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Li & Fung reports solid first-half results

Global supply group Li & Fung has announced a 3% rise in turnover and a 16% increase in its net income.

In its interim results for the six months ending June 30, the Hong Kong-based company reported a turnover of $8.7bn (£5.25bn) despite a “weak retail market and geopolitical uncertainties”, while its net income rose to $111m (£67m).

Investments in 2014 aimed at positioning the company for organic growth – including its new vendor support services business – resulted in core operating profits decreasing by 9% to $227m (£137m). Its margin rose 1% to $995m (£600m).

The licence and brand element of the business, named Global Brands Group, was spun-off through a listing on the Hong Kong stock exchange on July 9. Global Brands holds licences for labels including Calvin Klein and Tommy Hilfiger.

“The successful spin-off of Global Brands has paved the way for Li & Fung to focus on our core strengths of trading and logistics, as the world’s leading global supply chain manager,” said William Fung, group chairman of Li & Fung. “As in previous three-year plans, our first year is always a period of investment for the company. 2014 is also an important time of transition for Li & Fung. We have reorganised our business, strengthened our management team and set the stage for our next phase of organic growth.”

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