Strong performance pushes Swatch dividend higher

Swatch has upped its share dividend to 24 per cent, following strong sales in 1999. The Swiss watchmaker saw net profits rise by nearly 23.5 per cent over the previous year on sales growth of almost 11 per cent.

Swatch has upped its share dividend to 24 per cent, following strong sales in 1999. The Swiss watchmaker saw net profits rise by nearly 23.5 per cent over the previous year on sales growth of almost 11 per cent.

The Swatch board decided to up the dividend by three per cent over 1998, after net profits more than doubled to SFr46 million. Turnover rose to SFr3.626 billion, an increase of 10.9 per cent over the previous year.

Swatch said the strong performance was down to growth in capital markets, as well as more active management.

It said that despite a rise a in turnover of SFr357 million, the value of inventories remained more or less constant at SFr1.1 billion. This represents a drop of about 10 per cent in relation to turnover – a factor the company attributed to active management.

Swatch reported growth in all price segments of the finished watch sector, but admitted it had faced strong competition for the cheaper end of the market.

The group’s performance on the stockmarket has been impressive. Since the beginning of 1999, its market capitalisation has almost doubled to SF11.5 billion. This may have been helped by a share buy-back last year, which reduced shareholders’ equity to 63.8 per cent.

Dividend payments will be made on May 26.

swissinfo and agencies