H1 revenues drop 6.4% at Li & Fung

14 Sep '16

1 min read

For the six months ended June 30, 2016, total revenue at sourcing and logistics company Li & Fung dropped 6.4 per cent over the same period in the previous year to US $8,071 million. However, sustained efforts to improve operating efficiency and productivity through the use of technology resulted in operating cost declining 2.8 per cent year over year.

The company said difficult trading conditions impacted core operating profit in the first half of 2016, which slipped 14.2 per cent from a year ago period to $156 million, while profit attributable to shareholders amounted to $72 million.

Profit attributable to shareholders adjusted to exclude the write-back of acquisition payable and other non-cash M&A related items stood at $92 million, down 16.5 per cent and basic earnings per share were 0.87 cents.

“2016 is one of the toughest trading periods we have ever seen. Retailers are extremely challenged right now, grappling with the impact of ecommerce, a pervasive promotional environment and high levels of inventory,” CEO Spencer Fung said. “This translated to a lower order volume for our business during the first six months of the year.” (AR)

Fibre2Fashion News Desk – India

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