WH Group (288) investor relations material

Executive summary

• Revenue for the first half of 2026 was $13.827 billion, up 3.3% year-over-year, with packaged meat and pork volumes growing 4.9% and 6.1% respectively.

• EBITDA rose 6.1% to $1.681 billion, while profit attributable to owners increased 6.6% to $773 million; net profit for the period was $947 million, up 10.5% year-over-year.

• Operating profit declined 2.2% to $1.231 billion, reflecting margin pressures despite higher sales volumes.

• Interim dividend of HKD 0.2 per share declared, totaling approximately $330 million.

• Smithfield's unaudited net income rose to $484 million, with comprehensive income at $494 million for the six months ended 28 June 2026.

Financial highlights

• Packaged meat contributed 51.3% of revenue and 89.4% of operating profit; pork business contributed 39.1% of revenue and 14.3% of operating profit.

• North America accounted for 52.9% of revenue and 53.5% of operating profit; China 30.5% of revenue and 36.8% of operating profit; Europe 16.6% of revenue and 9.7% of operating profit.

• China average hog price dropped 27.5% year-over-year; U.S. hog price down 1.5%; Europe down 20%.

• China packaged meats operating profit rose 11.4% year-over-year; pork business in China posted a $7 million loss.

• Europe operating profit fell 20.1% to $119 million; U.S. pork operating profit rose 11.7% to $182 million.

Outlook and guidance

• Second half expected to face weak consumer demand, inflation, commodity volatility, and policy uncertainties.

• Focus remains on optimizing product mix, leveraging vertical integration, cost control, and digitalization.

• China hog prices expected to moderately increase in the second half and into 2027.

• Full-year packaged meat profit per ton guidance is flat or slightly below last year, with volume growth expected.

• U.S. business guidance revised down due to lower hog prices, cautious consumers, and higher input costs.