HONG KONG: Li & Fung sets 3-year goals as FY profit soars 27%
- FY profit up 27% to US$548m
- Turnover up 19% to US$15,912m
- Targets core operating profit of US$1.5bn by 2013
Hong Kong-based sourcing giant Li & Fung Limited today (24 March) booked a 27% hike in full-year profit and said it is aiming to reach a core operating profit of US$1.5bn by 2013 under its new three-year plan.
For the year ended 31 December, profit rose to HK$4,278m (US$548m), helped by a 19% rise in group turnover to HK$124.1bn (US$15,912m).
Core operating profit rose 42% to HK$5,656m (US$725m), which was largely due to the contribution from its higher margin onshore businesses in the US and Europe.
William K Fung, group managing director, praised the company's "robust performance that underscores the dynamics of our businesses and the operational excellence we achieved despite the financial crisis and recession."
As part of its three-year plan for 2011-2013, it expects trading, logistics and onshore to contribute US$700m, US$100m and US$700m respectively to its $1.5bn target.~
"This new three-year plan marks the beginning of a new era at Li & Fung, one in which higher prices have brought the industry status quo to an end," explains Bruce Rockowitz, president of Li & Fung (Trading) Limited.
"We have grown from one global network to three - trading, logistics and onshore - but the whole is much greater than the sum of its parts.
While the three-year plan targets are once again ambitious, we are confident about us achieving them because the Group now covers the entire supply chain end-to-end and is well positioned to grow across these three distinct yet interconnected networks."
He added: "We will also continue to pursue our two-pronged strategy of pursuing acquisitions to complement our organic business growth, while maintaining our solid balance sheet and financial strengths."
An interactive databank with intelligence on the major apparel sourcing countries
The deal revealed last week by Liz Claiborne Inc to sell its loss-making Mexx business to a joint venture led by private equity firm The Gores Group is a win-win for all concerned, the company believe...
Apparel seller Liz Claiborne Inc has spent the best part of the last four years trying to reduce its long-term debt and bring expenses in line with weak sales and consolidation of its department store...
The British Fashion Council (BFC) is taking its London Show Rooms initiative to Los Angeles and Hong Kong, in a bid to showcase some of the best of London's design talent in these new markets for the ...
Research that luxury fashion sales are being propelled by average consumers, brands boycotting Uzbek cotten harvested using forced child labour and ongoing talks around the Trans Pacific Partnership (...
More than 60 of the world's best known apparel companies and brands, including Adidas, Burberry, C&A, Levi Strauss, Li & Fung, Liz Claiborne, PVH Corp and Wal-Mart Stores, have vowed not to source Uzb...
The chairman of Li & Fung has said Christmas sales may match last year's, according to reports, with retailers likely to see same-store growth....
The chairman of sourcing giant Li & Fung, Victor Fung, has set up a Hong Kong-based think-tank to provide Asian perspectives on global issues....
- Under Armour Lighthouse will disrupt production
- Will new Vietnam wage hinder competitiveness?
- Digitisation to drive new apparel-making models
- How TAL Apparel is staying ahead of the game
- Ethiopia violence undermines sourcing strategies
- Marks & Spencer top for modern slavery reporting
- Bangladesh garment workers rally for higher wages
- MAS Holdings shares commitment to sustainability
- Gap to shutter all UK Banana Republic stores
- H&M CEO named sustainability leader
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020