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Pandora — Earnings Release 2016
Feb 7, 2017
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Download source file• Group revenue in 2016 was DKK 20,281 million, an increase of 21% (24%
increase in local currency), compared with 2015, and in line with financial
guidance:
• Americas increased by 5% (6% increase in local currency)
• EMEA increased by 27% (33% increase in local currency)
• Asia Pacific increased by 46% (48% increase in local currency)
• Revenue from concept stores increased by 37% corresponding to 66% of
revenue
• Roughly 50% of revenue growth for 2016 was driven by growth in stores
open for more than 12 months (including all sales channels) and roughly 50% was
driven by expansion of the network, including forward integrations
• The gross margin increased to 75.1% in 2016, compared with 72.9% in 2015
• EBITDA increased by 27% to DKK 7,922 million in 2016, corresponding to
an EBITDA margin of 39.1%, compared with 37.1% in 2015 and in line with
financial guidance
• Net profit in 2016 was DKK 6,025 million, compared with DKK 3,674
million in 2015, corresponding to earnings per share of DKK 52.8 compared to
DKK 30.9 in 2015
• Free cash flow in 2016 was DKK 5,358 million, compared with DKK 2,449
million in 2015
• The Board of Directors proposes to return DKK 4.0 billion in dividend in
2017, including an ordinary dividend of DKK 9 per share and three extraordinary
quarterly dividends of DKK 9 per share. Additionally, PANDORA will today
initiate a DKK 1.8 billion share buyback programme
• For 2017, PANDORA expects revenue of DKK 23-24 billion and an EBITDA
margin of approx. 38%
In connection with the full year results Anders Colding Friis, CEO of PANDORA,
stated:
“2016 was another great year for PANDORA, where we significantly improved our
global branded presence. We delivered as promised and reached a number of
milestones including more than DKK 20 billion in revenue and opening our
concept store number 2,000. Cash flow generation continued to be solid, and we
propose to almost triple the total dividends in 2017 to DKK 36 per share. This
is of course a token of our strong belief in the business, but also to align
our cash return with our shareholders’ preferences.”
FINANCIAL GUIDANCE 2017
FY 2017 FY FY 2016 FY 2016 FY
Guidance 2016 Latest Initial 2015
Actual guidance guidance Actual
--------------------------------------------------------------------------------
Revenue, DKK 23-24 20.3 >20 >19 16.7
billion
EBITDA margin Approx. 38% 39.1% Approx. 39% >37% 37.1%
CAPEX, DKK Around 5% of 1.2 Approx. 1.2 Approx. 1.0 1.1
billion revenue
Effective tax Approx. 21% 21.2% Approx. 21% Approx. 21% 31.3%
rate
In 2017, PANDORA will continue to drive growth in existing stores, and expand
the store network in newer as well as in more developed markets. Revenue is
expected to be in the range of DKK 23-24 billion, with existing stores expected
to contribute roughly half of the growth, and expansion of the store network
contributing the remaining half. PANDORA currently expects only single digit
revenue growth in Q1 2017, due to timing of shipments and a very strong
performance in Q1 2016. Assuming current exchange rates, PANDORA expects a full
year tailwind effect from currencies on revenue of around 1 percentage point
compared with 2016.
The EBITDA margin in 2017 is expected to be around 38%. The EBITDA margin is
expected to be significantly lower in the first half of 2017 compared to the
second half. For 2017, the EBITDA margin is anticipated to be negatively
impacted by around 0-1 percentage points from higher commodity prices.
Furthermore, assuming current exchange rates, PANDORA expects a full year
headwind effect from currencies on the EBITDA margin of around 1 percentage
point compared with 2016.
CAPEX for the year is expected to be around 5% of revenue. The expected level
of investments includes expansion of the crafting facilities in Thailand,
investments in PANDORA’s distribution network, as well as IT investments.
The effective tax rate for 2017 is expected to be around 21%, unchanged
compared to 2016.
