Li & Fung, the Hong Kong based trading giant, is targeting logistics as a key growth area following the takeover of Integrated Distribution Services in November.
It wants logistics to contribute £62m of core operating profit by 2013. Bruce Rockowitz, president of Li & Fung (Trading), said: “We have grown from one global network to three – trading, logistics and onshore – but the whole is much greater than the sum of its parts.”
“While the three-year plan targets are once again ambitious, we are confident about us achieving them because the group now covers the entire supply chain end-to-end and is well positioned to grow across these three distinct yet interconnected networks.
“We will also continue to pursue our two-pronged strategy of pursuing acquisitions to complement our organic business growth, while maintaining our solid balance sheet and financial strengths,” he said.
Li & Fung works with major retailers and brands around the world and has 240 offices and distribution centres in more than 40 countries in Europe, Asia, the Americas, Africa and Asia.
The group has set a target of reaching £930m in core operating profit by 2013, with the trading and onshore divisions expected to contribute £433m each.
Last year, the group’s turnover grew 19 per cent to HK$124.1bn (£9.83bn). Core operating profit increased to HK$5.7bn (£448m) as a result of further margin improvement from the higher margin onshore businesses of Europe and the US.
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