LONDON — Robust sales of its fall collections helped boost third-quarter profits at the Danish contemporary jeweler Pandora: The company raised its guidance for earnings before interest, taxes, depreciation and amortization, for the full fiscal year.
Profit at the Copenhagen-based firm that specializes in stackable, collectible charms climbed 40 percent to 1.41 billion Danish kronor, or $211 million, while revenue rose 18 percent to 4.61 billion kronor, or $692 million.
Dollar figures have been converted at average exchange rates for the three-month period.
The company said it was maintaining its financial guidance, although it has raised its EBITDA margin projection to around 39 percent from more than 38 percent. The company said the revision is primarily based on a better-than-expected ability to cope with the increasing production complexity, as well as marginally higher-than-expected operating leverage.
Pandora’s chief executive officer Anders Colding Friis said positive momentum has continued into the second half, “with strong growth particularly in southern Europe and Asia-Pacific. Additionally, the U.S. continued to deliver solid growth.”
He pointed to double-digit growth across all product categories and improved profitability “driven by operational leverage as well as lower realized commodity prices.”
Pandora said sales growth in the quarter was driven partly by positive consumer reception to its wares, including the Pandora Rose collection, and “a continued high demand” for earlier launched products. In the third quarter, around 50 percent of revenue was generated by products launched within the last 12 months, similar to the corresponding period last year.
The company noted that last month it opened its new production facility in Lamphun, close to Chiang Mai in northern Thailand. It will be ready to start commercial production at the start of 2017. As part of the already announced production capacity expansion program in Thailand, which will run until the end of 2019, Pandora has started the construction of an additional site in Gemopolis, named Triple A.
In addition to potentially doubling its production capacity in Thailand by the end of 2019, Pandora said it’s also aiming to shorten the general lead-time at the production facilities. The company said it has now reduced the time from 3-8 weeks to 3-6 weeks, with an ambition to reduce it to around 4 weeks, on average.