Home / Knowledge / News / Apparel/Garments / Li & Fung focuses on improving H2 result

Li & Fung focuses on improving H2 result

13
Aug '12
Hong Kong-based Li & Fung Limited, the multinational consumer goods export and  logistics group, announced that turnover achieved in the first six-month  period ending 30 June 2012 was US$9,128 million,  an increase of 4% from  US$8,798 million in the first half of 2011. 

Compared to the same period last year, turnover growth from Trading Network, Logistics Network and Distribution Network was 4%, 5%, and 6% respectively.  Profit attributable to shareholders was US$312 million, an increase of 33% over the same period in 2011.

Basic earnings per share were 3.80 US cents, representing an increase of 30% compared to 2.92 US cents during the same period in 2011.  Core operating profit was US$221 million, representing a decrease of 22% compared to same period in 2011.

The Board of Directors has proposed an interim dividend of 15 HK cents per share (2011 interim: 19 HK cents).  Mr. Bruce Rockowitz, Group President and CEO of Li & Fung Limited, said, “While  core operating profit is relatively weak in the first half of 2012, we are very focused  on taking the necessary steps to improve the second half results and set the  stage for 2013, the last year of our current Three-Year Plan.”

“We have continued to expand our business in Asia through LF Asia, and have concluded a number of new licensing agreements with major brands and retailers.  It is also encouraging to see the cross-selling business among our three Networks progressing so well.”

He added,  “Over the years, as customers increasingly seek complete supply  chain management partners to improve efficiency, our comprehensive menu of  services, coupled with flexible global networks, has made Li & Fung the prime  contender for major opportunities. The partnership we have just signed with Target Australia is an example of how Li and Fung can apply its global sourcing and supply chain capabilities to reduce product cost and increase efficiencies.”

Mr. William K Fung, Group Chairman of Li & Fung Limited, said, “There is no doubt that more acquisition deals are available at attractive prices in a time of global economic uncertainty.  Going forward, Li & Fung’s growth strategy will continue to have a dual focus: both organic growth and strategic acquisitions.

“This has proven to be a very effective business model for Li & Fung over the years. In addition, dividend payout will be tied to core operating profit and a higher level of cash will be retained to provide funding for future acquisition opportunities.”

Looking ahead, Mr. Fung said, the Group remains optimistic. “The goals of our current Three-Year Plan are ambitious as usual. The economic environment may have worsened since the goals were set two years ago but we are making necessary adjustment to our operations and taking advantage of acquisition opportunities. We remain committed to striving for our target of US$1.5 billion in core operating profit by 2013,” he 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


Must ReadView All

Pic: Shutterstock

Textiles | On 17th Feb 2020

Vietnam textile firms urged to source from Malaysia, India

Pham Xuan Hong, president of Ho Chi Minh City’s textile association,...

Pic: Shutterstock

Textiles | On 17th Feb 2020

Myanmar to initiate measures to improve trade strategies

Myanmar will take measures to raise overseas demand for indigenous...

Pic: PaCT

Apparel/Garments | On 17th Feb 2020

IFC portal to monitor resource usage in Bangla RMG sector

The International Finance Corporation (IFC) has developed PaCT...

Interviews View All

Stefan Warnaar, Peak to Plateau

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Sanjay Yagnik, Maa Tex Speciality

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Akash Khetan, Narayan Tex Fab

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Ravindra Jain, Ashish Baid,

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Eric Schoeller,

Eric Schoeller

Groz-Beckert is the world's leading provider of industrial machine...

Luciano Sardini,

Luciano Sardini

A consolidated reality in Italy and internationally, IMA Spa is well-known ...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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 2020

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


Advanced Search