Li & Fung, the global supply group, saw sales rise 20% to HK$110.7bn (£9.7bn) for the year ended December 31, but operating profit fell 3% to HK$3bn (£265 million).
Li & Fung said its had gained market share over the year and that sales had also been boosted by acquisitions but that profits had been hit by high costs in some cities, start up costs in some markets and customer bankruptcies.
Li & Fung added that its European business now now represented 29% of its sales, up from 26% in 2007.
Li & Fung group managing director William Fung said: “There is no doubt that consumer sentiment is very weak but the Group continues to gain significant market share through an accelerated flow of outsourcing deals such as Toys”R”Us’ private label business, Sanrio, Timberland’s apparel business and Mexx in 2008 as well as the Liz Claiborne outsourcing deal in 2009. Our ability to orchestrate resources quickly in response to a rapidly changing marketplace has enabled Li & Fung to take advantage of the flow of outsourcing deals that have come our way. In addition, we are very pleased to report that the Group’s financial strength is highly resilient despite uncertainty in the external financial market. We continue to enjoy healthy cashflows and have strong credit ratios.”