Li & Fung unveils 2011-2013 new three-year plan
Hong Kong-based multinational Li & Fung Limited announced strong core operating profit growth of 42% in 2010, reflecting solid organic growth and significant margin expansion from onshore businesses. It also announced the details of its new Three-Year Plan for 2011-2013, which include reaching core operating profit of US$1.5 billion by 2013.
For the year ended 31 December 2010, the Group's turnover grew 19% over the year before to HK$124.1 billion (US$15,912 million), reflecting improving consumer sentiment. Core operating profit increased to HK$5,656 million (US$725 million) as a result of further margin improvement from the higher-margin onshore businesses of the United States and Europe.
Profit attributable to shareholders reached HK$4,278 million (US$548 million), an increase of 27% compared to 2009. Basic earnings per share were 111.9 HK cents, an increase of 23% compared to 91 HK cents in 2009.
The Board of Directors (“Directors”) has proposed a final dividend of 52 HK cents per share (2009: 49 HK cents).
The Directors of the Group propose that each of the existing issued and unissued shares of par value of 2.5 HK cents each in the share capital of the Group be subdivided into two shares of par value of 1.25 HK cents each in order to improve market circulation of the shares.
Mr. William K Fung, Group Managing Director of Li & Fung Limited, said, “This marks the end of our Three-Year Plan 2008-2010, which finished with a robust performance that underscores the dynamics of our businesses and the operational excellence we achieved despite the financial crisis and recession. We also concluded the year by making major progress on shaping the future of our business and laying a solid foundation for our new Three-Year Plan.”
“Now, with the acquisition of Integrated Distribution Services Group Limited (“IDS”), we are able to offer the most comprehensive supply chain solutions to our customers. It has also expanded our geographical coverage for future growth, while at the same time strengthening our distribution network to capitalize on growing opportunities in emerging markets.”
Today the Group also announced the details of its new Three-Year Plan 2011-2013. The Group has set a target of reaching US$1.5 billion in core operating profit by 2013, with trading, logistics and onshore expected to contribute US$700 million, US$100 million and US$700 million respectively.
Mr. Bruce Rockowitz, President of Li & Fung (Trading) Limited, said, “This new Three-Year Plan marks the beginning of a new era at Li & Fung, one in which higher prices have brought the industry status quo to an end. We have grown from one global network to three – trading, logistics and onshore – but the whole is much greater than the sum of its parts. While the Three-Year Plan targets are once again ambitious, we are confident about us achieving them because the Group now covers the entire supply chain end-to-end and is well positioned to grow across these three distinct yet interconnected networks.
“We will also continue to pursue our two-pronged strategy of pursuing acquisitions to complement our organic business growth, while maintaining our solid balance sheet and financial strengths,” Mr. Rockowitz concluded.
Li & Fung Limited, the Hong Kong-headquartered multinational group, is recognized as the world's leader in consumer goods design, development, sourcing and distribution.
Li & Fung Limited