Home / Knowledge / News / Apparel/Garments / Sales at Li & Fung marginally up 1.4% in 2014
Sales at Li & Fung marginally up 1.4% in 2014
23
Mar '15
Although logistics division sales expanded by a massive 66 per cent, overall sales at Li & Fung rose marginally by just 1.4 per cent for the period ended December 31, 2014.

Li & Fung said total sales grew 1.4 per cent to US $19,288 million and revenue in Logistics increased by 66 per cent, while sales in the Trading business was stable.

Following the spin-off of Global Brands in July 2014, the Company restated its financials and has reclassified Global Brands as discontinued operations.

The discussion of results and financial position does not therefore include contribution from Global Brands for the year-ended both December 31, 2013 and December 31, 2014.

“Total margin decreased by 2.2 per cent due to an overall reduction in margin across the supply chain as a result of brands and retailers conducting heavy promotional sales,” Li & Fung said in a press release.

“In addition, total margin was also impacted negatively by the shift in the mix of our business from principal to the lower margin agency business,” it added.

The company made investments to strengthen and improve its core business aligned to its three-year plan goals of building a sustainable enterprise, simplifying the business and accelerating organic growth.

Strategic areas of investment included strengthening the logistics network and also adding significant freight forwarding capabilities through the China Container Line (CCL) acquisition.

The Company also made investments in setting up the new Vendor Support Services unit which will gain traction in the coming years.

Further investments included new talent and expertise, presence in new markets, new product categories, and support infrastructure to drive organic growth in the business over the coming years.

Excluding the result of Global Brands, profit attributable to shareholders decreased by 12 per cent to US $539 million.

Basic earnings per share in 2014 were 6.46 US cents, down from 7.32 cents in 2013 and Li & Fung has proposed a final dividend of 2.69 cents per share, and a special dividend of 0.90 cents per share.

“The successful spin-off of Global Brands has allowed us to focus on ways to create value for our customers across our core businesses of Trading and Logistics,” said Spencer Fung, Group CEO.

Spencer Fung continued, “As we enter into 2015, we remain focused on executing our growth strategies with the added benefit of a simpler and more nimble operating model.

“We are committed to creating value for our customers and developing key product expertise to position us for future opportunities.” (AR)

Fibre2fashion News Desk - India


Must ReadView All

Bangladesh panel to revise minimum wage for garment workers

Apparel/Garments | On 16th Jan 2018

Bangladesh panel to revise minimum wage for garment workers

The Bangladesh labour and employment ministry recently formed a panel ...

30th rank for India in WEF global manufacturing index

Textiles | On 16th Jan 2018

30th rank for India in WEF global manufacturing index

India has been ranked 30th on a global manufacturing index by the...

Indian brand Patanjali to venture into e-commerce

Apparel/Garments | On 16th Jan 2018

Indian brand Patanjali to venture into e-commerce

Baba Ramdev’s Patanjali Ayurved Ltd is all set to venture into...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sanjukta Dutta
Sanjukta's Studio

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

January 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.8%
No
13.5%
Skip
17.7%

Total Votes: 96

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.5%
No
29.2%
Skip
7.3%

Total Votes: 96

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.5%
No
9.4%
Skip
3.1%

Total Votes: 96

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.3%
No
8.3%
Skip
9.4%

Total Votes: 96


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search