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Li & Fung reports strong sales and profit growth in 2005

22 Mar '06

4 min read

Hong Kong-based global consumer goods exporter Li & Fung Limited has announced robust growth for 2005.

The group's Three-Year Plan 2005-2007 is off to a good start. The 2005 turnover growth rate was on track to achieve the $10 billion target for 2007. It expects the strong momentum to continue over 2006.

The Group turnover was HK$55.6 billion, 18 percent higher than 2004 and net profit rose by 20 percent to HK$1.8 billion. Earnings per share were 61.2 HK cents, compared against 51.2 HK cents in 2004.

The Board of Directors has proposed a final dividend of 35.5 HK cents per share (2004 final: 30 HK cents). A 1-for-10 bonus issue has also been proposed to commemorate the 100th anniversary of the Li & Fung Group.

William Fung, Group Managing Director of Li & Fung Limited, said, “2005 was the first year of the Group's current Three-Year Plan, and we are pleased to report satisfactory performance for the year that is in line with the Plan's targets. The strong increase in turnover indicates that the Group has continued to gain market share in the markets where it operates.”

During 2005, consumer markets faced a chaotic environment of rising interest rates, energy costs, and the removal of the textile quota system. Despite these issues, the Group was able to expand its position amongst existing customers and develop new businesses.

The current Three-Year Plan's acquisition strategy is also on track with five acquisitions made during 2005, adding to the strength of the results. The Group's operating profit rose 21 percent to HK$1.9 billion during 2005.

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