News for Pandora supporters. But, in this case, not for fans of modular bracelets and pendant collections. The news concerns who instead of the jewels of the Danish Maison bought his shares. In fact, the company announced its new financial goals and provided further insights into its growth strategy, called the Phoenix, as the mythological animal that rose from its own ashes. Although, in truth, it does not seem that Pandora is in a position to be resurrected.
In any case, Pandora is aiming for organic growth of 5-7% CAGR (Compound annual growth rate) in the period 2021-2023. The company also expects total CAGR revenue growth of 6-8%, bringing revenues to 24.8-26.2 billion Danish kroner in 2023 (3.2 billion euros)
• Pandora expects EBIT margin to increase to 25-27% in 2023
• The share buyback program for 3 billion Danish kroner (390 million euros) is also increasing
• Pandora invests DKK 1 billion in expanding production capacity by around 60%. To strengthen supply resilience, most of the capacity will be built in Vietnam
We are pleased to confirm that Pandora is back on the path of growth. We have vast untapped opportunities in our existing core business, which will drive sustainable and profitable growth over the long term. Our goal is to be the largest and most desirable brand in the affordable jewelry market. And we have a solid foundation for achieving this.
Alexander Lacik, President and CEO of Pandora
Pandora also provided new insights into the Phoenix strategy. On May 4, 2021, Pandora announced the completion of its turnaround program, Now Program, and provided a high-level overview of its new growth strategy, Phoenix. Phoenix focuses on the significant opportunities in Pandora’s core business and has four pillars that aim to deliver sustainable and profitable revenue growth: brand, design, personalization and key markets.
The new details of the strategy:
· Pandora sees ample growth opportunities in its core markets. The long-term ambition is to double revenue in the US and triple revenue in China, both from 2019 levels
Pandora will personalize its customer experience by implementing a series of omnichannel functions. The company will also launch a new concept store
As the world’s most recognized jewelry brand, the ambition is to fuel the brand’s desirability and extend its reach to conquer Gen Z and Millennials
Pandora has three clear brand and design priorities: lead the core (Moments), launch new platforms and establish support models dedicated to each platform (“launch and leverage”)
· Pandora will continue to invest in a digital future. Today, 75% of Pandora’s transactions are direct-to-consumer, and customer data analytics will fuel future growth
To meet anticipated demand and increase our risk resilience, Pandora will expand its production capacity by approximately 60% or 80 million pieces of jewelry annually. A new plant with a capacity of approximately 60 million pieces will be built in Vietnam, while an additional additional capacity of approximately 20 million pieces will be added to the existing plants in Thailand. The total investment is approximately 1 billion Danish crowns
Pandora will continue its leadership in sustainability and announces ambitious new decarbonisation goals and an inclusion and diversity strategy (see separate press release). The new commitments include:
– Reduce greenhouse gas emissions by 50% in its operations and in the value chain by 2030, compared to 2019 levels. The goal has been approved by the Science Based Targets initiative. Pandora is also committed to becoming “net zero” by 2040
– Ensure gender balance in all hiring and promotions. ii) Have 1/3 women in leadership (VP level and above) by 2025 and full gender equality by 2030. iii) Spend 30% of the budget on branding content with suppliers owned by women or underrepresented groups .