not vested
Pork profit slides as Chinese market cools
WH Group (0288), the world's largest pork producer, saw interim net profit plunge 43 percent to US$303 million (HK$2.36 billion) from a year earlier due to the slowdown in China's consumer market and fall in US pork prices.
Revenue in the first six months of the year slid 3.2 percent to US$10.21 billion, with turnover from China operations declining 11 percent to US$1.77 billion. Its US operations eased 0.7 percent to US$3.26 billion.
Earnings per share tumbled 55 percent to 2.12 US cents and no interim dividend was proposed.
Chairman and chief executive Wan Long said the average price of pork in the mainland rose rapidly in the first half, but fell to 15.4 yuan per kilogram recently and is expected to decline further in the second half.
More US pork would be exported to China because of its lower costs, Wan added.
He said the depreciation of the yuan would not affect too much of the company's business, as most of its deals were settled in the US.
The company also plans to pay a US$800 million to US$900 million debt this year.
Source: The Standard HK