Russian meat producer Cherkizovo Thursday (Apr 9) said 2008 net profit rose 27 percent due to higher sales of sales of poultry and pork.

London-listed Cherkizovo said net profit totalled US$78.1 million from US$61.6 million a year earlier. Sales rose 42 percent to US$1.2 billion as pork sales rose 40 percent.

The company's poultry production was hit by lower-than-expected price increases in the beginning of the year, primarily due to increased imports.

Cherkizovo's profitability in 2008 was slightly lower from the year before, as gross margin contracted to 24 percent from 27 percent.

The results have clearly benefited from the support of US$52.8 million in direct subsidies and interest reimbursement provided by the Russian government, the company said.

"The difficult conditions remain in place, and further support is therefore necessary to ensure that the company continues to deliver against its objectives," Cherkizovo Chief Executive Sergey Mikhailov.