After saying its half-year leads to July 2023 with a formidable gross sales development of 18%, Swatch Group has simply revealed its key figures for the total 12 months 2023. The Biel-based conglomerate, proprietor of manufacturers comparable to Omega, Longines, Tissot and Breguet, reported a rise in gross sales of 12.6% at fixed trade charges or 5.2% at present trade charges to CHF 7,888 million. Regardless of a barely slower tempo within the fourth quarter of the 12 months, which might point out a change within the general state of the enterprise and the {industry}, the group stays constructive on its outlook for 2024 and expects “wonderful development prospects” for the following 12 months.
Though Swatch Group is not going to return to pre-pandemic gross sales ranges – the group reported gross sales of CHF 8,475 million in 2018 – Swatch Group can report robust gross sales in 2023 with gross sales of just about CHF 8 billion. Nonetheless, the group additionally highlighted an enormous international trade impact and a difficult foreign money surroundings, with an enormous unfavourable foreign money impression amounting to CHF 554 million or 7.4%, weighing on profitability accordingly. “The fast decline of essential currencies towards the Swiss franc couldn’t be offset by steady worth changes,” states the Swatch Group.
Gross sales elevated by 12.6% at fixed trade charges for the total 12 months 2023, and the phase’s export figures on the finish of November 2023 have been 11.9% increased than the values revealed by the Affiliation of the Swiss Watch Trade, at +7.9%. This confirms the market share positive aspects of the Group manufacturers, particularly within the cheaper price phase due to Swatch. Nonetheless, the second half of 2023 confirmed barely much less robust development than the primary six months of the 12 months, as fourth-quarter income rose round 8% in native currencies. Profitability follows roughly the identical pattern, with web revenue at CHF 890 million, a rise of 11.3% in comparison with 2022.
As for native markets in Asia, the group reported double-digit development in Hong Kong, Macau, Thailand, India, Japan and China. Europe recorded single-digit gross sales development, however in Switzerland gross sales skyrocketed with a rise of over 30%. The robust development pattern continued in North America and the Omega, Tissot and Swatch manufacturers broke information. The group studies continued demand for the Moonswatch and constructive impression of the collaboration between Blancpain and Swatch, as Blancpain shops have been unable to fulfill demand for unique Fifty Fathoms fashions and site visitors elevated considerably.
Within the earlier 12 months, the Swatch Group additionally elevated its investments, which doubled to CHF 803 million – primarily in manufacturing services and retail properties. As well as, 1,541 extra jobs will likely be created, together with 802 in Switzerland. An essential metric for the group has lengthy been stock ranges, which stay extraordinarily excessive at CHF 7,309 million (round 92% of 2023 gross sales) and have elevated to CHF 436 million within the uncooked supplies, work in progress and half-finished items classes. The group explains this as a conservative place as follows: “Securing manufacturing with adequate uncooked supplies and elements is the group’s prime precedence (…) so as to have the ability to meet demand for the manufacturers even in instances of provide bottlenecks for particular person supplies.”
Regardless of a difficult surroundings anticipated in 2024, Swatch Group “expects wonderful alternatives for additional development in native currencies in 2024,” with the decrease and mid-price segments (Swatch, Tissot, Longines and extra) anticipated to account for a lot of the development. Omega can also be anticipated to have good visibility because the official timekeeper of the 2024 Olympics. However, simply as in 2023, the group expects trade charge fluctuations to proceed to impression its outcomes attributable to its robust industrial base in Switzerland.
Additional particulars and the total report might be discovered at www.swatchgroup.com.
https://monochrome-watches.com/industry-news-swatch-group-2023-results-show-strong-growth-in-sales-positive-outlook-for-2024/
