Pandora A/s · OMXCOP:PNDORA
Pandora A/s — Pandora A/S Ord — Q4 2024 Earnings Presentation
42 slides from Pandora A/s's earnings presentation, Feb 5, 2025
Slide 1: Fourth Quarter Results 2024
FOURTH QUARTER RESULTS 2024 05 February 2025
Slide 2: Agenda
AGENDA EXECUTIVE SUMMARY Phoenix strategy update Q4 2024 financials Financial guidance Appendix DISCLAIMER This presentation contains forward-looking statements, which include estimates of financial performance and targets. These statements are not guarantees of future performance and involve certai
Slide 3: Strong growth, solid profitability
STRONG GROWTH SOLID PROFITABILITY 13% 79.8% Delivering on the Organic growth in 2024 11% in Q4 2024 2024 gross margin 79.8% in Q4 2024 Phoenix strategy 7% 25.2% LFL in 2024 2024 EBIT margin 6% in Q4 2024 34.7% in Q4 2024 Double-digit organic growth every quarter GROWTH ACROSS HIGH RETURN ON CAPITAL
Slide 4: 2025 guidance: targeting another year of profitable growth
2025 GUIDANCE TARGETING ANOTHER YEAR OF PROFITABLE GROWTH “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
Slide 5: Strong sustainability performance in 2024
2025 GUIDANCE STRONG SUSTAINABILITY PERFORMANCE IN 2024 -17% #2 Pandora has been named one Reduction in total greenhouse of the 100 Most Sustainable gas emissions compared to 100% Companies in the World by 2019 baseline Corporate Knights in their annual Global 100 ranking. Pandora rank 48th Renewabl
Slide 6: Agenda
AGENDA Executive summary PHOENIX STRATEGY UPDATE Q4 2024 financials Financial guidance Appendix 6 Pandora Q4 2024 | Investor presentation 05 February 2025
Slide 7: Good momentum across all pillars
STRATEGIC GROWTH INITIATIVES GOOD MOMENTUM ACROSS ALL PILLARS • Restaging the brand – transforming the • Art & Science – consumer-centric perception of Pandora jewellery concepts • Retail transformation (New store • Drive growth in core – charms & carriers concept) • Expand design aesthetics & accel
Slide 8: Solid & consistent LFL growth
PHOENIX STRATEGY IS DELIVERING SOLID & CONSISTENT LFL GROWTH • Since the inception of the Phoenix strategy in 2021, 3 YEAR LFL CAGR OF 6% Pandora has delivered a solid LFL CAGR of 6% • This shows successful execution across the Phoenix 7% strategy with the goal of transforming the 6% perception of P
Slide 9: Driving non-stop brand buzz
BRAND | INVESTING CONTINOUSLY BEHIND THE BRAND DRIVING NON-STOP BRAND BUZZ PRINCIPLE PARTNER OF THE FASHION DRIVING NON-STOP BRAND BUZZ OVER HOLIDAY 2024 WINDOW CAMPAIGN AWARDS HOSTED IN LONDON THE HOLIDAY SEASON Pandora integrated into all touchpoints of Large volume of earned media The new Holiday
Slide 10: New online platform set to be launched
BRAND | ELEVATING THE BRAND AT ALL TOUCHPOINTS NEW ONLINE PLATFORM SET TO BE LAUNCHED New platform Old platform • Pandora’s largest brand window with around 700 million visits annually • New platform looks to significantly elevate the branded experience, through more desirable and engaging content •
Slide 11: A full jewellery brand: leveraging our strong core
DESIGN | GROWING THE CORE A FULL JEWELLERY BRAND: LEVERAGING OUR STRONG CORE LFL per segment • Core has grown with 2% LFL in both 2023 and 2024, in line with the target announced at the CMD in 2023 to grow the Core while fuelling with more 35% • Robust 2% LFL growth in Q4 2024 across the 30% Charms
