The Swiss company Swatch Group increases its profits in 2023 and establishes itself in the Asian market.
The company dedicated to watches and jewelry recorded a net profit of 920.2 million euros, compared to the 842.5 million invoiced in the previous year, which represents an increase of 7.7%, according to the accounts presented by the multinational this Tuesday.
In addition, sales also improved by 5.2% compared to last year, up to 8,353 million euros.
The main division, watches and jewelry, was the main driver of growth.
Its sales volume increased by 5.6% and reached 7,990 million.
On the contrary, the electronic systems division lost 3.2% compared to 2022, and recorded a turnover of 380.2 million.
Regarding personnel, expenses amounted to 2,700 million, 7.9% more than a year before, while the bill for material purchases rose by almost 1%, to 1,974 million euros.
The rest of the net operating expenses stood at 2,417 million euros, that is, 7.1% more.
According to the company's accounts, total expenses amounted to 7,091 million, which represents a 5.6% increase compared to the previous year.
Swatch brand logoAlamy Stock Photo
In the annual balance sheet, the Swiss firm's document indicates that 2023 was a year of “excellent growth opportunities” in the company's low-cost products.
Exports grew by 11.9% until the end of November.
The place where the company made notable progress was Asia.
On that continent, the company recorded a double-digit increase in sales in markets such as Hong Kong, China and Japan.
By contrast, Europe saw single-digit sales growth, although sales soared in the company's home country of Switzerland, with an increase of more than 30%.
In North America, the growth trend continued with records for the Omega, Tissot and Swatch brands, which belong to the group.
Forecasts for this course
The Swiss firm will focus this year on continuing to promote the development of its low-cost products.
And it hopes that Omega will benefit from its media exposure during the Olympic Games that will take place in Paris this year, according to the statement that Swatch has released.
In addition, the group will place greater focus on America and Japan to continue growing in the watch market;
while in China it will continue betting to maintain the fight for control of products with a more affordable price.
Despite this, the company highlights the impact that the fluctuation of the Swiss franc may have throughout the current year.
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