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Jewellery maker Pandora sees slower 2017 revenue growth
[COPENHAGEN] Danish jewellery maker Pandora said on Tuesday it will almost triple its dividend payouts in 2017 following a sharp rise in revenues and profits last year, but warned of a slowdown in revenue growth in 2017.
The firm said it expects a 14-16 per cent rise in revenues this year to between 23 and 24 billion Danish crowns (US$3.3-3.5 billion), down from a 21.5 per cent rise in 2016. Analysts polled by Reuters on average expect revenues this year of 24.1 billion crowns. "Pandora currently expects only single-digit revenue growth in Q1 2017, due to the timing of shipments and a very strong performance in Q1 2016," the company said in a statement.
It also said its profit margin at the level of earnings before interest, tax, depreciation and amortisation (EBITDA) was being squeezed this year by higher commodity prices and is seen declining to around 38 per cent from 39.1 percent in 2016.
In the final quarter of 2016 EBITDA rose 26 per cent on the same period in 2015 to 2.7 billion crowns (US$388 million), in line with the average of forecasts given by analysts in the Reuters poll.
The company said it expected to pay a total of 36 crowns in dividends in 2017, up from 13 crowns in 2016 but below the 19 crowns forecast by analysts. The payout will comprise one ordinary dividend and three extraordinary dividends, it said. "This is of course a token of our strong belief in the business, but also to align our cash return with our shareholders' preferences," said Chief Executive Anders Colding Friis.