Hong Kong-based multinational Li & Fung Limited announced record core operating profit growth of 55% for the first six months of 2010, reflecting the effects of nascent economic recovery in the United States together with contributions from previous acquisitions and outsourcing deals.

For the first six months ending 30 June 2010, the Group’s turnover was HK$51,792 million (US$6,640 million), 12% higher than same period in 2009. Core operating profit increased to HK$2,635 million on the back of continued growth in the higher-margin onshore businesses of the United States and Europe, disciplined cost control and the provision of more value-added services. These factors helped the Group continue to deliver solid operating leverage as well as strong profit growth.

Profit attributable to shareholders reached HK$2,171 million, an increase of 55% compared to first six months of 2009. Basic earnings per share were 57.5 HK cents, an increase of 50% compared to 38.3 HK cents during the same period in 2009.

Mr. William K Fung, Group Managing Director of Li & Fung Limited, said, “We are very pleased to report record high core operating profits for our first-half results, which is testimony to how Li & Fung has been able to weather the financial crisis and emerge in a stabilizing market even stronger. We were also delighted to see improved momentum from our existing customers as we entered 2010, which has resulted in solid organic growth. Going forward, we are confident that we can continue growing our business both organically and through acquisitions before unveiling our next Three-Year Plan in early 2011.”
 
Mr. Bruce Rockowitz, President of Li & Fung (Trading) Limited, said, “So far 2010 has been very eventful for us. We entered into a landmark sourcing arrangement with Wal-Mart Stores, Inc. early in the year. Subsequently, we made several strategic acquisitions to expand our beauty, U.S. and European onshore businesses, including Visage Group Limited, Jackel Group, and the new addition of Jimlar Corporation that was announced today. Together, these deals represent significant inroads into the key areas of growth that we have laid out over the past few years. With a war chest of over US$1 billion, the pipeline of deals will remain strong.”