Swatch forecasts a record year in 2023, spurred by China reopening

Swatch Group AG said Tuesday that it expects to achieve a record year in 2023 in light of China’s reopening, as it posted higher sales and net profit for last year.

The Swiss watchmaker
UHR,
+1.12%
said net profit for 2022 stood at 807 million Swiss francs ($875.5 million) compared with CHF765 million in 2021.

Net sales for the year rose to CHF7.5 billion from CHF7.31 billion in 2021, Swatch said. On a constant-currency basis, the company’s sales grew 4.6% last year, as Covid-19 lockdowns in China resulted in sales shortfalls of more than CHF700 million, it said.

Swatch said it expects strong sales growth in 2023 in all regions and segments. The end of Covid-19 measures in China has led to a quick consumption recovery there and in surrounding markets and is anticipated to revitalize sales in tourist destinations as well, the company said.

Write to Adria Calatayud at adria.calatayud@dowjones.com

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