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

Apparel/Garments | On 18th Jan 2017

Government considering 100% FDI in single brand retail

The Government of India is looking at allowing 100 per cent foreign...

Courtesy: Walmart

Apparel/Garments | On 18th Jan 2017

Walmart to create 34,000 new jobs in the US

The world’s biggest retailer and also the biggest US private sector...

Courtesy: UN Department of Public Information

Textiles | On 18th Jan 2017

World economy expanded by just 2.2% in 2016: UN

The world economy expanded by just 2.2 per cent in 2016, the slowest...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Kevin Nelson
TissueGen

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Giorgio Mantovani
Corman S.p.A

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

Yash P. Kotak
Bombay Hemp Company

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search