Li & Fung Ltd, a Hong Kong-based company that sells goods to Wal-Mart Stores Inc, said its health-care and cosmetics business will eventually contribute a third of total profits, without giving a timeframe.

The business will account for less than five percent of total profits by the end of 2008, President Bruce Rockowitz said in a Bloomberg Television interview yesterday. Li & Fung on Wednesday said it paid US$244 million for two companies, including Peter Black International, a European footwear and personal-care product supplier.