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Pandora Delivers 13% Organic Growth in 2024 – Targeting 7-8% Growth in 2025

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

FY 2024 HIGHLIGHTS

  • 2024 was another successful year for Pandora. Delivering on the Phoenix strategy, Pandora continued to elevate itself as a full jewellery brand, driving more consumers into the brand.
  • Revenue and EBIT increased by 13% to reach DKK 31.7 billion and DKK 8.0 billion, respectively.
  • Organic growth ended at 13% (guidance of “11-12%”), comprising of like-for-like (LFL) of 7% and network expansion of 5%.
  • The gross margin continued to strengthen and ended at 79.8%, up 120bp Y/Y. The EBIT margin remained solid at 25.2% (guidance at “around 25%”). This helped drive 17% EPS growth to a new record-high of DKK 65.
  • Strong progress on working capital drove cash conversion of 85%. Leverage ended at 1.1x NIBD/EBITDA.
  • Proposed dividend of DKK 20 per share and a new share buyback programme of DKK 4.0 billion to be completed no later than 30 January 2026.

Q4 2024 HIGHLIGHTS

  • Growth remained solid through Q4 2024. Organic growth ended at 11%, comprising of LFL growth of 6% and network expansion of 5%.
  • Q4 LFL growth was driven by strong performance in the US of 9% and Rest of Pandora at 11%. Growth in key markets in Europe was slower at 0%.
  • The Q4 gross margin reached 79.8%, +50bp Y/Y, supported by pricing. In line with expectations, the Q4 EBIT margin expanded by 70bp to reach 34.7%.  

PHOENIX STRATEGY HIGHLIGHTS

  • Pandora is making notable investments into its four major strategic Phoenix pillars which are collectively showing encouraging results.    
  • The objective to restage the Pandora brand is visible in the numbers; LFL growth in the “Core” segment ended 2024 with 2% growth whilst the “Fuel with more” segment drove 22% growth. Q4 2024 saw a continuation of this trend.
  • After successful testing in Q4 2024, Pandora’s brand-new e-commerce platform is set to be rolled out globally through 2025. The new platform looks to notably step up Pandora’s brand desirability.
  • Based on a silver price of USD 30.5/oz as of January 27, 2025, Pandora re-confirms the EBIT margin target of 26-27% by 2026, although currently pointing towards the low-end of the range.

2025 GUIDANCE AND CURRENT TRADING

  • Initial guidance for 2025 is for “7-8% organic growth” and an EBIT margin of “around 24.5%”.
  • Current trading in Q1 2025 shows LFL at high-single digit levels. This is somewhat flattered by a strong End of Season Sale. Pandora continues to see underlying LFL trading being at healthy mid-single digit levels.

Alexander Lacik, President and CEO of Pandora, says:
“We are pleased with how we ended 2024, particularly given the challenging macroeconomic backdrop and a competitive holiday period. Execution of our Phoenix strategy continued to drive the brand forward throughout the entire year. In 2025, we target another year of solid and profitable growth and we have all actions lined up to continue the strong development.” 

DKK millionQ4 2024Q4 2023FY 2024FY 2023FY 2025 guidance
Revenue11,97310,82031,68028,136 
Organic growth11%12%13%8%7-8%
Like-for-Like, %6%9%7%6% 
Operating profit (EBIT)4,149 3,6747,974 7,039 
EBIT margin, %34.7%34.0%25.2%25.0%Around 24.5%

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