Pork Stock Performance | Wens International Full-Year Biological Fair Value Adjustment Pre-profit Increases 8.2% Declares Final Dividend of HK$0.41

WH Group (00288)
Announces annual results. Before fair value adjustments, the company’s attributable profit was $1.59 billion, up 8.2% year-on-year. After fair value adjustments, net profit fell 2.8% to $1.57 billion. Basic earnings per share were 12.4 cents, with a final dividend of HKD 0.41, up 2.5%.

During the period, WH Group’s revenue increased 8% year-on-year to $28.03 billion, driven by higher pork sales and average selling prices of meat products. Operating profit also rose 8.7% to $2.61 billion, due to a significant increase in profit margins from pork operations. Meat product sales declined 1.5%, while pork sales increased 8.6%.

The group’s meat product sales fell 1.5% to 3.054 million tons. In China, sales declined 3.8% due to weak demand and ongoing market changes. North American sales remained relatively stable. In Europe, sales increased 2.8% thanks to higher contributions from Argal.

Meat product revenue grew 3.8% to $14.18 billion, with China’s revenue decreasing 4.8%, mainly due to lower sales volume. North American revenue increased 5.3%, and European revenue rose 12.9%. Operating profit was $2.14 billion, down 4.1%, with a 3.6% decrease in China, a 6.6% decline in North America, and a 14% increase in Europe.

The total slaughter volume of live pigs was 48.942 million head, up 7.9%, with increases of 27.7% in China, 1.5% in North America, and 5.5% in Europe.

WH Group stated that by 2025, the group has overcome numerous challenges and uncertainties, achieving both revenue and profit growth. Looking ahead, this year will continue to be uncertain, but the group believes its operations will remain stable. It will focus on core meat product businesses, implement product and channel transformation in China to adapt to market changes; resolve cost pressures in the U.S. to maintain high profitability; and expand in Europe to increase profit contribution.

Additionally, the group will improve key performance indicators in live pig farming, enhance pork processing efficiency, and increase the added value of pork products to further strengthen its pork business. It will also explore growth opportunities through technology and acquisitions. The group aims to leverage its vertical industry chain advantages to achieve steady performance growth.

Source: WH Group Announcement

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