Download - Li & Fung

HIGHLIGHTS
HALF YEAR RESULTS TO 30 JUNE 2012
(US$ million) 2012 2011 Change
Turnover 9,128 8,798 +4%
Core Operating Profit 221 282 -22%
As % of Turnover 2.43% 3.21%
Profit attributable to shareholders
of the Company
312 236 +33%
Earnings per Share – Basic 3.80 US cents 2.92 US cents +30%
Dividend per Share 15 HK cents 19 HK cents -21%
• Turnover increased by 4% to US$9,128 million, reflecting market share gains in USA and tough market conditions in Europe
• The Company continued to make inroads in capturing growing Asian markets
• Cross-selling momentum continued amongst all three Business Networks of Trading, Logistics and Distribution, but will be
reflected in second half of 2012 and into 2013
• Profit Attributable to Shareholders up 33% to US$312 million
• Core Operating Profit was down by 22% to US$221 million, due to slower than expected turnaround of LF USA’s business and
the investment into LF Asia’s Fashion & Home platform
• Operating costs increased by 13% or US$128 million (rise from US$973 million to US$1,101 million). The increase was mainly
attributable to net cost increase by the Distribution Network of US$91 million (rise from US$506 million to US$597 million), out
of which US$92 million came from acquisitions. In addition, there were restructuring costs of LF USA incurred during the period
of approximately US$35 million. The Company had net savings on operating costs of US$47 million, out of which US$26 million
came from LF USA. The operating costs analyses are set out in in ccharts
charts c below:
US$ million
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0
973
2011
Operating
Costs
OPERATING COSTS ANALYSIS
(GROUP TOTAL)
New
Acquisitions
(Trading
Network)
New
Acquisitions
(Distribution
Network)
OPERATING COSTS ANALYSIS
(DISTRIBUTION NETWORK – LF USA)
US$ million
500
450
400
350
300
250
200
150
100
50
0
330
2011
Operating
Costs
71
New
Acquisitions
Restructuring
Costs*
42
35 -26
Net
Savings
92
410
2012
Operating
Costs
35 6 -47
LF USA
Restructuring
Costs*
LF Asia
Establishment
Costs
Net
Savings
1,101
2012
Operating
Costs
US$ million
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0
OPERATING COSTS ANALYSIS
(DISTRIBUTION NETWORK TOTAL)
506
2011
Operating
Costs
OPERATING COSTS ANALYSIS
(DISTRIBUTION NETWORK – LF EUROPE)
US$ million
500
450
400
350
300
250
200
150
100
50
0
15 -14
92 93
2011
Operating
Costs
New
Acquisitions
Net
Savings
2012
Operating
Costs
92
New
Acquisitions
35 6 -42
LF USA
Restructuring
Costs*
LF Asia
Establishment
Costs
Net
Savings
597
2012
Operating
Costs
OPERATING COSTS ANALYSIS
(DISTRIBUTION NETWORK – LF ASIA)
US$ million
500
450
400
350
300
250
200
150
100
50
0
84
2011
Operating
Costs
6 6 -2
* The balance included relocation costs, severance payments, rentals for vacated space and consultancy fee incurred for LF USA’s restructuring
exercise.
LI & FUNG LIMITED | INTERIM REPORT 2012 3
New
Acquisitions
Establishment
Costs
Net
Savings
94
2012
Operating
Costs