Jewelry CEE Sp. z.o.o. | 100% | Poland | 1 March 2009 |
Pandora Jewelry Shared Services Sp. z.o.o. | 100% | Poland | 7 February 2012 |
Pandora Portugal, Unipessoal LDA | 100% | Portugal | 4 April 2022 |
Pandora Jewelry Singapore Pte. Ltd. | 100% | Singapore | 1 January 2016 |
Company | Ownership | Registered office | Date of consolidation | OWNED BY PANDORA A/S |
Pandora Jewelry Slovakia s.r.o. | 100% | Slovakia | 6 September 2016 | |
Pandora Jewellery South Africa Pty Ltd. | 100% | South Africa | 31 January 2017 | |
Pandora Jewellery Spain S.L | 100% | Spain | 28 September 2017 | |
Pandora Sweden AB | 100% | Sweden | 4 November 2013 | |
Pandora Schweiz AG | 100% | Switzerland | 6 December 2011 | |
Pandora Services Co. Ltd. | 100% | Thailand | 15 October 2010 | |
Pandora Jewelry M\u00fccevherat Anonim \u015eirketi | 100% | Turkey | 4 November 2013 | |
Pandora Jewelry Inc. | 100% | United States | 1 July 2008 | |
Pandora Jewelry Latam LLC | 100% | United States | 20 October 2021 | |
Company | Ownership | Registered office | Date of consolidation | |
OWNED BY OTHER COMPANIES IN THE PANDORA GROUP | ||||
Pandora Jewelry Pty Ltd. | 100% | Australia | 1 July 2009 | |
Pandora Retail Pty Ltd. | 100% | Australia | 1 July 2009 | |
Pandora do Brasil Com\u00e9rcio e Importa\u00e7\u00e3o Ltda. | 100% | Brazil | 24 October 2013 | |
Pyrrha Importa\u00e7\u00e3o e Com\u00e9rcio Atacadista Ltda. | 100% | Brazil | 3 October 2023 | |
Pandora Franchise Canada Ltd. | 100% | Canada | 19 January 2011 | |
Pandora Retail Canada Ltd. | 100% | Canada | 4 February 2014 | |
Pandora Jewelry (Shanghai) Company Ltd. | 100% | China | 4 February 2015 | |
Pandora Jewelry Design (Beijing) Company Ltd. | 100% | China | 1 March 2016 | |
Pandora Jewelry CR s.r.o. | 100% | Czech Republic | 2 December 2009 | |
Pandora Jewelry Hong Kong Company Ltd. | 100% | Hong Kong | 4 February 2015 | |
Pandora Jewelry Hungary Ltd. | 100% | Hungary | 2 June 2010 | |
Pandora Norge AS | 100% | Norway | 17 August 2010 | |
Pandora Jewelry Romania SRL | 100% | Romania | 18 August 2011 | |
Pandora Production Co. Ltd. | 100% | Thailand | 7 March 2008 | |
Panmeas Jewellery LLC | 100% | United Arab Emirates | 16 January 2015 | |
Pandora Jewelry LLC | 100% | United States | 7 March 2008 | |
Pandora Franchising LLC | 100% | United States | 1 November 2009 | |
Pandora Ventures LLC | 100% | United States | 10 May 2012 | |
Pandora ECOMM LLC | 100% | United States | 21 August 2014 | |
Pandora Production Vietnam Company Limited | 100% | Vietnam | 31 March 2023 |
The Pandora Group has five dormant companies, which have been omitted from the table.
NOTE 5.5
COMPANIES IN THE PANDORA GROUP
The table below shows information about the Group entities at 31 December 2025.
