• Total sales amounted to 6.44 billion Swiss francs, which were affected by currency negative effects in sales in 2009, totaling 3% of total sales, about 164 million Swiss francs . (4.7% in 2008, 285 million Swiss francs; 10% in 2007, 596 million Swiss francs).
• Operating profit of 1.436 billion Swiss francs, with an operating profit margin of 23.5% (2009: 17.6%).
• Net income of 1.08 billion Swiss francs, after deducting the impact of foreign exchange losses, has increased by 41.5 percentage points compared to 2009, even though currency losses have increased by 6.4 percentage points compared to a record 2007.
• Shareholder equity of CHF 7.1 billion or 82.4% of the total balance sheet (77.6% in 2009).
• Proposed dividend increase of 25%, bearer shares of CHF 5.00 per share (2009: CHF 4.00), and registered share capital of CHF 1.00 per share (2009: CHF 0.80).
• A good start in 2011; the outlook for the year remains positive despite pressure to appreciate the Swiss franc.
Looking forward to 2011
The strong uptrend that emerged in 2010 was redefined in January 2011. The market forecast for 2011 is very optimistic, despite the current adverse currency effects, especially the exchange rate of the US dollar and the euro against the Swiss franc. The Swatch Group Board of Directors and the Managers’ Group Management Committee will continue to establish a clear and proactive organic growth strategy in this very healthy environment, with a view to achieving the sales target of 10 billion Swiss francs in the medium term.
I sincerely thank the very positive employees for the strong regional influence of the brand in the world’s major markets and comprehensive coverage of all market price segments. The Group is confident and capable of achieving this goal.
In addition, further investment in research and development will generate more innovations and products, and will continue to be launched. Some projects will appear at this year’s Basel trade show.
To ensure the continuity of the Group’s sustainable growth, further targeted investments will be made, such as building a comprehensive and efficient distribution network and expanding production capacity.
Thanks to its very solid capital and liquidity, the Group will be able to take advantage of interesting opportunities to increase its market share and business.
Source: Swatch Group
www.swatchgroup.com