News Last year the Swatch Group’s net profit exceeded the one billion franc mark for the first time (1,015 million), an increase of 22.3% compared to the 830 million recorded in 2006. Operating profit meanwhile increased by 27.0% to 1,236 million on turnover – published in January (see Revue FH n°2 of 31 January 2008, p. 13) - of 5,941 million (+17.6%).
By sector of activity, operating profit rose sharply in the production of movements and watch components (+59.9% to 235 million on turnover of 1,684 million). The result was also excellent in the watch and jewellery sector with an increase of 24.7% to 920 million on turnover of 4,710 million, while the electronic systems sector saw its profitability fall by 6.6% to 99 million on sales of 630 million.
In the light of these excellent results, the group’s Board of Directors decided to propose to the General Meeting, scheduled to take place on 21 May this year, an increase in dividends of 21.4% to 4.25 francs per bearer share and 0.85 franc per registered share.
Regarding forecasts for 2008, the group notes in an official statement published on 14 March that "the strong trend of the 2007 financial year has been maintained in January and February 2008". Consequently it is counting this year on a further increase in turnover together with enhanced profitability, despite the current negative impact of exchange rates.
March 20, 2008
