Pandora (Baa2, BBB; S) beats on 4Q sales, FY24 guidance & 1Q trading conditions look positive

Strong beat in 4Q online sales (in line with retail reporting trends we've seen). Strong beat in US organic growth sales that's been shared by Germany & France beats, but offset by flat growth (vs. c+1.25%) in UK & a miss in Italy.

Cash was lower than consensus (higher PPE Capex the driver), Debt up over the FY (as expected) including on the ~DKK 3.7b issuance - net impact was leverage (NIBD to EBITDA) increase from 0.8* to 1.1* (targets 0.8*-1.5*). Given ratings were initiated in March/on issuance not much to see here.

Trading conditions are positive are "healthy" in the 1Q thus far - sees like for like growth in high single-digits. Its guiding to FY24 organic growth of 6-9% (c4%) but EBIT margin of 25% stays flat to FY23.

Dividend of 18/share below expectations for 19 & a new buyback program of 4b over the next year (vs. 5b last year) with 1.3 due in the 1H.

Its single sus-linked €500m 28's (issued in March of last year) was also given a separate mention - due to a 'recalculation event' which seems to be a lift in baseline/2019 Scope 3 emissions from 282,964 when issued to 309,469 tonnes CO2 - no impact re. targets with reported Scope 3 reduction of -15% in '23 (vs. new baselines) - in line with initial expected trajectory.

Equities marginally up, the 28's (Baa2, BBB; S) are streaming mids 2bps tighter, looks to trade fair given single line issuer.