[ET Net News Agency, 27 March 2020] Moody's Investors Service says that WH Group
Limited's (00288) stable operating and financial performance in 2019 support its Baa2
issuer rating and stable rating outlook.
"WH Group's credit quality remains solid, supported by steady revenue growth, profit
margin expansion and reduced leverage," said Ying Wang, a Moody's Vice President and
Senior Analyst.
The company's revenue increased by 6.6% to US$24.1 billion in 2019, mainly driven by
higher prices for most of its products. The spread of African Swine Fever in China has
tightened supply and in turn, increased product prices.
Specifically, sales revenue from packaged meats and fresh pork increased by 1.5% and
10.3% respectively, despite a low single-digit volume decline for both product categories
in 2019. Packaged meats and fresh pork accounted for 51% and 42% of WH Group's total
revenue respectively last year.
Moody's expects WH Group's revenue to be flat in 2020 due to the impact of the
coronavirus outbreak, including supply chain disruptions in certain regions. Nevertheless,
Moody's expects pork demand will remain relatively resilient as a consumer staple. (KL)