PARIS — Swatch Group reported a record net profit in 2010 despite adverse currency effects, as sales of Swiss timepieces reached new peaks.
The world’s largest watchmaker said net income jumped 41.5 percent to 1.08 billion Swiss francs, or $1.04 billion. Its operating margin rose to 23.5 percent in 2010 from 17.6 percent in 2009 as strong demand kept its factories buzzing.
The Biel-based company, whose 19 brands range from luxury Breguet timepieces to affordable plastic Swatch watches, last month said gross sales totaled 6.44 billion Swiss francs, or $6.19 billion, up 18.8 percent in organic terms versus 2009 and up 8 percent compared with 2008, its previous record year.
All currency conversions are made at average exchange rates.
Swatch Group aims to achieve sales of 10 billion Swiss francs, or $10.6 billion at current exchange rates, in the medium term, it said in a statement.
“The strong uptrend seen in 2010 was confirmed again in January 2011. The current outlook for 2011 appears positive, despite the unfavorable currency constellation at present, particularly the U.S. dollar and the euro against the Swiss franc,” it said.