In 2017, PANDORA plans to continue to expand the store network and expects to
add more than 275 new concept stores during the year of which roughly 50% are
expected to be opened in EMEA, 25% in Americas and 25% in Asia Pacific. PANDORA
expects around half of the concept store openings to be PANDORA owned stores,
which is in line with the Company’s intentions to increase the owned and
operated retail footprint.
Expectations are based on the foreign exchange rates at the day of announcement.
Dividend
For the financial year 2015, PANDORA paid out ordinary dividend of DKK 13 per
share, corresponding to DKK 1.5 billion in total. From 2017, PANDORA proposes
to supplement the ordinary dividend with three extraordinary quarterly
dividends.
Following a strong financial performance in 2016, the Board of Directors
proposes to return DKK 4.0 billion in dividend in 2017. This includes an
ordinary dividend of DKK 9 per share and additionally three extraordinary
quarterly dividends of DKK 9 per share in relation to Q1 2017, Q2 2017 and Q3
2017. In total, PANDORA will pay out a total of DKK 36 per share in 2017.
SHARE BUYBACK PROGRAMME FOR 2016
In connection with the Annual Report 2015, PANDORA announced its intention to
buy back own shares of up to DKK 4.0 billion during 2016 in a share buyback
programme. As of 31 December 2016, a total of 4,641,992 shares had been bought
back, corresponding to a transaction value of DKK 4.0 billion. The purpose of
the programme is to reduce PANDORA’s share capital and to meet obligations
arising from employee share option programmes. At the Annual General Meeting
2017, The Board of Directors will propose to reduce the Company's share capital
by a nominal amount of DKK 4,549,430 by cancellation of 4,549,430own shares of
DKK 1, equal to 3.9% of the Company's total share capital.
NEW SHARE BUYBACK PROGRAMME FOR 2017
The Board of Directors of PANDORA has decided to launch a new share buyback
programme in 2017, under which PANDORA expects to buy back own shares to a
maximum consideration of DKK 1.8 billion. The shares acquired within the
programme will be used to reduce PANDORA’s share capital and to meet
obligations arising from employee share option programmes. The programme will
run in the period from 7 February 2017 to no later than 6 February 2018.
ANNUAL REPORT 2016
PANDORA’s Annual Report 2016 has been released today and is available for
download in the investor section of www.pandoragroup.com.
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 one hour before the call.
The following numbers can be used by investors and analysts:
DK: +45 38 32 28 69
UK (International): +44(0) 203 427 1907
US: +1 212 444 0895
To participate, please quote confirmation code “PANDORA” when dialling into the
conference.
FINANCIAL CALENDAR 2017
15 March 2017 Annual General Meeting
20 March 2017 Payment of annual dividend
9 May 2017 Interim Report for the first quarter
of 2017
16 May 2017 Ex dividend date
18 May 2017 Payment date
8 August 2017 Interim Report for the second quarter
of 2017
15 August 2017 Ex dividend date
17 August 2017 Payment date
7 November 2017 Interim Report for the third quarter of
2017
14 November 2017 Ex dividend date
16 November 2017 Payment date
ABOUT PANDORA
PANDORA designs, manufactures and markets hand-finished and contemporary
jewellery made from high-quality materials at affordable prices. PANDORA
jewellery is sold in more than 100 countries on six continents through around
8,100 points of sale, including more than 2,100 concept stores.
Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs more
than 21,500 people worldwide of whom around 12,400 are located in Gemopolis,
Thailand, where the Company manufactures its jewellery. PANDORA is publicly
listed on the Nasdaq Copenhagen stock exchange in Denmark. In 2016, PANDORA’s
total revenue was DKK 20.3 billion (approximately EUR 2.7 billion).
CONTACT
For more information, please contact:
INVESTOR RELATIONS MEDIA RELATIONS
Magnus Thorstholm Jensen Kristian Lysgaard
Vice President, Head of Investor Relations Director, Corporate Communications
+45 7219 5739 +45 7219 5774
[email protected] [email protected]
Brian Granberg
Investor Relations Officer
+45 7219 5344
[email protected]