Slide 12: A full jewellery brand: strong growth across other categories
DESIGN | FUELLING WITH MORE A FULL JEWELLERY BRAND: STRONG GROWTH ACROSS OTHER CATEGORIES LFL per segment • Fuel with more has accelerated from 14% LFL in 2023 to achieving 22% in 2024, indeed fuelling the brand with more 35% • 13% LFL growth within Fuel with more in Q4 2024, 30% driven by Timeless
Slide 13: Personalisation driving incremental revenue
PERSONALISATION | ENGRAVING PERSONALISATION DRIVING INCREMENTAL REVENUE TOTAL NUMBER OF STORES WITH MARKETS WITH ONLINE ENGRAVING ENGRAVING SERVICES ~1,600 +7 2023 ~850 ~350 ~200 2021 2022 2023 2024 +5 2024 13 Pandora Q4 2024 | Investor presentation 05 February 2025
Slide 14: The US
MARKETS THE US • Strong Q4 2024 performance in the US, accelerating sequentially to 9% LFL • The brand keeps strengthening - unaided brand awareness and brand consideration keeps growing • Runway for growth remain high – market share still only at around 2% LIKE-FOR-LIKE • Growth in Q4 was fuelled b
Slide 15: Germany, UK, Italy and France
MARKETS GERMANY, UK, ITALY AND FRANCE Key markets in Europe delivered LFL of 0%. • Continued strong brand momentum with traffic-led growth in Germany, delivering 28% LFL • UK delivered LFL of -3% amidst a highly promotional environment • Italy delivered LFL of -10% and France slowed sequentially to
Slide 16: Rest of Pandora
MARKETS REST OF PANDORA Rest of Pandora continues to grow double-digit LFL at 11% • Amongst others, Spain, Portugal, Austria, Czech Republic, Switzerland and Netherlands all delivered double-digit LFL • Strong network expansion across Rest of Pandora, driving organic growth of 21% in the quarter LIK
Slide 17: China and Australia
MARKETS CHINA AND AUSTRALIA China delivered -10% LFL, performance continues to be challenging • Pandora remains committed to build the brand in China and is currently considering the next step on the journey • To optimise the store network in China, Pandora is anticipating closure of at least 50 con
Slide 18: Driving consistent and profitable growth
MARKETS | NETWORK EXPANSION DRIVING CONSISTENT AND PROFITABLE GROWTH HIGHLY ATTRACTIVE STORE ECONOMICS (ILLUSTRATIVE AVERAGE METRICS FOR NEW STORE OPENINGS) Revenue, DKK EBIT margin, % CAPEX, DKK Payback ~7m (CS)*** 35-40% ~2m (CS) ~1 year** ~2.5m (SiS)*** ~0.5m (SiS) INCREMENTAL REVENUE FROM NETWOR
Slide 19: New store concept roll-out continues
BRAND | NEW STORE CONCEPT NEW STORE CONCEPT ROLL-OUT CONTINUES • 425 concept stores opened by Q4 2024, of which 31 are partner concept stores • During the fourth quarter, we have opened in prominent locations in Zürich, Athens and Amsterdam • Targeting 1,375 – 1,425 concept stores by 2026 NUMBER OF
Slide 20: Agenda
AGENDA Executive summary Phoenix strategy update Q4 2024 FINANCIALS Financial guidance Appendix 20 Pandora Q4 2024 | Investor presentation 05 February 2025
Slide 21: Double-digit EPS growth, strong cash conversion
