September 28, 2007

Russia's Cherkizovo 1H profit zooms five-fold to $22m

Russian food group Cherkizovo Group said Friday its first-half net profit rose more than five-fold to $21.9 million, reflecting mainly improved operating performance at its poultry division, and lower unit production and interest costs.

Revenue rose 21 percent to $343.1 million.

The company said it expected the second half of the year to be stronger, due to the usual seasonality of its business, and the integration of new acquisition OAO Chicken Kingdom.

Cherkizovo said sales volumes for its poultry division rose 43 percent, while average per-kg prices rose 17 percent in dollar terms, and 10 percent in rouble terms, from a year earlier.

Pork prices fell 5 percent in dollar terms and 11 percent in rouble terms, in line with international pork prices. The company said it expected to reduce unit costs at the division further to offset what it expected to be a continued, if more gentle, decline in pork prices.