Swatch Increases Dividend After 2017 Net Profit Rises

By Euan Conley and Pietro Lombardi 
 

Swatch Group (UHR.EB) said Tuesday that the board would propose an increase in dividend after 2017 net profit was boosted by strong performance in its main watches and jewelry business.

Net profit for the year was 733 million Swiss francs ($782.6 million) compared with CHF574 million in the year-earlier period, while revenue rose 5.4% at current exchange rates to CHF7.96 billion.

"Particularly the second half of 2017 was marked by highly accelerated sales growth of 12.2% in the Watches and Jewelry segment (excluding Production) at actual rates and with one of the best-ever December turnover," the company said.

Analysts expected the company to post net revenue of CHF7.85 billion, according to a consensus provided by Factset.

Swatch Group will propose a dividend of CHF7.50 a bearer share and CHF1.50 a registered share, an 11% increase.

The outlook for 2018 is positive, Swatch said, "with numerous new product launches and very good capacity utilization in production, which will further profit from higher volumes."

Write to Euan Conley at [e-mail]

(END) Dow Jones Newswires

January 30, 2018 02:14 ET (07:14 GMT)

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