EQS-News / 28/10/2019 / 17:39 UTC+8
*(Stock Code: 288)*
*WH Group Announces First Nine Months 2019 Results
Profit Attributable to Owners of the Company Increases by 8.5% to US$820
million*
(Hong Kong, October 28, 2019) - WH Group Limited ("WH Group" or the
"Company"; HKEX:00288), the world's largest pork company, today announced
the results of the Company and its subsidiaries (the "Group") for the nine
months ended September 30, 2019 (the "Review Period").
*Highlights of Results for the First Nine Months*
*- *Revenue increased by 3.7% to US$17,193 million
- Operating profit increased by 7.2% to US$1,295 million
- Profit attributable to owners of the Company, before biological fair value
adjustments increased by 8.5% to US$820 million
*Financial Results*
Since the beginning of 2019, WH Group has proactively adjusted its business
strategy, bringing into full play its advantages of having a vertically
integrated business model and diversified geographic presence. Its business
performance improved quarter by quarter, with a significant increase in the
third quarter. For the first nine months of 2019, revenue of the Group
increased by 3.7% to US$17,193 million. Operating profit grew by 7.2% to
US$1,295 million. Profit attributable to owners of the Company, before
biological fair value adjustments, increased by 8.5% to US$820 million.
In the third quarter, WH Group's operating profit increased by 54.8% to
US$529 million (US$342 million in the third quarter 2018) and profit
attributable to owners of the Company, before biological fair value
adjustments, increased by 79.8% to US$357 million (US$199 million in the
third quarter 2018).
*Performances of Business Segments*
*Packaged meats*
For the first nine months of 2019, volume growth of our packaged meats was
0.3%. Revenue increased by 0.6% to US$8,893 million. Operating profit
decreased slightly by 1.3% to US$1,144 million as the margin in China was
adversely affected by the soaring raw material costs. However, operating
profit in the U.S. and Europe was notably up by 8.1% and 17.9% respectively
due to enhanced product mix and improved operating efficiency.
*Fresh Pork*
Total number of hogs processed in the Review Period was similar to that of
the same period last year as the increase in Europe led by capacity
expansion was offset by the decrease in China resulting from the stringent
hog supplies amid the spread of African swine fever (ASF). External sales
volume of fresh pork was 3.5% lower than the comparable period of 2019 as we
adjusted our operating strategy. Operating profit increased by 13.0% to
US$156 million in the Review Period. The growth driver was our operation in
China, which rose significantly by 54.0%, as we benefited from our
competitive edges in national presence and good inventory management.
*Hog Production*
In the Review Period, our hog production volume increased by 6.5%. Operating
profit was US$70 million (comparable period of 2018: loss of US$43 million).
The turnaround was mainly driven by the higher hog prices and favourable
hedging results in the U.S. during the Review Period. Our operating profit
in Europe also increased as it had benefited from the price hike caused by
the spread of ASF in China and Europe. Operation in China, however, was
negatively impacted by ASF as cost structure was worsened.
*Outlook*
WH Group Chairman and Chief Executive Officer Mr. Wan Long said: "Since the
beginning of this year, WH Group has faced unprecedented challenges due to
the ASF and trade disruptions. Our performance has highlighted the Group's
advantages and resilience capabilities. Looking forward, we will proactively
adjust our business strategy based on the market situations to achieve
steady growth. We believe the Group will further consolidate its global
position by adhering to our strategies. "
_- END -_
*?
About WH Group Limited (HKEX stock code: 288)*
WH Group Limited is the leading pork company in the world with the top
market share in China, the U.S. and some markets in Europe. It owns many
well-recognized and trusted brands and stands above the rest with global
market leadership in all key segments of the pork value chain, including
packaged meats, fresh pork and hog production. The Group conducts its
operations through Henan Shuanghui Investment & Development Co., Ltd., the
largest animal protein company in Asia, and Smithfield Foods, the largest
pork company in the U.S. For more information, visit www.wh-group.com [1].
For media enquiries
*Hill+Knowlton Strategies* *WH Group*
Sophie Du Renee Chen
+852 2894 6264 +852 2922 0736
wh-group@hkstrategies.com renee.chen@wh-group.com
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Document title: WH Group Announces First Nine Months 2019 Results Profit
Attributable to Owners of the Company Increases by 8.5% to US$820 million
28/10/2019 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
October 28, 2019 05:39 ET (09:39 GMT)
