Pandora has reported strong results in the quarter ending September 30, 2016 with revenue rising by 18% to DKK 4,612 million (21% in local currency terms) as compared to the same period in 2015 and net profit soaring to DKK 1,405 million, a rise of 39.66% as compared with DKK 1,006 mn in Q3 2015.

The Company announced that it has revised its full year 2016 EBITDA margin guidance to around 39% (from more than 38%) though revenue guidance remained unchanged.

Giving details of its performance across different regions, Pandora said that revenue from the Americas increased by 6% (6% increase in local currency); from EMEA by 18% (25% increase in local currency) and from Asia Pacific by 46% (47% increase in local currency).

It added that revenue from concept stores increased by 26% corresponding to 62% of revenue, with like-for-like sales growth of 4%, driven by positive growth in EMEA and Asia Pacific, and a flat development in Americas (US like-for-like sales growth was 3%)

Gross margin increased to 75.1% in Q3 2016, compared with 74.0% in Q3 2015, while EBITDA increased by 27% to DKK 1,842 mn in Q3 2016, corresponding to an EBITDA margin of 39.9%, compared with 37.2% in Q3 2015

Free cash flow for the quarter increased to DKK 577 million, compared with DKK 263 million in Q3 2015.

Anders Colding Friis, CEO, stated, “Following a strong first half of 2016, PANDORA continued the positive momentum into Q3, with strong growth in particularly Southern Europe and Asia Pacific. Additionally, the US continued to deliver solid growth supported by positive like-for-like. The increase was driven by double digit growth across all product categories supported by an attractive and relevant product offering. Finally, we improved profitability and increased the EBITDA-margin to 39.9% driven by operational leverage as well as lower realised commodity prices.”

In a separate announcement a day earlier, Pandora said that it had opened a brand new crafting facility in Lamphun close to Chiang Mai in Northern Thailand and commercial production would start early next year.

“The site in Lamphun is the first of our recent initiatives to go live, but we are continuously expanding our production capacity, investing a total of DKK 1.8 billion in the period 2015 to 2019,” says Thomas Touborg, Senior Vice President, Group Operations.

Besides the new facility in Lamphun, the capacity expansion programme includes building an additional crafting facility in Gemopolis near Bangkok, as well as optimising the existing crafting facilities in Gemopolis.

The Company said it would be able to potentially double its total production capacity compared to 2015 to more than 200 million pieces a year by the end of 2019. The aim was to reduce lead-time from raw material to jewellery delivered by around 50%, it added.