Company | Ownership | Registered office | Date of consolidation |
OWNED BY PANDORA A/S | |||
Pandora Jewelry Argentina SRL | 100% | Argentina | 27 September 2017 |
AD Astra Holdings Pty Ltd. | 100% | Australia | 1 July 2009 |
Pandora \u00d6sterreich GmbH | 100% | Austria | 23 May 2012 |
Pandora Jewellery Belgium NV | 100% | Belgium | 13 April 2017 |
Pandora do Brasil Participa\u00e7\u00f5es Ltda. | 100% | Brazil | 24 October 2013 |
Pandora Jewelry Ltd. | 100% | Canada | 7 March 2008 |
Pandora Jewelry Chile SpA | 100% | Chile | 7 May 2017 |
Pandora Jewelry Colombia S.A.S | 100% | Colombia | 17 January 2019 |
Pandora Int. ApS | 100% | Denmark | 1 October 2009 |
Pan Me A/S | 100% | Denmark | 16 January 2015 |
Pandora Jewelry Taiwan A/S | 100% | Denmark | 18 May 2018 |
Pandora Production Holding A/S | 100% | Denmark | 3 May 2022 |
Pandora Jewellery UK Limited | 100% | England | 1 December 2008 |
Pandora UK Hub Limited | 100% | England | 1 April 2024 |
Pandora Jewelry Finland Oy | 100% | Finland | 1 January 2012 |
Pandora France SAS | 100% | France | 25 February 2011 |
Pandora Jewelry GmbH | 100% | Germany | 5 January 2010 |
Pandora EMEA Distribution Center GmbH | 100% | Germany | 5 December 2011 |
Pandora Greece Single Member S.A. | 100% | Greece | 1 October 2023 |
Pandora Jewelry Asia-Pacific Limited | 100% | Hong Kong | 1 November 2009 |
Pan Jewelry Limited | 100% | Ireland | 10 January 2018 |
Pandora Italia SRL | 100% | Italy | 23 May 2012 |
Pandora Jewelry Japan Ltd. | 100% | Japan | 29 October 2014 |
Pandora Jewelry Macau Company Ltd. | 100% | Macau | 1 January 2016 |
Pandora Jewelry Mexico, S.A. de C.V. | 100% | Mexico | 8 March 2017 |
Pandora Jewelry Mexico Servicios, S.A. de C.V. | 100% | Mexico | 8 March 2017 |
Pandora Jewelry B.V. | 100% | Netherlands | 20 September 2010 |
Pandora Jewelry Panama S.A. | 100% | Panama | 5 July 2016 |
Pandora Jewelry Panama Retail, S.A. | 100% | Panama | 14 April 2021 |
Pandora Jewelry Peru S.A.C | 100% | Peru | 10 July 2018 |
Pandora Jewelry CEE Sp. z.o.o. | 100% | Poland | 1 March 2009 |
Pandora Jewelry Shared Services Sp. z.o.o. | 100% | Poland | 7 February 2012 |
Pandora Portugal, Unipessoal LDA | 100% | Portugal | 4 April 2022 |
Pandora Jewelry Singapore Pte. Ltd. | 100% | Singapore | 1 January 2016 |
Company | Ownership | Registered office | Date of consolidation | OWNED BY PANDORA A/S |
Pandora Jewelry Slovakia s.r.o. | 100% | Slovakia | 6 September 2016 | |
Pandora Jewellery South Africa Pty Ltd. | 100% | South Africa | 31 January 2017 | |
Pandora Jewellery Spain S.L | 100% | Spain | 28 September 2017 | |
Pandora Sweden AB | 100% | Sweden | 4 November 2013 | |
Pandora Schweiz AG | 100% | Switzerland | 6 December 2011 | |
Pandora Services Co. Ltd. | 100% | Thailand | 15 October 2010 | |
Pandora Jewelry M\u00fccevherat Anonim \u015eirketi | 100% | Turkey | 4 November 2013 | |
Pandora Jewelry Inc. | 100% | United States | 1 July 2008 | |
Pandora Jewelry Latam LLC | 100% | United States | 20 October 2021 | |
Company | Ownership | Registered office | Date of consolidation | |
OWNED BY OTHER COMPANIES IN THE PANDORA GROUP | ||||
Pandora Jewelry Pty Ltd. | 100% | Australia | 1 July 2009 | |
Pandora Retail Pty Ltd. | 100% | Australia | 1 July 2009 | |
Pandora do Brasil Com\u00e9rcio e Importa\u00e7\u00e3o Ltda. | 100% | Brazil | 24 October 2013 | |
Pyrrha Importa\u00e7\u00e3o e Com\u00e9rcio Atacadista Ltda. | 100% | Brazil | 3 October 2023 | |
Pandora Franchise Canada Ltd. | 100% | Canada | 19 January 2011 | |
Pandora Retail Canada Ltd. | 100% | Canada | 4 February 2014 | |
Pandora Jewelry (Shanghai) Company Ltd. | 100% | China | 4 February 2015 | |
Pandora Jewelry Design (Beijing) Company Ltd. | 100% | China | 1 March 2016 | |
Pandora Jewelry CR s.r.o. | 100% | Czech Republic | 2 December 2009 | |
Pandora Jewelry Hong Kong Company Ltd. | 100% | Hong Kong | 4 February 2015 | |
Pandora Jewelry Hungary Ltd. | 100% | Hungary | 2 June 2010 | |
Pandora Norge AS | 100% | Norway | 17 August 2010 | |
Pandora Jewelry Romania SRL | 100% | Romania | 18 August 2011 | |
Pandora Production Co. Ltd. | 100% | Thailand | 7 March 2008 | |
Panmeas Jewellery LLC | 100% | United Arab Emirates | 16 January 2015 | |
Pandora Jewelry LLC | 100% | United States | 7 March 2008 | |
Pandora Franchising LLC | 100% | United States | 1 November 2009 | |
Pandora Ventures LLC | 100% | United States | 10 May 2012 | |
Pandora ECOMM LLC | 100% | United States | 21 August 2014 | |
Pandora Production Vietnam Company Limited | 100% | Vietnam | 31 March 2023 |
The Pandora Group has five dormant companies, which have been omitted from the table.
