In connection with the company’s Capital Markets Day, Pandora today announces new financial targets and provides further insights into its growth strategy, Phoenix.
Pandora enters a new chapter of growth with significant value creation potentialWide range of growth opportunities in or close to the existing core business will drive EBIT margin expansion and continued strong cash generation Pandora targets organic growth of 5-7% CAGR during 2021-2023. Total revenue growth CAGR is expected to be 6-8%, lifting revenue to DKK 24.8-26.2 billon in 2023 EBIT margin is expected to increase to 25-27% in 2023Pandora also increases share buyback program by DKK 3 billion (see company announcement no. 650)Pandora invests DKK 1 billion in expanding manufacturing capacity by around 60%. To strengthen supply resilience, the majority of the capacity will be built in Vietnam
Alexander Lacik, President and CEO of Pandora, says:
“We are very pleased to confirm that Pandora is back on the growth track. We have vast untapped opportunities in our existing core business and they will drive long-term sustainable and profitable growth. Our objective is to be the largest and most desirable brand in the affordable jewellery market. And we have a strong foundation to deliver on that objective.”
New insights into the Phoenix strategy
On 4 May 2021, Pandora announced the completion of its turnaround programme, Programme NOW, and provided a high-level overview of its new growth strategy, Phoenix. Phoenix is focused on the significant opportunities in Pandora’s core business and has four pillars aiming at delivering sustainable and profitable revenue growth: Brand, Design, Personalisation and Core Markets.
Today, Pandora shares further details from the Phoenix strategy:
Pandora sees ample opportunities to grow its core markets. The long-term ambition is to double revenue in the US and triple revenue in China, both from 2019 levelsPandora will personalise