2011 - Li & Fung Limited

MANAGEMENT DISCUSSION & ANALYSIS
William Fung
Executive Deputy Chairman
12 LI & FUNG LIMITED | ANNUAL REPORT 2011
RESULTS REVIEW
The Group’s turnover in 2011 increased by 26%
to US$20,030 million (approximately HK$156
billion), reflecting continued market share gains by
our business through organic growth and earlier
acquisitions as well as the synergistic dynamics
of the new structure of three Business Networks,
notwithstanding global economic uncertainties.
Asia has become an important growth platform
for Li & Fung’s businesses and sourcing activities,
as brands and retailers around the world are
increasingly focusing on the region. With the
addition of the LF Asia platform in this fast-growing
consumer market, Li & Fung completed its global
Distribution Network in 2011, contributing to
the expansion of its distribution business. LF
Asia accounted for 26% of total Distribution
Network’s turnover in 2011. At the same time,
sourcing volume from Asia reached US$14,713
million. Asia represented 92% of the Group’s total
sourcing activities, spanning 20 economies in the
region, including China, Vietnam, Indonesia, India,
Cambodia, Thailand and the Philippines, as the
Group continues to expand its sourcing network.
• Core operating profit increased by 22% to
US$882 million; core operating profit margin
decreased from 4.6% to 4.4%
• Total margin increased by 37% to US$3,074
million, increasing as a percentage of turnover
from 14.1% to 15.3%
• Profit attributable to shareholders reached
US$681 million, representing an increase of
24% compared to 2010