Hong Kong-based Li & Fung Limited, the multinational consumer goods sourcing, logistics, and distribution group, announced that in the first six-month period ending 30 June 2013 it achieved a turnover of US$9,129 million.
This was comparable to the US$9,128 million achieved in the first half of 2012, reflecting that, increasingly, the Group’s businesses are skewed towards the second half of the year due to seasonality effects and change in the business mix towards wholesale and distribution.
- Turnover of US$9,129 million at same level as in previous year
- Core operating profit of US$223 million represents an increase of 1%
- Overall margin percentage increased from 14.5% to 15.1%
- Strong operating cash flow of US$217 million on par with 2011 operating level
- Seasonality and change in business mix has increased skewing of core operating profit towards the 2nd half of the year
- Restructuring of LF USA on track for completion by the end of 2013
Overall, results across the Group were in line with its previously stated focus on returning to 2011 operating levels by the end of 2013.
Core operating profit grew by 1% to US$223 million in the first six months of 2013. Profit attributable to shareholders was US$96 million, representing a decrease of 69%. This was mainly due to the non-cash gain of US$198 million on the write-back of contingent considerations in 2012.
Excluding such non-cash gain, profit attributable to shareholders decreased by 15%. Basic earnings per share was 9 HK cents (equivalent to 1.15 US cents), a decrease of 70% compared to 30 HK cents (equivalent to 3.80 US cents) during the same period in 2012.
The Board of Directors has proposed an interim dividend of 15 HK cents (equivalent to 1.9 US cents) per share (2012 interim: 15 HK cents – equivalent to 1.9 US cents).
Mr. Bruce Rockowitz, Group President and CEO of Li & Fung Limited, said, “Our business continues to achieve satisfactory results across our three Networks as we remain focused on returning to 2011 operating levels for the Group as a whole by the end of this year. The restructuring of LF USA has been progressing well and we are on track to complete the project by the end of 2013.”