Pandora has reported that its overall profits declined to £44.1m in FY22, down from £57.6m in FY21, according to the latest accounts filed with Companies House for the year ended 31 December 2022.

Overall profits decreased as a result of rising costs which increased to £268m in FY22 (2021: £240.1m).

Meanwhile, in 2022, its administrative expenses rose to £138.2m and finance costs increased to £9.5m.

Additionally, tax payments on profits totalled £5.9m, which caused its profit before tax to drop to £49.9m from £61.3m.

However, turnover increased in the year to £438.3m. The company attributed this to the full year impact of network changes, increased marketing spend across the brand and return on investment in digital initiatives.

Pandora added that new product launches and global partnerships also encouraged further interest generating consumer purchase.

Operating profit also amounted to £24.1m compared with £23.1 in the previous year. According to Pandora, the increase in operating profit is driven largely by higher marketing spend year on year driving revenue, followed by savings within re-melt costs associated with the cost of goods sold.”

Looking ahead, Pandora aims to improve the management policies and strategies to support the business, despite the challenging UK market and the general economy.

It also expects strong and improved sell out figures in stores due to greater focus on operational KPIs and continued strength in the online channels.

Lastly, the company plans to continue its current efforts to increase brand awareness in the market, and maintain investments in its marketing and promotion strategies, including “full utilisation” of social media and digital initiatives to strengthen the online customer journey.