H1 operating profit 204 mln Swiss francs vs 686 mln (Il Sole 24 Ore Radiocor) - Bern, 15 Jul - The Swiss watch maker Swatch said that in the first half of the year net sales fell a reported 14.3%, and a constant currency 10.7%, to 3.445 billion francs reflecting a sharp drop in demand for luxury goods in China, including Hong Kong and Macau and a negative 145 million francs currency impact.

The Swatch brand alone bucked the negative trend with a 10% sales rise in China, while sales outside China in local currencies were flat compared with the record sales of a year ago.

Total sales were 5.6% above the first half of 2022 at constant currencies.

Operating profit slumped to 204 million francs from 686 million for a margin of 5.9% from 17.1%. However, in June alone, the margin already rose again to over 15%, a positive sign for the second half.

Swatch said it posted a strongly negative operating result in the Production segment in the short term due to the deliberate maintaining of all production capacities and renouncing from layoffs.

Net income fell to 147 million francs from 498 million for a margin of 4.3% from 12.4%.

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(RADIOCOR) 15-07-24 08:07:40 (0067) 5 NNNN