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Li & Fung turnover drops 9.6 percent in the first half

By Prachi Singh

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Report

Li & Fung Limited announcing its interim results for the six months ended June 30, 2018 said that in the period under review, the company was affected by a challenging macroeconomic and retail environment which saw continued destocking, store closures and bankruptcies. Core operating profit of its continuing operations for the first half of the year decreased 18 percent to 124 million dollars, due to the decrease in turnover and total margin in the Supply Chain Solutions business. The company’s turnover decreased 9.6 percent to 5,850 million dollars and total margin as a percentage of turnover was 10.5 percent.

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Commenting on the results, Spencer Fung, Group CEO of Li & Fung said in a statement: “Our customers continued to face a constantly changing retail environment and that in turn affected our performance in the first half.”

The company added that adjusted profit attributable to shareholders for continuing operations was down 19.2 percent to 50 million dollars on a like-for-like basis, taking into account that 2017 was impacted by the 30 million dollars gain on remeasurement of contingent consideration payable. The company’s board of directors has declared an interim dividend of 3 Hong Kong cents per share.

“With global trade threatened by the US-China trade war, our model of dispersed production in over 50 countries is holding strong. Additionally, we have accelerated our investment in our digital strategy and we will deliver a fully-integrated digital platform connecting suppliers, customers and other partners with end-to-end visibility and data analytics,” added Li & Fung Group Chairman William Fung.

Picture:Li & Fung image library

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