WH Group, the parent company of Smithfield Foods in the U.S., reported a 37% increase in operating profit to $501 million for the three months ending March 31, despite declines in revenue and sales volumes. The improved profits were attributed to higher pork prices and reform measures that helped reduce losses related to hog farming, slaughtering, and pork sales in the region. Additionally, WH Group realized a $288 million profit from the sale of packaged meats in North America and Mexico.
Although WH Group’s pork operations in China experienced a 77% decrease in profit due to intense market competition, the company is optimizing its portfolio of packaged meats to address consumption weakness. Looking ahead, WH Group acknowledges that macroeconomic challenges could impact consumer confidence and demand but remains optimistic about its core business’s resilience for the remainder of the year. This positive outlook may indicate potential success for competitors such as Tyson Foods Inc. and JBS SA, which are set to report their earnings next month.
