News Despite an increase in sales, the world’s number one watchmaker recorded a disappointing result in the first half of 2014. Net profit was down 11.5% to 680 million francs compared to the first six months of 2013, the result of extremely adverse exchange rates. In terms of operating profit the Biel based giant also registered a decrease, with a result down 8.8% to 830 million, again compared to last year’s showing. As well as currency variations, important marketing expenses for the Sochi Olympic Games and the fire at ETA in Granges in December 2013 weighed heavily in the scales. Gross turnover meanwhile was up 4.0% to 4,347 million francs at current exchange rates.
Since the end of 2013 more than 800 jobs have been created worldwide, including 460 in Switzerland. Overall, the Swatch Group employed around 34,000 staff at the end of June. Looking ahead to the remainder of the financial year, the group indicated that prospects for the second half-year were good, with a more favourable base of comparison in terms of exchange rates. For the Swatch brand, major growth is expected with the global launch of the Sistem 51, while the new Master Co-Axial from Omega is likely to provide a significant boost to sales. Acquired last year, Harry Winston is showing pleasing growth and, with the launch of its new watch collection presented this spring at Baselworld, will make an important contribution to the group.
August 20, 2014