The Hong Kong-based company revealed that trade tensions and an overabundant supply of meat saw its US pork segment decline significantly.
Inflationary pressures in the business’ packaged meat segment affected part of its operating profits in the US, while its hog processing volumes were 1.4% lower than the same period last year, as the production scale was constrained by market fundamentals.
“The recent exacerbated change of the dynamics in international relations is also influencing our business due to our global presence,” said WH Group chairman Wan Long.
“WH Group has improved its global operations management through business integration and development over the past five years. As a consumer goods company, branded packaged meats is our core business. We will continue to innovate and realign our product portfolio and global trade strategy to mitigate the impact of trade dynamics and create long-term value for our shareholders.”
In contrast, the business was encouraged by its overall fresh pork results, which experienced significant growth, and its packaged meats segment continued to realign its product portfolio.
Sales volumes in its packaged meats division grew by 2.8% to 1,603 metric tonnes and turnover in the division increased by 6.9% year-on-year to US$5.9m, while its fresh pork segment processed a total of 27,832 head, an increase of 7.3% year-on-year.
Overall performance saw WH Group report a 4.8% hike in turnover, while consolidated net profit increased by 15.6% to US$661m and its underlying profits increased by 13.2% to US$557m.
The business has remained steady in terms of sales, with a slight increase in profits since releasing its previous results in March.