KEY FINANCIAL HIGHLIGHTS DOUBLE-DIGIT EPS GROWTH, STRONG CASH CONVERSION TOPLINE Q4 2024 Q4 2023 FY 2024 FY 2023 Revenue, DKK million 11,973 10,820 31,680 28,136 Organic growth, % 11% 12% 13% 8% Like-for-like, % 6% 9% 7% 6% FINANCIAL RATIOS Q4 2024 Q4 2023 FY 2024 FY 2023 Gross margin, % 79.8% 79.3%
Slide 22: Double-digit growth: revenue performance
REVENUE PERFORMANCE DOUBLE-DIGIT GROWTH REVENUE GROWTH, Q4 2024 • Double-digit growth for the 6th consecutive quarter 1% 11% 5% 0% 11% • The investments under Phoenix are yielding 11,973 positive results with solid LFL growth of 6% 1% • A total of 137 concept stores and 99 Pandora 6% owned shop-in s
Slide 23: EBIT margin in line with expectations
EBIT MARGIN EBIT MARGIN IN LINE WITH EXPECTATIONS EBIT MARGIN, Q4 2024 • The Q4 EBIT margin was up 70bp Y/Y, in line with EBIT MARGIN DEVELOPMENT expectations and prior communication EXCL. NON-RECURRING ITEMS 0.4% • Leverage from LFL and network expansion 0.3% 0.1% supported the margin by 40bp 0.7%
Slide 24: Agenda
AGENDA Executive summary Phoenix strategy update Q4 2024 financials FINANCIAL GUIDANCE Appendix 24 Pandora Q4 2024 | Investor presentation 05 February 2025
Slide 25: Another year of solid growth
2025 ORGANIC GROWTH GUIDANCE ANOTHER YEAR OF SOLID GROWTH Guidance assumptions REVENUE GUIDANCE, 2025 • Pandora targets organic growth of 7-8% - equivalent to revenue growth of DKK 3 billion 1% 8-9% 0.3% 34.3-34.6 3% 7-8% • LFL growth is targeted at 4-5%, within the mid- term target of 4-6% CAGR, al
Slide 26: Targeting strong and resilient margins
2025 EBIT MARGIN GUIDANCE TARGETING STRONG AND RESILIENT MARGINS Guidance assumptions EBIT MARGIN GUIDANCE, 2025 • Despite significant external headwinds, Pandora targets another year of strong profitability, with an 1.0% EBIT margin of around 24.5% Around 0% 0.4% 25.2% • Network expansion is expect
Slide 27: 2026 margin target confirmed
UPDATE ON 2023 CMD EBIT MARGIN TARGET 2026 MARGIN TARGET CONFIRMED (SILVER AT Pandora currently USD 30.5/OZ) expects to be towards the low- EBIT MARGIN end of the EBIT margin range What has changed since October 2023? TARGET, 2026 • The CMD target was set based on commodity Updated elements prices a
Slide 28: Another year of strong cash returns
CASH DISTRIBUTION 2025 ANOTHER YEAR OF Total payout ratio (incl. share buyback), %* STRONG CASH RETURNS 150% 136% 147% 136% 115% 104% 104% 100% 105% 91% 99% 100% 102% 64% 59% • Pandora’s total payout ratio has averaged 102% 50% 65% since 2012 • As part of the return of cash to shareholders, 0% 2012
Slide 29: Closing remarks
CLOSING REMARKS Whilst just at the beginning, Pandora is on Since the inception of the Phoenix track to transform its perception as a full strategy in 2021, Pandora is compounding jewellery brand. 2024 was another step solid LFL growth forward Delivering another year of solid margins Targeting anoth
Slide 30: Pandora Q4 2024 | Investor presentation 05 February 2025
30 Pandora Q4 2024 | Investor presentation 05 February 2025
Slide 31: Appendix
APPENDIX 05 February 2025 PANDORA
Slide 32: Pandora consumer
PANDORA CONSUMER GLOBAL PURCHASE FUNNEL – DEVELOPMENT I PANDORA – FEMALE AGE GROUPS Base: All women PANDORA 18-24 YO 25-40 YO 41-64 YO Unaided awareness 35 39 33 36 Aided awareness 84 87 82 85 CR3 33 40 41 27 Considered1 28 34 34 23 CR4 62 61 64 61 Purchased2 18 21 22 14 Ownership 36 45 41 31 N=28,7
