BIEL, Switzerland — Swatch Group AG, the world’s largest watchmaker, on Monday posted a 12 percent rise in 2006 revenue.

High demand for jewelry watch brands Breguet, Blancpain and Omega helped boost sales to 5.05 billion Swiss francs ($4 billion) from 4.5 billion francs in 2005. This will lead to an above-average increase in operating profit, the company said, adding that it expects a record year in 2006. The company will announce the profit figures later.

“The figures were slightly above our estimates,” a Zurich-based strategist said.

The watches and jewelry division increased sales to 3.91 billion francs ($3.13 billion) from 3.44 billion francs a year earlier.

The highest growth rates were posted in Asia, followed by the United States and Europe.

The group also has low-end, plastic Swatch-branded timepieces, which have in the past few years been a drag on the company’s margins.

Bank Vontobel analyst Rene Weber said Swatch may soon announce a new share buyback based on an expected surplus of 1.5 billion francs ($1.2 billion). Swatch recently concluded a $300 million share buyback.

Swatch Group bearer shares rose 2 percent to close at 287.50 Swiss francs ($230.33) on the Zurich exchange.