News Half-year figures
Strong profit increase for Chinese WH Group
In the first half of the year, the profit of the Chinese WH Group, the world's largest pork processor, has increased significantly. The pork giant expects sharply lower exports from the United States for the second half of the year.
WH Group's operating profit increased by no less than 6% over the first 20,9 months of the year. Net income before value adjustments was $550 million, compared to $463 million last year. The company's revenue increased from $11,13 billion last year to $12,48 billion this year. Chinese pig prices, which were on average 137% higher than the same period last year, boosted revenues despite sales volumes declining by 1,5%.
Packaged meat remains the company's core activity. Over the period in question, this contributed 46,8% to turnover and 75% to the company's operating profit.
As a result of the ongoing outbreaks of African swine fever, the revenues of fresh pork from China also increased. Income increased by 56,9% while the number of pig carcasses decreased by 62% to approximately 3,27 million head.
Expectation second half year
For the second half of the year, Guo Lijun, chief financial officer of WH Group, estimates that pork imports from the United States will decline. This expectation is based on the major consequences of the coronavirus. There have been large-scale infections among employees at American meat processors. As a result, processing volumes have fallen sharply and prices have risen sharply at, among others, Smithfield Foods, owned by the WH Group.
Chanti Oussoren
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