Zhitong Finance App News, Wanzhou International (00288) announced that in the first quarter of 2024, revenue was US$6.181 billion, a year-on-year decrease of 8.33%; profit attributable to company owners before biofair value adjustment was US$301 million, up 73% year on year; basic profit per share was 2.35 cents.

During the period, sales volume of meat products was 786,000 metric tons, down 4.1% from the comparison period. In China, the main reason for the 4.9% drop in sales was sluggish consumption. In both the US and Europe, sales declined by 3.7% due to weak market demand and the Group's continued optimization of its product portfolio. Revenue from meat products decreased by 4.2% to US$3.312 billion during the period, mainly due to a drop in sales volume. Despite this, the operating profit of meat products increased by 4.7% compared to the comparison period. In China, operating profit increased 10.1%, mainly due to favorable raw material costs. In Europe, operating profit doubled over the comparison period due to the Group's focus on price management to increase profits. In the US alone, operating profit decreased by 4.3%, roughly in line with changes in sales volume.

Pork sales fell 7.8% to 941 thousand tonnes during the period. In China, the US and Europe, the Group adjusted slaughter volume according to local market conditions, and sales declined by 10.0%, 8.4% and 4.9%, respectively. Coupled with the reduction in average sales prices, pork revenue for the period decreased by 13.7% compared to the comparison period. Despite this, the Group's pork operating loss decreased from US$170 million in the comparison period to US$27 million in the current period. The significant improvement in performance was mainly due to a reduction in losses related to US pig farming and an increase in profit margins in slaughter and processing. At the same time, operating profit in Europe increased significantly by 188.9% due to favorable costs and improved operational efficiency. Only China's operating profit declined by 76.9% due to fierce market competition.

According to the announcement, the company achieved a sharp increase in profits during this period. One of the key drivers was that the group implemented a series of reforms last year to rectify the Group's pig breeding operations. In line with the current favorable market conditions, the pork business in the US has improved markedly. The Group anticipates that the benefits of these measures will continue to have a positive impact on the company for the rest of the year. At the same time, unfavorable macroeconomic conditions may affect consumer confidence and thus dampen consumer demand. In order to adapt to the changing market environment and meet various challenges, the Group will vigorously promote product restructuring, expand sales networks, manage prices and save costs. With the Group's competitive advantage, the Group believes that the performance of its core business, meat products, will remain strong this year. Thanks to the joint efforts of the management team, the company will strive to achieve a healthy recovery in overall performance in 2024.