HONG KONG: Li & Fung FY profit up despite “challenges”
- Full-year profit up 39% to HK$3.4bn
- Turnover down 6% to HK$104.5bn
- Aims for more market share in 2010
FY profit is up by 39%
Consumer goods sourcing giant Li & Fung is targeting a bigger slice of the market in 2010 after posting a 39% increase in full-year profit.
The company said turnover in 2009 was down 6% to HK$104.5bn (US$13.4bn), thanks to sluggish markets, customer insolvencies and the maintenance of tight inventory levels.
But operating profit increased 29% to HK$3.9bn, thanks to tight cost controls and increased contributions from the company’s higher-margin onshore businesses.
Net profit was up 39% to HK$3.4bn, Li & Fung said.
“The group’s focus on operating leverage and cost control in the last 12-18 months has enabled us to drive greater profits despite a challenging consumer market,” said William Fung, group managing director.
“We are confident about 2010 and our ability to capture more market share in this environment.”
“We have also seen an increasing number of leading retail groups consolidating and aligning their global sourcing needs by partnering with us to leverage our scale and expertise,” he added.
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