Li & Fung announced its annual results for the year ended December 31, 2016. The company outlined its next Three-Year Plan (2017-2019) focused on speed, innovation, and digitalization to create the ‘Supply Chain of the Future’. In the logistics network, the company continued double digit growth with e-commerce logistics outperforming. The new Three-Year Plan ‘Building the Supply Chain of the Future’ represents the company’s continuing business transformation with the goal of creating the supply chain of the future, helping its customers navigate the digital economy.
For the full year 2016, the company reported resilient results against a challenging macroeconomic environment and ongoing disruption at retail. Excluding the impact from the strategic divestment of the Asia consumer and healthcare distribution business in June 2016, total turnover decreased by 8.3 per cent to $16.2 billion on a like-for-like basis. Reported 2016 total turnover decreased by 11 per cent to $16.8 billion.
Sustained efforts to improve operating efficiency and productivity through the use of technology and streamlining of the cost base reduced operating costs. Core operating profit decreased 17.7 per cent to $408 million on a like-for-like basis. Turnover from the trading network continued to be affected by a reduction in order volume, deflation and relative currency weaknesses against the US dollar and declined by 8.7 per cent on a like-for-like basis. However, in the logistics network, the company continued to grow profits organically through increased market share with existing customers, new customer contracts, and geographic expansion.