At the company’s Capital Markets Day, Pandora today provides an update of its successful Phoenix strategy and announces new financial targets.
Highlights
The Phoenix strategy, launched in 2021, is yielding clearly positive results. Investments in the brand, store network, organisation and people are paying off
Therefore, Pandora now initiates the next chapter of Phoenix: scaling up investments to accelerate revenue growth
Pandora will also deliver EBIT margin expansion and continue providing strong cash returns to shareholders
To build the position as a full jewellery brand in the affordable luxury space, Pandora will increase investments in brand desirability and the store network
Pandora is advancing on its ambitious sustainability targets and will continue to dedicate significant resources to lead the industry on sustainability. The company is on track to shift to 100% recycled silver and gold by 2025, and is spearheading the use of lab-grown diamonds
New Financial Targets
Pandora targets organic growth of 7-9% CAGR from 2023-2026, comprising of 4-6% LFL growth and network expansion of around 3%
EBIT margin target of 26-27% by 2026, up from “around 25%” in 2023
Revenue is thereby expected to reach DKK 34-36 billion in 2026, up DKK 7-9 billion from the expectation of around DKK 27 billion for 2023. EBIT is expected to reach DKK 8.8-9.7 billion by 2026
Pandora’s asset-light business model is expected to lead to DKK 16-17 billion free cash flow generation from 2024-2026. Pandora aims to return DKK 14-17 billion in cash to shareholders during 2024-2026
The combination of solid growth, margin expansion and cash returns leads Pandora to target mid- to high-teens EPS CAGR from 2023-2026
Alexander Lacik, President and CEO of Pandora, says: “Looking back at the past few years, we are proud of our achievements. We have fundamentally changed how we work, and the organisation is much stronger. It’s clear that Pandora is a very different company today. This solid foundation combined with a proven strategy that will build Pandora into a full jewellery brand, now allow us to lift our growth target to 7-9% organic revenue CAGR. It’s time to take Phoenix to the next level and our new financial targets reflect our confidence in the future.”
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.