NOTE 5.5
COMPANIES IN THE PANDORA GROUP
The table below shows information about the Group entities at 31 December 2025.
Company | Ownership | Registered office | Date of consolidation |
OWNED BY PANDORA A/S | |||
Pandora Jewelry Argentina SRL | 100% | Argentina | 27 September 2017 |
AD Astra Holdings Pty Ltd. | 100% | Australia | 1 July 2009 |
Pandora \u00d6sterreich GmbH | 100% | Austria | 23 May 2012 |
Pandora Jewellery Belgium NV | 100% | Belgium | 13 April 2017 |
Pandora do Brasil Participa\u00e7\u00f5es Ltda. | 100% | Brazil | 24 October 2013 |
Pandora Jewelry Ltd. | 100% | Canada | 7 March 2008 |
Pandora Jewelry Chile SpA | 100% | Chile | 7 May 2017 |
Pandora Jewelry Colombia S.A.S | 100% | Colombia | 17 January 2019 |
Pandora Int. ApS | 100% | Denmark | 1 October 2009 |
Pan Me A/S | 100% | Denmark | 16 January 2015 |
Pandora Jewelry Taiwan A/S | 100% | Denmark | 18 May 2018 |
Pandora Production Holding A/S | 100% | Denmark | 3 May 2022 |
Pandora Jewellery UK Limited | 100% | England | 1 December 2008 |
Pandora UK Hub Limited | 100% | England | 1 April 2024 |
Pandora Jewelry Finland Oy | 100% | Finland | 1 January 2012 |
Pandora France SAS | 100% | France | 25 February 2011 |
Pandora Jewelry GmbH | 100% | Germany | 5 January 2010 |
Pandora EMEA Distribution Center GmbH | 100% | Germany | 5 December 2011 |
Pandora Greece Single Member S.A. | 100% | Greece | 1 October 2023 |
Pandora Jewelry Asia-Pacific Limited | 100% | Hong Kong | 1 November 2009 |
Pan Jewelry Limited | 100% | Ireland | 10 January 2018 |
Pandora Italia SRL | 100% | Italy | 23 May 2012 |
Pandora Jewelry Japan Ltd. | 100% | Japan | 29 October 2014 |
Pandora Jewelry Macau Company Ltd. | 100% | Macau | 1 January 2016 |
Pandora Jewelry Mexico, S.A. de C.V. | 100% | Mexico | 8 March 2017 |
Pandora Jewelry Mexico Servicios, S.A. de C.V. | 100% | Mexico | 8 March 2017 |
Pandora Jewelry B.V. | 100% | Netherlands | 20 September 2010 |
Pandora Jewelry Panama S.A. | 100% | Panama | 5 July 2016 |
Pandora Jewelry Panama Retail, S.A. | 100% | Panama | 14 April 2021 |
Pandora Jewelry Peru S.A.C | 100% | Peru | 10 July 2018 |
Pandora Jewelry CEE Sp. z.o.o. | 100% | Poland | 1 March 2009 |
Pandora Jewelry Shared Services Sp. z.o.o. | 100% | Poland | 7 February 2012 |
Pandora Portugal, Unipessoal LDA | 100% | Portugal | 4 April 2022 |
Pandora Jewelry Singapore Pte. Ltd. | 100% | Singapore | 1 January 2016 |
Company | Ownership | Registered office | Date of consolidation | OWNED BY PANDORA A/S |
Pandora Jewelry Slovakia s.r.o. | 100% | Slovakia | 6 September 2016 | |
Pandora Jewellery South Africa Pty Ltd. | 100% | South Africa | 31 January 2017 | |
Pandora Jewellery Spain S.L | 100% | Spain | 28 September 2017 | |
Pandora Sweden AB | 100% | Sweden | 4 November 2013 | |
Pandora Schweiz AG | 100% | Switzerland | 6 December 2011 | |
Pandora Services Co. Ltd. | 100% | Thailand | 15 October 2010 | |
Pandora Jewelry M\u00fccevherat Anonim \u015eirketi | 100% | Turkey | 4 November 2013 | |
Pandora Jewelry Inc. | 100% | United States | 1 July 2008 | |
Pandora Jewelry Latam LLC | 100% | United States | 20 October 2021 | |
Company | Ownership | Registered office | Date of consolidation | |
