November 1, 2013

Cherkizovo Group announces its operating results for the nine months of 2013 with a 7% sales volume increase in poultry division, a 59% on-year increased for its pork division, 6% rise in meat processing division, and a soaring 40% in its grain harvest.

 

Cherkizovo's sales volume in the poultry division for the nine months of 2013 increased by 7% on-year to 251,429 tonnes of sellable weight compared to 236,080 tonnes for the nine months of 2012.

 

Prices for poultry in dollar terms decreased by 1% on-year from US$2.46/kilogramme (kg) for the nine months of 2012 to US$2.43/kg for the nine months of 2013. Compared to the price of US$2.41/kg in the second quarter of 2013, the price in the third quarter of 2013 decreased by 3% to US$2.35/kg.

 

For the nine months of 2013, sales volume in the pork division increased by 59% on-year to 111,689 tonnes of live weight, compared to 70,131 tonnes for the nine months of 2012.

 

In US dollar terms, price for pork fell by 24% on-year from US$2.63/kg for the nine months of 2012 to US$2.00/kg for the nine months of 2013 (live weight). Compared to the price of US$1.93/kg in the second quarter of 2013, the price in the third quarter of this year increased by 11% to US$2.14/kg.

 

Cherkizovo's sales volume in the meat processing division increased by 6% on-year to 99,431 tonnes for the nine months of 2013 from 94,049 tonnes during the same period of 2012.

 

Prices in US dollar terms dropped by 2% on-year to US$4.62/kg for the nine months of 2013 compared to US$4.71/kg for the nine months of 2012. Compared to the price of US$4.59/kg in the second quarter of 2013, the price in the third quarter of 2013 decreased by 3% to US$4.46/kg.

 

Meanwhile in its grain division, Cherkizovo had almost completed harvesting in October in the Voronezh and Orel regions. As of October 28 the company harvested approximately 160,000 tonnes of grain, which is 40% higher than fiscal year 2012 harvest of 115,000 tonnes. In this agricultural season the company sowed approximately 13,000 hectares of winter crops and plans to sow about 27,000 hectares under spring crops in spring 2014.

 

Sales volume in the grain division rose by 11% on-year to 71,017 tonnes for the nine months of 2013 from 64,057 tonnes for the nine months of 2012. Wheat and barley accounted for 88% of sales for the nine months of 2013.

 

In dollar terms price decreased by 30% on-year from US$0.26/kg for the nine months of 2012 to US$0.18/kg for the nine months of 2013. Compared to the price of US$0.27/kg in the second quarter of 2013, the price in the third quarter of 2013 decreased by 43% to US$0.15/kg.

 

Cherkizovo Group is the largest meat manufacturer in Russia and one of the top three companies serving Russia's poultry, pork, and meat processing markets. It is also Russia's largest producer of fodder. In 2012, Cherkizovo produced more than half a million tonnes of meat and processed meat products. Within the last five years alone, the company has invested more than US$1 billion into the development of Russia's agriculture sector. Its strategy includes both organic growth and investment in new projects, driving the consolidation of the Russian meat market.