Hong Kong trading firm Li & Fung has seen its first half net profit plummet 69 per cent, however, it is optimistic it can recover by the end of the year.

Net profit for the six months to June dropped to US$96 million from US$312 million a year earlier.

The supplier of goods to global retailers including Walmart and Target blamed the lacklustre performance of the US market, where it generates around 60 per cent of its sales, as the reason for the profit slump.

It is restructuring its US operations and it says it is on track to complete the project by the end of the year.

“Following a disappointing year in 2012, we believe the worst is behind us, and we are on track to recovery in 2013,” said chairman William Fung.

Li & Fung has acquired five brands in the first half including British personal care brand Lornamead. It says it seeks to acquire more brands overseas to boost growth.