• 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."