With core profit down, Li & Fung sees H1 turnover grow

Hong Kong-based Li & Fung Limited, the multinational consumer goods export and logistics group, announced that turnover achieved in the first six-month period ending June 30, 2012 was 9,128 million dollars, an increase of 4 percent from 8,798 million dollars in the first half of 2011.

Compared to the same period last year, turnover growth from Trading Network, Logistics Network and Distribution Network was 4 percent, 5 percent, and 6 percent respectively. Profit attributable to shareholders was 312 million dollars, an increase of 33 percent over the same period in 2011. Basic earnings per share were 3.80 US cents, representing an increase of 30 percent compared to 2.92 US cents during the same period in 2011. Core operating profit was 221 million dollars, representing a decrease of 22 percent compared to the same period in 2011.

Bruce Rockowitz, Group President and CEO of Li & Fung Limited, said, “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. The company has continued to expand its business in Asia through LF Asia, and has concluded a number of new licensing agreements with major brands and retailers. It is also encouraging to see the cross-selling business among their three networks, trading network, logistics network and distribution network, progressing so well.”

Li & Fung manages the supply chain for retailers and brands worldwide with over 300 offices and distribution centers in more than 40 economies spanning across the Americas, Europe, Africa and Asia.