Slide 33: Revenue development by segments
REVENUE DEVELOPMENT BY SEGMENTS Share of DKK million Q4 2024 Q4 2023 LFL revenue Core 8,784 8,180 2% 73% - Moments 7,462 6,880 3% 62% - Collabs 964 965 -5% 8% - ME 358 335 2% 3% Fuel with more 3,189 2,640 13% 27% - Timeless 2,527 2,117 11% 21% - Signature 304 407 -27% 3% - PANDORA ESSENCE1 232 2 - 2
Slide 34: Revenue development by channel
REVENUE DEVELOPMENT BY CHANNEL Organic Share of DKK million Q4 2024 Q4 2023 growth revenue Pandora owned1 retail 10,079 8,772 14% 84% - of which concept stores 6,076 5,376 11% 51% - of which online stores 3,288 2,729 20% 27% - of which other points of sale 714 668 15% 6% Wholesale 1,648 1,829 -5% 14
Slide 35: Key markets revenue and growth overview
KEY MARKETS REVENUE AND GROWTH OVERVIEW Organic Share of DKK million Q4 2024 Q4 2023 LFL Growth Revenue US 3,713 3,190 9% 13% 31% China 104 116 -10% -12% 1% UK 1,640 1,627 -3% -3% 14% Italy 879 921 -10% -5% 7% Australia 486 461 -4% 5% 4% France 456 502 -14% -9% 4% Germany 839 662 28% 27% 7% Total ke
Slide 36: Store network development
STORE NETWORK DEVELOPMENT Total concept stores O&O concept stores Growth O&O Growth O&O Growth Growth stores stores NUMBER OF CONCEPT Q4 2024 Q4 2024 O&O Q4 2024 Q4 2024 STORES Q4 2024 Q3 2024 Q4 2023 / Q3 2024 /Q4 2023 Q4 2024 / Q3 2024 /Q4 2023 US 484 479 447 5 37 399 9 54 China 198 204 219 -6 -21
Slide 37: Consolidated income statement
CONSOLIDATED INCOME STATEMENT DKK million Q4 2024 Q4 2023 FY 2024 Revenue 11,973 10,820 31,680 Cost of sales -2,422 -2,241 -6,391 Gross profit 9,551 8,579 25,289 Sales, distribution and marketing expenses -4,664 -4,237 -14,844 Administrative expenses -738 -668 -2,471 Operating profit 4,149 3,674 7,9
Slide 38: Working capital
WORKING CAPITAL Share of preceding 12 months’ revenue Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Inventories 14.0% 16.0% 14.9% 15.2% 14.8% Trade receivables 3.8% 2.5% 2.8% 3.8% 4.8% Trade payables -12.3% -9.7% -9.2% -9.2% -11.4% Other net working capital elements -7.3% -2.9% -2.4% -2.9% -6.4% Total -1.
Slide 39: Commodity hedging and cost of goods sold break down
COMMODITY HEDGING Commodity hedge ratios (At use of silver and gold for production) AND COST OF GOODS 100% 100% 70-100% SOLD BREAK DOWN 80% 70-90% 50-70% 60% • In addition to the delayed impact from changes in 30-50% 40% commodity prices on the income statement due to 20% hedging, there is an additi
Slide 40: Investor relations contact details
INVESTOR RELATIONS CONTACT DETAILS Investor Relations team Share information Trading symbol PNDORA Bilal Aziz Identification number/ISIN DK0060252690 VP, Investor Relations & Treasury GICS 25203010 +45 3137 9486 biazi@pandora.net Number of shares 82,000,000 Apparel, Accessories & Luxury Sector Goods
Slide 41: Disclaimer
DISCLAIMER This Company announcement contains forward-looking statements, including, but not limited to, guidance, expectations, strategies, objectives and statements regarding future events or prospects with respect to the Company’s future financial and operating results. Forward-looking statements
Slide 42: Thank you
THANK YOU Fourth quarter results 2024 – 05 February 2025