Swatch posts lower-than-expected profit for 2023

ZURICH

Switzerland's Swatch, maker of luxury timepieces Tissot, Longines and Omega, reported yesterday a lower-than-expected net profit for 2023 as sales figures were hit by a strong Swiss franc.

The company said its net profit rose by 8.1 percent to 890 million francs ($1 billion), lower than the 972 million francs forecast by analysts surveyed by Swiss news agency AWP.

Sales grew 5.2 percent to 7.9 billion francs, in line with expectations.

They were up 12.6 percent when excluding the effects of foreign exchange rates.

"The rapid erosion of major currencies against the Swiss franc could not be offset by continuous price adjustments," Swatch said in a results statement.

The "hugely negative currency impact... weighed on profitability", the statement said.

In Asia, sales grew by double digits in China, Hong Kong, Macau, Thailand, India and Japan.

The company said a "strong growth trend continued" in North America, with the Omega, Tissot and Swatch brands "breaking records."

Swatch reported single-digit growth in Europe but sales "sky-rocketed" in Switzerland where they rose more than 30 percent, Swatch said.

The group said it "anticipates excellent opportunities for further growth in local currencies in 2024," with Omega garnering publicity as the official timekeeper of the Olympic Games in Paris.