Li & Fung net profit soars 21 percent in 2013

REPORT_ Li & Fung, in its annual results for 2013 ended 31 December 2013, has announced that its core operating profit increased by 70 percent to 871 million dollars, and the company’s net profit increased by 21 percent to 755 million dollars. It also announced a new three-year plan to achieve

set growth targets.

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“2013 was a pivotal year for Li & Fung,” said William K. Fung, Chairman of Li & Fung, adding, “We proved successful against uncertain external conditions, achieved strong growth, and finished the year by delivering on the promise to return to 2011 operating levels.”

The positive performance of the company headquartered in Hong Kong was driven by its distribution network, and turnaround of LF USA, as well as continued growth momentum in the logistics network. Profit attributable to shareholders increased by 17 percent to 725 million dollars and basic earnings per share increased 17 percent.

According to Bruce Rockowitz, Group President and CEO of Li & Fung, “Overall, 2013 was a year of substantive progress and created an even stronger foundation to support our position as a global leader in our industry for years to come. We created many positive changes at LF USA which have put that part of the business back on track and we drove improvement in the Group’s overall margins and profitability even while continuing to invest in select strategic areas.”

The new three-year plan has been designed to solidify the group’s position as a competitive and relevant industry leader able to deliver solid growth well into the future. It also announced the acquisition of China Container Line (CCL), one of the largest sea freight forwarding companies in China. This major addition will enable LF Logistics to further expand its freight forwarding capabilities globally and accelerate its strong growth momentum by providing end-to-end logistics services to customers.

Plans of a possible spin-off and separate listing of its Global Brands Group on the Hong Kong Stock Exchange was also announced by the company.