April 27, 2007

Russia's Cherkizovo 2006 earnings on near twofold

Russian meat company Cherkizovo announced Thursday (April 26) it nearly doubled its net profit in 2006 as its poultry and pork businesses grew quickly despite slow core earnings and steady margins.

Cherkizovo, which raised US$251 million in an initial public offering in London and Moscow last May, said net income from continuing operations rose 92 percent to US$33.2 million.

Adjusted earnings before interest, taxation, depreciation and amortisation rose by 15 percent to US$76.1 million which kept pace with sales growing by 16 percent to US$630 million. Adjusted EBITDA margin was flat at 12 percent.

Cherkizovo aims to become the leading Russian meat producer with its heavy investments in both pork and poultry.

Meat processing accounted for 72 percent of the company's sales last year, poultry 24 percent and pork 4 percent. The smaller business also posted growth, with pork sales up 48 percent and poultry up 29 percent.