Pandora-Q1 sales exceed expectations, forecast raised | Photo credit: Pandora
COPENHAGEN, May 4 (Reuters) – Danish jeweler Pandora warned on Wednesday of heightened uncertainty over its full-year forecast, despite record first-quarter sales and a slight hike in its sales forecast.
“We are very pleased with the strong start to the year which sees record first-quarter revenue,” Chief Executive Alexander Lacik said in a statement.
Pandora now forecast organic growth of 4% to 6% for the full year, compared to 3% to 6% previously, but clarified that this forecast was subject to “high uncertainty” due to the war in Ukraine, inflation and the coronavirus.
The group kept its profit margin before interest and tax (Ebit) forecast unchanged, between 25% and 25.5%, while noting inflationary pressure and an increase in the costs of energy, transport and raw materials, like silver and gold.
“Pandora has historically been successful in mitigating cost increases through efficiency and cost reduction initiatives. This work continues,” the company said.
The world’s largest jewelry maker by production capacity saw no “major impact” from Russia’s invasion of Ukraine in the first quarter. Russia, Belarus and Ukraine only accounted for 1% of revenue in 2021.
Pandora reported a 21% increase in sales to 5.7 billion Danish kroner (766 million euros), a record figure and above the average expectations of analysts polled by the company in April, at 5.2 billion Danish crowns. (Reporting Nikolaj Skydsgaard; French version Elena Vardon; editing by Kate Entinger)