Chinese pork processing giant WH Group Ltd 0288.HK processed 30% more poultry last year, the company said on Tuesday, as it diversifies into other meats to lower costs and become more competitive.
WH Group, which owns U.S.-based Smithfield Foods and also has operations in Europe, reported a 34.3%rise in annual profit to $1.4 billion, largely thanks to a pretax gain of $414 million from the sale of spices company Saratoga Specialty Foods.
Taking out the sale, profit before biological fair value adjustments was flat compared with a 2021 profit of $1.04 billion.
Revenue grew 3.1% to $28.14 billion, thanks to significantly higher sales volumes of packaged meats in Europe from newly acquired operations and higher prices in both the U.S. and Europe to offset increasing costs.
In China, however, sales volumes were hit by COVID prevention measures.
Competition in pork processing is growing in China, however the company said in a presentation, with more hog producers building slaughterhouses to integrate operations.
Growth of the poultry business is key to its diversification, the company said in a statement, addding it processed 240 million chickens, geese and turkeys in Europe and China last year, up 30% from 2021.
(Reporting by Dominique Patton, Editing by Louise Heavens)
