Pandora: results in line, outlook pretty good

(CercleFinance.com) - On Wednesday, Pandora unveiled annual results that came as no great surprise, with a rather encouraging outlook from analysts.


This morning, the Danish jeweler said it expected organic sales growth of between 6% and 9% this year, with an EBIT margin of 25%.

In comparison, analysts were anticipating average organic growth of 8% for 2024, for an operating margin of 25.5%.

RBC analysts don't expect market earnings forecasts to change much as a result of this outlook.

The big question is to what extent investors will regard these targets as cautious, especially concerning sales growth, the Canadian broker added.

For 2023, Pandora indeed reported organic growth of 8%, whereas it had initially set itself a target of 5% to 6%.

Its EBIT margin reached 25%, in line with the target the group had communicated.

Pandora says that it intends to pay its shareholders an annual dividend of 18 DKK per share, above the consensus forecast of 16 DKK, while planning to launch a new share buyback program of 4bn DKK over the next 12 months.

Following these announcements, Pandora shares rose at first in Copenhagen on Wednesday, although at lunchtime had fallen back down (-2.4% at 1 pm).


Copyright (c) 2024 CercleFinance.com. All rights reserved.