Pandora increases revenue by 41.4 %

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Pandora increase their own expectations for 2015 by adding another billion DKK to the expected revenues. This comes after a very strong Q2-report.

“We are very pleased to report yet another strong quarter, both in terms of top line development and profitability. All major regions once again delivered double digit revenue growth and our focus on concept stores continues to pay off, with revenue growth in the quarter of more than 50%,” comments Anders Colding Friis, CEO of Pandora.

”Growth was driven by a combination of network expansion and strong like-for-like growth, supported by revenue enhancing initiatives such as the continued roll out of our e-store and our collaboration with Disney.”

 

Pandora’s group revenue in Q2 2015 was 3,598 million EUR, an increase of 41.4% or 25.8% in local currency, compared with Q2 2014.

  • Americas increased by 43.8% (19.4% increase in local currency)
  • Europe increased by 38.0% (32.0% increase in local currency)
  • Asia Pacific increased by 44.1% (26.9% increase in local currency)

Revenue from concept stores increased by 54.7 percent and corresponded to 59.3 percent of the total revenue. Net profit for the quarter was 910 million DKK, compared to a net profit of DKK 662 million in Q2 2014

Based on the strong performance in the second quarter, as well as favourable exchange rate fluctuations, Pandora has decided to increase revenue guidance to more than 16.0 billion DKK.

Growth will be driven by like-for-like growth in existing stores as well as expansion of the store network, with network expansion contributing slightly more to growth

Pandora plans to continue to expand the store network and now expects to add more than 375 new concept stores in 2015 .

The company has made an agreement with Norbreeze Group (Norbreeze), to acquire its Pandora store network in Singapore and Macau on 1 January 2016, when Norbreeze’s distribution rights to Pandora jewellery in the two countries expire.

At the same time, Pandora will reacquire the distribution rights in the Philippines, also currently owned by Norbreeze, for a total amount of SGD 30million (approximately DKK 149 million) to Norbreeze.

The company says the acquisition will grant Pandora the opportunity to enter Singapore and Macau directly and to add to its retail chain the existing 15 Pandora concept stores and 5 shop-in-shops located in the two countries. The Philippines will continue to be operated by a local master franchisee.

 

FY 2015
New guidance
FY 2015
Previous guidance
FY 2014
Actual
Revenue, DKK billion >16.0 >15.0 11.9
EBITDA margin approx. 37% approx. 37% 36.0%
CAPEX, DKK million approx. 900 approx. 900 455
Effective tax rate approx. 30% approx. 30% 20%