2023 was a golden year for Pandora jewelry. The economic results of the largest jewelry group in the world indicate an organic growth of +8%, better than forecasts of 5-6%, with growth on a like-for-like basis and exchange ratios of 6%, while the expansion of the network brought growth of 4%. Revenues have therefore increased, but so has profitability. Gross margin improved to 78.6%, an increase of 2.3% compared to the previous year. The EBIT (earnings before interest and taxes) margin remained at 25.0%, while the profit-to-share value ratio rose to a record high of 55.5 Danish crowns. In short, the financial data are positive.
According to the company, the Christmas period was particularly positive and organic growth rose by 12%: in Europe +5%, in the United States +10%, and even better in the rest of the world with +16%. Thanks, says the company, to the strategy called Phoenix, of which the first chapter has been closed, with continuous investments in the brand which have favored large-scale growth in all collections. The launch of the new Christmas campaign Loves, Unboxed proved to be a hit. The company also completed the transition to recycled gold and silver a year early.
And 2024? Pandora is aiming for another year of solid growth, even if the macroeconomic climate is less favorable. The initial guidance for 2024 foresees organic growth of 6-9% and an EBIT margin of around 25%. Growth in the first part of the year is in single digits.
We are very pleased with how we closed out 2023 with great trading during the holiday season. Looking back over the past two years, since we launched the Phoenix growth strategy, we are proud of how our strategic initiatives have come together to deliver consistent results despite the challenging macroeconomic environment. In 2024, we are targeting solid, profitable growth as we implement Phoenix’s next chapter.
Alexander Lacik, president and CEO of Pandora