The world’s biggest watch group Swatch has posted a 2013 net profit rise of more than 20 per cent, beating market expectations and hailing a promising start to the new year.

Times look good for the company despite changes in the climate for luxury watch sales in the important Chinese market, it said on Wednesday.

The Swiss watchmaker posted a net profit of 1.9 billion Swiss francs $US2.1 billion ($A2.36 billion) last year, it said in a statement.

Its operating profit soared 17 per cent from the 2012 level to 2.3 billion francs, while its operating margin rose to 27.4 per cent from 25.4 per cent a year earlier.

The company attributed that increase to winning legal action late last year in the Netherlands against US jewellery group Tiffany & Co over a failed venture jointly to design and market luxury watches.

AFP