Li & Fung sees strongest growth in H1

16 Aug '07

4 min read

Hong Kong-based global consumer goods exporter Li & Fung Limited announced strong interim results for 2007.

For the first six months ended 30 June 2007, the Group's turnover was HK$37,772 million (US$4,842 million), 35% higher than the same period last year. The Group's core operating profit increased by 41% to HK$1,179 million.

Profit attributable to shareholders reached HK$1,051million, an increase of 38% over the same period in 2006. Basic earnings per share were 30.8 HK cents, an increase of 31% compared to 23.6 HK cents in 2006.

The robust growth in turnover and profits reflects the Group's success in growing both hard and softgoods organically and through new acquisitions.

Mr. William K Fung, Group Managing Director of Li & Fung Limited, commented, “We are delighted to report robust growth in the first half of this year, which is the Group's strongest first half turnover growth since 2000."

"This year is also the final year of the Group's Three-Year Plan 2005-2007. We have a positive outlook for the remainder of the year and are well on track to meet our Three-Year Plan target.”

At the same time, Li & Fung announced that it has entered into an agreement to acquire the shares of Peter Black International Limited ("PB Group") with three operating divisions, i.e. Peter Black Footwear & Accessories, Lenci (which is based in Italy and also deals in Footwear) and PB Beauty.

The purchase consideration is approximately GBP48.14 million. The consideration will be satisfied in cash.

PB Group is a long established, large supplier of footwear, accessories, gifts and personal care merchandise for leading retailers in Europe such as Marks & Spencer, Tesco, Next, Sainsbury, Body Shop and Boots.

Mr. Bruce Rockowitz, President of Li & Fung (Trading) Limited, said, “The proposed acquisition will provide a unique platform and infrastructure for the future development of our European onshore business."

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