Swatch Group sees results plummet in 2024
Keystone-SDA
Generated with artificial intelligence.
Swatch Group reported sharply lower results for 2024. The prolonged slowdown of the watchmaking industry in China, the watchmaking group’s largest market, and the strength of the Swiss franc continued to weigh on the Swiss company.
This content was published on
Revenues fell by 14.6% to CHF6.7 billion, as organic growth slumped by 12.2%. Net profit plummeted to CHF219 million, more than three times less than the CHF890 million recorded a year earlier, the Group announced in a press release on Thursday.
Negative currency effects amounted to CHF192 million. Operating profit was “strongly negative” in the production sector for the year as a whole “due to the deliberate maintenance of production capacities and workplaces”, explains the company headed by Nick Hayek.
Operating profit (Ebit) fell to CHF309 million, down 74% from CHF1.9 billion in 2023. The associated margin fell to 4.5%, compared with 15.1% in the previous year. In the Watches & Jewelry segment, excluding production, the margin was 10.6%, the Group points out.
More
More
Beleaguered Swiss watch industry calls for political support
This content was published on
The Swiss watch industry is going through difficult times as global demand declines and the strong franc piles on the pressure.
The Board of Directors will therefore propose a dividend of CHF4.50 per bearer share, after CHF6.50 for 2023.
These results fall short of the consensus of analysts consulted by AWP, who were expecting sales of CHF6.99 billion, net profit of CHF412 million, organic growth of -9.6% and a dividend of CHF4.90 per bearer share.
The company’s operating cash flow came to CHF333 million, almost half the previous year’s figure of CHF615 million. Net cash is estimated at CHF1.37 billion, compared with the previous figure of CHF1.98 billion.
The company reports that it is suffering from the continuing difficult market situation and weak demand for all consumer goods in China, including Hong Kong and Macau. However, Swatch Group reports “record sales and market share gains in the US, Japan, India and the Middle East”, with the strongest growth for the Omega, Longines and Tissot brands.
New opportunities in 2025
As for the outlook, the company believes that 2025 “promises positive momentum worldwide”. “The Group’s extensive industrial base and strong brand presence, with many extraordinary new products in all price segments, point to positive developments,” it assured.
Demand in China will remain moderate, however.
“It is expected that the habits and behaviour of Chinese consumers will continue to evolve. This will offer many new opportunities for the Group’s strongly positioned brands”.
More
More
Swiss luxury watch market hit hard by China-led slump
This content was published on
Sales of Swiss-made luxury watches are in sharp retreat as nervous consumers reconsider splashing out on expensive timepieces and demand slumps.
Swatch expects substantial improvements in sales, operating income and cash flow this year. Last November, Swiss watch exports fell by 3.8% year-on-year to CHF2.41 billion.
Adapted from French by DeepL/ac
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.
If you want to know more about how we work, have a look here, if you want to learn more about how we use technology, click here, and if you have feedback on this news story please write to english@swissinfo.ch.
More
Switzerland starts process to legalise egg donation
This content was published on
On Thursday, the Swiss government presented the broad outlines for legalising the practice.
