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Li & Fung

Operator of Circle K soars 629pc on productivity gains

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Attributable profit for Convenience Retail Asia (CRA) soared 629 per cent to HK$48.1 million year on year to December 31.

The operator of Circle K Convenience Stores (HK) saw its turnover rise 17 per cent to HK$1.14 billion. Earnings per share were 9.8 HK cents, up from 1.3 HK cents.

Chief executive Richard Yeung Lap-bun said the surge in profit was driven by increased customer traffic and higher productivity.

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'Our promotions and pricing policy were extremely well received. As a result, customer traffic and sales went up 11.2 per cent,' he said.

Gross profit margin edged up 0.8 per cent to 31.2 per cent, despite a 10 per cent slide in prices during 1999.

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'The higher margin was achieved by better category management and higher turnover of inventory,' Mr Yeung said.

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