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PRESS RELEASE I AD HOCI Biel / Bienne , 12 July 2021 Ad hoc announcement pursuant to Art . 53 of the Listing Rules SWATCH GROL GROUP SWATCH GROUP : Half - Year Report 2021 - Net sales of CHF 3 392 million , + 54.6 % to the previous year at constant exchange rates , or + 54.4 % at current rates . - Operating profit of CHF 402 million compared with operating loss of CHF -327 million in the previous year . Operating margin of 11.9 % . - Watches & Jewelry segment ( excluding Production ) with a strong operating margin of 17.0 % , above the level of 15.6 % for the year 2019. In the 2nd quarter , margin was 19.2 % ( 2019 : 15.5 % ) . - Net income of CHF 270 million compared with net loss of CHF -308 million in the previous year . Net margin of 8.0 % . - Operating cash flow of CHF 519 million , 38.0 % higher than 2019. Free Cash Flow " of CHF 380 million , doubled compared to 2019 . - Net liquidity of CHF 1 975 million , more than double in comparison with the previous year , as well as a very strong equity base of CHF 11.2 billion , with an equity ratio of 85.2 % ( previ ous year : CHF 10.8 billion , or 84.6 % ) . - The already very high consumer demand will be enhanced by the further easing of Covid restrictions in many markets and generate additional growth . Swatch Group expects higher sales in local currencies in the second half of 2021 in comparison with 2019 . 1 ) Cash flow from operating activities minus cash flow from investing activities 2 ) Cash and cash equivalents and marketable securities and derivative financial instruments minus current financial debts and derivative financial instruments 1