Swatch: leader of the SMI; accounts recovered in 2017
(CercleFinance.com) - As the sharpest riser of the SMI index this morning, the Swatch bearer share (+3.
7%) is in demand from investors, who have welcomed the FY results published by the Swiss watchmaker.
The group's return to growth has enabled its earnings to recover significantly, with management remaining optimistic.
In 2017, the group posted sales of 8 billion Swiss francs, up 5.4% at current exchange rates and up 5.8% at constant exchange rates. The main Watches and Jewelry segment, which excludes third-party production, increased by 6.9% at current exchange rates over the year, with an acceleration in H2 (+12.2%, and even +14.9% in Q4). For December, Swatch boasted the second-best monthly turnover in its history.
The group has reported dynamic growth in all price segments, with the highest growth in the Prestige and Luxury segment, with upbeat trends in Asia. In this context, operating profit rose by 24.5% to 1 billion Swiss francs, with its margin up from 10.7% to 12.6%, while net profit jumped 27.3% to 755 million Swiss francs. The group's AGM will offer to raise its dividend by 11% to 7.50 Swiss francs per share.
And what next? Swatch has announced a "good start to the year in all segments" and "positive outlook for 2018 with the launch of many new products and a very good utilisation rate in production, which will continue to benefit from higher volumes. In short, it expects very strong new growth in local currencies in 2018, in all price segments.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
7%) is in demand from investors, who have welcomed the FY results published by the Swiss watchmaker.
The group's return to growth has enabled its earnings to recover significantly, with management remaining optimistic.
In 2017, the group posted sales of 8 billion Swiss francs, up 5.4% at current exchange rates and up 5.8% at constant exchange rates. The main Watches and Jewelry segment, which excludes third-party production, increased by 6.9% at current exchange rates over the year, with an acceleration in H2 (+12.2%, and even +14.9% in Q4). For December, Swatch boasted the second-best monthly turnover in its history.
The group has reported dynamic growth in all price segments, with the highest growth in the Prestige and Luxury segment, with upbeat trends in Asia. In this context, operating profit rose by 24.5% to 1 billion Swiss francs, with its margin up from 10.7% to 12.6%, while net profit jumped 27.3% to 755 million Swiss francs. The group's AGM will offer to raise its dividend by 11% to 7.50 Swiss francs per share.
And what next? Swatch has announced a "good start to the year in all segments" and "positive outlook for 2018 with the launch of many new products and a very good utilisation rate in production, which will continue to benefit from higher volumes. In short, it expects very strong new growth in local currencies in 2018, in all price segments.
Copyright (c) 2018 CercleFinance.com. All rights reserved.