Pandora European revenue jumps 46.5% in Q3

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Brand reports on improved profitability across all regions.

Pandora’s Q3 revenue in Europe jumped 46.5%, with overall group revenue up 25.7% 5 to DKK2.25 billion (£250m) for the three month period, according to the brand’s interim results, released today.

The figures outline revenue growth and continued profitability across all regions for the charm bead and jewellery brand.

In the Americas, Pandora’s revenue increased by 7.6%, or 14.9% in local currency, and in the Asia Pacific region, revenue grew by 37.7%, or 57.7% in local currency.

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The brand has experienced positive growth in 2013, with the trend continuing in the third quarter. It recently increased its financial expectations for 2013, revising its revenue expectations to DKK 8.6 billion (£912bn) for the year, from the previously guided DKK 8 billion. Its UK sales have also been improving, and were up more than 11% in Q2.

Pandora chief executive Allan Leighton said of the results: "We are pleased with the third quarter results, which confirms that the business has re-established a base platform to build from. Third quarter was also the last quarter with the easy comparative figures created by last years’ stock balancing programme.

"This obviously means that we are now entering a phase with more modest headline growth, but still underpinned by strong operating performance."

Pandora’s gross margin increased to 66.2% in Q3 2013, compared to a gross margin of 64.1% in Q3 2012, while EBITDA increased by 51.5% to DKK 762 million for the quarter, corresponding to an EBITDA margin of 33.8%, compared to an EBITDA margin of 28.0% in Q3 2012.

The brand’s net profit for the quarter was DKK612 million (£69m), compared to a net profit of DKK380 million (£43m) in Q3 2012.

During Q3 2013, Pandora bought back 1,014,887 shares at a total value of DKK220 million (£25m). In 2013, the company has bought back shares worth DKK491 million (£55.5m) of the on-going DKK700 million (£79.1m) share buyback programme.

Looking ahead to the remainder of 2013, Pandora expects CAPEX to be around DKK400 million (£45m), a figure that excludes the one-off payment of DKK190 million (£21m) related to the purchase of IP rights from Trollbeads A/S as well as the investment related to the acquisition of the distributor in Brazil.

During 2013 PANDORA expects to open about 195 concept stores globally.
 

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