Swatch Group: 2023 performance
Swatch Group has released its annual performance figures for the year 2023, with an increase in net sales, operating profit, and margin, as well as cash flow. The Group has also forecast excellent growth prospects for 2024
The figures show that Net sales went up by 12.6% at constant exchange rates, or 5.2% at current rates to CHF 7,888 million, indicating Sales growth of over 8% in the fourth quarter in local currencies.
Despite huge exchange rate impacts, the Watches & Jewellery segment (including Production) achieved the same strong operating margin of 17.2%. Operating profit was CHF 1,191 million (previous year: CHF 1,158 million), while Operating margin was 15.1% (previous year: 15.4%).
Net income went up by 8.1% to CHF 890 million (previous year: CHF 823 million), while Net margin increased to 11.3% (previous year: 11.0%). Investments doubled to CHF 803 million, of which over CHF 300 million was invested in production equipment and CHF 220 million in retail properties in prime locations.
Operating cash flow was recorded at CHF 615 million (previous year: CHF 724 million), with Net liquidity of CHF 1,988 million (previous year: CHF 2,540 million). 1,541 additional jobs were created, of which 802 in Switzerland.
The Board of Directors of the Swatch Group will propose an 8.3% higher dividend of CHF 1.30 per registered share (previous year: CHF 1.20) and CHF 6.50 per bearer share (previous year: CHF 6.00) at the Annual General Meeting on 8 May 2024.
The Group expects excellent growth prospects in 2024, especially also in the lower and medium price segments, despite the problematic strength of the Swiss franc. The brand Swatch started the year very strongly with the worldwide launch on 11 January 2024 of the Scuba Fifty Fathoms “Ocean of Storms”.
