Home / Knowledge / News / Apparel/Garments / Li & Fung posts near stagnant sales in 2012
Li & Fung posts near stagnant sales in 2012
21
Mar '13
Hong Kong-based Li & Fung limited the multinational consumer goods sourcing, logistics, and distribution group, announced 2012 annual results.
 
Highlights of results:
•Core operating profit was down by 42.0% to US$511 million 
•Decline mainly due to costs of restructuring LF USA’s business and reduction in the number of brands distributed in the US
•Profit attributable to shareholders decreased by 9.4% to US$617 million
•Turnover increased by 1% to US$20,222 million, reflecting ongoing strength of core trading business 
•Benefits from LF USA restructuring and cost control measures across the Group targeted by 2013
•Solid balance sheet with 13% gearing ratio and operating cash flow of US$586 million
 
Hong Kong-based Li & Fung Limited the multinational consumer goods sourcing, logistics, and distribution group, announced that turnover achieved in the year ended 31 December 2012 was US$20,222 million, 1% higher than the year before. Trading Network, Logistics Network and Distribution Network accounted for 70%, 2%, and 28% respectively of the Group’s turnover in 2012.  
 
In line with the Group’s profit alert announced on 11 January 2013, core operating profit declined by 42% to US$511 million in 2012, largely due to costs of restructuring LF USA’s business and reduction in the number of brands distributed in the US. 
 
Profit attributable to shareholders was US$617 million, representing a decrease of 9.4% compared to 2011.  Basic earnings per share was 58.1 HK cents (equivalent to 7.45 US cents), a decrease of 11.6% compared to 65.8 HK cents (equivalent to 8.43 US cents) in 2011. 
 
The Board of Directors has proposed a final dividend of 16 HK cents (equivalent to 2.1 US cents) per share (2011: 34 HK cents – equivalent to 4.4 US cents).
 
Mr. Bruce Rockowitz, Group President and CEO of Li & Fung Limited, said, “We recognized that our biggest management challenge was the restructuring of LF USA, which became more costly than originally envisioned. We took swift, decisive action to address the issue and also introduced strict cost control measures across the Group.”
 
He added, “We target to realize the benefits of these measures by this year. Meanwhile, we are putting into place the optimum organization to support the business of LF USA for the longer term.”
 
“The Group’s revenues tend to be skewed towards the second half of the year, which is traditionally when consumers in Western markets spend the most. This is no exception for this year as our customers assess economic trends and observe prevailing market conditions,” he said. 
 


Must ReadView All

Courtesy: The White House

Textiles | On 21st May 2018

China, US put trade war on hold

Following weeks of uncertainty over imposition and counter-imposition ...

Equate posts best Q12018 results since inception

Textiles | On 21st May 2018

Equate posts best Q12018 results since inception

Equate Group's first quarter results for 2018 are the best since its...

Over 60% retailers already have IoT platforms: IDC

Apparel/Garments | On 21st May 2018

Over 60% retailers already have IoT platforms: IDC

Retail organisations are adopting IoT platforms and more than 60 per...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search