OWNED BY OTHER COMPANIES IN THE PANDORA GROUP | ||||
Pandora Jewelry Pty Ltd. | 100% | Australia | 1 July 2009 | |
Pandora Retail Pty Ltd. | 100% | Australia | 1 July 2009 | |
Pandora do Brasil Com\u00e9rcio e Importa\u00e7\u00e3o Ltda. | 100% | Brazil | 24 October 2013 | |
Pyrrha Importa\u00e7\u00e3o e Com\u00e9rcio Atacadista Ltda. | 100% | Brazil | 3 October 2023 | |
Pandora Franchise Canada Ltd. | 100% | Canada | 19 January 2011 | |
Pandora Retail Canada Ltd. | 100% | Canada | 4 February 2014 | |
Pandora Jewelry (Shanghai) Company Ltd. | 100% | China | 4 February 2015 | |
Pandora Jewelry Design (Beijing) Company Ltd. | 100% | China | 1 March 2016 | |
Pandora Jewelry CR s.r.o. | 100% | Czech Republic | 2 December 2009 | |
Pandora Jewelry Hong Kong Company Ltd. | 100% | Hong Kong | 4 February 2015 | |
Pandora Jewelry Hungary Ltd. | 100% | Hungary | 2 June 2010 | |
Pandora Norge AS | 100% | Norway | 17 August 2010 | |
Pandora Jewelry Romania SRL | 100% | Romania | 18 August 2011 | |
Pandora Production Co. Ltd. | 100% | Thailand | 7 March 2008 | |
Panmeas Jewellery LLC | 100% | United Arab Emirates | 16 January 2015 | |
Pandora Jewelry LLC | 100% | United States | 7 March 2008 | |
Pandora Franchising LLC | 100% | United States | 1 November 2009 | |
Pandora Ventures LLC | 100% | United States | 10 May 2012 | |
Pandora ECOMM LLC | 100% | United States | 21 August 2014 | |
Pandora Production Vietnam Company Limited | 100% | Vietnam | 31 March 2023 |
The Pandora Group has five dormant companies, which have been omitted from the table.
NOTE 5.5
COMPANIES IN THE PANDORA GROUP
The table below shows information about the Group entities at 31 December 2025.
Company | Ownership | Registered office | Date of consolidation |
OWNED BY PANDORA A/S | |||
Pandora Jewelry Argentina SRL | 100% | Argentina | 27 September 2017 |
AD Astra Holdings Pty Ltd. | 100% | Australia | 1 July 2009 |
Pandora \u00d6sterreich GmbH | 100% | Austria | 23 May 2012 |
Pandora Jewellery Belgium NV | 100% | Belgium | 13 April 2017 |
Pandora do Brasil Participa\u00e7\u00f5es Ltda. | 100% | Brazil | 24 October 2013 |
Pandora Jewelry Ltd. | 100% | Canada | 7 March 2008 |
Pandora Jewelry Chile SpA | 100% | Chile | 7 May 2017 |
Pandora Jewelry Colombia S.A.S | 100% | Colombia | 17 January 2019 |
Pandora Int. ApS | 100% | Denmark | 1 October 2009 |
Pan Me A/S | 100% | Denmark | 16 January 2015 |
Pandora Jewelry Taiwan A/S | 100% | Denmark | 18 May 2018 |
Pandora Production Holding A/S | 100% | Denmark | 3 May 2022 |
Pandora Jewellery UK Limited | 100% | England | 1 December 2008 |
Pandora UK Hub Limited | 100% | England | 1 April 2024 |
Pandora Jewelry Finland Oy | 100% | Finland | 1 January 2012 |
Pandora France SAS | 100% | France | 25 February 2011 |
Pandora Jewelry GmbH | 100% | Germany | 5 January 2010 |
Pandora EMEA Distribution Center GmbH | 100% | Germany | 5 December 2011 |
Pandora Greece Single Member S.A. | 100% | Greece | 1 October 2023 |
Pandora Jewelry Asia-Pacific Limited | 100% | Hong Kong | 1 November 2009 |
Pan Jewelry Limited | 100% | Ireland | 10 January 2018 |
Pandora Italia SRL | 100% | Italy | 23 May 2012 |
