Pandora today has announced its preliminary financial headline numbers for 2017, citing overall group revenue of DKK 22.8 billion (£2.7 billion).
Based on unaudited financial numbers, Pandora’s revenue for 2017 is expected to increase 12% compared to 2016 to DKK 22.8 billion.
In local currency, revenue is expected to increase 15%, which compares to initial assumptions of a tailwind of around 1%. This translates into a negative revenue impact from currency of around DKK 0.8 billion compared to initial currency assumptions. Significantly impacted by the unfavourable currency development, revenue was marginally below Pandora’s initial financial guidance of DKK 23-24 billion set in February 2017.
In Q4 2017, global like-for-like sales-out growth for Pandora owned concept stores was 15%, mainly driven by a strong performance by the eStore.
The EBITDA margin is expected to be 37.3% compared with Pandora’s full year guidance of approximately 38%.
The effective tax rate for 2017 is impacted by a decrease of the deferred tax assets as a consequence of the new US tax reform signed in December 2017, as well as a 10% withholding tax on the repatriation of dividend related to earnings before 2013 from Pandora Production Co. Ltd. in Thailand. Due to these extraordinary items, the effective tax rate for 2017 is expected to be approximately 25%, while the underlying tax rate is still expected to be around 21%.
CAPEX for 2017 is expected to be 6% of revenue versus earlier expected approximately 5% of revenue. The increase was mainly due to faster than anticipated progress of construction projects in Thailand as well as more owned and operated concept store openings.
In 2017, Pandora opened net 308 concept stores versus expectations of more than 300.
Commenting on the results, Anders Colding Friis, chief executive officer of Pandora says: “2017 has been a challenging year for Pandora. The 2017 results are close to the targets we set ourselves at the beginning of the year, but we are of course disappointed to not fully reach the targets. That being said, several external factors have worked against us during 2017, including a difficult US retail climate as well as an unfavorable currency development.”
Pandora’s Annual Report 2017 will be released on February 6 2018, where executive management will elaborate further on the results, and break the year down regionally.