August 22, 2018 / 9:26 AM / 3 months ago

HK's Li & Fung H1 profit falls amid destocking, closures at retailers

HONG KONG, Aug 22 (Reuters) - Hong Kong’s Li & Fung Ltd , which supplies clothing and other products to retailers worldwide, on Wednesday reported a 45 percent fall in first-half profit amid continued destocking, store closures and bankruptcies among its customers.

Li & Fung, which made its name by making clothing and toys for Western retailers, said profit from continuing operations for the six months to June dropped to $50 million from $91 million a year earlier.

Turnover fell to $5.85 billion from a restated $6.47 billion a year ago, while core operating profit decreased to $124 million from a restated $151 million.

The company said it is seeking to list its logistics business in the first half of 2019 in Hong Kong to enhance its growth.

Li & Fung’s shares edged up 0.3 percent ahead of the earnings announcement, lagging a 0.6 percent gain in the benchmark Hang Seng Index. (Reporting by Donny Kwok Editing by Manolo Serapio Jr.)

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