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
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

L-R Manish Singhai, COO, Peter England; Vinai Kumar Saxena, chairman, KVIC; Ashish Dikshit, business head, ABFRL and Anshu Sinha, CEO, KVIC while signing agreement. Courtesy: ABFRL

Textiles | On 24th May 2017

Aditya Birla & KVIC enter into a strategic partnership

Aditya Birla Fashion and Retail Ltd (ABFRL) and Khadi and Village...

Courtesy: Jabong

Apparel/Garments | On 24th May 2017

Jabong Mood Store redefines online shopping in India

Jabong, India's leading online fashion retailer, has launched the...

Textiles | On 24th May 2017

Starlinger unveils FX 8.0 circular loom for fabric making

Starlinger, a leading supplier of machinery for woven plastic...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


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