US pork processor Smithfield Foods has reported higher half-year profits, pointing to demand at home and abroad.
Smithfield saw its net income increase more than four-fold from US$50.6m to US$248.2m in the six months to 29 June.
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Operating profit from each of its divisions was up, leading to a group operating profit of US$456.6m, versus US$148.6m a year earlier.
Revenues from each of Smithfield’s businesses also rose during the first half of the year, culminating in an 8.7% gain in net sales to US$7.24bn.
Sales from Smithfield’s hog production business were flat in the second quarter at US$857m. However, president and CEO Larry Pope reflected on Smithfield’s “record results and strong earnings growth” for the quarter.
He added: “Fundamentals were very supportive, particularly in our hog production segment, with tight supplies due to PEDv and strong demand both domestically and internationally, which pushed hog production margins to record levels. At the same time, our management is intensely focused on implementing our organic growth plan, which is working.”
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By GlobalDataPope also pointed to “synergies” with Smithfield’s parent, the China-based meat processor WH Group.
