The Swatch Group (UHR) H2 2024 earnings summary

Executive summary

• Net sales declined 14.6% to CHF 6,735 million, with operating profit down 74.5% to CHF 304 million and net profit down 75.4% to CHF 219 million compared to 2023, mainly due to weak demand in China and Southeast Asia, and continued investment in production and marketing.

• Equity remains strong at CHF 12.2 billion, representing 87.3% of total assets, and the Group proposes a dividend of CHF 0.90 per registered share and CHF 4.50 per bearer share.

• The Group maintained full employment and production capacity, prioritizing long-term stability and innovation, with 196 patents registered in 2024.

Financial highlights

• Net sales: CHF 6,735 million (down 14.6% year-over-year).

• Operating profit: CHF 304 million (4.5% margin, down from 15.1%).

• Net profit: CHF 219 million (3.3% margin, down from 11.3%).

• Cash flow from operating activities: CHF 333 million (down 45.9%).

• Dividend proposal: CHF 0.90 per registered share, CHF 4.50 per bearer share.

• Average return on equity: 1.8% (down from 7.3%).

Outlook and guidance

• Management expects substantial improvements in sales, operating profit, and cash flow in 2025, with positive momentum anticipated in most markets except China.

• The Group will continue to invest in innovation, sustainability, and brand development, with a focus on adapting to changing consumer habits, especially in China.