Home / Knowledge / News / Apparel/Garments / Li & Fung operating profit rises 13.3% to $356 million
Li & Fung operating profit rises 13.3% to $356 million
24
Mar '18
Courtesy: Li & Fung
Courtesy: Li & Fung
Li & Fung, the world’s leading supply chain solutions partner for brands and retailers, has reported 13.3 per cent increase in the core operating profit for fiscal 2017 to $356 million. The company reported positive 2017 results, highlighting that the three-year plan with the goal of creating the supply chain of the future had a strong start.

For full year, turnover stabilised due to enhanced service offerings by the company, with a decrease of 4.6 per cent to $13.5 billion, and total margin as a percentage of turnover increased from 9.9 to 10.2 per cent. Ongoing measures to improve operating efficiency and productivity resulted in an operating cost decrease of 5.8 per cent. Core operating profit as a percentage of turnover increased from 2.2 to 2.6 per cent.

During 2017, the company also maintained a strong balance sheet and furthered the goal of maximising flexibility in its capital structure. The strategic divestment of the three product verticals businesses (furniture, beauty and sweaters) will generate $1.1 billion in proceeds to strengthen the capital structure and return cash to shareholders through a special dividend. The resulting simplification of the business will enhance management’s focus on core competencies and to build the digital supply chain of the future.

"Our new three-year plan had a strong start in its first year and we are on track to meet our financial targets and strategic goals. Customers are embracing our supply chain solutions and digital tools to help them improve the speed of their supply chain, helping them realise tangible improvements in inventory management, sell-through and mark-downs. At the same time, our logistics business, which completes our end-to-end supply chain solutions, continues to grow its COP by 23.8 per cent, driven by e-logistics, deeper penetration of our core customers supported by cross-selling with our supply chain solutions business and entry to new markets such as India and Vietnam," said Spencer Fung, group CEO of Li & Fung.

"Our strategy to further simplify the business and focus on our core supply chain solutions business is in turn helping our customers to revamp their business model and counter disruptions in other markets. We are on track to deliver a fully integrated digital platform that connects our suppliers and customers with end-to-end visibility to enhance decision making. This insight, combined with our breadth and depth of experience in global supply chain management, complemented by our extensive network of suppliers, means we can channel production to any market quickly to meet our customers’ requirements, in the face of any potential change in trade and market environments," group chairman William Fung said. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 26th Feb 2021

Indonesia imposes ADD on RMG products

Indonesia recently imposed anti-dumping duty (ADD) equivalent to a...

Pic: Shutterstock

Textiles | On 26th Feb 2021

ITC supports boosting Tajik textile-clothing sector's

As part of the International Trade Centre's (ITC) intensive training...

Pic: GOTS

Textiles | On 26th Feb 2021

GOTS certifications grow by 34 per cent in 2020

In 2020, the number of GOTS certified facilities have reported a...

Interviews View All

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Shiladitya K Joshi, Truetzschler India Private Limited

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Dinaz Madhukar, DLF Emporio and DLF Promenade

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Sandip Bhojani, Manthan Patel,

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Milva Morani,

Milva Morani

Brighi Technologies began in 1970 with trading and repairing sewing...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Melissa Tate, University of New South Wales

Melissa Tate
University of New South Wales

<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Pranav Mishra, Huemn

Pranav Mishra
Huemn

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

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

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

Leave your Comments


February 2021

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


Advanced Search