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Swatch Group Profit +20% to $2B

Feb 5, 2014 7:17 AM   By Jeff Miller
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RAPAPORT... The Swatch Group's profit rose 20.2 percent year on year to $2.1 billion (CHF 1.928 billion) in 2013. The company's gross margin improved to 22.8 percent from 20.6 percent one year earlier. Both figures were positively impacted by three margin points from a $500 million cash settlement with Tiffany & Co.

Swatch previously reported that its annual group sales had increased 8.3 percent to $9.8 billion (CHF 8.817 billion) and included a full year of revenue from its watch brand, nine months of sales from Harry Winston jewelry boutiques and two months of revenue from Rivoli Investment.

The board proposed an 11.1 percent increase in Swatch dividends to $8.30 (CHF 7.50)  per share bearer and $1.70 (CHF 1.50) per registered share. Shareholders will vote for the dividend at the company's annual general meeting on May 14.

By the end of December 2013, Swatch Group's equity reached a new high of $11 billion (CHF 9.6 billion), equivalent to an equity ratio of 82.3 percent. Swatch Group removed all goodwill from its assets and deducted it from its equity and the company's operating cash flow increased 31 percent to $1.4 billion (CHF 1.3 billion) in 2013. Cash and marketable securities reached more than $1.3 billion (CHF 1.2 billion) at the end of December and furthermore, cash and marketable securities increased to more than $2 billion (CHF 1.8 billion) by the end of January 2014,  or approximately the same level as before the takeover of Harry Winston and Rivoli.

Tags: dividend, equity, group profit, Harry Winston, Jeff Miller, Jewelry sales, Swatch
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