By Jason Chau

Shares of WH Group tumbled Wednesday after the Chinese pork giant said a decline in hog prices is affecting the business.

WH Group's stock fell as much as 8.0% in Hong Kong on Wednesday morning before recovering some losses. Shares were recently 6.2% lower in the afternoon session, on track for their biggest decline in just over a year.

The company on Tuesday reported a 8.8% expansion in first-quarter net profit and 6.7% rise in revenue. WH Group's sales volume for both packaged meat and pork also went up in the same period.

The quarterly results were solid and are largely in line with expectations, Citi analysts said in a note.

However, WH Group said price changes for hogs and pork are affecting its business.

The company said revenue from its pork segment declined in the first three months of the year. Hog production in China rose nearly 3% during the period, driving average hog prices down 23% from a year earlier and pressuring revenue in the China market, it said.

Meanwhile, average carcass prices in the European Union fell 18% in the first quarter as an outbreak of African swine fever led to trade restrictions in Europe, it added.

Last quarter's operating profit from the pork segment fell 35%, reflecting the losses recorded in China and Europe, WH Group said.

With lower-than-expected hog prices in the second quarter, the Citi analysts noted that company management is expecting losses from hog production to widen slightly.

Write to Jason Chau at jason.chau@wsj.com

(END) Dow Jones Newswires

April 29, 2026 01:50 ET (05:50 GMT)

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