WH Group, China’s largest pork processor, said its sales and earnings rose during the first quarter as a stronger result from its hog and fresh pork units offset a decrease in packaged meat profits.
In the three months to 31 March, WH Group revealed group turnover increased by 3.2% to US$5.3bn. Operating profit rose 2.2% year-on-year to $418m. Meanwhile, underlying profit excluding biological fair value adjustments and debt extinguishment costs, rose 10.3% to $248m, the company revealed.
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Profitability at WH Group’s core packaged meats arm fell as higher raw material costs hit operating margins. Operating profit at the business declined 21.8% on “stable” sales volumes.
The firm’s fresh pork operation, meanwhile, was boosted by the acquisition of Clougherty Packing via its US subsidiary Smithfield Foods from Hormel Foods in January.
Sales volumes increased 9.6% and operating profit rose 8.8% to US$123m. Hog production was up 9.2% and the company said earnings at that unit were also boosted by higher hog prices.
“Looking ahead to the future, the global political economic climate, as well as the industry environment, will bring about both opportunities and challenges to us from time to time,” WH Group chairman and CEO Wan Long said. “We will continue to strive for persisting growth by resources integration, accelerate the development of international trade and promote the coordinated development of the group as a global enterprise.”
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