HONG KONG: Li & Fung core H1 profit drops 22%
- Core H1 operating profit down 22% to US$221m
- Reported profit up 33% to $312m
- Turnover up 4% to $9.128bn
Core operating profits at consumer goods giant Li & Fung fell 22% despite a slight rise in turnover, as the Hong Kong-based company was hit by continued economic fragility in its main markets.
However, the company said it remained committed to its target of $1.5bn in core operating profit by 2013, as envisaged in its three-year plan.
“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,” said Bruce Rockowitz, group president and CEO.
“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.”
Group chairman William Fung said more acquisition deals at “attractive prices” were always available at a time of global economic uncertainty, signalling that the company would continue to expand through organic growth and acquisitions.
International apparel retailers are looking to strengthen their presence in lower-tier cities in China amid increasing competition, a report by the Li & Fung Research Centre has found....
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