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Revenue at the group, which owns U.S.-based Smithfield Foods,
the world's largest pork processor, grew 6.7% in 2021 to $27.29
billion, according to a company filing.
Profit before biological fair value adjustments rose after low
hog prices reduced product costs in China while higher sales and
a reduction in COVID-19 related expenses in the U.S. outweighed
an increase in raw material costs, the company said.
WH Group reported a 1.3% rise in the sales of packaged meats,
its core business, to 3.32 million tonnes in 2021.
Sales volume in China, however, dropped by 1.6% in a consumer
market lacking growth momentum.
Hog prices in China plunged last year as farmers rebuilt herds
after an epidemic of African swine fever but COVID-19 outbreaks
dampened demand.
WH Group told reporters that Chinese hog prices would remain low
in the first half of 2022 before rising in the second half. Most
analysts expect prices to remain low this year.
Rising commodity prices and production costs would remain a
challenge it said, with its import and export business also
affected by the pandemic - one executive noted longer shipment
cycles and customs processes and higher costs.
WH Group's China business Shuanghui Development reported a 22.2%
fall in net profit to 4.87 billion yuan ($764.69 million) on
lower hog and meat prices, and said profit from frozen products
and pork imports had dropped considerably.
Shuanghui was recently forced to apologise after a local media
investigation uncovered food safety issues at one of its plants.
WH Group last year removed executive director Wan Hongjian,
chairman Wan Long's son, citing untrue allegations he made
against the company.
($1 = 6.3686 Chinese yuan renminbi)
(Reporting by Hallie Gu and Dominique Patton; Editing by Edmund
Blair, Kirsten Donovan)
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