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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

WH Group Posts 2021 Half-Year Results

08/16/2021

In a press release dated August 12th, the WH Group Limited, quoted on the Hong Kong Exchange, reported results for the six months ended June 30th. The company owns hog production and packing facilities in North America (Smithfield Foods) the E.U. and China.  For the period, revenue increased by 6.8 percent over the corresponding first half of 2020 to $13,331 million.  Net profit declined by 2.0 percent to $539 million.

 

The Packaged Meats Segment produced 1,614 million metric tons and accounted for 48.5 percent of group revenue of $6,464 million.  The Pork Segment processed 25.3 million head with sales of 2,138 million tons.  Recovery of the hog industry in China following the devastation caused by African swine fever is indicated by the fact that WH Group production during the first half of 2021 in China increased 54 percent to 5.0 million head.  Inflationary factors including the cost of feed decreased operating marked profit by 71 percent to $77 million.  The pork segment generated an operating loss of $17 million.

 

In a statement accompanying results, management attributed the decline in both operating margin and net profit to the additional costs and disruption associated with COVID-19 and inflationary pressures, mainly feed. 

 

Founder and major shareholder, Wan Long resigned as CEO and will assume the position of Executive Chairman of the Board.  This change was made to conform to Hong Kong regulations that require separation of the two positions.  Guo Lijun was appointed as CEO.  Previously he was the CFO and will be replaced in this position by Ms. Yan Kam Yin. Appointments were also made to the positions of Vice-president responsible for International Trade and Vice-president for Operations Management.


Wan Long, Chairman WH Group

 

In commenting on the appointments, Wan Long stated, "I believe that the management team will embrace the culture of the WH Group, promote digitization by adopting new technologies and take the company's management and governance to the next level". 


 
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