Corrections & Amplifications
This headline was corrected at 0513 GMT. The early version misstated the first half net profit as CHF498M.
By Pierre Bertrand
Swatch Group, a renowned Swiss watchmaker, has announced impressive financial results for the first half of the year. The company experienced a surge in both sales and net profit, largely attributed to the easing of travel restrictions in Asia.
In the first six months, Swatch Group achieved a net profit of 486 million Swiss francs ($560.2 million), significantly surpassing the 311 million Swiss francs recorded during the same period last year. This remarkable growth can be attributed to an 11% increase in sales, which reached a total of CHF4.02 billion.
The recovery in Asia played a crucial role in driving Swatch Group’s success, with European markets also performing well. Notably, Switzerland witnessed a remarkable sales increase of nearly 50%, followed by Italy, Spain, and France.
However, Swatch Group did face challenges due to a negative currency effect of 6.7%, amounting to CHF242 million.
Despite this, the company remains optimistic about the future and expects “excellent growth opportunities in local currencies” for the second half of the year. To capitalize on this potential, Swatch Group plans to introduce new products across various price segments.
While the outlook appears bright, Swatch Group acknowledges the potential impact of an unfavorable currency environment.