Home / Knowledge / News / Li & Fung posts H1 results, signs two new deals
Li & Fung posts H1 results, signs two new deals
13
Aug '10
Hong Kong-based multinational Li & Fung Limited, the global consumer goods exporter, announced record core operating profit growth of 55% for the first six months of 2010, reflecting the effects of nascent economic recovery in the United States together with contributions from previous acquisitions and outsourcing deals.

For the first six months ending 30 June 2010, the Group's turnover was HK$51,792 million (US$6,640 million), 12% higher than same period in 2009. Core operating profit increased to HK$2,635 million on the back of continued growth in the higher-margin onshore businesses of the United States and Europe, disciplined cost control and the provision of more value-added services. These factors helped the Group continue to deliver solid operating leverage as well as strong profit growth.

Profit attributable to shareholders reached HK$2,171 million, an increase of 55% compared to first six months of 2009. Basic earnings per share were 57.5 HK cents, an increase of 50% compared to 38.3 HK cents during the same period in 2009.

The Board of Directors has proposed an interim dividend of 38 HK cents per share (2009 interim: 26 HK cents).

Li & Fung also announced signing of two new deals.

In August, Li & Fung acquired U.S.-based Jimlar Corporation. Jimlar Corporation is a leading designer, distributor and supplier of footwear in the U.S. and internationally, producing footwear under license for Coach and Calvin Klein as well as for its own brands Frye, Mountrek and RJ Colt. The acquisition is a significant step in expanding the Group's onshore presence in the U.S. as well as its capabilities in the footwear business. It should also provide further footwear sourcing capabilities for the Group as a whole.

Also in August, Li & Fung acquired one of China's leading furniture export trading companies, Kenas Furniture Group, which sells furniture to premier retailers and lifestyle brands overseas.

Mr. William K Fung, Group Managing Director of Li & Fung Limited, said, “We are very pleased to report record high core operating profits for our first-half results, which is testimony to how Li & Fung has been able to weather the financial crisis and emerge in a stabilizing market even stronger.

"We were also delighted to see improved momentum from our existing customers as we entered 2010, which has resulted in solid organic growth. Going forward, we are confident that we can continue growing our business both organically and through acquisitions before unveiling our next Three-Year Plan in early 2011.”

Mr. Bruce Rockowitz, President of Li & Fung (Trading) Limited, said, “So far 2010 has been very eventful for us. We entered into a landmark sourcing arrangement with Wal-Mart Stores, Inc. early in the year. Subsequently, we made several strategic acquisitions to expand our beauty, U.S. and European onshore businesses, including Visage Group Limited, Jackel Group, and the new addition of Jimlar Corporation that was announced.

"Together, these deals represent significant inroads into the key areas of growth that we have laid out over the past few years. With a war chest of over US$1 billion, the pipeline of deals will remain strong.”

Li & Fung Limited

Must ReadView All

Information Technology | On 28th Mar 2017

Intex Consulting signs partnership with Kawan Era Baru

Germany based Intex Consulting GmbH has entered into a strategic...

Courtesy: Kraig Laboratories

Textiles | On 28th Mar 2017

Kraig gets certificate for silk production in Vietnam

Kraig Biocraft Laboratories, Inc., a leading biotechnology company...

Courtesy: Creora

Textiles | On 28th Mar 2017

Hyosung holds Creora workshops in China, HK & Taiwan

South Korean specialty fibre producer Hyosung held a series of...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Larry L Kinn
Suominen Corporation

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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
March 2017

March 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