WH Group (288) H2 2024 earnings summary

Executive summary

• 2024 revenue was US$25.941 billion, down 1.1% year-over-year, with packaged meat and pork sales volumes declining 3% and 4.9% respectively.

• EBITDA rose 56.1% to US$3.078 billion, operating profit increased 63.4% to US$2.404 billion, and net profit attributable to owners surged 142.7% to US$1.471 billion.

• Basic EPS was 11.47 US cents, up 142.7% year-over-year.

• Final and interim dividends totaled HK$0.50 per share, with a special cash dividend and Smithfield share distribution declared for 2025.

• Record profits were driven by efficiency improvements, cost control, and business structure optimization.

Financial highlights

• Operating cash flow reached US$2.519 billion, up 55.8% year-over-year; capital expenditure was US$707 million, down 12.9%.

• EBITDA margin improved to 11.9% from 7.5%; operating profit margin rose to 9.3% from 5.6%.

• Net profit margin increased to 6.6% from 3.2%; return on equity reached 15.7%.

• Free cash flow in 2024 was US$900 million higher than prior year.

• Debt to equity ratio improved to 29.1% (2023: 30.5%); leverage ratio remained low at 0.29.

Outlook and guidance

• Management expects packaged meat profit per ton to decrease in 2025 but remain historically high; raw material costs are expected to stay low.

• Eight strategic measures are being implemented to drive packaged meat volume growth in 2025, with effects expected to materialize during the year.

• U.S. pork market outlook is bullish for 2025, supported by high beef and chicken prices and pork's value proposition.

• Focus remains on product mix adjustment, price optimization, cost control, and global footprint expansion.

• First quarter 2025 outlook: stable overall performance, with fresh pork positive and packaged meats less optimistic in China; U.S. expects continued operating profit growth.