Chinese pork processor WH Group booked a surge in earnings in its first set of interim results as a listed company, boosted by last year’s acquisition of US pork giant Smithfield Foods.
Profit attributable to owners of the company increased 105.6%, climbing to US$366m in six months to 30 June. Operating profit increased 219.6% to $815m, with improved operating results seen across its packaged meat, fresh port and hog production operations in both China and the US.
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Total turnover rose 219.6% to $10.54bn, the company added.
WH Group Chairman and CEO Wan Long commented: “The solid results our operations delivered in the first half of 2014 reflect our strong performance after our strategic merger with Smithfield Foods a year ago, paving the way for synergies ahead. Through our seasoned management expertise in China and US, we grew our profitability significantly in both markets.”
WH Group listed on the main board of the Hong Kong stock exchange last month in an IPO that raised $2.28bn. The company revealed that all proceeds from the stock offering have been used to pay down the group’s $4bn debt burden, reducing WH Group’s debt-to-equity ratio from 218.8% as of end-June to 88.2% currently. This will lower financing costs by around $90m annually, the company revealed.
Click here to view the announcement from WH Group.
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