Li & Fung turnover and core operating profit have been hit by a tough retail environment last year, particularly in Asia.
However, its resilient performance and cost control saw it improve total margin percentage, while logistics continued double-digit growth
Li & Fung turnover in Asia dropped by 36.1 per cent year on year to US$1.3 billion. Excluding the impact of the strategic divestment of the Asia consumer and healthcare distribution business last year, turnover in Asia fell by 13.3 per cent to $700 million, impacted by the muted economic environment.
Turnover in rest of world fell by 20.2 per cent to $1.1 billion, primarily because of soft consumer demand. Overall, turnover was down by 11 per cent to $16.8 billion, and excluding the Asia divestment the fall was 8.3 per cent.
Like-for-like operating profit fell 17.7 per cent to $408 million, but Li & Fung says it is making “sustained efforts” to improve operating efficiency and productivity through technology and streamlining of the cost base.
Total margin fell by 10.4 per cent to $1.9 billion, primarily because of the decline in total turnover. Excluding the Asia divestment, the decrease was 6 per cent.