Revenue increased by 3.1% year on year to
US$28,136 million
in 2022. Operating profit rose by 6.5% to US
$2,093 million
. Profit attributable to owners of the Company, before biological fair value adjustments, increased by 34.3% year.
Key Highlights:
* Sales volume of packaged meats increased by 0.7% and sales volume of pork decreased by 7.9%.
* During the Review Period, revenue of the Group increased by 3.1% year on year to
US$28,136 million
.
* Operating profit increased by 6.5% year on year to
US$2,093 million
as both packaged meats and pork segments outperformed 2021 results.
* Profit attributable to owners of the Company, before biological fair value adjustment, increased by 34.3% year on year to
US$1,401 million
.
* In
China
, sales volume increased by 0.1% year on year.
Original Press Release:
Hong Kong
,
March 28
-- WH Group Limited issued the following news release:
WH Group Limited
("
WH Group
" or "the Company", HKEX stock code: 288) is pleased to announce the consolidated results of the Company and its subsidiaries (the "Group") for the year ended
December 31, 2022
(the "Review Period").
Highlights
* Revenue increased by 3.1% to
US$28,136 million
* Operating profit rose by 6.5% to
US$2,093 million
* Sales volume of packaged meats increased by 0.7% and sales volume of pork decreased by 7.9%
* Profit attributable to owners of the Company, before biological fair value adjustments, was
US$1,401 million
, representing an increase of 34.3%
* Basic earnings per share, before biological fair value adjustments, increased by 48.2% to US10.92 cents
* A final dividend of
HK$0.25
per share was recommended, bringing the total dividend payouts for the year to
HK$0.30
per share
Overall Business Performance
In 2022, business operations faced challenges as the macro situation was complicated, global inflation remained high, European and American central banks continued to raise interest rates and consumer confidence weakened. Moreover, animal diseases were recurring, and the volatility of hog and meat prices increased.
WH Group
proactively adjusted its business strategy, promoted structural adjustment, efficiency improvement and cost control, absorbed extreme inflationary pressure, and achieved steady earnings growth.
During the Review Period, revenue of the Group increased by 3.1% year on year to
US$28,136 million
. Operating profit increased by 6.5% year on year to
US$2,093 million
as both packaged meats and pork segments outperformed 2021 results. Profit attributable to owners of the Company, before biological fair value adjustment, increased by 34.3% year on year to
US$1,401 million
.
Performances of Business Segments
Packaged Meats Segment
In 2022, the Group's packaged meats sales volume increased by 0.7% year on year to 3.344 million metric tons. In
China
, sales volume increased by 0.1% year on year. Sales volume in the US decreased by 0.8% year on year as a result of volume decline in the retail channel, due to challenging labor and supply chain environments, which was partially offset by the volume gain in food service channels as the hospitality sector continued to recover from the pandemic. In
Europe
, sales volume increased by 10.6% year on year from organic growth and newly acquired operations.
Packaged meats revenue increased by 5.4% year on year to
US$14,559 million
and operating profit increased by 9.0% year on year to
US$2,065 million
. In
China
, operating profit increased by 0.9% to
US$910 million
as the decrease in primary raw material costs countervailed the increase in other costs and expenses as well as the unfavorable foreign exchange translation result. In the US, operating profit grew 19.5% year on year to
US$1,058 million
due to the increase in revenue and improvement in manufacturing efficiency, despite the increase of costs in raw materials, distribution, energy and labor. In
Europe
, operating profit decreased by 10.2% year on year to
US$97 million
primarily due to depreciation of local currencies against the US dollar. From a currency neutral perspective, operating profit in
Europe
increased by 3.0% as the increase in sales outweighed the elevation of costs.
Pork Segment
The total number of hogs processed in 2022 was 48.915 million heads, a decrease of 3.5% from 2021. External sales volume of pork was 4.019 million metric tons in 2022, 7.9% lower than in 2021, mainly due to lower harvest levels in the US and
Europe
, as well as the decrease in sales of imported products in
China
.
Revenue of pork segment decreased by 1.4% year on year to
US$11,797 million
. Operating profit of pork segment increased to
US$30 million
. In
China
, the pork business achieved a turnaround and recorded an operating profit of
US$94 million
in 2022, after the implementation of an effective frozen meat reserve strategy by successfully forecasting market dynamics. In the US and
Mexico
, the operating loss was
US$43 million
in 2022, as the increase in hog raising costs caused by inflation and herd health concerns outpaced the increase in hog prices, meanwhile the increase in hog prices outpaced the increase in meat value. In
Europe
, the pork segment incurred an operating loss of
US$21 million
due to lower sales, and higher raw material and production costs.
Outlook
Mr.
Wan Long
, Chairman of
WH Group
, said, "Looking ahead to 2023, the pandemic has ended, economic and social life will gradually return to normal. However, geopolitical trends, animal disease outbreaks in certain areas, high food and energy prices, high financial costs, labor shortages and wage increases will pose challenges to our operations.
WH Group
will continue to promote its strategy of mix optimization, price adjustment and cost control, further improve its vertically integrated business model, accelerate meat diversification, and expand our network and exports. We will also leverage the advantage of our global platform to enhance synergy, continue to optimize the operational process, and realize the industrial upgrade to enhance the Company's comprehensive advantages, as well as achieve stable operations and high-quality development."
About
WH Group Limited
(HKEX stock code: 288)
WH Group Limited
is the largest pork company in the world with the top market share in
China
, the US and some markets in
Europe
. It owns many wellrecognized 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 US. For more information, visit www.wh-group.com .
Source:
WH Group Limited
[Category: Financial Results]
