Muyuan Foods (002714) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥56.87 billion, up 9.63% year-over-year; net profit attributable to shareholders was ¥829 million, reversing a loss from the prior year.

• Sold 32.39 million hogs, up 7% year-over-year; slaughtered 5.42 million hogs; breeding sow inventory at 3.309 million at June-end.

• Hog prices rebounded in Q2, improving profitability; cost per kg dropped to near ¥14 by June.

• Cash flow from operations was ¥15.47 billion, a significant turnaround from negative cash flow last year.

Financial highlights

• Operating income: ¥56.87 billion, up 9.63% year-over-year.

• Net profit attributable to shareholders: ¥829 million, compared to a loss of ¥2.78 billion last year.

• Basic and diluted EPS: ¥0.15, up from -¥0.52 year-over-year.

• Operating cash flow: ¥15.47 billion, up 1,582% year-over-year.

• Gross margin for hog farming: 8.13%; slaughter/meat business: -0.42%.

Outlook and guidance

• Hog production costs expected to decline further with ongoing improvements in disease control, nutrition, breeding, and digitalization.

• Slaughter/meat business to focus on efficiency, channel expansion, and profitability enhancement.

• Continued investment in R&D, digitalization, and talent to drive operational efficiency.