2026-03-24 08:50Financial Performance - WH Group Limited reported a revenue increase of 8.0% to $28,026 million for the year ending December 31, 2025, compared to $25,941 million in 2024[3]. - Operating profit rose by 8.7% to $2,612 million in 2025, up from $2,404 million in 2024[3]. - The profit attributable to owners of the company increased by 8.2% to $1,591 million, with basic earnings per share rising to 12.40 cents from 11.47 cents in the previous year[3]. - The company's revenue increased by 8.0% to $28.026 billion in 2025, driven by higher pork sales and average prices of meat products[14]. - Operating profit rose by 8.7% to $2.612 billion, primarily due to significant profit growth in the pork business[14]. - Revenue growth rate for 2025 is 8.0%, an increase of 9.1 percentage points from -1.1% in 2024[23]. - Net profit margin improved to 6.8% in 2025, up by 0.2 percentage points from 6.6% in 2024[23]. - The gross profit for 2025 was $4,987 million, compared to $5,200 million in 2024, indicating a decrease of about 4.1%[63]. - The net profit for the year was $1,891 million, up from $1,853 million in 2024, reflecting an increase of approximately 2.1%[64]. Market Segmentation - Pork sales volume increased by 8.6% to 4,089 thousand tons, while meat product sales volume decreased by 1.5% to 3,054 thousand tons[2]. - The Chinese market accounted for 30.3% of the group's revenue and 35.8% of operating profit in 2025, compared to 32.5% and 39.2% in 2024, respectively[5]. - In North America, the business contributed 54.3% of revenue and 53.3% of operating profit, showing slight increases from 53.0% and 49.4% in 2024[5]. - Pork revenue increased by 10.1% to $11.383 billion, with North America showing a notable growth of 19.2%[19]. - The meat products segment accounted for 82.0% of the company's operating profit and 50.6% of total revenue in 2025, down from 92.9% and 52.6% respectively in 2024[14]. Production and Operations - The total pork production in China increased by 4.1% to 5,940 thousand tons, with a total of 720 million live pigs produced, up 2.4%[6]. - The total number of pigs slaughtered increased by 7.9% to 48.942 million heads in 2025[20]. - The company's poultry business saw a 12.6% increase in the number of chickens, geese, and turkeys slaughtered, totaling approximately 392 million[21]. - The utilization rates for meat products production capacity were 65.3% in China, 83.2% in North America, and 84.2% in Europe[22]. - The operating profit for the pork segment surged by 62.4% to $578 million, largely due to improved conditions in the U.S. pork farming sector[20]. Financial Position - Cash and bank balances reached $2.388 billion as of December 31, 2025, compared to $2.055 billion in 2024[28]. - Net cash generated from operating activities remained stable at $2.526 billion in 2025, slightly up from $2.519 billion in 2024[29]. - Total outstanding loans amounted to $3.649 billion as of December 31, 2025, an increase from $3.330 billion in 2024[32]. - The company maintained a current ratio of 1.9 as of December 31, 2025, consistent with 2024[28]. - The total asset return rate decreased to 9.1% in 2025, down by 0.4 percentage points from 9.5% in 2024[23]. - The company's financial costs decreased by 0.7% to $146 million in 2025, with an average interest rate on outstanding loans of 2.55%[36]. Investments and Acquisitions - The company plans to invest up to $1.3 billion in a new state-of-the-art processing facility in Sioux Falls, South Dakota, expected to commence construction in the first half of 2027 and begin operations by the end of 2028[37]. - The company completed the acquisition of Nathan's Famous for $102 per share, enhancing its meat product brand portfolio and expected to drive growth in high-margin products[39]. - The acquisition of Wolf Group, a leading German producer of premium sausages and convenience foods, was completed, expected to accelerate growth in the European market[40]. - The company sold its goose slaughtering business in Poland for a net amount of $21 million, realizing a pre-tax gain of $11 million, allowing a focus on core business areas[42]. Employee and Compensation - Total employee count as of December 31, 2025, is approximately 106,000, with 49,000 in China, 35,000 in North America, and 22,000 in Europe[50]. - Total compensation expenses for 2025 amounted to $4.348 billion, an increase of 4.8% from 2024, primarily due to global wage inflation and stock compensation related to the Smithfield incentive plan[50]. Sustainability and Governance - The company is committed to sustainable protein options and has updated its greenhouse gas reduction targets, with a focus on water resource risk assessment[58]. - The company received an AA- rating from the Hang Seng Sustainable Development Index and improved its MSCI ESG rating to A, reflecting recognition of its sustainability efforts[59]. - The company has maintained compliance with the corporate governance code as per the listing rules for the year ending December 31, 2025[98]. Dividends and Shareholder Information - A special cash dividend of HKD 0.18 per share was declared, totaling approximately HKD 25.24 billion (around $3.24 billion)[25]. - The company plans to distribute a final dividend of HK$0.41 per share for the year ending December 31, 2025, pending shareholder approval[82]. - The total interim and final dividends for the year will amount to HKD 0.61 per share, compared to HKD 0.50 per share for the previous year[101].