Strong growth in Q1 - record first quarter revenue
Highlights
- Strong 21% organic growth in Q1 2022 - equal to 18% vs Q1 2019
- Execution of the Phoenix strategy is progressing as planned with Q1 revenue growth in all product platforms
- Moments continue to deliver strong results driven by the base portfolio and supported by new products such as the Padlock concept – another innovation within the Moments platform
- Collabs were very strong supported by a successful Marvel launch in February
- Efforts to establish new platforms continue. Pandora ME up 132% vs Q1 2021 and reached 3% share of business. Getting ready for next step in the global sequential roll-out of Brilliance
- Broad based organic growth across key markets vs 2019 - China continue to be a headwind
- US grew 7% (62% vs Q1 2019) – strategy on plan with acquisition of 32 franchise stores mainly located on the West coast of US as wells as entering new partnership with Macy’s
- Strong performance across key European markets, all delivering double digit positive organic growth vs 2019
- Online also continued the strong performance with organic growth up 155% vs Q1 2019 (down -17% vs Q1 2021 due to COVID-19 store closures last year)
- Solid EBIT margin at 23.0% - absolute EBIT up 45% from Q1 2021
- In line with normal seasonality, cash flow was negative in Q1 2022. Cash flow in Q1 was negatively impacted by a deliberate increase in inventories. Leverage ended at 0.9x NIBD to EBITDA
- During Q1 2022, DKK 2.7 billion was distributed to shareholders
- All business with Russia and Belarus has been suspended. These markets account for approx. 1% of revenue
Despite negative impacts from the war, cost inflation, potential impact on consumer demand due to inflation and higher interest rates as well as COVID-19, organic growth is now expected to be 4-6% (was 3-6%) while EBIT margin guidance is unchanged at 25.0-25.5%. The financial guidance for 2022 is subject to elevated uncertainty.
In spite of inflation and increasing interest rates, consumer demand generally remained healthy during April. Revenue growth in Q2 will face a tougher comparison base than Q1, due to less COVID-19 lock-downs and stimulus packages in the US.
Alexander Lacik, President and CEO of Pandora, says:
“We are very pleased with the strong start to the year delivering record revenue for a first quarter. All our product platforms support the growth in Q1, as our ability to continuously offer new innovation pays off. Execution of the Phoenix strategy continues at high pace and I am encouraged by the growth opportunities we have ahead of us. For the last two years, we have invested in building a stronger organisation, and this is increasingly visible in the numbers and how we drive the company forward.”
Financial overview:
| DKK million | Q1 2022 | Q1 2021 | FY 2021 | FY 2022 guidance |
| Revenue | 5,689 | 4,500 | 23,394 | |
| Organic growth, % | 21% | 13% | 23% | 4-6% |
| Sell-out growth incl. temporarily closed stores, % | 17% | 21% | 20% | |
| Operating profit (EBIT) | 1,310 | 903 | 5,839 | |
| EBIT margin, % | 23.0% | 20.1% | 25.0% | 25-25.5% |
CONFERENCE CALL
A conference call for investors and financial analysts will be held today at 11.00 CET and can be joined online at www.pandoragroup.com. The presentation for the call will be available on the website before the call.
The following numbers can be used by investors and analysts:
DK: +45 78768490
SE: +46-4-0682-0620
UK: +44-203-7696819
US: +1 646-787-0157
Please use PIN: 837462
Link to webcast: https://streams.eventcdn.net/pandora/2022q1
ABOUT PANDORA
Pandora is the world’s largest jewellery brand. The company designs, manufactures and markets hand-finished jewellery made from high-quality materials at affordable prices. Pandora jewellery is sold in more than 100 countries through 6.
Headquartered in Copenhagen, Denmark, Pandora employs 27,000 people worldwide and crafts its jewellery at two LEED-certified facilities in Thailand using mainly recycled silver and gold. Pandora is committed to leadership in sustainability and has set science-based targets to reduce greenhouse gas emissions by 50% across its own operations and value chain by 2030. The company is listed on the Nasdaq Copenhagen stock exchange and generated sales of DKK 23.4 billion (EUR 3.1 billion) in 2021.
For more information, please contact:
| INVESTOR RELATIONS John Bäckman VP, Investor Relations, Tax & Treasury +45 5356 6909 jobck@pandora.net | CORPORATE COMMUNICATIONS Mads Twomey-Madsen VP, Corporate Communications & Sustainability +45 2510 0403 madt@pandora.net |
| Kristoffer Malmgren Director, Investor Relations +45 3050 1174 kram@pandora.net | Johan Melchior Director, External Relations +45 4060 1415 jome@pandora.net |
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