After two years of sequential decay and a general negative temperament over the watchmaking business, it appears to be that 2017 could be the significant year for the watch fragment – in any event 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 basically, a built up productivity, with a solid expansion in working edge and net gain. 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 overall gain than what the group accomplished in 2015, the 2017 Half-Year Report uncovered 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 principal half-year 2017. All pointers are positive, from deals to benefit. Accordingly, 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 steady trade rates, of CHF 3 759 million, or CHF 3 705 million, – 0.3% at current trade rates. With the Swiss Franc being somewhat solid nowadays, sends out are not entirely positive, yet the group figures out how to make growth.
- Sales growth: +2.9% at consistent rates in the Watches & Jewelry portion (barring Production). Deals for the entire portion, 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 altogether recovered.
- Operating margin: in the Watches & Jewelry portion (barring Production) increments by practically 25%, from 10.7% to 13.2%, notwithstanding negative money impact.
- Net income: increments by 6.8% to CHF 281 million with a net edge of 7.6%.