WH Group (288) Q2 2025 earnings summary

Executive summary

• Revenue rose 8.9% year-over-year to US$13,387 million for H1 2025, with operating profit up 10.4% to US$1,259 million and profit attributable to owners up 4.5% before biological fair value adjustments.

• EBITDA before biological fair value adjustments was US$1,585 million, up 7.9% year-over-year; profit for the period was US$857 million, up 7.7%.

• Packaged meats sales volume declined 3.3%, while pork sales volume increased 7.5% year-over-year.

• Interim dividend doubled to HK$0.20 per share, totaling approximately US$327 million.

• North America contributed 55.2% of revenue and 53.6% of operating profit; China 30% and 34.6%; Europe 14.8% and 11.8%.

Financial highlights

• Basic EPS before biological fair value adjustments increased to 5.65 US cents; after adjustments, EPS was 6.14 US cents.

• Net cash flows from operating activities were US$767 million; cash and bank balances stood at US$1,832 million as of 30 June 2025.

• Debt to equity ratio was 32.2%, net debt to equity ratio 17.0%, and average interest rate on borrowings 2.74%.

• Interim dividend per share increased by HK$0.10 to HK$0.20.

• U.S. pork cutout value averaged $2.17/kg in H1 2025, up 4.5% year-over-year.

Outlook and guidance

• Management will focus on core packaged meats, product/channel transformation in China, cost control in the US, and scale/profit expansion in Europe.

• Packaged meats volume in China expected to increase in H2, with profit per metric ton projected at CNY 4,800; full-year average profit per metric ton expected to reach a record CNY 4,200.

• U.S. pork production expected to grow 0.9% for the year, with strong pricing anticipated into 2026.

• European pork prices expected to decline seasonally in H2, remaining 3-4% below last year.

• Ongoing global political and trade uncertainties expected to impact operations; strategies include industrialization, diversification, globalization, and digitalization.