WH Group (288) investor relations material

Executive summary

• Revenue for H1 2026 was US$13.827 billion, up 3.3% year-over-year, with EBITDA rising 6.1% to US$1.681 billion and profit attributable to owners up 6.6% to US$773 million; packaged meats remained the core business, contributing 89.4% of operating profit.

• Operating profit declined 2.2% YoY to US$1.231 billion, mainly due to margin pressures in pork and fresh pork segments, despite record-high packaged meats and pork volumes.

• North America accounted for 52.9% of revenue, China 30.5%, and Europe 16.6%.

• Despite challenging macro conditions, volume and profit growth were achieved in packaged meats, while pork and fresh pork faced margin pressure.

• Smithfield, a major subsidiary, reported net income of $484 million, up from $412 million YoY, with improved operating and net margins.

Financial highlights

• Packaged meat sales reached 1.522 million metric tons (+4.9% YoY); pork sales were 2.079 million metric tons (+6.1% YoY).

• Net profit for the period was US$947 million (+10.5% YoY); basic EPS was 6.02 US cents.

• Interim dividend declared at HKD 0.2 per share, totaling about US$330 million.

• Cash and bank balances stood at US$2,201 million as of 30 June 2026.

• Smithfield's sales totaled $7,500 million, with operating profit at $623 million and net income per diluted share at $1.23.

Outlook and guidance

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

• Focus remains on product mix optimization, leveraging vertical integration, digitalization, and stable results.

• China hog prices expected to moderately increase in H2 and 2027, with first half lower than second half.

• Full-year packaged meat profit per ton guidance is flat or slightly below last year.

• Strategic priorities include industrialization, diversification, globalization, and automation.