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Turnover down 1% at Li & Fung in H1
21
Aug '15
Total turnover for the first six months of 2015 at Hong Kong based Li & Fung Ltd went down marginally by 1 per cent year over year to US $8,626 million.

“Of which, trading business revenue fell 2.5 per cent from a year ago period, while the logistics business reported a massive sales hike of 36.3 per cent for the first half of 2015,” interim results released by the company stated.

According to the company, for the six months to June 30, 2015, it reported results which reflect the ongoing weak macroeconomic conditions as well as disruptions in global retail.

“Despite tough headwinds, including downward pressures from the deflationary environment and European currencies depreciation, we maintained top line growth,” the company added.

Profit attributable to shareholders surged 33.4 per cent year on year to $149 million, mainly from the impact of discontinued operations of Global Brands in 2014.

Basic earnings per share for the reporting period amounted to $0.17, up from $0.13 in the same period in 2014.

Excluding the results from discontinued operations in 2014, basic earnings per share declined from $0.25 in the period under review to $0.17 in the prior year first half.

“Continued margin pressure and annualised costs associated with investments made in the second half of 2014 impacted core operating profit for the first half of 2015,” the sourcing specialist informed.

Group CEO Spencer Fung said “Emergence of ecommerce has created a new set of challenges for global brands and retailers, but we believe omni-channel is the future for success of retailing.”

“Consumers are no longer limited by how, when and where they buy products as they are also demanding that these products are unique and sustainable,” he added.

“As a result, our customers require higher degrees of product differentiation to remain competitive than ever before,” Fung observed.

Chairman William Fung stated, “The trend of lower value-added production moving out of China complicates our customers' supply chains and disconnects production from raw material infrastructure in China.”

“However, we are best positioned to manage this new complexity for our customers and suppliers with our new vendor support services,” he noted.

Li & Fung further added that as it enters the second half of the year, its order book is solid and the pipeline of new business for both our trading and logistics businesses is strong.

The company expressed optimism that through the remainder of the year, key prospects will be converted into new business. (AR)

Fibre2Fashion News Desk – India

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