Lower operating costs have boosted Li & Fung's (0494) first- half profit by 13 percent. Net income rose to HK$1.4 billion in the first six months from HK$1.24 billion a year ago. Revenue dipped 2 percent to HK$46.29 billion after some overseas customers went bankrupt.
Now, Li & Fung - the world's biggest exporter of textiles and clothing - is waiting for retail data from the "back to school season" in the United States to see whether its biggest market is on the road to recovery, managing director William Fung said yesterday.
The company, which includes Wal-Mart and Marks & Spencer among its customers, is on track to meet its target of cutting costs by 10 percent in 2009, Fung said.
"The second half will be stronger in terms of bottom-line profit," said Bruce Rockowitz, president of Li & Fung. "We feel pretty confident about this."
Fung also said the firm is seeking to expand and is looking at the health and beauty sector. "With US$1 billion (HK$7.8 billion) available from earlier fund raising, we are well- positioned to catch up on merger and acquisition opportunities in the US and Europe," he added.
China remained Li & Fung's top sourcing country, accounting for 50 percent of the total in the first half.
The United States contributed 61 percent of turnover during that period. Europe was second, accounting for 30 percent .
