Turnover rose sharply by 11.3% to 4.0 billion francs, despite negative exchange rate effects of 242 million.

The Swatch watch group recorded a clear improvement in its results in the first half of 2023, thanks in particular to the recovery of China after the cancellation of health restrictions linked to Covid-19, but also to the dynamism of Europe and the United States.

During the period under review, turnover recorded an increase of 11.3% to 4.0 billion francs, despite negative exchange rate effects of 242 million, the Biel-based company announced in a press release on Thursday. Organic growth was 18%.

Operating income for its part jumped 36.4% to 686 million francs and the margin increased by 3.9 points to 17.1%. Net profit stood at 498 million, a jump of 55.6% year on year.

The watchmaking group exceeds at all levels the analysts' forecasts compiled by the AWP agency.

Over the first six months of the year, the watch and jewelry segment saw its operating margin improve by 3.7 percentage points to 19.4%, benefiting from the end of travel restrictions in Asia. Activity in China thus recorded double-digit growth, but other destinations such as Thailand and Macao benefited from the revival of tourism. Hong Kong also saw its activity triple.

Europe was not left out, especially Switzerland, which recorded a jump of 50%, as well as Italy, Spain and France. Sales in North America showed a “very pleasing” development.

In terms of products, demand for Swatch watches and in particular the Moonswatch continued to grow.

As a forecast for the second half of the year, management foresees “excellent prospects for growth in local currencies”, in all regions and all price segments.