April 17, 2008

Cherkizovo net income rose by 109 percent year-on-year

Russian integrated pig and poultry meat producer Cherkizovo's net income has jumped more than twofold from 2006.

The company's net income rose by 109 percent to US$61.6 million compared to US$29.4 million in 2006.

Adjusted EBITDA increased by 56 percent year-on-year to US$115.3 million compared to US$74.2 in 2006.

Group gross profit increased by 51 percent to US$223.8 million compared to US$147.8 million in 2006. Gross margins went up 27 percent in 2007 from 23 percent in 2006.

Sales were up 33 percent to US$840.8 million compared to US$631.6 million in 2006.

Sergey Mikhailov, CEO of Cherkizovo Group, said the group was delighted to report such a strong set of results for 2007.

The result was achieved through the growth of expanded operations and acquisitions such as that of OJSC Kurinoe Tsarstvo, said Mikhailov.

In light of the company's good performance in 2007, Mikhailov said that Cherkizovo is looking forward to 2008 with confidence.