February 2, 2012

 

Cherkizovo reports higher pork sales in 2011

 

 

Cherkizovo's pork division has seen a 4% increase in sales, from 87,650 tonnes in 2010 to 91,400 tonne in 2011.

 

Prices in rouble terms increased by 11% from RUB71.95 (US$2.38) per kg in 2010 to RUB80.04 (US$2.65) per kg in 2011 (excluding VAT).

 

Compared to the price in the third quarter of 2011, the price in the fourth quarter increased by 2% to RUB82.97 (US$2.75) per kg.

 

In dollar terms, prices for pork sales increased by 15% from US$2.37 per kg of live weight in 2010 to US$2.72 per kg of live weight in 2011 (excluding VAT).

 

Compared to the third quarter of 2011, the price in the fourth quarter decreased 5% to US$2.66 per kg.

 

Sales volumes in the poultry division in 2011 increased by 34% to approximately 260,200 tonnes of slaughter weight compared to 194,100 tonnes in 2010, reflecting organic volumes added in the Bryansk and Penza clusters and the inclusion of sales by Mosselprom, acquired in May 2011.

 

Prices in rouble terms increased by 1% from RUB71.89 (US$2.38) per kg in 2010 to RUB72.79 (US$2.41) per kg in 2011 (excluding VAT).

 

Compared to the third quarter of 2011, the price in the fourth quarter stayed almost flat at RUB73.74 (US$2.44) per kg.

 

Prices for poultry sales in dollar terms increased by 5% from US$2.37 per kg in 2010 to US$2.48 per kg in 2011 (excluding VAT).

 

Compared to the third quarter of 2011, the price in the fourth quarter decreased 7% to US$2.36 per kg.

 

In 2011, consumption recovered to pre-crisis levels, and sales volumes in the meat processing segment increased by 3% to approximately 145,270 tonnes compared to 141,550 tonnes in 2010. Prices in rouble terms increased by 13% from RUB118.21 (US$3.92) in 2010 to RUB133.65 (US$4.43) per kg in 2011 (excluding VAT).

 

Compared to the price in the third quarter, the price in the fourth quarter of 2011 increased by 6% to RUB142.74 (US$4.73) per kg. Prices in dollar terms increased by 17% from US$3.89 per kg in 2010 to US$4.55 per kg in 2011 (excluding VAT). Compared to the third quarter of 2011, the price in the fourth quarter decreased 2% to US$4.57 per kg.

 

Commenting on the performance, Sergey Mikhailov, CEO of Cherkizovo Group said: "We delivered a 34% increase in sales volumes within our poultry division in 2011 through a combination of organic growth, the contribution from Mosselprom, and the launch of additional facilities at our Bryansk and Penza clusters."

 

"Pricing in the poultry division in 2011 has been relatively flat, while in the pork division pricing has increased as a result of demand rising more than expected due to its substitution from beef, where prices have been on a steep uptrend in 2011."