News Last year, the Swatch Group posted a consolidated operating profit of 651 million francs, an increase of 9.6% compared to 2003, and a net profit of 512 million (+4.1%), despite negative exchange rate effects totalling 33 million, on turnover up by 4.7% to 4,152 million francs. By sector of activity, operating profit was divided as follows: 555 million (+7.6%) for the group’s 20 or so watch manufacturers, 50 million (+51.5%) for the production of watches, movements and components, and 74 million (+15.6%) for electronic systems.
On learning of these excellent results the board of directors decided, at its meeting on 22 March, to propose to the general meeting of 18 May a 21% increase in the dividend, namely 1.75 francs per bearer share (1.45 francs last year) and 0.35 franc per registered share (up from 0.29 franc). Agreement was also reached to buy back shares at an unspecified future date to the tune of around 250 million francs, through the unlisted securities market. With these two measures, the group is making clear its intention to return to shareholders liquidities not required to operate the business.
Regarding prospects for 2005, the first months of the financial year have proved more than satisfactory. Despite a high basis of comparison, turnover has increased sharply both in local currencies and in Swiss francs, despite a ten million deficit due to negative exchange rate effects. Indeed, January and February established all-time records and are the best months for this period of the year since the group came into being. On a par with turnover, operating profit and net profit have also registered massive increases during this period.
April 12, 2005