Li & Fung's 2019 turnover decreases, receives privatization offer

Li & Fung Limited has said in a statement its core operating profit (COP) decreased by 22.9 percent to 228 million dollars for the year to December 31, 2019 due to reductions in turnover and margin pressure in the Supply Chain Solutions business. The company added that turnover decreased by 10.1 percent to 11.4 billion dollars due to continued destocking by customers, store closures and customer bankruptcies, as well as the company exiting a number of higher-risk and non-strategic customers. Net profit attributable to shareholders was 17 million dollars representing a return to profitability, while adjusted profit decreased by 43.9 percent to 74 million dollars. The company also announced that its board has received a proposal to privatise Li & Fung.