HONG KONG: Li & Fung FY net profit in 21% surge
- FY net profit up 21% to US$755m
- Company highlights LF USA turnaround
- To pursue spin-off of Global Brands Group
Global sourcing and supply business Li & Fung recorded a stronger than expected full-year net profit in 2013, boosted by the turnaround of its LF USA division.
The Hong Kong-based company also highlighted a strong performance from its Distribution Network, the continued growth of its Logistics Network, and “solid” results from its Trading Network.
“Overall, 2013 was a year of substantive progress and created an even stronger foundation to support our position as a global leader in our industry for years to come,” said Bruce Rockowitz, group president and CEO.
“We created many positive changes at LF USA which have put that part of the business back on track, and we drove improvement in the group’s overall margins and profitability even while continuing to invest in select strategic areas.”
Li & Fung also unveiled further details of the company’s next three-year plan, covering the period from 2014 to 2016.
Restructuring would include the creation of a new Global Brands Group covering the company’s brands and licensing business, and potentially to be spun off as a separate listed business.
That follows January’s announcement of a new Vendor Support Services business unit to help improve factory and worker safety in the wake of disasters such as Tazreen and Rana Plaza.
Click on the following link for more insight: Brands spin-off headlines new Li & Fung masterplan.
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