Swatch Group sales were up by CHF1 billion (£674.8m) year on year in 2012, a rise of 14% on 2011’s figures, and expects strong profits despite what it described as “significant marketing expenses” for the London 2012 Olympic Games.
Gross sales at Swatch Group hit CHF 8.143 billion (£5.5bn) in 2012. Gross sales in the watch and jewellery division of the business were up 15.6% to CHF 7.297 billion (£4.9bn) with Swatch group reporting that “almost all brands” delivered double-digit growth over the year.
The group said that its stronger watch and jewellery brands had “performed convincingly in all regions and price segments, notably outside Greater China”.
Swatch Group said that it expects “good results for 2012 at operating profit and net income level” despite heavy marketing spend surrounding the Olympics – its watch brand Omega was official timekeeper – and “unsatisfactory currency developments”.
In the production division of Swatch Group capacity was expanded, resulting in an increase in gross sales of 10.1% to CHF2.218 billion. The group said that it managed to reduce production bottlenecks in the period.
Swatch Group has started 2013 in good stead with the group claiming that the first 10 days of January have delivered “positive growth”.