Swatch Group: key figures 2018
With its 18 brands, the Swatch Group is present in all segments, and is a fully verticalized company, from production and distribution to its own worldwide retail network, including e-commerce.
In 2018, the Group net sales increased by 6.1% to CHF 8,475 million at current exchange rates (+5.7% at constant rates).
Operating result increased by 15.2% to CHF 1,154 million. Operating margin increased from 12.5% in the previous year to 13.6%.
Net income increased by 14.8% to CHF 867 million, with a net margin of 10.2% (previous year: 9.5%).
During the 2018 financial year, the strongest sales growth was realized by the prestige and luxury range, particularly by the brands Blancpain, Omega and Longines, despite the high level of back orders caused by capacity bottlenecks in the Habillage sector (case, dial, hands, etc.). These amounted to a triple-digit million figure. The volume brands of the middle and basic price range performed well.
High growth rates were achieved again in Asia, both in wholesale and in the Group’s own retail including e-commerce, although a downturn in demand occurred in the last three months of the year, particularly in wholesale. Further clear market share gains were achieved in Japan. Sales in North America developed very positively, including the last three months of the year.
Conversely, Europe displayed a mixed picture. Countries such as Great Britain and Switzerland increased their sales, while other countries such as France were very weak, especially at the end of the year, for the known reasons. Russia showed a strong upward trend in local currency. E-commerce grew strongly in the middle and basic segment, but varied from region to region. Major opportunities exist in this distribution channel in 2019, particularly for Swatch and Tissot.
In the year under review, the Group created over 1,700 new jobs. The largest build up was made in the production sector in Switzerland, with over 1,300 new jobs. The worldwide workforce at the end of December 2018 was approximately 37,100 employees, of which more than 18,000 in Switzerland where the Swatch Group is the largest industrial employer.
The Swatch Group anticipates healthy growth in 2019, despite the strong comparison basis in the first half of 2018. Demand is good and production problems and bottlenecks, particularly in the Habillage sector, will be resolved in the first semester. Further expansion of e-commerce, mainly in the middle and basic range, will open additional possibilities.
In the future all mechanical watches for Swatch Group brands will feature antimagnetic properties, either with the silicon balance spring or the Nivachron balance spring, both patented inventions. This means a substantial quality improvement in terms of precision and reliability which will be backed up by a longer guarantee period. swatchgroup.com
In 2018, the Group net sales increased by 6.1% to CHF 8,475 million at current exchange rates (+5.7% at constant rates).
Operating result increased by 15.2% to CHF 1,154 million. Operating margin increased from 12.5% in the previous year to 13.6%.
Net income increased by 14.8% to CHF 867 million, with a net margin of 10.2% (previous year: 9.5%).
During the 2018 financial year, the strongest sales growth was realized by the prestige and luxury range, particularly by the brands Blancpain, Omega and Longines, despite the high level of back orders caused by capacity bottlenecks in the Habillage sector (case, dial, hands, etc.). These amounted to a triple-digit million figure. The volume brands of the middle and basic price range performed well.
High growth rates were achieved again in Asia, both in wholesale and in the Group’s own retail including e-commerce, although a downturn in demand occurred in the last three months of the year, particularly in wholesale. Further clear market share gains were achieved in Japan. Sales in North America developed very positively, including the last three months of the year.
Conversely, Europe displayed a mixed picture. Countries such as Great Britain and Switzerland increased their sales, while other countries such as France were very weak, especially at the end of the year, for the known reasons. Russia showed a strong upward trend in local currency. E-commerce grew strongly in the middle and basic segment, but varied from region to region. Major opportunities exist in this distribution channel in 2019, particularly for Swatch and Tissot.
In the year under review, the Group created over 1,700 new jobs. The largest build up was made in the production sector in Switzerland, with over 1,300 new jobs. The worldwide workforce at the end of December 2018 was approximately 37,100 employees, of which more than 18,000 in Switzerland where the Swatch Group is the largest industrial employer.
The Swatch Group anticipates healthy growth in 2019, despite the strong comparison basis in the first half of 2018. Demand is good and production problems and bottlenecks, particularly in the Habillage sector, will be resolved in the first semester. Further expansion of e-commerce, mainly in the middle and basic range, will open additional possibilities.
In the future all mechanical watches for Swatch Group brands will feature antimagnetic properties, either with the silicon balance spring or the Nivachron balance spring, both patented inventions. This means a substantial quality improvement in terms of precision and reliability which will be backed up by a longer guarantee period. swatchgroup.com
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