Cash ticking in for Swatch as profits soar

The world's biggest watch group Swatch said on Tuesday its net profits jumped 18.1 percent to 1.3 billion francs ($1.4 billion) in 2011 and it expected to sustain growth this year.

Cash ticking in for Swatch as profits soar
Blake Patterson (File)

The Swatch Group ascribed its success to strong sales in China in particular.

Operating profit increased 12.4 percent to 1.61 billion Swiss francs and the operating margin increased from 23.5 percent to “a strong 23.9 percent despite the negative currency environment and the sharp rise in commodity prices”.

“We expect growth to continue in 2012, although this is more and more challenging due to the high benchmark,” the watch group said in a statement.

Gross sales for Swatch hit a record 7.14 billion francs in 2011, the group announced in January, an increase of 21.7 percent over 2010 at constant exchange rates, and it created more than 2,800 new jobs.

“The continued weakness in the euro and the dollar during the year had a major negative impact on sales of about 700 million Swiss francs,” Swatch said however.

On the Swiss exchange Swatch International was trading at 395.6 francs at 0850 GMT down 4.6 percent.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


It’s official! Switzerland is the most expensive country in the world

While anyone living in Switzerland might not have needed the reminder, a new study shows the cost of living in Switzerland is the highest of anywhere in the world.

It's official! Switzerland is the most expensive country in the world

Switzerland topped the list well ahead of Norway in second place, with Iceland, Japan and Denmark rounding out the top five. 

The rankings, put together by CEO World magazine, took into account rent, groceries, purchasing power, restaurants and the cost of living in 132 countries across the globe. 

European countries featured prominently in the top 20, while countries in Asia and the Caribbean were also prominent. 

Switzerland top of the list

Not only did Switzerland top the overall list, but it also ranked highly in several individual metrics, making the cost of living there officially the highest in the world. 

READ: Everything you need to know about the cost of living in Switzerland

Groceries in Switzerland are also more expensive than anywhere in the world, ranking a full 30 points higher than second-placed South Korea. 

But if you’re looking to avoid the grocery shop, eating out in Switzerland is also more expensive than anywhere else in the world. 

The only bright light in the rankings is Switzerland’s national purchasing power – which is also top of the list – perhaps explaining why the Swiss love to travel or even just shop abroad. 

This is of course more beneficial elsewhere, with the benefits of the country’s excellent purchasing power somewhat eroded by high prices at home. 

Photo: CEO World

In fact, the only metric Switzerland doesn’t top is rental costs. That’s not to say renting in Switzerland is cheap, but it trails Hong Kong, Singapore and Luxembourg on the international rent index. 

READ MORE: Eight things you need to know before renting in Switzerland 

Least expensive countries

Among the least expensive countries, central Asian nations rank highly. Pakistan is officially the least expensive, followed by Afghanistan, India and Syria. 

The least expensive European country on the list is Kosovo (124th) followed closely by Georgia (123rd). Romania is the least expensive European country on the list, in 99th place. 

Top ten most expensive countries as per CEO World magazine

1. Switzerland

2. Norway

3. Iceland

4. Japan

5. Denmark

6. Bahamas

7. Luxembourg

8. Israel

9. Singapore

10. South Korea