WH Group (288) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $6.554 billion, up 6% year-over-year, with EBITDA up 16.6% and operating profit up 19.4%.

• Net profit attributable to owners rose 20.9% to $364 million, and basic EPS increased to 2.84 US cents.

• Packaged meat volume declined 9.2% year-over-year, while pork volume rose 4.4%.

• Management expects packaged meat business to stabilize and recover in Q2, with full-year growth in both volume and profit.

• The company completed a partial spin-off and Nasdaq listing of Smithfield Foods, raising $534 million in net cash proceeds and distributing special dividends.

Financial highlights

• Packaged meats contributed 49.5% of revenue and 83.8% of operating profit; pork business contributed 42.9% of revenue and 21.9% of operating profit.

• North America accounted for 56.1% of revenue and 55.2% of operating profit; China 30.6% of revenue and 36% of operating profit; Europe 13.3% of revenue and 8.8% of operating profit.

• North America operating profit surged 72.8% to $330 million; Europe operating profit declined 10.2%.

• China packaged meats operating profit fell 22.5% year-over-year, while pork business profit rose 77.8%.

• EBITDA reached $786 million before biological fair value adjustments, up from $674 million a year ago.

Outlook and guidance

• Management expects packaged meat sales and profit to recover in Q2 and offset Q1 declines by year-end.

• Full-year packaged meat profit per ton expected to decrease from last year’s high but remain historically strong.

• Hog production and poultry businesses in China are expected to turn profitable in 2025, contributing over ¥500 million in profit improvement.

• U.S. hog production and pork business expected to remain profitable in Q2 and Q3, with seasonality impacting Q4.

• Focus remains on transforming packaged meats in China, maintaining profitability in the U.S., and expanding in Europe.