Swatch records drop in first-half profit

The Swiss Swatch Group has posted a 9.1 per cent drop in first-half net profit to SFr418 million ($381 million), but a 17.7 per cent increase in sales.

The world’s leading watchmaker says the fall in profit is the result of unrealised value adjustments on portfolios and foreign investments due to weak stock markets.

Operative net profit grew 16 per cent to SFr593 million in the first half of the year, according to a company statement on Thursday.

Swatch said the positive sales result was due to growth in the watches and jewellery segment despite ongoing capacity bottlenecks.

The Biel-based company said it was confident it would achieve solid sales and profitability in the second half-year.