Pandora Jewelry Japan Ltd. | 100% | Japan | 29 October 2014 |
Pandora Jewelry Macau Company Ltd. | 100% | Macau | 1 January 2016 |
Pandora Jewelry Mexico, S.A. de C.V. | 100% | Mexico | 8 March 2017 |
Pandora Jewelry Mexico Servicios, S.A. de C.V. | 100% | Mexico | 8 March 2017 |
Pandora Jewelry B.V. | 100% | Netherlands | 20 September 2010 |
Pandora Jewelry Panama S.A. | 100% | Panama | 5 July 2016 |
Pandora Jewelry Panama Retail, S.A. | 100% | Panama | 14 April 2021 |
Pandora Jewelry Peru S.A.C | 100% | Peru | 10 July 2018 |
Pandora Jewelry CEE Sp. z.o.o. | 100% | Poland | 1 March 2009 |
Pandora Jewelry Shared Services Sp. z.o.o. | 100% | Poland | 7 February 2012 |
Pandora Portugal, Unipessoal LDA | 100% | Portugal | 4 April 2022 |
Pandora Jewelry Singapore Pte. Ltd. | 100% | Singapore | 1 January 2016 |
Company | Ownership | Registered office | Date of consolidation | OWNED BY PANDORA A/S |
Pandora Jewelry Slovakia s.r.o. | 100% | Slovakia | 6 September 2016 | |
Pandora Jewellery South Africa Pty Ltd. | 100% | South Africa | 31 January 2017 | |
Pandora Jewellery Spain S.L | 100% | Spain | 28 September 2017 | |
Pandora Sweden AB | 100% | Sweden | 4 November 2013 | |
Pandora Schweiz AG | 100% | Switzerland | 6 December 2011 | |
Pandora Services Co. Ltd. | 100% | Thailand | 15 October 2010 | |
Pandora Jewelry M\u00fccevherat Anonim \u015eirketi | 100% | Turkey | 4 November 2013 | |
Pandora Jewelry Inc. | 100% | United States | 1 July 2008 | |
Pandora Jewelry Latam LLC | 100% | United States | 20 October 2021 | |
Company | Ownership | Registered office | Date of consolidation | |
OWNED BY OTHER COMPANIES IN THE PANDORA GROUP | ||||
Pandora Jewelry Pty Ltd. | 100% | Australia | 1 July 2009 | |
Pandora Retail Pty Ltd. | 100% | Australia | 1 July 2009 | |
Pandora do Brasil Com\u00e9rcio e Importa\u00e7\u00e3o Ltda. | 100% | Brazil | 24 October 2013 | |
Pyrrha Importa\u00e7\u00e3o e Com\u00e9rcio Atacadista Ltda. | 100% | Brazil | 3 October 2023 | |
Pandora Franchise Canada Ltd. | 100% | Canada | 19 January 2011 | |
Pandora Retail Canada Ltd. | 100% | Canada | 4 February 2014 | |
Pandora Jewelry (Shanghai) Company Ltd. | 100% | China | 4 February 2015 | |
Pandora Jewelry Design (Beijing) Company Ltd. | 100% | China | 1 March 2016 | |
Pandora Jewelry CR s.r.o. | 100% | Czech Republic | 2 December 2009 | |
Pandora Jewelry Hong Kong Company Ltd. | 100% | Hong Kong | 4 February 2015 | |
Pandora Jewelry Hungary Ltd. | 100% | Hungary | 2 June 2010 | |
Pandora Norge AS | 100% | Norway | 17 August 2010 | |
Pandora Jewelry Romania SRL | 100% | Romania | 18 August 2011 | |
Pandora Production Co. Ltd. | 100% | Thailand | 7 March 2008 | |
Panmeas Jewellery LLC | 100% | United Arab Emirates | 16 January 2015 | |
Pandora Jewelry LLC | 100% | United States | 7 March 2008 | |
Pandora Franchising LLC | 100% | United States | 1 November 2009 | |
Pandora Ventures LLC | 100% | United States | 10 May 2012 | |
Pandora ECOMM LLC | 100% | United States | 21 August 2014 | |
Pandora Production Vietnam Company Limited | 100% | Vietnam | 31 March 2023 |
The Pandora Group has five dormant companies, which have been omitted from the table.