WH Group (288) H2 2023 earnings summary

Executive summary

• 2023 revenue declined 6.8% YoY; EBITDA, operating profit and attributable profit fell sharply, reflecting weak pork market conditions and U.S. hog production losses.

• Packaged meats remained a key earnings anchor, while regional performance diverged: Europe benefited from higher hog and meat prices, and China pork earnings weakened.

Financial highlights

• Revenue was $26,236 million, down 6.8% YoY; EBITDA before biological asset fair value adjustments was $1,972 million, down 37.5%.

• Operating profit was $1,471 million, down 29.7%; profit before tax before biological asset fair value adjustments was $1,024 million, down 53.2%.

• Profit attributable to owners before biological asset fair value adjustments was $606 million, down 56.8%; basic EPS on the same basis was US$4.72 cents, down 56.8%.

• Packaged meats sold 3.196 million metric tons, down 4.4% YoY; pork sold 3.959 million metric tons, down 1.5%.

Outlook and guidance

• External conditions expected to include a stabilizing global economy, easing inflation pressure and gradual protein-industry supply-demand rebalancing, alongside geopolitical and regional growth uncertainty.

• Priorities include price management, product-mix improvement, cost control, automation, digitalization and greater internal synergies to support competitiveness and sustainable development.

• China plans include expanding packaged-meat offerings and sales networks, improving fresh-meat costs and volumes, and strengthening hog and poultry operations.

• U.S. and Mexico plans include reducing hog capacity, improving hog production, growing packaged meats and optimizing fresh-meat channels and product mix.

• Europe priorities include packaged-meat mix and pricing, fresh-pork capacity and by-product yields, poultry expansion, supply-chain efficiency and integration of acquired businesses.