Pandora to Return $792.9 Million to Shareholders as Net Profit Rises

By Ian Walker

Pandora, the Danish jeweler, has announced that it will be returning 5.5 billion Danish Kroner ($792.9 million) to its shareholders this year, following a rise in net profit during the fourth quarter. Despite slightly missing market forecasts, the company remains optimistic about its performance.

Share Buyback and Increased Dividend

On Wednesday, Pandora revealed that it plans to return DKK4.0 billion through a share buyback program. Additionally, it has proposed a dividend of DKK18 per share, which is an increase from DKK16 in 2023.

Fourth-Quarter Net Profit

Pandora reported a net profit of DKK2.53 billion for the quarter ending on December 31, compared to DKK2.365 billion during the same period the previous year. Although this figure slightly missed the company-compiled consensus of DKK2.69 billion, it still demonstrates a positive growth trajectory.

Strong Growth Forecasted for the Year Ahead

Looking ahead, Pandora anticipates organic growth ranging between 6% and 9% for the coming year. Furthermore, it expects to achieve an earnings before interest and taxes (EBIT) margin of approximately 25%.

Strong Performance in 2023

In early January, Pandora announced that it had exceeded its organic growth guidance for 2023, reaching 8%. Additionally, the company's EBIT margin for the year aligned with expectations at 25%. This strong performance is an encouraging indication of Pandora's ability to deliver consistent growth.

Impressive Revenue Figures

Pandora saw a significant increase in revenue for the fourth quarter, with DKK10.8 billion compared to DKK9.86 billion for the same period the previous year. This contributed to a total yearly revenue of DKK28.1 billion, up from DKK26.5 billion.

Continued Success in 2023

Pandora has reported a healthy first quarter this year, with high single-digit levels of like-for-like growth. This growth has been supported by the company's strong brand momentum seen since mid-2023.