August 21, 2019
China's Wens Group H1 net profit jumps 50.8% while swine production falls
Wens Foodstuff Group Co Ltd said on Tuesday its first-half net profit jumped 50.8% as rising poultry demand more than offset a loss in its swine business due to the African swine fever (ASF) situation in China, Reuters reported.
The company, worth about US$30 billion by market value, reported net profit of RMB1.38 billion (US$195.4 million), up from RMB917.3 million a year earlier. Revenue rose 20.2% to RMB30.4 billion from the same period in 2018.
Wens said sales volumes of its broiler chickens rose 17.5% in the first half, while duck sales increased by 21.5%.
Chinese duck production is expected to grow significantly this year in response to ASF.
The company has targeted an increase in broiler output of at least 10% this year. Wens said in June it would buy Jiangsu Jinghai Poultry Industry Group, marking its foray into the white-feathered broiler segment.
Wens said its swine business recorded a loss despite sales volumes being up 13.7% on a year ago. The company has raised its spending on biosecurity measures to protect against ASF.
(US$1 = RMB7.06)