After two years of successive decay and a general negative disposition over the watchmaking business, it appears to be that 2017 could be the urgent year for the watch portion – at any rate for Swatch Group, as we have seen that Richemont Group 2016-2017 outcomes were showing again a decrease . In its Half-Year Report 2017, Swatch Group contains a number positive pointers, including somewhat expanded deals and chiefly, a built up benefit, with a solid expansion in working edge and total compensation. Overview.
While the 2016 Annual Report of Swatch Group was giving indications of decay, with deals dropping by 10.6% and productivity hugely diminishing, with 47% less total compensation than what the group accomplished in 2015, the 2017 Half-Year Report revealed by Swatch Group today is giving indications of recuperation. Generally, the Biel-based force to be reckoned with, which incorporates brand like Omega, Breguet, Blancpain, Jaquet Droz, Tissot, Longines and some more, has positive outcomes for the primary half-year 2017. All pointers are positive, from deals to benefit. Hence, if this pattern proceeds throughout the year, it could well be that 2017 can be viewed as the finish of the downturn, in any event for the Swatch Group.
Here are a portion of the numbers for Swatch Group Half-Year Report 2017:
- Group net sales: +1.2% at consistent trade rates, of CHF 3 759 million, or CHF 3 705 million, – 0.3% at current trade rates. With the Swiss Franc being fairly solid nowadays, trades are not entirely good, yet the group figures out how to make growth.
- Sales growth: +2.9% at steady rates in the Watches & Jewelry section (barring Production). Deals for the entire fragment, including Production +1.2%, antagonistically influenced by low Production deals to outsiders. While the Swatch Group deals of own brands are acceptable, the deals of developments and parts to outsiders are still rather low, showing that the watchmaking business has not yet completely recovered.
- Operating margin: in the Watches & Jewelry portion (barring Production) increments by practically 25%, from 10.7% to 13.2%, regardless of negative money impact.
- Net income: increments by 6.8% to CHF 281 million with a net edge of 7.6%.